Finance & Banking

RBI may raise new banks' minimum capital need to 1000 cr

July 14, 2012 by sknlakshmi

Low capital would put the newly licensed bank to take high risk and reward route,

The Reserve Bank of India may increase the minimum capital requirement for new banks to Rs 1,000 crore from the currently proposed Rs 500 crore, said a senior official with direct knowledge of the development.

In its draft guidelines in August, the RBI had proposed a minimum capital requirement of Rs 500 crore for any entity applying for a new bank license.

Earlier this week, the RBI had received comments from industry seeking an increase in the limit.

PM sets up panel to frame GAAR guidelines by Sept 30

July 14, 2012 by sknlakshmi

To prepare fresh norms on the controversial tax provision to bring 'greater clarity'

Within a fortnight of the Finance Ministry issuing draft guidelines on GAAR, Prime Minister Manmohan Singh today set up a committee to prepare fresh norms on the controversial tax provision to bring "greater clarity" and prepare a roadmap by September 30 for its implementation.

RBI for robust farm insurance to achieve 4% agriculture growth

July 13, 2012 by sknlakshmi

Although the agriculture sector contributes only about 15% to country's GDP, it employs over 50% of its population

With over two-third of India's agriculture dependent on rains, the RBI today pitched for a more robust weather insurance system and improvement in mechanism to deliver credit to small farmers to achieve 4% annual farm growth.

Rangarajan seeks views of bankers to boost investment climate

July 11, 2012 by sknlakshmi

Although details were not revealed, Rangarajan mentioned that the issue of interest rates did come up

Prime Minister's top economic advisor C Rangarajan today gathered views from banking, mutual funds and insurance industries on ways to boost investment climate in the country.

Rangarajan, Chairman of the PM Economic Advisory Council (PMEAC), had met representatives of India Inc yesterday amid rising concerns of slowdown and sluggish business activities.