Finance-Economy-News-The Economic Times - Seite 2 
Union Minister Piyush Goyal discusses scaling up retail investment with Nippon Life India AMC CEO Sundeep Sikka
Union Minister Piyush Goyal met with Nippon Life India Asset Management's CEO to discuss retail investment growth. They explored avenues for attracting greater global capital into Indian markets. Goyal also met with Check Point Software's CEO regarding cybersecurity and digital infrastructure protection. He emphasized faster implementation of industrial corridor projects for economic growth. The National Industrial Corridor Programme now covers twenty approved projects across thirteen states.
The Reserve Bank of India shortened its zero-cost FX swap facility for banks. This action followed substantial foreign deposit inflows from non-resident Indians. Policymakers also considered domestic liquidity effects and fundraising costs. The overseas fundraising supported the rupee, which had reached record lows earlier. These measures have bolstered foreign exchange reserves significantly.
Govt in talks with banks to cut Kisan Credit Card interest subvention by 50 basis points
The government is discussing a 50 basis point reduction in interest subvention for Kisan Credit Card loans. This move aims to align subsidies with recent policy rate cuts by the Reserve Bank of India. Banks currently receive a 1.5% subsidy to offer loans at a 7% interest rate. Discussions are preliminary and part of extending the scheme until 2031-32. Farmers repaying promptly will continue to receive additional interest benefits.
Parliamentary panel on finance suggests task force to fill 38 vacant DIPAM positions
A parliamentary committee highlighted a significant 43 percent vacancy rate within DIPAM. This shortage severely impacts the department's ability to manage public assets. The committee urged the finance ministry to form a task force for filling vacant positions. DIPAM oversees public assets valued at over Rs 42.76 lakh crore. The ministry is also developing a roadmap for CPSE REITs.
New Development Bank plans $7.5 billion funding to deepen rupee lending
The New Development Bank is set to invest $7.5 billion in India, focusing on local currency financing aimed at strengthening emerging economies. By launching a rupee bond program, the bank aims to enhance India's domestic capital markets. This initiative reflects the bank's commitment to diversifying international financial structures, capitalizing on the substantial growth prospects that India's development presents.
India records $8.1 billion deficit in April-June balance of payments, June turns surplus
India's balance of payments account recorded an $8.1 billion deficit in the first quarter. This shift occurred as overseas investors withdrew funds amid geopolitical concerns. The country's current account deficit widened slightly to $3.1 billion during this period. A significant capital account deficit of $5 billion was also reported by the central bank. Higher fuel import costs contributed to the overall unfavorable financial situation.
RBI shortens FCNR (B) deposit swap window to Aug 31
The Reserve Bank of India has shortened the swap facility window for FCNR(B) deposits. This decision comes after observing higher-than-expected foreign currency inflows into the country. The central bank received substantial dollar inflows through these special measures announced earlier. FCNR(B) deposits accounted for the bulk of these significant foreign currency inflows. The swap scheme for other borrowings will continue as originally planned.
Forex reserves up by $14.1 billion to $707 billion
India's foreign exchange reserves saw a jump of over fourteen billion dollars. Foreign currency assets and gold reserves contributed substantially to this overall increase. The Indian Rupee also appreciated slightly against the US dollar on Friday. Forex traders noted pressure on the rupee due to fund outflows and oil prices. Overall reserves have risen considerably since March and over the past year.
Bank deposits hit decade-high growth as NRI dollar inflows cross $37 billion
Bank deposits saw their fastest growth in nearly ten years by July. Overseas Indians deposited about $37 billion in foreign currency accounts. Bank credit growth also accelerated to its fastest pace since June 2024. This surge was driven by corporate demand and MSME lending programs. India garnered nearly $41 billion in total inflows by July 31.
RBI proposes new interest rate rules for regulated entities, seeks public comments
The Reserve Bank of India is harmonizing interest rate determination methods for regulated entities. New guidelines will define internal benchmarks and loan pricing components for banks. Floating rate loans will have benchmark resets not exceeding three months. Existing loans must migrate to the new framework by April 2029. These draft guidelines are open for public comment until September 11.
India needs to step up public investment to attract private investments: Working paper by EAC-PM
Corporate profits and investments in India have recovered after the pandemic. Investment recovery has been slower due to limited innovative firms and profitability pressures. Targeted policy support is needed to encourage private sector investments. Intensifying public infrastructure and R&D spending can boost business confidence. Improving contract enforcement will also reduce overall business uncertainty.
RBI invites public comments on draft rules to standardise how lenders set interest rates
The Reserve Bank of India has proposed new rules for loan interest rates. These directions aim to harmonize lending practices across various financial entities. Benchmark-linked lending and interest calculation methods will see stricter regulations. The proposed framework will take effect from April 1, 2027. Public consultation on these draft amendments is currently underway.
New foreign investment rule looms over AIFs, foreign investors
A new regulation threatens alternative investment funds' established structures. These funds have relied on Indian ownership for sponsor and manager control. The draft rules suggest foreign investor funding could now determine control status. This change may impact investments in restricted sectors like real estate. Existing funds await clarity on grandfathering and future foreign investment rules.
Government approves introduction of one billion polymer banknotes of Rs 10 and 20
The government has approved polymer banknotes for field trials and regular issuance. Inflation has declined steadily, though recent pressures exist. The Goods and Services Tax Council introduced a two-rate structure for goods. Customs duty and excise duty reductions aim to contain price pressures. Disposable income increased, supporting household consumption and economic growth.
Govt mops up Rs 45,306 cr from disinvestment, asset monetisation in FY26; exceeds RE target
Government's combined disinvestment and asset monetisation mop-up reached Rs 45,306 crore in FY26. This figure surpassed the Revised Estimates for the fiscal year. Disinvestment contributed Rs 16,886 crore, while asset monetisation added Rs 28,420 crore. For the current fiscal, Rs 80,000 crore is budgeted for these receipts. So far, Rs 59,083 crore has been realized in FY27.