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Business Current Events Archive


ATM Withdrawal Limit Increased, Reports from Delhi

Reports from Delhi say that the RBI has increased the withdrawal limit of the daily transaction in ATM to 10,000 from 4,500 on Monday. However, the weekly withdrawal limit will remain the same, 24,000.

The limit on withdrawal from the current accounts has been increased to 1,00,000 from 50,000 per week.

TCS Veteran to take Charge as Executive Chairman in Mumbai

Tata Consultancy Services veteran, Natarajan Chandrasekaran is going to take charge as Executive Chief on 21 February in Mumbai. The 53-year-old Managing Director and CEO of the group’s software unit has been chosen for the position by the Tata Sons, the holding company of the Tata group on Thursday.

Reports say that he was selected on the basis of three decades he spent with the Tatas and proved his potential with the growth of TCS.

The other candidates for the position were UK industrialist George Buckley, Unilever Chief Operating Officer Harish Manwani and Trent Chairman Noel Tata.

Rupee Strengthens by 17 Paise against Dollar

According to reports, in early trade, rupee has gained 17 paise to 68.04 against the dollar at Interbank Foreign Exchange. As per the forex dealers, rupee received support because of the weakness in the dollar against some currencies of other countries.

SilkAir Offers Special New Year Airfares

According to reports, the regional wing of Singapore Airlines, SilkAir has announced special fares for destinations like Malaysia, Thailand, the Philippines, Indonesia, Cambodia, China, Japan, and Laos.

To travel before 30 June, the all-inclusive airfare of Rs 19,499 has to be booked by the end of January.

The airline operates flights to eight Indian cities.

RBI governor to be questioned on cash crunch

Inquiring the government's decision of scrapping bank notes of higher denomination, Parliamentary committee has sent a list of questions to RBI governor on the demonetisation process.

The Public Accounts Committee (PAC) has solicited the governor of the Reserve Bank of India - Urjit Patel, to explain the process of the decision for demonetisation and has asked for details on its impact on the country's economy. The committee has also asked Patel to appear before it on January 20.

Patel has been under ire from some politicians over paucity of replacement currency and restrictions on depositing old notes that have resulted in long queues at banks and ATMs. Patel is already set to testify before another parliamentary committee.

Last month, the RBI unexpectedly kept its key policy rate unchanged at 6.25 percent, despite calls for action in the face of an intense cash shortage that threatens to slam the brakes on the world's fastest-growing large economy. The bank was widely expected to cut the rate by at least 25 bps. 

Karnataka: Petrol pumps to say no to cards from Monday; protest bank's transaction fee

Marking a protest to bank’s transition fee, the petrol pumps in Karnataka have decided to not accept debit and credit cards from Monday onward.

The move by banks to charge 1 percent transaction fee on every payment accepted by card, has been called as "irrational and sudden" by the petroleum dealers.

The president of Akhila Karnataka Federation of Petroleum Traders and Bangalore Petroleum Dealers Association, B R Ravindranath has asked for a public apology from banks.

In words of Ravindranath, the profit of all petroleum dealers are decided by the oil marketing companies (OMCs), which have fixed the net profit at 0.3 percent to 0.5 percent. And if the banks will levy a transaction fee of 1 percent, it will become difficult for us to survive in such circumstances, shared Ravindranath.

Though, this move by banks will not affect the consumers directly, cash-only operations at petrol pumps will certainly cause inconvenience to vehicle owners given the scarcity of cash in the system. This move comes at a time when the Centre is pushing for cash-less transactions.

Government chooses Inflation Hawk Urjit Patel as RBI Governor to Continue Rajan's Legacy

RBI's incumbent Deputy Governor, 52 year old Urjit Patel, has been chosen by Modi government as the new RBI governor. Patel will assume office on September 4, after the incumbent RBI governor Raghuram Rajan steps down. Urjit Patel, who is known as the “inflation warrior” of Rajan, has promised to give his best shot “to live up to the expectation of people”. Union Finance Minister Arun Jaitley congratulated Patel and wished him success. Reports say, it was under Patel-led committee’s recommendation that the inflation target range for India has been set between 2 to 6 per cent.

SEBI Chairman admits complex Challenges in Commodity market regulation

UK Sinha, Chairman of Securities and Exchange Board of India (SEBI), in the “chairman’s statement” of 2015-16’s annual report of SEBI said that the security watchdog confronts “many complex challenges” in commodity market regulation. SEBI is currently trying to bring the derivatives market of the commodities at par in all respects with that of the securities market. Sinha said in the statement that the organisation is “endeavouring towards reshaping and refining” market regulations of commodities derivatives to strengthen the risk management framework and boost exchanges’ surveillance mechanisms.

FM Jaitley calls for Municipal Level Reforms for Ease of Doing Business

Union Finance Minister Arun Jaitley, while addressing an audience at a seminar (on the topic “State economic reforms: The way ahead”) in Bhilai said that all round effort on part of the central and state government has started to ease doing business in India. However, he stressed upon the need of percolating down the efforts to civil bodies (municipal and panchayat levels). Jaitley said that passage of GST bill in the parliament is a major step towards taxation reforms, which will help Indian economy to become more competitive in the global market.

British Secretary says GST will make India more Attractive to Foreign Investment

U.K. Secretary of State for International Development Priti Patel, currently on a 3-day visit to India, has revealed that passage of the GST (Goods and Services Tax) has helped India become a more attractive destination for foreign investors because of the ease of business. She called it an important reform and said that her government is already assisting India in the development of smart cities that includes Amravati, Indoor, and Pune.  She also met PM Modi and discussed on strategic relationship between India and UK.

