General Affairs
Govt reiterates: No extension of over-the-counter exchange of old Rs 500, Rs 1,000 notes
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The Finance Ministry on Thursday decided that there will be no over the counter exchange of old Rs. 500 and Rs 1,000 notes after midnight of November 24, among other measures. The government also said that certain other exemptions relating to cancellation of legal tender character of old Rs. 500 and Rs.1000 notes has been extended up to December 15. The ones extended till December 15 include, payment of current and arrears dues to utilities which will be limited to only water and electricity. As far as petrol pumps are concerned, Minister of State for Petroleum and Natural Gas Dharmendra Pradhan today announced that after midnight, petrol pumps and LPG shops will continue to accept old Rs 500 notes till December 15, however old Rs 1,000 notes will not be accepted.
The ministry also added: “Foreign citizens will be permitted to exchange foreign currency up to Rs.5,000 per week. Entry to this effect will be made in their passports. Toll payment at toll plazas can be made via old Rs.500 notes from December 3 till December 15 as toll free arrangement continues up to 2nd Dec.”
As per the Press Information Bureau release, the government has also permitted various exemptions for certain transactions and activities wherein payment could be made through old Rs. 500 and Rs. 1000 notes.
Here’s the full text of the release:
It has been decided that all these exemptions, with the additions and modifications as detailed below, may be continued for a further period from the midnight of 24.11.2016 up to and inclusive of 15.12.2016 :-
1. Payments for the transactions under all the exempted categories will now be accepted only through old Rs. 500 notes.
2. Payment of School fees up to Rs. 2000 per student in Central Government, State Government, Municipality and local body schools.
3. Payment of fees in Central or State Government colleges.
4. Payments towards pre paid mobile top-up to a limit of Rs. 500 per top-up.
5. Purchase from Consumer Cooperative Stores will be limited to Rs. 5000 at a time.
6. Payment of current and arrears dues to utilities will be limited to only water and electricity. This facility will continue to be available only for individuals and households.
7. Considering that the Ministry of Road Transport and Highways have continued the toll free arrangement at the toll plazas up to 2.12.2016, it has been decided that toll payment at these toll plazas may be made through old Rs. 500 notes from December 3 to December 15, 2016.
8. Foreign citizens will be permitted to exchange foreign currency up to Rs. 5000 per week. Necessary entry to this effect will be made in their passports.
The ministry also added: “Foreign citizens will be permitted to exchange foreign currency up to Rs.5,000 per week. Entry to this effect will be made in their passports. Toll payment at toll plazas can be made via old Rs.500 notes from December 3 till December 15 as toll free arrangement continues up to 2nd Dec.”
As per the Press Information Bureau release, the government has also permitted various exemptions for certain transactions and activities wherein payment could be made through old Rs. 500 and Rs. 1000 notes.
Here’s the full text of the release:
It has been decided that all these exemptions, with the additions and modifications as detailed below, may be continued for a further period from the midnight of 24.11.2016 up to and inclusive of 15.12.2016 :-
1. Payments for the transactions under all the exempted categories will now be accepted only through old Rs. 500 notes.
2. Payment of School fees up to Rs. 2000 per student in Central Government, State Government, Municipality and local body schools.
3. Payment of fees in Central or State Government colleges.
4. Payments towards pre paid mobile top-up to a limit of Rs. 500 per top-up.
5. Purchase from Consumer Cooperative Stores will be limited to Rs. 5000 at a time.
6. Payment of current and arrears dues to utilities will be limited to only water and electricity. This facility will continue to be available only for individuals and households.
7. Considering that the Ministry of Road Transport and Highways have continued the toll free arrangement at the toll plazas up to 2.12.2016, it has been decided that toll payment at these toll plazas may be made through old Rs. 500 notes from December 3 to December 15, 2016.
8. Foreign citizens will be permitted to exchange foreign currency up to Rs. 5000 per week. Necessary entry to this effect will be made in their passports.
Petrol pumps, LPG stations to accept old Rs 500 notes till Dec 15: Dharmendra Pradhan
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In a latest announcement, the government said that petrol pumps and LPG stations will continue to accept old Rs. 500 notes till December 15. However, old Rs 1000 notes will not be accepted. Earlier, the government directive had said that petrol pumps will accept both Rs 500 and Rs 1000 but only till November 24 midnight.
After midnight,Petrol Pumps & LPG shops will continue to accept old Rs. 500 notes till 15 Dec;however old Rs 1000 notes will not be accepted
— Dharmendra Pradhan (@dpradhanbjp) November 24, 2016
Meanwhile, the government on Thursday further extended the suspension of toll collection on national highways till December 2 midnight. This is the third time the government has extended the suspension timeline. Besides, scrapped Rs 500 notes will be accepted at toll plazas on national highways from December 2 mid-night to December 15. The government had first announced the toll suspension news early in November as a major relief to commuters after Rs 500 and Rs 1000 currency notes were rendered defunct by Prime Minister Narendra Modi.
