News - Finance

White House 2013 Budget & AAPIs

President Obama sent his budget for the 2013 fiscal year to Congress earlier today. Below are details about how his budget creates security for Asian American and Pacific Islander families. This year’s budget reflects the President’s firm belief that our country has always done best when everyone gets a fair shot, everyone does their fair share and everyone plays by the same rules. It’s a document built around the recognition that this is a make or break moment for the middle class and those trying to reach it. What’s at stake is the very survival of the basic American promise that if you work hard, you can do well enough to raise a family, own a home and put a little away for retirement. This budget continues the Obama Administration’s commitment to keeping that promise alive by creating an economy that’s built to last – with good jobs that pay well and security for the middle class.

The Reserve Bank of India: Journey into History of Bank of the Bankers

RBI head office, Delhi

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By Sameer Pushp

New Delhi, Feb 8, 2012 (Washington Bangla Radio / PIB India) Reserve Bank of India (RBI) did not become the ‘Bank of the Bankers’ in a day. It’s been a long and tough journey of evolution, consolidation, policy changes and reforms that shaped it to be an institution with a difference. Legislation to set up the RBI was first introduced in January 1927, and after seven years in March 1934, the enactment became an accomplished fact. It is one of the oldest central banks in the developing countries. Its formative years have been eventful. Its efforts to adapt central banking functions was neither deep-rooted nor widespread, the special responsibilities including those of exchange control to shoulder with the outbreak of World War II was a great responsibility thrust upon in the very first decade of its existence. Its transformation from a privately owned institution to a nationalized undertaking and its new role in the economy with the advent of independence was formidable.  Over the years when RBI embarked upon the path of its growth there are many anecdotes that are wrapped in the footprints of time.

Thrust to Potential Entrepreneurs in India: Credit Guarantee Fund Scheme for MSME

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PIB Features
With inputs from Inputs from the Ministry of MSME, Govt. of India

New Delhi, Jan 16, 2011 (Washington Bangla Radio / PIB India) The Government launched the Credit Guarantee Fund Scheme for Micro and Small Enterprises in August, 2000 with the objective of making available credit to Micro and Small Enterprises (MSEs) for loans up to Rs. 100 lakh without collateral/third party guarantees. First generation entrepreneurs in MSE sector find it difficult to access credit from the organized banking sector.  The banks on their part are concerned about the likely defaults in small loans and hence try to collateralize their exposure to the small borrowers. Keeping this in mind, it was thought fit to create the instrument of Credit Guarantee to enhance the comfort level of the banks for financing loans, as well as a new gateway for MSE entrepreneurs to get funding without collateral security and/or third party guarantee. The scheme is being operated by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) set up jointly by the Government and SIDBI.

The scheme covers collateral free credit facility (term loan and/ or working capital) extended by eligible lending institutions to new and existing micro and small enterprises up to Rs. 100 lakh per borrowing unit. The guarantee cover provided is up to 75% of the credit facility up to Rs.50 lakh with an incremental guarantee of 50% of the credit facility above Rs.50 lakh and up to Rs.100 lakh (85% for loans up to Rs. 5 lakh provided to micro enterprises, 80% for MSEs owned/ operated by women and all loans to NER). One time guarantee fee of 1.5% of the credit facility sanctioned (0.75% for NER including Sikkim) and Annual Service Fee of 0.75% is collected from Member Lending Institutions (MLIs). The corpus of CGTMSE is contributed by the Government and SIDBI in the ratio of 4:1. At present the corpus is around Rs.3300 crore which enables substantial enhancement in the credit flow to MSEs by leveraging it many times over.

A total of 125 Member Lending Institutions comprising of 26 Public Sector banks, 18 Private Sector Banks, 68 Regional Rural Banks (RRBs), 4 foreign banks and 9 other Financial Institutions have been registered which allows a wide coverage across country.. CGTMSE has been recognised internationally and has been made a member of the Asian Credit Supplementation Institutions Confederation (ACSIC), which promotes sound development of the credit supplementation system for Micro and Small Enterprises in the countries of Asia through exchange of information, discussions and interchange of personnel among credit supplementation institutions. CGTMSE was chosen to host the 24th ACSIC Conference, a annual conference for Heads of Guarantee Organisations of Asian region for the first time in India during October-November, 2011.

