Money & Banking
RBI cancels Sahara India's para-banking license
In a fresh setback to the beleaguered Sahara India Pariwar, the Reserve Bank of India (RBI) has cancelled the license of its holding company Sahara India Financial Corporation Limited (SIFCL), officials said on Tuesday.
 
The action has been taken by the department of non-banking supervision of the RBI, in Kanpur.
 
The move comes in wake of several irregularities and ignoring financial rules and regulations by Sahara, an official further informed. 
 
The notice cancelling its license to conduction financial business has been sent to the Kapurthala head quarter of the Sahara India.
 
The move is being seen as the 'final nail' in the fortunes of the once-fledgling company as the SIFCL was its core wing from which money was collected through small time subscribers and then routed to other wings such as media, real estate and others. 
 
With its chairman Subrata Roy 'Sahara' already in jail for the past one year plus, the RBI action, many fear, could "break the financial spine" of the organisation.
 
Under the new order, the Sahara India would be barred from any sort of financial transactions.
 
The RBI had in 2008 barred the company from taking any deposits from the people under its chit fund operations.
 
Many depositors had since then complained to the RBI that they were not being paid back their money by Sahara, following which a probe was ordered by the bank.
 
A report of the investigations was sent to the RBI HQ in Mumbai last month after which the penal action of cancelling the license of SIFCL was taken.

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Konkan Railway to launch three holiday specials
The Konkan Railway, which connects Maharashtra, Goa and Karnataka, will launch three special trains to cater to the holiday rush during Ganesh Chaturthi next week, officials said on Tuesday.
 
In a statement issued here, the Konkan Railway said that the three trains are 00118/00117 Ratnagiri - Vasai Road - Ratnagiri Special Train (Reserved Express), 00112 /00111 Madgaon - Vasai Road - Madgaon Special Train (Reserved Express) and 00115/00116 Vasai Road - Mangalore - Vasai Road Special Train (Reserved Express).
 
"All the trains have 18 coaches and will be operational during the period of the Ganesh Chaturthi festival," the statement said.
 
Hundreds of thousands of Konkan residents travel to and from towns and industrial centres to their ancestral homes in the area during the festival which begins on September 17.

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Modi discusses global economic turmoil with industry, economists
Prime Minister Narendra Modi on Tuesday met union ministers, corporate heads and economists to discuss global markets' turmoil sparked off by the Chinese economic slowdown and attendant opportunities for India.
 
"The general consensus (at the meeting) was that growth of emerging economies is all slowing down, except that we (India) are growing at 7 percent; so how can we take advantage of this opportunity (of the slowdown elsewhere)?" Confederation of Indian Industry president Sumit Mazumdar told reporters here after the meeting.
 
"Our economic foundations are strong; that is why we have not been affected by recent Chinese events. However, the prime minister told us that in this situation the industry also should show some risk-taking ability," he added.
 
Ministers present at the meeting were Arun Jaitley (finance), Suresh Prabhu (railways), Nitin Gadkari (road transport and shipping), Nirmala Sitharaman (commerce), Dharmendra Pradhan (petroleum) and Piyush Goyal (coal, power and renewable energy).
 
Reserve Bank of India Governor Raghuram Rajan, Niti Aayog Vice Chairman Arvind Panagariya, Chief Economic Advisor Arvind Subramanian and Aayog member Bibek Debroy also attended the meeting on 'Recent Global Events: Opportunities for India'.
 
At the meeting, industry chamber Assocham told the prime minister that policymakers needed to quickly "bullet proof" India from global economic volatility and called for interest rate cut by the Reserve Bank and duties to stop dumping of Chinese products such as steel.
 
"Economic uncertainty has risen against the backdrop of the slowdown in the global economy. Near-term risks have escalated due to China's growth transition, slump in commodities, capital flow reversals, disruptive asset price shifts and currency exposure risks related to volatility," Assocham said, making a set of 12 recommendations to Modi.
 
The chamber called on RBI governor Raghuram Rajan to cut interest rates by up to 1.25 percentage points by March to help revive investment and growth.
 
"Since industrial sector accounts for 45 percent of the outstanding bank credit while it has a lower share of 28 percent in GDP, there is an urgent need for investment revival through a strong dose of monetary easing," Assocham said.
 
Apart from heads of industry chambers, top industrialists such as Reliance Industries' Mukesh Ambani, Aditya Birla Group head Kumar Mangalam Birla, Adani group chairman Gautam Adani, Tata group chief Cyrus Mistry, Wipro chief Azim Premji, Sun Pharma CMD Dilip Sanghvi, ITC's Y.C. Deveshwar and Infrastructure Leasing and Financial Services Limited chairman Ravi Parthasarathy also attended.
 
Eight economists, 14 industry representatives and four from major financial institutions, including State Bank of India chief Arundhati Bhattacharya, ICICI Bank's Chanda Kochar, IDFC's Rajiv Lall and CEO of recently launched Bandhan Bank, Chandra Shekhar Ghosh, were also present.

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