Rajan rules out rate cuts unless inflation tamed
Reserve Bank of Governor (RBI) Raghuram Rajan on Monday ruled out any further interest rate cuts till such time the inflation came down to the comfort zone, and once again asked commercial banks to lower the cost of credit to their customers.
"Inflation projections are still at the upper limits of RBI's inflation objective," Rajan said in his last Governor's Foreword to Annual Report released here, referring to the government-mandated level of 4 per cent annual retail inflation, plus or minus 2 percentage points.
"With the Reserve Bank needing to balance savers' desire for positive real interest rates with corporate investors' and retail borrowers' need for low nominal borrowing rates, the room to cut policy rates can emerge only if inflation is projected to fall further," he said.
In any case, the task of taking a call on the interest rates is to be handed over to a new Monetary Policy Committee, that will comprise three representatives from the central bank -- including the RBI Governor as its chair -- and three others to be chosen by the government.
Rajan also said the willingness of commercial banks to cut lending rates was muted, since the level of corporate investment had reduced the volume and scope of new profitable loans for banks. The stressed assets of the lenders was also preventing them from taking fresh exposures freely.
As regards growth, he said, while the economy was showing signs of picking up, it was still below the levels that the country was capable of. 
"The key weakness is in investment, with private corporate investment subdued because of low capacity utilisation, and public investment slow in rolling out in some sectors," said Rajan, who is scheduled to demit office on September 4 and hand over the reins to Deputy Governor Urjit Patel.
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.


Is another money circulation scheme?, owned by Ghaziabad-based Ablaze Info Solutions Pvt Ltd, claims to provide a unique concept of online barter system through its Social Media Exchange (SME). However, on probing further, the whole scheme looks like a money circulation scheme, where the user gets paid not for clicking on more 'likes' or promotions, but by enrolling more people in right-left (binary) combination. 
The website claims "Social Media Exchange acts as a platform where a give and take relationship is built between different customers. You make others popular and others advertise you in return. SME refers to reciprocity (exchange) between two or more actors, generally for mutual benefit."
Ablaze Info Solutions, under the SME offers four different ‘packages’ to earn money. This ranges from Rs5,750 to Rs57,500. On buying one of the packages, the user receives commission for daily tasks at the rate of 5Rs per click. The company does not mention what is ‘R’, but it appears to be denotation for rupees. In addition, there are promotional and referral income, which at present is 1000Rs for selling two packages in 1:1 business volume (BV) format. This is nothing but the binary format used by most multi-level marketing (MLM) operators. 
The company also claims to provide an income, based on the BV and social trade package (STP), of 50,000Rs to 2 lakh Rs per week, which is says is ‘capped’. It also deducts administration charges on the promotional income besides deducting tax at source (TDS) too.
There are few things or claims made by that appear to be either inappropriate or not in right context. 
1. Legal documents: On its website, Ablaze Info Solutions displays small images of four documents, its PAN card, registration certificate, ISO certificate and service tax certificate issued by Central Board of Excise and Customs. For someone, who has no knowledge of company businesses, this may appear as sound reason to believe that the company as genuine. However, none of the legitimate companies need to display such kind of documents on own website. For example, check the website of Tata Motors, the country's largest vehicle manufacture. Such reputed companies have no need to display similar documents to show its 'legitimate business' like
However, most of the ‘legal documents’ displayed by the company are not relevant to its For example, the ISO certificate is related with IT business of Ablaze Info Solutions obtained before commencing 
2. TDS deduction: says, "Company deducts TDS from both ‘Promotional Income’ and ‘Daily Task Payment’ and deposits it to Government as per the laws. Promotional Income – 5% from total income. Daily Task Income – 10% from total income."
This claim is bizarre. This is because Ablaze Info Solutions or anyone else simply cannot decide the rates for TDS. It is the job of the tax authorities. There are different types of rates for TDS depending upon the source of income as per the Income Tax Department. The claimed payout to members from may come under Section194J of the Income Tax Act and would attract TDS deduction at a rate of 10% on total payouts and not depending upon the type of income, like promotional or daily task income.
3. Payout packages: As we all know, several sites like Google and Facebook pay money to sites hosting their ads. This is mostly based on cost per click (CPC) or click through rate (CTR). There is another factor, the keyword that decides the CPC or CTR. Most effective keywords and the subsequent CPC or CTR receives good rates from advertisers. However, for the hosting sites, the income is not too big (as claimed by and that too varies as per the total number of visitors and clicks on the particular advertisement. 
However, none of these appears to make any sense for Because it feels one person will pay the other for such clicks and vice versa and both will earn money! “On one hand, it allows you to increase your social penetration and internet popularity while on the other, you get paid for promoting others on social media, which implies a user is both a consumer and service provider,” the website says.
In short, as per the company claims, once you buy a STP 100 package by paying Rs57,500, you can earn a maximum of 2 Rs per week. 
According to one person, who is in this business, says that it is promoting websites of clients. “However, most of the websites are not active and appears to be created in-house and yet they claim to pay five rupees for promoting these sites,” the person, who does not want to be named, says.
In short, the claims and use of attractive terminologies like Social Media Exchange may sound too good, but shows all the signs of a money circulation scheme and nothing else. Few years ago, one company Speak Asia too entered in the market by claiming to provide big income by just filing out surveys on the internet. This claim and the company’s modus operandi were exposed by Moneylife. Main promoters of Speak Asia are absconding and the so called ‘investors’ who invested their hard earned money are doing rounds of the courts to recover their money. 
Since there is no email ID of or Ablaze Info Solutions mentioned on their website, we sent them a message through their online facility. We will incorporate their response in this story as and when we receive it.  