In a latest announcement, the government said that petrol pumps and LPG stations will continue to accept old Rs. 500 notes till December 15. However, old Rs 1000 notes will not be accepted. Earlier, the government directive had said that petrol pumps will accept both Rs 500 and Rs 1000 but only till November 24 midnight.
After midnight,Petrol Pumps & LPG shops will continue to accept old Rs. 500 notes till 15 Dec;however old Rs 1000 notes will not be accepted— Dharmendra Pradhan (@dpradhanbjp) November 24, 2016
Meanwhile, the government on Thursday further extended the suspension of toll collection on national highways till December 2 midnight. This is the third time the government has extended the suspension timeline. Besides, scrapped Rs 500 notes will be accepted at toll plazas on national highways from December 2 mid-night to December 15. The government had first announced the toll suspension news early in November as a major relief to commuters after Rs 500 and Rs 1000 currency notes were rendered defunct by Prime Minister Narendra Modi.
Nepal bans new Indian Rs 500 and Rs 2,000 notes
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Nepal Rastra Bank on Thursday banned the use of India’s new currency notes of Rs 500 and Rs 2,000 denomination, terming them “unauthorised and illegal”. These two currency notes were issued by the Reserve Bank of India recently after old Rs 500 and Rs 1,000 denomination notes were withdrawn. Nepal Rastra Bank (NRB) has called the new currency notes “unauthorised and illegal”.
NRB spokesperson Narayan Poudel said these new currency notes are not yet legal in Nepal, according to Onlinekhabar.com. Poudel said these notes will be legal in Nepal only when India issues a FEMA notification as per the Foreign Exchange Management Act. India is likely to issue a FEMA notification, allowing people in Nepal and India to possess certain amount of Indian currency.
Earlier, a ban was in effect in Nepal till last year against the use of Rs 500 and Rs 1,000 denominations notes. Authorities had lifted this ban after the visit of Prime Minister Narendra Modi to Nepal. Nepal last year allowed people to carry Indian Rupees of higher denominations upto Indian Rs 25,000.
The Reserve Bank of India had formed a task force to ease currency exchange facility in Nepal for non-Indians who possess the now-defunct notes of 500 and 1,000 denominations.
NRB spokesperson Narayan Poudel said these new currency notes are not yet legal in Nepal, according to Onlinekhabar.com. Poudel said these notes will be legal in Nepal only when India issues a FEMA notification as per the Foreign Exchange Management Act. India is likely to issue a FEMA notification, allowing people in Nepal and India to possess certain amount of Indian currency.
Earlier, a ban was in effect in Nepal till last year against the use of Rs 500 and Rs 1,000 denominations notes. Authorities had lifted this ban after the visit of Prime Minister Narendra Modi to Nepal. Nepal last year allowed people to carry Indian Rupees of higher denominations upto Indian Rs 25,000.
The Reserve Bank of India had formed a task force to ease currency exchange facility in Nepal for non-Indians who possess the now-defunct notes of 500 and 1,000 denominations.
Opposition calls for Bharat Bandh against demonetisation on November 28
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The opposition parties on Thursday called for a nationwide strike (Bharat Bandh) on November 28 against the demonetisation drive by the Modi government. Earlier in the day, a united opposition attacked the Centre in Parliament over poor implementation of demonetisation. Former Prime Minister Manmohan Singh led the opposition attack on government in Rajya Sabha, terming demonetisation a “monumental management failure” which would lead to dip in GDP growth by at least 2 per cent.
Speaking during the debate on demonetisation which was briefly resumed as Prime Minister Narendra Modi was present in the House, Singh said he agreed with the objectives of the scheme to demonetise currency notes of Rs 500 and Rs 1000 as spelt out by the Prime Minister but he wished to highlight the problems that the common people and poor have been subjected to by the move.
The debate was taken up by suspending the Question Hour as both the opposition and the ruling side concurred as Modi was present in the House. Leader of Opposition Ghulam Nabi Azad urged Chairman Hamid Ansari and Leader of the House Arun Jaitley that the Question Hour should not be taken up and the demonetisation debate, which was initiated on November 16, should be resumed as Modi was present.
Some other Opposition leaders like TMC’s Derek O’Brien and BSP chief Mayawati also took the government to task on the issue.
Speaking during the debate on demonetisation which was briefly resumed as Prime Minister Narendra Modi was present in the House, Singh said he agreed with the objectives of the scheme to demonetise currency notes of Rs 500 and Rs 1000 as spelt out by the Prime Minister but he wished to highlight the problems that the common people and poor have been subjected to by the move.
