Economy
Petrol cut by Rs 1.42 a litre, diesel by Rs 2.01
Amid the recent fluctuation in global oil prices, state-run Indian Oil Corp (IOC) cut the price of transport fuels on Sunday effective from midnight, of petrol by Rs 1.42 a litre and of diesel by Rs 2.01, both at Delhi, with corresponding decrease in other states.
 
Making its previous fortnightly revision in fuel prices on July 16, IOC had cut petrol by Rs 2.25 a litre and diesel by Rs 42 paise, both at Delhi.
 
Petrol per litre from Monday will cost Rs 61.09 in Delhi, Rs 64.97 in Kolkata, Rs 65.70 in Mumbai and Rs 60.65 in Chennai.
 
Similarly, diesel will cost Rs 52.27 in Delhi, Rs 54.57 in Kolkata, Rs 57.47 in Mumbai and Rs 53.73 in Chennai.
 
The Indian basket of crude oils closed trade on Thursday at $40.81 a barrel, lower than $41.63 on previous day, as per official data.
 
Meanwhile, parliament was informed earlier this week that nine excise duty hikes over a span of few months helped the government almost triple its excise earnings from petrol and diesel to about Rs 70,000 crore during 2015-16.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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COMMENTS

A.Chandramouliswaran

7 months ago

I have not yet read the book of Dr Subba Rao. I thought I should at least read your write up on the book before I offer my comments. I must at the outset confess that as I had retired almost 15 years ago from RBI and with changes having taken place during this period, my critical observations may not be valid. However, on the basis of the general trend in the country, even if things have changed they might have changed only for the worse! You have been quite critical of Dr Subba rao in so far as the exercise of the RBI's role of regulation and supervision of banks and customer service for middle class. In the exercise of its regulatory and supervision function over banks, NBFCs etc, it has not been effective since it does not have the required freedom and autonomy. The interference of Government in these matters prevents the effective functioning by the RBI. One can argue that the bank is also responsible for allowing its autonomy and independence to be eroded and that perhaps it was only too willing to assume a role subordinate to that of the Government. One wonders whether any Governor would be allowed to follow his own course. It would, therefore, be fair to point out the failings of the RBI in these areas only when it has been granted autonomy in law and the Governor is appointed for a period of 5 years( if not six years) and given the constitutional protection granted to CEC, C&AG, judges of the Supreme court. In the matter of NPAs of banks , the following measures may help:
1. Public sector banks have to fix accountability at various levels for the follow up and timely measures for recovery of loans. Officials are found to have failed to act promptly would have to be punished after following the procedures for disciplinary action.
2. RBI would have to be tough in acting on their inspection findings and ensuring corrective action promptly.
3. The talk of exempting the Public sector bank officials from the scrutiny of CVC, CBI etc should be given up since there has been a lot of corruption in the grant of loans and insistence on conditions subject tow which the loans were granted .
3. RBI would have to be extraordinarily tough in punishing officials of banks for violations of its rules/regulations. RBI has been too soft and the banks are not at all scared of the RBI. Banks which have been guilty of non-compliance with KYC norms etc have been allowed to escape with a paltry amount by way of fine. Officials have to be dismissed from service for wrong doings and the fear of the RBI ( if not of God!) has to be created.
As regards the Central board of the RBI is concerned, one does not know as to what useful function is performed by it.Independent members in the Board function in the manner in which independent members generally function in the banks, companies etc! In











































the past, some members have been allowed to continue much beyond their term. The



Central Board just complies with the statutory requirement in the RBI Act!

India receives normal rainfall

Industry and farmers can heave a sigh of relief as India has received rainfall in line with the long period average (LPA) during the period 1 June to 27 July 2016. The month of July has witnessed an overall monsoon surplus up to 8% up to now. There is cheer for the East and Northeast as they received heavy rainfall in the last week. This has led to a reduction in the cumulative rainfall deficit to 12% from 17% one week back in this region. The India Meteorological Department (IMD) has continued with the prediction of ‘above normal’ monsoon at 106% of benchmark Long Term Average (LPA). 