SBI Net Profit drops by 32 Per Cent, Stocks Rise by over 7 Per Cent

State bank of India’s net profit dropped by 32 per cent (from Rs. 3,692 crore last year to Rs. 2,521 crore) mainly due to rising Non Performing Assets (NPAs) or bad loans. Reports say, gross NPA of SBI crossed the one lakh crore mark (Rs 1,01,541 crore) from the preceding quarter. SBI chairman Arundhati Bhattacharya has said that the rate of credit creation growth in financial year 2017 will be 12 per cent and the NPA creation growth will taper off. However, SBI stocks rallied and increased by 7.1 per cent, owing to less than expected growth in bad loans.

July Merchandise exports fall despite June industrial growth at 8-month High

Industrial growth in the month of June jumped to a 8-month high to 2.1 per cent, a significant increase over its may result of 1.1 per cent. Data released by Central Statistics Office (CSO) shows that the increased growth was posted due to robust production in mining and electricity verticals. During June, Index of Industrial production’s major component – manufacturing - increased by 0.9 per cent, which is higher than May’s figure of 0.6 per cent. However, slowing global economy has yet again led to contracted merchandise exports – by 6.8 per cent in June.

Bank of England's Stimulus Plan makes Indian Stock Market Rally

After Bank of England (BoE) announced stimulus plan along with cutting borrowing cost for protecting Britain’s economy after Brexit fallout, Indian bourses witnessed strong rally with sharp foreign investment inflows. Yesterday benchmark BSE Sensex increased by 363.98 points (1.3 per cent) to close above 28,000 (28,078.35) points. National Stock Exchange’s Nifty 50 also witnessed a strong rally as it closed at 8,683.15 points, jumping by 1.5 per cent or 132 points. Highest gainer was Hero MotoCorp, witnessing gain of 5 per cent.

PM Modi meets Cabinet Ministers on GST Bill

In an effort to firm up strategy for passing the long awaited Goods and Services Tax (GST) Bill, Prime Minister Narendra Modi met Union Finance Minister Arun Jaitley, Union Home Minister Rajnath Singh, and BJP chief Amit Shah late last night at his residence. Jaitley, while speaking to the press, said that they are keeping their fingers crossed. Reports say 30 out of the 32 parties are in favour of the bill. GST bill will be taken up in parliament for consideration and passage next week, likely on Tuesday.

Vedanta-Cairn India Merger Deal Sweetened to appease Minority Shareholders

Boards of Vedanta and Cairn India met yesterday to revise final terms for their merger deal to make it more attractive for the minority stakeholders, who termed the earlier deal unfair. The merger terms have been sweetened by promising each minority stakeholders of Cairn India 1 equity share along with 4 redeemable preference shares (having face value of Rs 10) in Vedanta. The preference shares can be redeemed after 18 months with an option of redeeming them within 30 days of allotment.

Gadkari offers Tesla Land near major Indian ports to Make in India

Transport Minister Nitin Gadkari has wooed US-based electric car major Tesla to set up its Asia manufacturing hub in India by offering land near major Indian ports so that they can export manufactured cars easily to South and South East Asian countries. With a view to introduce pollution-free road transport in India, Road Transport and Highways Minister Gadkari offered to promote joint ventures between Tesla and Indian automobile companies. Senior Tesla executive said that the Indian government’s offer will be considered at an appropriate time.

Jet Airways to Charge Money for Extra Cabin Bags

Jet Airways is going to charge Rupees Nine Hundred on every extra cabin bag carried by the passengers. Every passenger will be allowed to carry 10 kgs of cabin bag, depending on the type, whether the ticket is of business class or economy. This is going to be implemented from Friday.

United Spirit accuses Liquor Baron Mallya for Rs. 1,225 Crore Diversion

Liquor Baron Vijay Mallya’s erstwhile group firm United Spirits Limited (USL) has accused in a filing to BSE that Mallya diverted funds (of Rs. 913.5 crore) and carried out improper transactions (of Rs. 311.8 crore) with entities (including Kingfisher Airlines and Formula One team) associated with him. Per USL, the gross violations came to light during an additional prima facie inquiry between October 2010 and July 2014. While hearing a plea of Enforcement Directorate, a Delhi court asked Mallya to appear before it on September 9.

US introduces H-1B and L-1 Visa Reform Act, Likely to Affect Indian IT Companies if Passed

Democratic Congressman Bill Pascrell from New Jersey and Republican Dana Rohrabacher from California have introduced H-1B and L-1 Visa Reform Act of 2016 in the House of Representatives. If the legislation is passed by the Senate, it may adversely affect revenue model of major big IT companies from India. The bill proposes to prohibit companies (employing more than 50 employees) from hiring H-1B employees if over 50 per cent of their employees are holders of H-1B and L-1 visas.

UK Business Secretary Sajid Javid talks to Sitharaman on Possible UK-India FTA Post-Brexit

Just a fortnight after people of UK voted in favour of Britain’s exit from the European Union, UK Business Secretary Sajid Javid started dialogue with India’s Commerce & Industry Minister Nirmala Sitharaman to explore the possibility of inking a separate Free Trade Agreement (FTA) between India and UK. When asked about the issue, Sitharaman said that the informal talks will transform into a formal framework but didn’t divulge whether the agreement will be FTA or a preferential one.