The debate was taken up by suspending the Question Hour as both the opposition and the ruling side concurred as Modi was present in the House. Leader of Opposition Ghulam Nabi Azad urged Chairman Hamid Ansari and Leader of the House Arun Jaitley that the Question Hour should not be taken up and the demonetisation debate, which was initiated on November 16, should be resumed as Modi was present.
Some other Opposition leaders like TMC’s Derek O’Brien and BSP chief Mayawati also took the government to task on the issue.
Assam forest minister orders FIR against Patanjali for jumbo death in project site
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Hours after a female elephant had died after writhing in pain for over 24 hours in a pit at a project site of Patanjali Herbal and Mega Food Park near Tezpur, Assam forest minister Pramila Rani Brahma on Thursday instructed forest officials to lodge an FIR against the Ramdev firm by holding it responsible for the incident.
The female elephant, which was the second to fall into a 10-feet deep pit after its calf first fell in it in the wee hours of Wednesday, sustained serious head injury and fracture in one leg when a full-grown male elephant fell atop her. While the male elephant managed to come out of it, the female kept lying in the pit writhing in pain. Though forest officials rescued the calf, the female elephant died on Thursday morning even as she was undergoing treatment at the accident site.
“It is a very tragic incident. While the area is known for frequent elephant movement, what appears is that the industrial park land given to Patanjali is actually part of an elephant corridor. Local people too have said that elephant movement has been there for decades. I have asked my department officials to lodge an FIR against the company which is setting up a factory there,” minister Brahma told The Indian Express.
The minister also described the ‘attitude’ of the Patanjali officials as insensitive to conservation and wildlife. “Everybody in that area knows that there are several herds of wild elephants in there. The people implementing the project should have taken extra precaution. Why did they leave such huge pits unattended? It is nothing but sheer negligence and insensitivity. They have taken the matter very lightly,” Brahma said.
Forest officials had organised several cranes and excavators to widen the pit and shift the injured elephant to the Centre for Wildlife Rehabilitation & Conservation (CWRC) at Kaziranga, about 60 kms away. But the elephant, which was bleeding from the trunk responded very poorly to the vets, and passed away early Thursday morning. Her two-month old calf was shifted to the CWRC.
Speaking on behalf of Patanjali, Udayaditya Goswami said that the area, which was notified as an industrial park of AIDC in the 1990s, was not an elephant corridor, but herds of elephants do come down from Arunachal Pradesh during the harvest season to feed on ripe paddy. “We are aware of the elephant movement and so had deployed six persons to keep a watch on it. But unfortunately, two elephants fell into a 9-feet pit after a calf fell first early Wednesdaymorning,” he said. Goswami also said that Patanjali would soon raise a herbal garden covering about 28,000 bigha land inside adjoining Arunachal Pradesh, which would also serve as a refuge for elephants.
Baba Ramdev’s Patanjali Herbal and Mega Food Park was allotted 150 acres of land by the Assam government in the AIDC complex at Balipara near Tezpur, and it was only on November 6 that chief minister Sarbananda Sonowal had laid the foundation stone of the project in the presence of most of his cabinet colleagues. The yoga guru too was present in the function. The 6.57 lakh MTPA food park, which promises to generate 4,000 jobs, will manufacture a wide range of products including cosmetics, nutrition and kitchen essentials.
Though conservation groups and forest officials have said that the industrial estate where land was allotted Patanjali was not a notified elephant corridor, minister Brahma said there was scope for notifying more elephant corridors across the state, especially in view of increasing human-elephant conflict. The Patanjali food park site is situated within 20 kms of Nameri National Park and 30 kms of Sonai-Rupai wildlife sanctuary.
“With so many incidents of people attacking and causing death and injury to elephants occurring in recent times, I think there is scope for re-looking into the issue and notifying more areas elephant corridors,” she said. At least 10 wild elephants have died as a result of human-elephant conflict across Assam in the current year.
Hours after a female elephant had died after writhing in pain for over 24 hours in a pit at a project site of Patanjali Herbal and Mega Food Park near Tezpur, Assam forest minister Pramila Rani Brahma on Thursday instructed forest officials to lodge an FIR against the Ramdev firm by holding it responsible for the incident.
The female elephant, which was the second to fall into a 10-feet deep pit after its calf first fell in it in the wee hours of Wednesday, sustained serious head injury and fracture in one leg when a full-grown male elephant fell atop her. While the male elephant managed to come out of it, the female kept lying in the pit writhing in pain. Though forest officials rescued the calf, the female elephant died on Thursday morning even as she was undergoing treatment at the accident site.
“It is a very tragic incident. While the area is known for frequent elephant movement, what appears is that the industrial park land given to Patanjali is actually part of an elephant corridor. Local people too have said that elephant movement has been there for decades. I have asked my department officials to lodge an FIR against the company which is setting up a factory there,” minister Brahma told The Indian Express.
