"Deregulation of interest rates, including savings rates, is an important way forward for reforms. The base rate system that will come into affect from 1st July is also an important reform," RBI governor D Subbarao said
Reserve Bank of India (RBI) governor D Subbarao today said the central bank is in favour of deregulating interest rates on savings accounts as part of financial sector reforms, reports PTI.
"Deregulation of interest rates, including savings rates, is an important way forward for reforms. The base rate system that will come into affect from 1st July is also an important reform," he said in Hyderabad.
The concerns expressed by banks on the issue should be debated, he said.
Currently, the savings rate is fixed at 3.5% and is being calculated on daily basis from 1st April.
On Thursday, RBI deputy governor K C Chakrabarty had said, "We are in favour of deregulating all interest rates including savings rate."
"We have initiated a debate in the last policy... The deduction is very clear, clear in favour of deregulating all interest rates, including savings banks. But the decision will be taken, when to do that, after having adequate debate on the issue," Mr Chakrabarty had said.
However, bankers felt that any such move would lead to wide variation in the market.
Mr Chakrabarty had said, "This is a highly competitive market. Prices do not vary much. But what will be the rate, what customers will get, will depend on market conditions."
On inflation, Mr Subbarao said the RBI will review the inflation targets at its next policy meeting on 27th July.
"Earlier, we expected the inflation rate to come down to 5.5% by March, 2011. We projected this number in our earlier meeting. We will revisit that number in the July policy meeting," Subbarao told reporters.
Food price inflation for week ended 5th June was at 16.12% compared to 16.74% in the previous week.
Inflation has been hovering at double digits for the past several weeks.
However, he said despite this fact, the growth numbers are quite encouraging and investment is picking up.
Concurrent India Infrastructure kept silent for more than a month after announcing a power deal with Sikkim Power, and issued a clarification only after the latter refuted any deal with it. The BSE is silent—which encourages such malpractices
Moneylife has reported on how the media is being used to spread positive news about a company to stop its share price from falling further. We have come across one such company, which itself is propagating false announcements of its project wins. The saving grace was that investors ignored this 'positive' news.
On 10th May, Mumbai-based Concurrent (India) Infrastructure Ltd, in a regulatory filing said, "Concurrent to Develop Hydro project in Sikkim through PPP Mode". According to the release, Concurrent was all set to enter into an agreement with Sikkim Power Development Corp Ltd (SPDC) through PPP model to develop a 40MW hydro-project, estimated to cost Rs111.2 crore, at Labdang in Sikkim.
The company said that it had already spent Rs30 crore on developing preparations of Detailed Project Report (DPR); procurement of land and statutory clearance; access road and bridge at the site; a 30-metre tunnel and other civil works.
The release also quoted Concurrent's director and chief executive officer K Sudhir Babu as saying, "With this (deal), Concurrent will have a foothold in Sikkim. As per estimates, in Sikkim, (the) hydro-potential is 9,000MW, out of which only 4,000MW has been allotted."
Since the announcement was made after trading hours, next day, on 11th May, the Concurrent share opened Rs0.65 higher at Rs33.00 from its previous closing price on the Bombay Stock Exchange (BSE). However, at close, the shares fell by Rs2.1 to Rs30.75. During 10th May and 16th June (the day when Concurrent clarified that it had not signed any deal in Sikkim), Concurrent shares moved in a band between Rs29.55 to Rs34.80.
On 14th June, SPDC clarified that it has not entered into any kind of understanding or agreement with Concurrent (India) Infrastructure Ltd for development of a 40MW hydropower project in the State. According to a press statement, SPDC manager Palchen D Chaktha refuted any such development with Concurrent. He also said that SPDC has neither entered into any kind of agreement with Concurrent nor is it considering allotment of any project to the company in the near future.
Following the denial from SPDC, on 16th June, Concurrent said that it has not entered into any agreement yet in this regard and is still under the process of negotiations through various channels for a possible proposition of an agreement, if the efforts for the same fructifies.
The company conveniently kept mum throughout the period between its first announcement and subsequent denial by SPDC. Passing on the blame to the media, Concurrent said, "(The) Company through its press release dated May 09, 2010, stated very clearly that the Company is all set to enter an agreement for the said purpose, however the same was interpreted by some websites as such that (the) Company has entered already into an agreement."
Interestingly, the heading for its earlier announcement was "Concurrent to Develop Hydro project in Sikkim through PPP Mode" and not "Concurrent may Develop Hydro project in Sikkim through PPP Mode", if at all it was still at the negotiation stage.
We asked BSE officials if they will initiate any action against the false filing by Concurrent. However, until writing the story, there was no response from the Exchange. By keeping mum, the stock exchanges, which are the first level in stock market regulation, encourages such practices. As Moneylife magazine reports in every issue, misinformation and price-rigging is rampant in the BSE which the authorities turn a blind eye to.
The new online facility will also enable taxpayers to register their complaints and file applications to the I-T Ombudsman in 12 cities across the country
The Income Tax (I-T) department will soon launch an Internet-based grievance redressal system for taxpayers to lodge their complaints with taxman, reports PTI.
The new online facility will also enable taxpayers to register their complaints and put applications to the I-T Ombudsman present in 12 cities across the country including Mumbai and Delhi, the two topmost tax paying regions respectively.
Currently, taxpayers can file their tax returns online by logging on the official website of the department-www.incometaxindia.gov.in.
According to a senior I-T department official, the grievance redressal facility will either be made available on the official website of the department or a new portal would be launched.
"Grievances related to tax refunds and delay in services rendered by the department like allotment of various tax numbers among others could be lodged on the new e-support system," the officer said.
The department is presently conducting a trial run of the new facility and once fully satisfied, it will connect all the department offices with the network.
After registering online complaints, the taxpayer will also receive an acknowledgement number, which would have a fixed time limit that will ensure that it is redressed within a stipulated duration.
As of now, taxpayers have to throng the tax department's offices in order to get their complaints resolved for redressal of a number of services.
The online facility will aim to create a hassle-free facility for tax payers across the country, the officer added.
The I-T department's online facilities currently feature services like e-payment of taxes, filing of TDS returns, Annual Information Returns, Online Tax Accounting System (OLTAS), Tax Return Prepares Scheme (TRPS), Tax Information Network and help desk, as well as tax payers queries and feedback services.