Finance
Q1 tax revenue likely to exceed budgeted growth
The government expects tax revenues to exceed budgeted growth in Q1 but will stick to interim budget revenue estimates, considering global headwinds. Gross revenue collections projected at ₹38.30 lakh crore for FY 2024-25, with factors like compliance, corporate earnings, elections, and enhanced focus on recovery contributing to growth.
Ceiling on net borrowing: SC assures Kerala of listing if its lawsuit before Constitution bench
The Supreme Court assured Kerala's lawsuit on borrowing cap will be considered by a five-judge bench after summer vacation. Justices Sanjiv Khanna and Dipankar Datta noted urgency in Kapil Sibal's submissions. Kerala accuses the Centre of overreach in its financial autonomy. The case awaits interpretation of Article 293.
RBI's investment in IIFC UK subsidiary fell by a fifth in FY23-24
The central bank is mandated to invest small portion of its foreign exchange reserves- $ 5 billion in the company following demands from the government in the past to fund infrastructure.
Exim posts 62% rise in profits, to raise over Rs 60,000 crore from local markets this year
In terms of the non-performing assets (NPAs), the Gross NPAs declined significantly from 4.09% as on March 31, 2023 to 1.93% as on March 31, 2024, “ we had very few incremental NPAs” said the bank’s managing director Harsha Bangari ” Even the incremental NPAs’ were reduced. We have a provision coverage ratio of 97 percent”.
India to extend budgetary support of $50 million to Maldives
India extends budgetary support to Maldives by rolling over $50 million treasury bill upon special request. SBI subscribes to Maldives Finance Ministry's bill, aiding infrastructure projects under $800 million Exim Bank credit line, including cybersecurity agreement.
RBI likely to transfer Rs 1 lakh crore to govt in FY25
The Reserve Bank of India (RBI) is expected to transfer around Rs 1 lakh crore to the government in FY25, as per a report by Union Bank of India. This projection reflects a slight increase from the Rs 874 billion transferred in the previous fiscal year. The report anticipates a robust dividend payout for FY25, with analysts predicting a potential positive surprise similar to the previous fiscal year. Despite various factors influencing RBI's dividend calculation, such as interest earnings and foreign exchange gains, analysts foresee strong dividend figures.
India's transaction trends: ePayment riches leave circulation of currency poorer
India's transition to digital payments is effectively curbing the traditional outflow of currency from its banking system, as evidenced by the sharpest decline in the growth of currency in circulation (CIC) since demonetisation in FY24. The Reserve Bank of India's (RBI) decision to phase out Rs 2,000 banknotes from circulation last year further contributed to this trend.
Robust govt capex, improvement in business confidence to push growth: Official
"The major reasons cited for India's growth prospects in FY25 include robust public investment/ capex push by the government, sustained growth in business and consumer confidence, and strong services sector, among others," industry body PHDCCI said in a statement quoting Sensarma.
CBAM, permanent establishment rules, transfer pricing key in India’s outbound FDI: EY
EY's report highlights how environmental concerns and clean energy challenges could impact Indian companies investing abroad. The report delves into areas like CBAM, transfer pricing, and investment rules, emphasizing the need for proactive measures. It also discusses FTA opportunities, global acquisitions, and risks related to BEPS rules, POEM, and intellectual property laws.
Six-week long election leaves RBI with liquidity dilemma
Voting in India's national elections began on April 19 and will conclude on June 1, with counting on June 4. Typically, government spending slows during polls and picks up only after a new government is in place and a budget is presented.
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ET explainer: Why RBI's dividend payout to govt this year will be lower
The budget estimates dividend transfer in FY'2024-25 at Rs 1.02 lakh crore from the Financial sector entities including the Reserve Bank and public sector banks. But a bulk of the dividend flows is from the central bank.
India, Nigeria to increase cooperation in energy, UPI, local currency settlement to enhance economic ties
India and Nigeria are ramping up cooperation in several key areas to bolster economic ties. During a recent visit by an Indian delegation to Nigeria, both countries discussed increasing collaboration in sectors such as crude oil, natural gas, pharmaceuticals, Unified Payments Interface (UPI), local currency settlement systems, and the power sector. Led by Amardeep Singh Bhatia, the delegation included officials from the Reserve Bank of India (RBI), EXIM Bank of India, and the National Payments Corporation of India (NPCI).
PSBs plan to set up 'green cells' for climate funding
State-run banks to introduce 'green cells' for ESG risk assessment and green fund management under EASE 7.0. RBI emphasizes 2.5% GDP green financing. SBI chairman pushes for incentives and CRR relaxation in regulatory policies.
97.76% of Rs 2000 currency notes returned, says RBI
The Reserve Bank of India (RBI) reported that 97.76% of the Rs 2000 denomination banknotes have been returned to the banking system, leaving only Rs 7,961 crore with the public. Since the announcement of their withdrawal from circulation on May 19, 2023, the total value of Rs 2000 banknotes has decreased from Rs 3.56 lakh crore to Rs 7,961 crore by April 30, 2024. Despite the withdrawal announcement, Rs 2000 banknotes remain legal tender.
India's cash withdrawals from ATMs increase by 5.51% in FY24, CMS Infosystems report shows
A report by CMS Infosystems shows a 5.51% increase in monthly average cash withdrawals from ATMs in FY24, reaching Rs 1.43 crore. This growth highlights the continued reliance on cash transactions despite the rise of digital payments. Metro areas saw a significant 10.37% increase in cash withdrawals, while Karnataka led in withdrawals per ATM. The report also notes a rise in spending on media, entertainment, and FMCGs, indicating a positive trend in consumption.
Cash in circulation more than doubles since FY17 on consumption demand
The currency in circulation has more than doubled from Rs 13.35 lakh crore in March 2017 to Rs 35.15 lakh crore in end March 2024. Significantly the currency in circulation has happened despite the central bank deciding to withdraw the Rs 2000 denomination banknotes from circulation from May 2023 which resulted in the central bank getting 97.83 percent of Rs 3.56 lakh crore worth notes back to the banking system.