The minister also described the ‘attitude’ of the Patanjali officials as insensitive to conservation and wildlife. “Everybody in that area knows that there are several herds of wild elephants in there. The people implementing the project should have taken extra precaution. Why did they leave such huge pits unattended? It is nothing but sheer negligence and insensitivity. They have taken the matter very lightly,” Brahma said.
Forest officials had organised several cranes and excavators to widen the pit and shift the injured elephant to the Centre for Wildlife Rehabilitation & Conservation (CWRC) at Kaziranga, about 60 kms away. But the elephant, which was bleeding from the trunk responded very poorly to the vets, and passed away early Thursday morning. Her two-month old calf was shifted to the CWRC.
Speaking on behalf of Patanjali, Udayaditya Goswami said that the area, which was notified as an industrial park of AIDC in the 1990s, was not an elephant corridor, but herds of elephants do come down from Arunachal Pradesh during the harvest season to feed on ripe paddy. “We are aware of the elephant movement and so had deployed six persons to keep a watch on it. But unfortunately, two elephants fell into a 9-feet pit after a calf fell first early Wednesdaymorning,” he said. Goswami also said that Patanjali would soon raise a herbal garden covering about 28,000 bigha land inside adjoining Arunachal Pradesh, which would also serve as a refuge for elephants.
Baba Ramdev’s Patanjali Herbal and Mega Food Park was allotted 150 acres of land by the Assam government in the AIDC complex at Balipara near Tezpur, and it was only on November 6 that chief minister Sarbananda Sonowal had laid the foundation stone of the project in the presence of most of his cabinet colleagues. The yoga guru too was present in the function. The 6.57 lakh MTPA food park, which promises to generate 4,000 jobs, will manufacture a wide range of products including cosmetics, nutrition and kitchen essentials.
Though conservation groups and forest officials have said that the industrial estate where land was allotted Patanjali was not a notified elephant corridor, minister Brahma said there was scope for notifying more elephant corridors across the state, especially in view of increasing human-elephant conflict. The Patanjali food park site is situated within 20 kms of Nameri National Park and 30 kms of Sonai-Rupai wildlife sanctuary.
“With so many incidents of people attacking and causing death and injury to elephants occurring in recent times, I think there is scope for re-looking into the issue and notifying more areas elephant corridors,” she said. At least 10 wild elephants have died as a result of human-elephant conflict across Assam in the current year.
Business Affairs
Sensex falls 146 points on F&O expiry, weak rupee
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After rising for two back-to-back sessions, the stock market turned weak as the benchmark Sensex fell nearly 146 points and the NSE Nifty hung below the 8,000-mark in early trade on Thursday, with participants liquidating positions in view of November month derivatives expiry.
Besides, weak Asian cues as upbeat economic data strengthened prospect of higher US interest rates and the continued free-fall of the rupee against the American currency weighed on sentiment, brokers said.
The rupee on Thursday weakened by another 27 paise against the dollar to trade at a fresh nine-month low of 68.83, extending its free-fall for the fifth straight day on sustained foreign fund outflows amid the American currency surging overseas at the Interbank Foreign Exchange (Forex) market.
The 30-share index was trading lower by 145.97 points, or 0.56 per cent, to 25,905.84. The gauge had gained 286.67 points in the previous two sessions.
Sectoral indices led by auto, power, banking, consumer durables, capital goods and FMCG, declining by up to 0.97 per cent. The NSE Nifty fell 59.35 points, or 0.73 per cent, to 7,973.95 in early trade.
Offloading of positions by participants — today being the last trading session of November series contracts in the derivatives segment — and weak Asian cues, dampened sentiment
here.
Major losers were Tata Motors, Lupin, NTPC, Adani Ports, Axis Bank, L&T, Sun Pharma, ICICI Bank, Tata Steel, M&M, Maruti Suzuki, SBI and RIL, falling by up to 1.68 per cent.
Among other Asian markets, Hong Kong’s Hang Seng shed 0.37 per cent while Shanghai Composite Index shed 0.11 per cent in early trade. Japan’s Nikkei, however, was up 1.08 per cent. The US Dow Jones Industrial Average ended 0.31 per cent higher yesterday.
After rising for two back-to-back sessions, the stock market turned weak as the benchmark Sensex fell nearly 146 points and the NSE Nifty hung below the 8,000-mark in early trade on Thursday, with participants liquidating positions in view of November month derivatives expiry.
Besides, weak Asian cues as upbeat economic data strengthened prospect of higher US interest rates and the continued free-fall of the rupee against the American currency weighed on sentiment, brokers said.