 
In the week up to now, around 30% of the country’s area has got excess rainfall, 50% received normal’ rainfall, while 20% received deficient rainfall. Coming to individual states, major deficit was seen in Gujarat, which has received rainfall which is 50% lesser than long period average (LPA). Kerala, Himachal Pradesh, Odisha, Jharkhand and parts of the North-east also saw deficient rainfall. Deficient rainfall has been defined as rainfall which is 90% less than long term average. Nearly all the districts in Maharashtra have received either excess rains or normal rains. 
 
Good rainfall in the first two weeks of July aided a pick-up in kharif sowing, with the area sown up by 3.3% year-on-year (y-o-y) as on 22 July as against a 5.9% decline by 8 July. According to a Religare report, a record 9 million hectares were cultivated for kharif pulses by 22 July, which is significantly 39.4% higher as compared to the previous year. The area sown for cereal and oilseeds too rose marginally by 1.7% and 4.3% y-o-y respectively. 
 
Coming to water reservoirs, the Religare report further stated that the levels increased drastically to 38% of the total storage capacity as on 28 July from merely 15.2% in June-end. However, the overall storage position is less than the average storage of the last ten years during the corresponding period. Also, it is less than the corresponding period in the last year. The water levels in Central India are significantly higher as compared to the long term average. However, the water reservoir levels in both North and South India are far lesser as compared to their 10-year average.
 

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Bank strike success today: AIBEA
All India Bank Employees Association (AIBEA) has claimed that today’s bank strike against retrograde banking reform measures has been a total success. Banking services were affected throughout the country. The strike was called by United Forum of Bank Unions consisting of 9 trade unions of bank employees and bank officers. 
 
Some of the demands included not privatising banks, refraining from increasing private capital in public sector banks, recovery of bank loans through stringent measures and not consolidating and merging banks.  Other demands included not giving license to private hands to open small banks and payment banks and not to encourage Foreign Direct Investment (FDI) in banking sector. AIBEA cautioned that privatization will result in monopolizing of bank credit by big businesses which will deprive common people of accessing bank credit. They brought into attention the problem of bad loans amounting to more than Rs 13 lakh crore, majority of which are due from corporates, industrial and business enterprises.  They said that privatisation will not help solve this problem. “Privatisation may actually result in handing over our banks to some loan defaulter,” according to AIBEA.
 
There are 8,167 willful defaulters, who owe banks a cumulative amount of Rs. 76,685 crore.  AIBEA recommended that willful defaulters be dealt with more sternly and should take criminal action against these deliberate defaulters. The said, “But Govt. is showing velvet treatment to them by writing off their loans.  It is open loot of public savings.  This should be immediately stopped.” The recovery of these loans will enable banks to reduce service charges to customers, increase interest rate on deposits and extend loan to poor people at lesser rate of interest. Hence, recovery of these loans is essential especially in the current scenario where big corporate houses are being giving concessions, while students who cannot repay education loans if they don’t get jobs are being harassed. 
 
AIBEA said that the total deposits in the banks amounting to more than Rs116 lakh crore, included precious savings of the common people at large, which is social capital of the country. They further added that since public sector banks cater to priorities including agriculture, health and infrastructure, lending to these sectors will be affected if they are privatized. They called the banking reforms of the government ‘retrograde and anti-people’.
 
They concluded that the strike was to safeguard public sector banking and people’s savings. AIBEA and All India Bank Officers Association (AIBOA) are meeting in Hyderabad on 4 August and 5 August 2016 in order to chalk out further campaign and struggle programmes. 

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COMMENTS

Param

7 months ago

"Some of the demands included not privatising banks" - yet private banks also joined the strike. This is hilarious.
Interestingly, in Kolkata office of StanChart Securities was also closed, though it is not part of the StanChart bank.

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