Banking Awareness 3rd November 2016 | Financial Affairs

GST: Centre, States review options on dual control, cess


Confusions exists on service tax, multiple rates..

  • Ahead of the crucial two-day meeting of the GST Council from Thursday, the Centre and States are trying to work out alternative options to sort out the contentious issues of administrative control and rates of tax.
  • Sources indicated that States are keen to first address the issue of administrative control over small businesses and service tax assessees before moving on to a decision on the rate structure.

Proposed Service Tax Rates


Fed holds interest rates steady, sets stage for December hike

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Last review before Presidential elections

  • The Federal Reserve of United States had kept interest rates unchanged in its last policy decision before the US election, but signalled it could hike in December as the economy gathers momentum and inflation picks up.
  • The US central bank’s rate-setting committee said the economy had gained steam and job gains remained solid.
  • Fed policymakers also expressed more optimism that inflation was moving toward their 2 per cent target.

Federal Reserve

Central banking system of the United States, created on December 23, 1913

Faster security clearances on anvil for foreign investors, to help FDI flow


  • DIPP believes Lesser time will attract more inflows
  • The Industry and Home Affairs Ministries are working to expedite the grant of security clearances for foreign investors faster.
  • ‘Department of Industrial Policy and Promotion’ secretary Ramesh Abhishek has said that Presently this is often delayed or even scuttles inflows of foreign direct investment as well as mergers and acquisitions


Department of Industrial Policy and Promotion’

S&P rules out India rating upgrade


Unimpressed with policy stability and reforms

  • S&P Global Ratings maintained the lowest investment grade rating of ‘BBB—’ with a ‘stable’ outlook for India saying it wants to see more efforts to lower government debt to below 60 per cent of the GDP.
  • S&P did not expect revenues to rise enough to meaningfully lower the deficit over the medium term.
  • S&P said in a statement that “The stable outlook balances India’s sound external position and inclusive policy making tradition against the vulnerabilities stemming from its low per capita income and weak public finances”

Top 3 rating agencies

  1. Standard & Poor’s (S&P)
  2. Moody’s
  3. Fitch Group

LinkedIn inks MoU with govt to create jobs for students


LinkedIn’s ‘Placements’ will be adopted by colleges affiliated with AICTE.

Leading global professional network LinkedIn said it has signed an agreement with the human resource development ministry to create more job opportunities for Indian students.

The company said in a press release that as part of the MoU, LinkedIn’s ‘Placements’ product will be adopted by all Indian colleges affiliated with All India Council for Technical Education (AICTE)


All India Council for Technical Education

RJio to invest Rs 1-lakh cr more to ramp up infra


To setup another 50,000 base stations nationwide

  • Reliance Jio Infocomm (RJio), a wholly-owned subsidiary of Reliance Industries, will invest an additional Rs 1-lakh crore to ramp up its infrastructure to support its growing subscriber base.
  • The company plans to setup another 50,000 base statiosn across the country.
  • The company has already invested Rs 1.6-lakh crore for setting up infrastructure and installed a total of 2.82 lakh base stations across the country.

16 million

Subscribers acquired by RJio in one month which is a world record

Mittal may replace Mistry as co-Chair of India-U.K. CEO Forum


DIPP and CII suggested the replacement

  • Bharti Enterprises Chairman Sunil Mittal is likely to soon replace the erstwhile Tata Group chairman Cyrus Mistry as the co-Chair of the India-U.K. CEO Forum.
  • The forum is an influential platform of top business leaders of the two nations. It provides inputs to both governments on measures to boost bilateral trade and investment.
  • The Prime Minister’s Office (PMO) is learnt to have cleared Mr. Mittal’s name as suggested DIPP and CII

Sunil Mittal

Chairman of Bharti Enterprises (Airtel)

ICICI Bank rolls out overdraft facility against property


Salaried customers can seek loans up to Rs 1 crore for personal needs

  • ICICI Bank has launched a credit facility against home loans for salaried customers.
  • The bank has said that “This offering provides customers with the dual advantage of a term loan and an overdraft facility.”
  • The Home Overdraft facility will enable a salaried customer to seek loans up to Rs. 1 crore for personal needs against his/her property.

Overdraft Facility

The customer can avail credit and repay interest alone monthly till its maturity where he needs to payback the entire amount.

RBI wants 10% of bank ATMs to dispense only Rs 100 notes


Pilot to be done over 2 months; sees demand for the banknote among the public

  • In order to ensure that genuine requirement of members of the public for Rs 100 denomination banknotes are met, the Reserve Bank of India said it will conduct a pilot project.
  • In the pilot project 10 per cent of ATMs in the country will be exclusively calibrated to dispense Rs 100 banknotes.
  • RBI advised banks to configure/calibrate 10 per cent of their ATMs to facilitate this arrangement.


First bank to introduce ATM in India by 1987

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