The rupee on Thursday weakened by another 27 paise against the dollar to trade at a fresh nine-month low of 68.83, extending its free-fall for the fifth straight day on sustained foreign fund outflows amid the American currency surging overseas at the Interbank Foreign Exchange (Forex) market.
The 30-share index was trading lower by 145.97 points, or 0.56 per cent, to 25,905.84. The gauge had gained 286.67 points in the previous two sessions.
Sectoral indices led by auto, power, banking, consumer durables, capital goods and FMCG, declining by up to 0.97 per cent. The NSE Nifty fell 59.35 points, or 0.73 per cent, to 7,973.95 in early trade.
Offloading of positions by participants — today being the last trading session of November series contracts in the derivatives segment — and weak Asian cues, dampened sentiment
here.
here.
Major losers were Tata Motors, Lupin, NTPC, Adani Ports, Axis Bank, L&T, Sun Pharma, ICICI Bank, Tata Steel, M&M, Maruti Suzuki, SBI and RIL, falling by up to 1.68 per cent.
Among other Asian markets, Hong Kong’s Hang Seng shed 0.37 per cent while Shanghai Composite Index shed 0.11 per cent in early trade. Japan’s Nikkei, however, was up 1.08 per cent. The US Dow Jones Industrial Average ended 0.31 per cent higher yesterday.
Rupee hits 39-month low, tumbles 28 paise to 68.84
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The rupee crashed to nearly 39-month low of 68.84, plummeting by by another 28 paise against the US dollar in early trade on Thursday amid sustained foreign fund outflows and the greenback’s surge in overseas markets.
The domestic currency had hit its all-time intra-day low of 68.85 and closed at 68.80 on August 28, 2013.
Forex dealers said besides a strong month-end demand for the American currency from importers, continued capital outflows by foreign funds and the dollar’s bull run on an imminent hike in Fed’s interest rates, mainly weighed on the domestic currency.
Further, a lower opening of the domestic equity market also put pressure on the rupee, they said.
The rupee had shed 31 paise to close at a new nine-month low of 68.56 against the dollar on Wednesday.
The Indian currency shrunk 2.92 per cent since Donald Trump’s victory in the US Presidential polls earlier this month.
A huge outflow of capital by foreign investors has been weakening the rupee as they apprehend an impact on the economy in the short-term following the India’s move to demonetise Rs 500 and Rs 1,000 banknotes. Surging US bond yields and a strong dollar overseas are also contributing to the rupee’s fall.
Meanwhile, the BSE Sensex fell by 145.97 points, or 0.56 per cent, to 25,905.84 points in early trade.
The rupee crashed to nearly 39-month low of 68.84, plummeting by by another 28 paise against the US dollar in early trade on Thursday amid sustained foreign fund outflows and the greenback’s surge in overseas markets.
The domestic currency had hit its all-time intra-day low of 68.85 and closed at 68.80 on August 28, 2013.
Forex dealers said besides a strong month-end demand for the American currency from importers, continued capital outflows by foreign funds and the dollar’s bull run on an imminent hike in Fed’s interest rates, mainly weighed on the domestic currency.
Further, a lower opening of the domestic equity market also put pressure on the rupee, they said.
The rupee had shed 31 paise to close at a new nine-month low of 68.56 against the dollar on Wednesday.
The Indian currency shrunk 2.92 per cent since Donald Trump’s victory in the US Presidential polls earlier this month.
A huge outflow of capital by foreign investors has been weakening the rupee as they apprehend an impact on the economy in the short-term following the India’s move to demonetise Rs 500 and Rs 1,000 banknotes. Surging US bond yields and a strong dollar overseas are also contributing to the rupee’s fall.
Meanwhile, the BSE Sensex fell by 145.97 points, or 0.56 per cent, to 25,905.84 points in early trade.
Currency withdrawal: Debit card charges dropped, easy cash access for farmers
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To further ease the cash crunch resulting from government’s decision to withdraw old Rs 500 and Rs 1,000 currency notes, the finance ministry on Wednesday announced a series of measures being taken by various agencies. While banks have decided to waive off transaction charges on debit cards, Indian Railways is removing charges on tickets booked online till December 31.
The government has also allowed NABARD (National Bank for Agriculture and Rural Development) to disburse Rs 21,000 crore to farmers, helping them sow winter crops like wheat ahead of the Rabi season, Department of Economic Affairs Secretary Shaktikanta Das said on Wednesday.
“NABARD has made available Rs 21,000 crore limit to the District Central Cooperative Banks (DCCBs) through State Cooperative Banks for Rabi agricultural operations. This will enable the DCCBs to sanction and disburse crop loans to the farmers through the network of Primary Agricultural Cooperative Societies,” the finance ministry said in a statement later in the day. This move will benefit more than 40 per cent of the small and marginal farmers who avail institutional credit/crop loans, it said. The government has already allowed farmers to buy seeds with old Rs 500 notes from designated agencies, and permitted them to withdraw Rs 25,000 against sanctioned crop loans. “Over and above this Rs 21,000 crore limit, as and when the additional limits are required, they will also be sanctioned by NABARD,” Das said.
