- The Reserve Bank of India on 6 April 2017 kept the key policy rate or the repo rate unchanged at 6.25% in the first bimonthly policy review of 2017-18
- The Reverse Repo Rate (RRR), however, has been raised by 25 basis points to 6%. RRR is the rate that sucks out excess liquidity from the system.
- The hike in the reverse repo comes as a surprise as most economists had also expected RBI to introduce a Standing Deposit Facility (SDF) to help drain surplus cash from the system.
Current Affairs on Finance
Axis Bank has tied up with Wells Fargo (which was recently much hyped company becuase of corruption) to offer real time remittances from the Indian diaspora to their relatives back home.
Under the arrangement any member of the Indian diaspora with an account with the Wells Fargo will be able to transfer money to their relatives back home and there will be no transaction fee.The bank has its head office in Mumbai and Registered office in Ahmedabad.
The Loan Agreement for New Development Bank (NDB) financing of US$ 350 Million for Development and Upgradation of Major District Roads Project in Madhya Pradesh (implementation is 5 years) was signed between Government of India and the New Development Bank (NDB) and is the First Loan Agreement for NDB assisted project in India.
- From 1 April 2017, IRDAI has proposed up to 50 per cent increase in insurance premium for cars, motor cycles as well as commercial vehicles.
- The hike proposed in mid-segment cars (1,000 – 1,500 cc) as well as bigger cars and SUVs is 50 per cent while no proposal is made to increase the third party motor insurance premium for small cars (up to 1,000 cc) from Rs 2,055.
- The government has notified Specified Bank Notes (Cessation of Liabilities) Act, 2017, the law that makes holding of more than 10 scrapped notes punishable with a minimum fine of Rs 10,000.
- It was signed by President Pranab Mukherjee and thus now it provides for a minimum fine Rs 50,000 for false declaration by persons who were abroad.
- Oriental Bank of Commerce (OBC) has launched of mobile wallet ‘Oriental Batuaa’.
- A new version of mobile banking, OBC has also launched two new cards, Oriental Premium card is a RuPay based Platinum international debit card.
- GST Council approved a law to compensate states for any loss of revenue from the implementation of new national sales tax.
- Once the laws are approved, the Council will get down to fixing rates of taxes for different goods and services by fitting them into the four approved slabs of 5,12,18 & 28%.
- The Reserve Bank of India increased the gold loan limit for RRBs (Regional Rural Banks) along with bullet repayment scheme.
- The gold laon is increased to Rs 2 lakh from the current Rs 1 lakh to help the farmers and artisans have access to credit who are willing to pledge gold as collateral.
- It is also worth to mention that the limit has been doubled for the loans not exceeding 12 months from the date of sanction.
- The income tax department has issued refunds of 1.42 lakh crore rupees so far this fiscal. It is 41.5 per cent higher than last year, 2016.
- Finance Ministry in a release stated that, 92% of the refunds issued are below 50 thousand rupees, due to the high priority given to expeditious issue of refunds to small taxpayers.
- It stated that, only 2% of refunds less than 50 thousand rupees remain to be issued. The Ministry said that 92% of all I-T returns were processed within 60 days.
- The Union Minister of State for Labour and Employment Bandaru Dattatreya launched the National Career Service (NCS) for youths and Jeevan Praman facility to EPFO pensioners through Post Offices at DakSadan in Hyderabad.
- The Post Offices will serve as an Employment Registration Centres for Unemployed rural youth on behalf of the 'National Career Service' Portal where youths can register themselves for employment in 1,55,000 post offices established across the country for over 3000 occupations offered under 52 sectors in NCS