The central bank is open to looking at increasing the limit on international e-commerce transactions from $3,000 at present says RBI executive director G Padmanabhan
Mumbai: The Reserve Bank of India (RBI) is open to looking at increasing the limit on international e-commerce transactions currently set at $3,000, reports PTI quoting a top official.
"If the system wants the limit to be enhanced, that is something that we are positively inclined to look at," Reserve Bank executive director G Padmanabhan said on the sidelines of a CII event.
Padmanabhan said the limit was set in consultation with PayPal, a major player among the international payment gateways, and added that as many as 99% of the e-commerce transactions fall under the limit of $3,000.
Giving rationale for setting the limit (there are no limits for domestic e-commerce transaction) he said it is needed in a country like India which has exchange controls.
To a question on extending trading hours in the forex market beyond 1700 hours, the RBI official said it is difficult to relax as "we do not have full capital account convertibility".
"Most of the currency markets which work beyond a reasonable time are the markets which are capital account convertible, where in case there is a liquidity concern, you can source the money from some other country or currency," he said.
"As long as we have certain capital account controls, or as long as we think liquidity has to be provided within the system, then we have to work within certain time limits," he said, adding considering the needs of trade, the RBI is conscious of the fact that there is a need to relook at it.
When asked about the volatility in the rupee and how domestic businesses, especially the smaller ones should cope with it, Padmanabhan said we have to learn to live with the fluctuations and opined that the only way it can be handled is through hedging of cash flows.
During 9th October to 30th November, PNB would waive off processing fee for housing, car and personal loans
New Delhi: To cash in on the festive fervour, state-owned Punjab National Bank (PNB) has announced waiver of processing fee for housing, car and personal loans, reports PTI.
The offer is valid from 9th October to 30th November, PNB said in a statement.
To meet the sentiments and aspirations of public, it said, the bank has announced a series of relaxations and concessions.
It further said rate of interest on housing loans up to Rs75 lakh was slashed to 10.50% last month.
The base rate or minimum lending rate of the bank stands at 10.50%.
Similarly, the car finance would be made available up to 100% of ex-showroom price at very competitive rates of 11.5-12%, it said.
Loans for purchase of consumer durables also available at a very attractive rate of interest of 15% with no processing charges, it added.
According to the RBI deputy governor, debt-laden Kingfisher Airlines, which owes 17 banks about Rs7,000 crore, does not pose any systemic risk to the banking system
Mumbai: The debt-laden Kingfisher Airlines, which owes 17 banks about Rs7,000 crore, does not pose any systemic risk, reports PTI quoting Dr KC Chakrabarty, deputy governor of the Reserve Bank of India (RBI).
When asked about the troubles at Kingfisher Airlines, Chakrabarty said that "it does not pose any systemic risk to the banking system".
He was talking to reporters on the sidelines on an SME event organised by the Bombay Chamber of Commerce and Industry.
The aviation regulator DGCA had recently served a show-cause notice to the company asking why its licence should not be revoked.
Within the lenders consortium, SBI has the single largest exposure with Rs1,580 crore, followed by IDBI Bank (Rs720 crore), Punjab National Bank (Rs435 crore), Bank of India (Rs575 crore), Bank of Baroda (Rs530 crore), Central Bank of India (Rs420 crore), UBI (Rs350 crore), Corporation Bank (Rs150 crore), and Federal Bank (Rs80 crore which is not a loan but an en-cashed bank guarantee to BPCL).