To ensure farmers get credit in cash, the government has advised NABARD, RBI and banks to make the required cash available. Banks have been asked to ensure the district cooperative banks and regional rural banks, which provide loans to several farmers’ cooperatives, get sufficient cash. “This will ensure quick flow of credit and required cash to the farmers, especially for sowing and other agricultural operations during the current Rabi season,” the government said. To encourage widespread usage of digital payments, Das said all public sector banks and some private banks have agreed to waive the transaction cost for payments through debit cards.
As of now, Rupay debit cards have already waived the charges. There are 30 crore RuPay Debit Cards which have been issued, including those issued to Jan Dhan Account holders. Usage of RuPay has grown by nearly 300 per cent in the last 12 days. Other debit cards which operate international card network companies like Mastercard and Visa, currently charge transaction charges. So far, customers bear the transaction cost commonly known as merchant discount rate (MDR) on payments made to the government.
The Reserve Bank in 2012 had capped the MDR for debit card transaction at 0.75 per cent for transaction values up to Rs 2,000 and at 1 per cent for transaction values above Rs 2,000. However, there is no RBI cap on MDR on credit card payments. Railways has already waived service charges on online booking of tickets and telecom operators have agreed to make mobile banking services free of cost till December 31. Daily average number of passengers buying e-tickets online is 58 per cent and across the counter in cash is 42 per cent of the total purchase of tickets. Similarly, the government has doubled the monthly transaction limit through e-wallets to Rs 20,000.
While government departments and PSUs have been asked to make e-payments to contractors and employees, the road transport ministry has asked automobile manufacturers to install digital RFID tag on all new vehicles to enable cashless payment at toll plazas, the finance ministry said.
To further ease the cash crunch resulting from government’s decision to withdraw old Rs 500 and Rs 1,000 currency notes, the finance ministry on Wednesday announced a series of measures being taken by various agencies. While banks have decided to waive off transaction charges on debit cards, Indian Railways is removing charges on tickets booked online till December 31.
The government has also allowed NABARD (National Bank for Agriculture and Rural Development) to disburse Rs 21,000 crore to farmers, helping them sow winter crops like wheat ahead of the Rabi season, Department of Economic Affairs Secretary Shaktikanta Das said on Wednesday.
“NABARD has made available Rs 21,000 crore limit to the District Central Cooperative Banks (DCCBs) through State Cooperative Banks for Rabi agricultural operations. This will enable the DCCBs to sanction and disburse crop loans to the farmers through the network of Primary Agricultural Cooperative Societies,” the finance ministry said in a statement later in the day. This move will benefit more than 40 per cent of the small and marginal farmers who avail institutional credit/crop loans, it said. The government has already allowed farmers to buy seeds with old Rs 500 notes from designated agencies, and permitted them to withdraw Rs 25,000 against sanctioned crop loans. “Over and above this Rs 21,000 crore limit, as and when the additional limits are required, they will also be sanctioned by NABARD,” Das said.
To ensure farmers get credit in cash, the government has advised NABARD, RBI and banks to make the required cash available. Banks have been asked to ensure the district cooperative banks and regional rural banks, which provide loans to several farmers’ cooperatives, get sufficient cash. “This will ensure quick flow of credit and required cash to the farmers, especially for sowing and other agricultural operations during the current Rabi season,” the government said. To encourage widespread usage of digital payments, Das said all public sector banks and some private banks have agreed to waive the transaction cost for payments through debit cards.
As of now, Rupay debit cards have already waived the charges. There are 30 crore RuPay Debit Cards which have been issued, including those issued to Jan Dhan Account holders. Usage of RuPay has grown by nearly 300 per cent in the last 12 days. Other debit cards which operate international card network companies like Mastercard and Visa, currently charge transaction charges. So far, customers bear the transaction cost commonly known as merchant discount rate (MDR) on payments made to the government.
The Reserve Bank in 2012 had capped the MDR for debit card transaction at 0.75 per cent for transaction values up to Rs 2,000 and at 1 per cent for transaction values above Rs 2,000. However, there is no RBI cap on MDR on credit card payments. Railways has already waived service charges on online booking of tickets and telecom operators have agreed to make mobile banking services free of cost till December 31. Daily average number of passengers buying e-tickets online is 58 per cent and across the counter in cash is 42 per cent of the total purchase of tickets. Similarly, the government has doubled the monthly transaction limit through e-wallets to Rs 20,000.