Harpreet Singh

10 months ago

MLM companies are not fraud they. Work according to there system but the kind of reviews make them to stop
Where was you when they started
Now thousand of user have joined have you thought about them
So please do not think too much and provide bad reviews so that they can continue there work



In Reply to Harpreet Singh 9 months ago

Bhai jab company start hoti h to uske baare me koi nai jaanta. Lekin jab wo badi ho jati h to log uske baare me jaante h, fir uske review aate h .
Is post me kisi ko company join karne se roka thode hi h, bas logo ko saare points clear kiya h taki aage se koi soch samajh kar join kare.

Or bhai tere achhe khase pese lag rakhe honge is cmpny me.
Gubara to futega bas ye nahi pata kab futega.

Sensex, Nifty may be range-bound - Monday closing report
We had mentioned in Friday’s closing report that Nifty, Sensex were looking weak. The major indices rallied in a small way on Monday and closed with less than 0.50% gains over Friday’s close. The rally was however on lower volumes of trading. There is no immediate trigger for the Nifty to head higher and so the index may be range-bound between 8,550 and 8,650. The trends of the major indices in the course of Monday’s trading are given in the table below:
Indian equity markets traded flat during the mid-afternoon session on Monday prompted by mixed global cues and lower crude oil prices. Selling pressure was witnessed in information technology (IT), healthcare and banking stocks. The BSE market breadth was tilted in favour of the bears -- with 1,465 declines and 1,216 advances. On the NSE, on Monday, there were 636 advances, 821 declines and 69 unchanged.
Initially, on Monday, the benchmark indices opened on a flat note prompted by mixed Asian and US markets.  Investors also remain cautious ahead of key domestic macro-economic data such as gross domestic product (GDP) and eight core industrial output data to be announced on August 31. Besides, lower crude oil prices also added to the downward trajectory. However, Indian equity markets were lifted by sector-specific buying. Consequently, the key Indian indices closed the day's trade in the green, as healthy buying was witnessed in automobile, capital goods and metal stocks.
Following its merger with Bharti's retail business, Future Retail got listed at Rs153 on the Bombay Stock Exchange (BSE) on Monday. The stock was listed in the exchange in the list of 'T' Group Securities. Under the scheme of arrangement, the company was segregated into Future Enterprise, which took the responsibility of the backend business and Bharti Retail, which takes care of the frontend business. In May last year, the Future group approved the consolidation and realignment of its retail operations with Bharti Retail Ltd to form one of the biggest supermarket chains. In order to streamline the operations resulting from the consolidation, the respective board of directors had proposed to demerge the retail business of Future Retail to Bharti Retail and to demerge the infrastructure business of Bharti Retail to Future Retail. The shares of the company closed at Rs160.65, up 5.00% on the BSE.
State-run Rural Electrification Corporation (REC) on Sunday said it will seek the approval of its shareholders on September 21 for raising Rs50,000 crore through non-convertible debentures (NCDs). Giving notice of its AGM to be held on September 21, REC said in a stock exchange filing that it can issue via private placement unsecured/secured non-convertible bonds/debentures up to Rs50,000 crore during a period of one year from the date of passing of this resolution. "Consent of the Company be and is hereby accorded to raise funds through private placement of unsecured/secured non-convertible bonds/debentures upto Rs50,000 crore during a period of one year from the date of passing of this resolution, in one or more tranches," the filing said. The REC board had, earlier this month, cleared the company's fund raising plans. The company’s shares closed at Rs227.30, down 1.37% on the BSE.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices on Monday are given in the table below:



Snehal Mahadik

6 months ago


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