Plan and Policy

Plan & Policy

Remittance norms tightened

RBI on Tuesday tightened norms for liberalised remitt­a­nce scheme (LRS) by ma­king quoting of permanent account number (PAN) mandatory even for transactions below $25,000.

Under LRS, all resident individuals, including minors, are allowed to freely remit up to $2,50,000 per financial year for any perm­issible current or capital account transaction or a combination of both.

RBI revises up housing loan limits under priority sector

Housing loans of up to Rs 35 lakh, for dwellings costing less than Rs 45 lakh, will be treated as priority sector lending (PSL) to give a fillip to the low-cost segment, the Reserve Bank of India (RBI) said on Tuesday. PSL loans are relatively cheaper than market interest rate.

No liquidity issues with PSBs: FM

There is enough liquidity in the banking system to le­nd to genuine borrowers despite some banks struggling due to RBI’s supervision (pr­o­mpt corrective action – PCA), high provisions and mounting non-performing assets (NPAs).

Speaking to reporters aft­er meeting heads of public sector banks (PSBs) here on Tuesday, finance minister Piyush Goyal said bankers have decided to embark on a strategy to give a push to len­d­ing to genuine corporate borrowers as well as small businesses with a view to support the uptick in the economic activity.

India sanguine about 2.5% CAD

The current account deficit at 2.5 per cent of the gross domestic product won’t be a worry as the government has the required instruments to deal with any imbalance created due to foreign fund outflow, economic affairs secretary Subhash Chandra Garg said on Tuesday.

“The 2-2.5 per cent CAD is not a problem for us. If th­e­re is stability, in the curr­ent year capital account (infl­ows) should be good eno­ugh to take care and we may not worry even if it (CAD) reaches 2.5 per cent,” Garg said.

BJP snaps alliance with PDP in J&K

In a surprise move, the BJP on Tuesday pulled out of the three-year-old ruling coalition with the PDP in Jammu and Kashmir and called for governor’s rule, which appeared imminent, after which chief minister Mehbooba Mufti quit.

J-K govt collapses after BJP pulls out of alliance with PDP

The three-year Jammu and Kashmir government, wracked by bitter political feuds and worsening security challenges, collapsed today with the BJP pulling out of its alliance with the PDP setting the stage for yet another round of governor's rule.

Sena, JDU, SP join Delhi CM supporters

Amid the tug of war between the AAP dispensation and Lieutenant Governor, Delhi chief minister Arvind Kejriwal has found the support of three more regional players — Shiv Sena, Samajwadi Party (SP) and Janata Dal United.

While senior SP leader Ram Gopal Yadav visited deputy chief minister Manish Sisodia and Health minister Satyendar Jain at the hospital, and assured them that if need be, “we will also sit on dharna”, JD(U) spokesperson Pawan Verma told a TV news channel on Sunday, “An elected government should be allowed to work without any interference.”

India has lost demographic dividend: Pai

India no longer enjoys the advantage of demographic dividend as it’s saddled with crores of youngsters with low skills unsuited to the economy, claimed a human resources and education expert. Chairman of Manipal Global Education TV Mohandas Pai claimed India already has 10 crore people in the 21-35 age-group with bad skills, unsuited for the economy. “There is no dem­ographic dividend,” he said.

Retail-focused NBFCs may need Rs 4 trillion fresh debt to grow at 20% in FY19

Retail-focused non-banking financial companies (NBFCs) would require Rs 3.8-4 trillion of fresh debt capital in FY19 to grow at 20 per cent in the current financial year, says a report. Domestic NBFCs are facing twin challenges in the form of narrowing options and increased borrowing cost for adequate debt raising.

“Retail-focused NBFCs would require about Rs 3.8-4 trillion of fresh debt funding during FY19 to support their envisaged portfolio growth of about 20 per cent during the year,” according to a report by Icra.