While government departments and PSUs have been asked to make e-payments to contractors and employees, the road transport ministry has asked automobile manufacturers to install digital RFID tag on all new vehicles to enable cashless payment at toll plazas, the finance ministry said.
Sebi board meeting: Start-up funding norms eased; FPIs can invest in unlisted corporate bonds
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To boost start-up funding in the country, the Securities and Exchange Board of India (Sebi) on Wednesday eased norms for angel funds, allowing them to invest in up to five year old start-ups.
The regulator has eased the lock-in requirements to one year from three years for angel funds and has cut their minimum investment threshold from Rs 50 lakh to Rs 25 lakh. Sebi has also allowed angel funds to invest in overseas venture capital undertakings up to 25 per cent of their investible corpus in line with other Alternative Investment Funds (AIFs). The regulator has also increased the upper limit of number of angel investors in a scheme from 49 to 200.
Currently, 266 AIFs are registered with Sebi, of which, 84 are registered under Category I, including four angel funds.
Apart from this, Sebi also barred private equity firms and their investee companies from entering into any compensation agreements with the promoters, directors or key officials of listed investee firms without prior approval of board and public shareholders.
“No employee including key managerial personnel, director or promoter of a listed entity shall enter into any agreement for himself or on behalf of any other person, with any shareholder or any other third party with regard to compensation or profit sharing unless prior approval has been obtained from the board as well as public shareholders,” said Sebi in a release after the meeting of its board. Sebi said that all such agreements entered during the past three years from the date of notification will need to be communicated to the stock exchanges for public dissemination, including those which may not be currently valid.
The regulator in its board meet also decided to permit foreign portfolio investors (FPIs) to invest in unlisted corporate debt securities and securitised debt instruments with a ceiling of Rs 35,000 crore with an aim to deepen capital markets. According to the amendment to the FPI regulations, approved by the Sebi board, FPIs will be allowed to invest in unlisted non-convertible debentures and securities debt instruments.
Currently, investment in unlisted debt securities is permitted only in the case of companies in the infrastructure sector.
“Investments in the unlisted corporate debt securities shall subject to minimum residual maturity of three years and end use-restriction on investment in real estate business, capital market and purchase of land. The expression ‘Real Estate Business’ shall have the same meaning as assigned to it in Foreign Exchange Management Regulations…,” said Sebi. Sebi has also permitted FPI investment in securitised debt instruments, including certificate or instrument issued by a special purpose vehicle (SPV) set up for securitisation of asset with banks and other financial institutions and any certificate or instrument issued and listed in compliance of Sebi rules.
To boost start-up funding in the country, the Securities and Exchange Board of India (Sebi) on Wednesday eased norms for angel funds, allowing them to invest in up to five year old start-ups.
The regulator has eased the lock-in requirements to one year from three years for angel funds and has cut their minimum investment threshold from Rs 50 lakh to Rs 25 lakh. Sebi has also allowed angel funds to invest in overseas venture capital undertakings up to 25 per cent of their investible corpus in line with other Alternative Investment Funds (AIFs). The regulator has also increased the upper limit of number of angel investors in a scheme from 49 to 200.
Currently, 266 AIFs are registered with Sebi, of which, 84 are registered under Category I, including four angel funds.
Apart from this, Sebi also barred private equity firms and their investee companies from entering into any compensation agreements with the promoters, directors or key officials of listed investee firms without prior approval of board and public shareholders.
“No employee including key managerial personnel, director or promoter of a listed entity shall enter into any agreement for himself or on behalf of any other person, with any shareholder or any other third party with regard to compensation or profit sharing unless prior approval has been obtained from the board as well as public shareholders,” said Sebi in a release after the meeting of its board. Sebi said that all such agreements entered during the past three years from the date of notification will need to be communicated to the stock exchanges for public dissemination, including those which may not be currently valid.
The regulator in its board meet also decided to permit foreign portfolio investors (FPIs) to invest in unlisted corporate debt securities and securitised debt instruments with a ceiling of Rs 35,000 crore with an aim to deepen capital markets. According to the amendment to the FPI regulations, approved by the Sebi board, FPIs will be allowed to invest in unlisted non-convertible debentures and securities debt instruments.
Currently, investment in unlisted debt securities is permitted only in the case of companies in the infrastructure sector.
“Investments in the unlisted corporate debt securities shall subject to minimum residual maturity of three years and end use-restriction on investment in real estate business, capital market and purchase of land. The expression ‘Real Estate Business’ shall have the same meaning as assigned to it in Foreign Exchange Management Regulations…,” said Sebi. Sebi has also permitted FPI investment in securitised debt instruments, including certificate or instrument issued by a special purpose vehicle (SPV) set up for securitisation of asset with banks and other financial institutions and any certificate or instrument issued and listed in compliance of Sebi rules.
