Regulations
RBI asks banks to keep interest rates variations on FDs to minimum

RBI said that banks should put in place a Board approved transparent policy on pricing of liabilities


Mumbai: The Reserve Bank of India (RBI) has asked banks to ensure the variation in interest rates on single-term deposits of Rs15 lakh and above and other deposits is minimal for corresponding maturities, reports PTI.
 
Stating that there was wide variations in the interest rates on single term deposits of corresponding maturities, RBI said in a notification that banks should put in place a Board approved transparent policy on pricing of liabilities.
 
It said that such practice of banks suggested "inadequate liquidity management system" and "inadequate pricing methodologies".
 
Banks are allowed to offer differential rates of interest on term deposits at their own discretion, on condition that they should disclose to the depositor in advance the schedule of interest rates payable on deposits, including deposits on which differential interest is paid.
 
"The Board/ALCO should ensure that the variation in interest rates on single term deposits of Rs15 lakh and above and other term deposits (i.e. deposits less than Rs15 lakh) is minimal for corresponding maturities," RBI said.

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Black money: India to set up 14 new overseas I-T offices

The Income Tax overseas units would obtain information on tax and financial data of investments made by individuals and institutions in these countries and facilitate exchange of data on legal investment or routing of money in the country and vice-versa

New Delhi: The Indian government will set up 14 more Income Tax Overseas Units (ITOUs) to deal with the menace of black money and keep a tab on illegal routing of funds from abroad and parking money in foreign countries, reports PTI.

 

The Finance Ministry has recently sent a detailed proposal in this regard to the Ministry of External Affairs along with the names of the countries where these ITOUs would be made operational.

 

India has already established ten ITOUs in its missions at Cyprus, France, Germany, Netherlands, Japan, UAE, UK, USA, Mauritius and Singapore, and the Finance Ministry and the investigation wing of I-T department has found the experiment successful as "good" information has been received by Indian financial sleuths in connection with their probes.

 

"The proposal to establish 14 more ITOUs has been sent to the MEA. The proposal is under consideration and the MEA and the Finance Ministry have had a few rounds of talks on the subject," a top Finance Ministry official said.

 

The countries where these new ITOUs would be set up include Switzerland, an important partner country with which India has revised its Double Taxation Avoidance Agreement (DTAA) and the tax exchange treaty to effectively combat illegal funds stashed abroad or routed from foreign countries.

 

These ITOUs are manned by tax officers who are designated as First Secretaries to "maintain effective coordination and liaison between Indian tax authorities and the tax authorities of countries concerned".

 

The then Finance Minister Pranab Mukherjee, in his Budget speech for 2012-13, had made a sizeable allocation for setting up these I-T overseas offices.

 

While the initial budgetary allocation for these units was Rs2.41 crore in the last fiscal, it has been raised to Rs18.20 crore in the current year.

 

The ITOUs would obtain information on tax and financial data of investments made by individuals and institutions in these countries and facilitate exchange of data on legal investment or routing of money in the country and vice-versa.

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COMMENTS

Vaidya Dattatraya Vasudeo

4 years ago

With present status of honesty of politicians it has become impossible to trust the intentions of any move, however good it may look. Can I be blamed if I interpret this as an opportunity for some one to oblige as many staff to be post to better place, and may be for a price. I hope in this case an exemption is made and deserving staff is posted. And it will soon be reflected in the restults.

LIC cuts stake in ACC by about 3%

Following the transactions, LIC's shareholding in ACC, in which Swiss major Holicm has the majority stake, has now come down to 7.82%


Mumbai: State-run Life Insurance Corporation of India (LIC) has sold 2.68% stake in cement maker ACC for Rs187.75 crore through open market operations, reports PTI.
 
LIC had 10.51% stake or 18.77 crore shares in ACC prior to the transactions that took place between November last year and 10th August this year, both at the BSE as well as the NSE, the cement firm said in a regulatory filing.
 
Following the transactions, LIC's shareholding in ACC, in which Swiss major Holicm has the majority stake, has now come down to 7.82%.
 
As of June-end, LIC had 8.55% stake in ACC and Holcim had 50.30% stake.
 
Competition watchdog CCI had on slapped Rs1,147.59 crore penalty on ACC for its involvement in forming both price and production cartels along with its peers last June.
 
ACC, however, had said that it would file an appeal with the appropriate authority against the order.

 

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