The scheme has helped around 7 lakh entrepreneurs by providing guarantee & enabling them loans worth more than Rs. 31 thousand crore. Success stories abound, from a small taxi driver to steel equipment manufacturer.  Some of these stories are narrated below.

Driving Life, Collateral Free

External Debt of India: Definitions and Concepts

Map of countries by external debt based on 200...

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By Shamima Siddique
Director (Media & Communication)

New Delhi, Dec 23, 2011 (Washington Bangla Radio / PIB India)

External Debt

·         Gross external debt, at a point in time, is defined as “the outstanding amount of those actual current, and not contingent, liabilities that require payment(s) of principal and/or interest by the debtor at some point(s) in the future and that are owed to non-residents by residents of an economy” (External Debt Statistics -Guide for Compilers and Users, International Monetary Fund (IMF), 2003).

Original and Residual Maturity

The Wal-Mart Effect: Why Foreign Direct Investment in Multi Brand Retail is Good for India

By Dhiraj Singh

The author is Director (M&C), P.I.B.

New Delhi, Dec 2, 2011 (Washington Bangla Radio / PIB India) The Government has decided to allow Foreign Direct Investment  (FDI) upto 51% in multi brand retail. This means that global retailers can come to India with a local partner and set up stores in the country.  Till now FDI was not allowed in multi brand retail.  However, there were big multi brand retail outlets owned by Indian entities.

This decision is an enabling policy that will open up new windows of opportunity to modernize the retail sector particularly for agricultural products and the small-scale sector.

The benefits would be for all ...

Foreign Direct Investment Prospect for India

New Delhi, Aug 12, 2011 (Washington Bangla Radio / PIB India) India now with consistent growth performance and abundant high-skilled affordable manpower provides enormous opportunity for investment both domestic and foreign. Foreign direct investment (FDI) causes a flow of money into the economies which stimulates economic activity, increases employment and induces the long run aggregate supply and brings in best practices. The FDI policy was liberalized progressively through review of the policy on an ongoing basis and allowing FDI in more industries under the automatic route.

UIDAI Aadhaar Enrolment Launched by India's IDBI Bank

IDBI Bank Ltd, which is known to be one of the Registrars for enrolment of residents under Aadhaar project of UIDAI, has announced the launch of its enrolment on pilot scale for its employees at Corporate office on July 6, 2011.

HSBC India disclosure of United States tax payers

Orlando, April 14, 2011 (Washington Bangla Radio / 24-7PressRelease) The United States Department of Justice continues its vigorous efforts to open up foreign secret bank accounts. In its latest move, the United States Department of Justice, on behalf of the Internal Revenue Service has filed suit in San Francisco, California against HSBC India to require the disclosure of United States tax payers accounts. The Justice Department is committed to ensuring that all US tax payers meet their obligations to declare and pay taxes on foreign bank accounts. The IRS has announced that it is continuing to focus its attention on international tax evasion.

The Justice Department has already sued UBS Switzerland to get accounting information on United States tax payers.

World Consumer Rights Day: Consumers for Fair Financial Services

New Delhi, March 11, 2011 (Washington Bangla Radio / PIB-India) As we celebrate the World Consumer Rights Day 2011 on March 15th the Consumers International which represents 220 consumer organisations in 115 countries has this year proposed to safeguard consumer interests and put this agenda in G20 Summit. Consumers International (CI), with its members around the world, is calling for concrete action from international decision-makers to strengthen financial consumer protection and to demand access to safe, fair and competitive markets in financial services for all. Thus, “Consumers for Fair Financial Services” is a global campaign to increase consumers' access to stable, fair and competitive financial markets.

Axis Bank of India launches Power Salute For Indian Army Personnel

New Delhi, March 3, 2011 (Washington Bangla Radio / 1888PressRelease) Axis Bank, India's third largest private bank, today signed a Memorandum of Understanding (MoU) with the Indian Army for the Power Salute, a salary account exclusively for the Army personnel.

The MoU was signed by Lt General V K Chaturvedi, PVSM, AVSM, SM, Director General (MP & PS), Indian Army and Mr. S. K. Chakrabarti, Deputy Managing Director, Axis Bank in the presence of Lt General Mukesh Sabharwal, PVSM, AVSM **, VSM, Adjutant General Indian Army, other Army and Axis Bank officials.

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