IEA expects oil investment to fall for third year in 2017
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Investment in new oil production is likely to fall for a third year in 2017 as a global supply glut persists, stoking volatility in crude markets, the head of the International Energy Agency (IEA) said on Thursday.
“Our analysis shows we are entering a period of greater oil price volatility (partly) as a result of three years in a row of global oil investments in decline: in 2015, 2016 and most likely 2017,” IEA director general Fatih Birol said at an energy conference in Tokyo.
“This is the first time in the history of oil that investments are declining three years in a row,” he said, adding that this would cause “difficulties” in global oil markets in a few years.
Oil prices have risen to their highest in nearly a month, as expectations grow among traders and investors that OPEC will agree to cut production, but market watchers reckon a deal may pack less punch than Saudi Arabia and its partners want.
The Organization of the Petroleum Exporting Countries meets next week to try to finalise to output curbs.
Investment in new oil production is likely to fall for a third year in 2017 as a global supply glut persists, stoking volatility in crude markets, the head of the International Energy Agency (IEA) said on Thursday.
“Our analysis shows we are entering a period of greater oil price volatility (partly) as a result of three years in a row of global oil investments in decline: in 2015, 2016 and most likely 2017,” IEA director general Fatih Birol said at an energy conference in Tokyo.
“This is the first time in the history of oil that investments are declining three years in a row,” he said, adding that this would cause “difficulties” in global oil markets in a few years.
Oil prices have risen to their highest in nearly a month, as expectations grow among traders and investors that OPEC will agree to cut production, but market watchers reckon a deal may pack less punch than Saudi Arabia and its partners want.
The Organization of the Petroleum Exporting Countries meets next week to try to finalise to output curbs.
General Awareness
Global Wealth Report shows rise in household wealth of India and rising disparity
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The 7th Global Wealth Report, issued by the Credit Suisse Research Institute says that global wealthhas risen by 1.4% i.e USD 3.5 trillion to USD 256 trillion. However in India the household wealth has decreased by 0.8% i.e $26 billion to $3,099 billion in 2016.
- Even though India has 0.8% decrease in household wealth in terms of Dollar, in its own currency (INR) the wealth in India increased by 5.1% in 2016. The difference in both data is due to adverse currency exchange movements.
- Personal wealth in India is dominated by real assets. These real assets is 86% of the total household asset in India.
- As per the report the bottom poorest half of the world’s adults collectively own less than 1% of total wealth, while the wealthiest top 10% own 89% of all global assets.
Data about India in Global Wealth Report
- 96% of the adult population has wealth below USD 10,000.
- 3 % of the adult has wealth more than USD 100,000
- 2,260 adults have wealth over USD 50 million
- 1,040 adults have wealth more than USD 100 million.
- The number of millionaires in India is projected to increase by 9.5% in the next five years to 2.8 lakh in 2021.
Japan registered the highest increase in global wealth among all countries, USD 3.9 trillion increase was registered by Japan. While The United Kingdom registered biggest loss in global wealth of USD 1.5 trillion.
Population 1,302 million Adult population 808 million GDP 3,137 USD per adult Total wealth $3,099 billion US dollar millionaires 1,78,000 Top 10% of global wealth holders 33,93,000 Top 1% of global wealth holders 2,48,000
The 7th Global Wealth Report, issued by the Credit Suisse Research Institute says that global wealthhas risen by 1.4% i.e USD 3.5 trillion to USD 256 trillion. However in India the household wealth has decreased by 0.8% i.e $26 billion to $3,099 billion in 2016.
- Even though India has 0.8% decrease in household wealth in terms of Dollar, in its own currency (INR) the wealth in India increased by 5.1% in 2016. The difference in both data is due to adverse currency exchange movements.
- Personal wealth in India is dominated by real assets. These real assets is 86% of the total household asset in India.
- As per the report the bottom poorest half of the world’s adults collectively own less than 1% of total wealth, while the wealthiest top 10% own 89% of all global assets.
Data about India in Global Wealth Report
- 96% of the adult population has wealth below USD 10,000.
- 3 % of the adult has wealth more than USD 100,000
- 2,260 adults have wealth over USD 50 million
- 1,040 adults have wealth more than USD 100 million.
- The number of millionaires in India is projected to increase by 9.5% in the next five years to 2.8 lakh in 2021.
Japan registered the highest increase in global wealth among all countries, USD 3.9 trillion increase was registered by Japan. While The United Kingdom registered biggest loss in global wealth of USD 1.5 trillion.
| Population | 1,302 million |
| Adult population | 808 million |
| GDP | 3,137 USD per adult |
| Total wealth | $3,099 billion |
| US dollar millionaires | 1,78,000 |
| Top 10% of global wealth holders | 33,93,000 |
| Top 1% of global wealth holders | 2,48,000 |
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