Moody's retaining India's outlook at stable comes against the backdrop of two other leading agencies - S&P and Fitch lowering the credit rating outlook to negative
New Delhi: Ratings agency Moody's on Monday retained outlook on India's rating at stable despite slowdown in gross domestic product (GDP) growth rate saying that it is unlikely to be even a medium-term feature, reports PTI.
Moody's Investors Service in a statement said, "It is maintaining its stable outlook on India's rating as various credit challenges -- such as weak fiscal performance, tendency towards inflation and an uncertain investment policy environment -- have characterised the Indian economy for decades, and are already incorporated into the current Baa3 rating".
On the other hand, it said that certain recent negative trends -- such as lower growth, slowing investment and poor business sentiment -- are 'unlikely to become permanent or even medium-term features of the Indian economy'.
Although, Moody's expects that global and domestic factors, including potential shocks in agriculture, could keep India's growth below trend for the next few quarters.
India's GDP growth rate slowed to 6.5% in 2011-12 against 8.4% in the previous two financial years. The government expects the economic growth in the current fiscal at around 7.6%.
Moody's retaining India's outlook comes against the backdrop of two other leading agencies - Standard and Poor's and Fitch lowering the credit rating outlook to negative.
On the rupee's sharp depreciation in the recent months, Moody's said it does not raise the government's own debt service burden significantly.
The BSE 30-scrip index Sensex was trading higher by 130.54 points at 17,103.05 at 10.40 hrs.
The Finance Ministry expects around 60,000-80,000 white-label ATMs to roll out in the next six to eight months
New Delhi: Non-banking entities, which have been allowed by RBI to operate ATMs on behalf of banks, are expected to open 60,000-80,000 automated teller machines in the next eight months, reports PTI.
“We expect 60,000-80,000 white-label ATMs to roll out in the next six to eight months,” a Finance Ministry official said.
This will help in spreading financial inclusion in unbanked areas, the official said.
At present, there are about 90,000 ATMs spread across the country. Of this, nearly one-third are owned by SBI Group.
So far, only banks are allowed to set up and operate ATMs in the country.
Recently, RBI permitted non-banking entities with a minimum net worth of Rs100 crore to set up, own and operate ATMs on behalf of banks.
The RBI in a notification said the automated teller machines (ATMs) operated by non-banking entities will be known as 'White Label ATMs' (WLAs).
Each of these new ATM operators will have a bank sponsoring them, RBI had said.
All services offered by regular ATMs will be available at white label dispensers as well with existing debit or credit cards issued by banks. Customers of all banks can use the new ATM network.
Non-bank entities intending to set up WLAs under these guidelines may approach RBI for seeking specific authorisation within four months from the date of issuance of these guidelines, RBI had said.
Although there has been nearly 23%-25% annual growth in the number of ATMs, their deployment has been predominantly in tier I and II cities.
In spite of the banks' pioneering efforts in this direction, much needs to be done, it said, adding, there is a need to expand the reach of ATMs in Tier III to VI cities.
The RBI final guidelines had said non-bank entities proposing to set up WLAs have to apply to RBI for seeking authorisation under the Payment and Settlement Systems Act, 2007.
Five free transactions in a month as applicable to bank customers for using other bank ATMs would be inclusive of the transactions effected at the WLAs, it had said.
Concerned over non-performance of some schemes over a long period of time, the SEBI chairman had said fund houses need to look into the matter and consider the merger of some schemes
Mumbai: In its drive to give better returns to investors, SBI Mutual Fund will soon be merging two of its schemes as it has received approval from market regulator Securities and Exchange Board of India (SEBI), a top company official has said, reports PTI.
"We have received one merger approval for two schemes from the market regulator recently, for which, we have applied for quite some time," SBI MF managing director Deepak Chatterjee told PTI.
He, however, declined to name the schemes saying the fund house has to follow some processes like informing the investors after the approval.
SEBI Chairman UK Sinha last week said it would allow merger of schemes to avoid overlapping and ensuring better returns to investors.
Concerned over non-performance of some schemes over a long period of time, Sinha had said fund houses need to look into the matter and consider the merger of some schemes.
"Management (of mutual funds) should look into the areas of non-performance," Sinha
had said, adding he was in favour of merger of schemes on case to case basis.