1. Viral Acharya’s Appointment To The Reserve Bank of India Strays From The Norm
The quorum at the Reserve Bank of India was completed on Wednesday with the government announcing the appointment of the fourth deputy governor.
Viral Acharya, 42, professor in the department of finance at New York University’s Stern School of Business, will join the central bank for a period of three years, said the government in a notification. He joins governor Urjit Patel and deputy governors R Gandhi, SS Mundra and NS Vishwanathan to complete the top team at the central bank.
Acharya’s appointment conforms to the tradition of one deputy governor being appointed from outside the RBI, but departs from the norm of appointing a traditional economist who looks after the monetary policy functions of the central bank.
(Source: BloombergQuint)
2. 1 in 3 Rural Persons Enrolled Under DigiDhan Abhiyan Opts for Paytm
Nearly one in three rural persons newly enrolled to electronic payment systems under the Centre’s outreach programme for digital transactions in the hinterland — the DigiDhan Abhiyan — has registered for the Alibaba-backed mobile wallet Paytm.
Compared with the 28.92 percent share of Paytm among the total number of rural residents registered under the scheme since its launch, the adoption of the government-backed Unified Payment Interface (UPI) and the Unstructured Supplementary Service Data (USSD) schemes was cumulatively just over 20 percent, government data showed.
Under the Abhiyan, launched on 9 December, village-level entrepreneurs of the Common Service Centres (CSCs) — launched by the government as a strategic cornerstone of its Digital India programme — organise workshops, where bankers and other stakeholders are invited. These entrepreneurs explain various modes of electronic payments to rural citizens.
(Source: The Indian Express)
3. Stock Markets to Be Cautious After Not-So-Sweet 2016
This has been an eventful year for the stock market and 2017 is likely to be no different. With Donald Trump set to assume office as US president, the government under pressure to revive the economy and foreigners pulling money out of India, investors will be on edge, at least in the first few months of the New Year.
Equities are likely to end 2016 at almost the same levels at which they finished last year, with India one of the worst performers among emerging Asian markets. Against the backdrop of a strong dollar, uncertainty over the impact of demonetisation on the economy and earnings as well as the policy path Trump will take, market participants are approaching 2017 with caution.
(Source: The Economic Times)
4. NSE IPO Papers: Audit Found Unfair Access for Brokers
A forensic audit of the National Stock Exchange of India’s (NSE) trading systems showed that its algorithmic trading platform and co-location facility were “prone to manipulation” and allowed “potential preferential access” to some brokers, NSE said in its share sale document.
The audit report observed that consistent preferential access to some brokers may not have been possible without the knowledge of certain NSE officials and employees who didn’t do anything about it.
The report, however, stopped short of calling differential treatment to some brokers “collusion or connivance”, saying that the auditor was not in a position to do so.
(Source: Livemint)
5. Gold Shakes Off Trump Slump With Third Advance as Year-End Nears
Gold may be emerging from its Trump slump as 2016 winds down. Prices rose for a third day to head for the longest run of gains since early November, the period just before the reality-television star seized the White House and kick-started a push for risk assets that’s hurt prices.
Bullion for immediate delivery gained as much as 0.5 percent to $1,144.56 an ounce, and traded at $1,142.58 at 8:05 am in London, according to Bloomberg generic pricing. After rising 0.5 percent on Tuesday, and 0.4 percent on Friday before the Christmas break, that’s set the precious metal up for the best winning run since the period to 4 November.
(Source: BloombergQuint)
6. Tax Cash Payment to Public Utilities Beyond a Limit: Panel
A panel constituted by the government to strengthen the digital payment ecosystem has called for a shift in regulatory approach in order to promote competition, innovation, open access and consumer protection.
The panel also wants the government to hive off payment regulation into an independent authority within the Reserve Bank of India (RBI).
The committee on digital payments, headed by Ratan Watal, has also suggested that cash payments should be disincentivised by imposing a nominal tax on cash transactions and handling charges on cash payments beyond a certain limit made to government departments or utilities.
7. Demonetisation Takes the Shine off Moradabad's Brass Industry
Rhythmic clanging welcomes you as soon as you enter Moradabad’s Peerzada Road. If the brass industry of Moradabad were to be described as a body, then Peerzada Road could well be the heart of it. Mohammed Idris used to finish 21 vases in a week, working on all seven days. Since demonetisation, his work has been cut by more than half. Now, he works three days a week.
“Mandi hai,” he says, the market has slowed. The refrain is echoed in every house in this neighbourhood. Everyone in this neighbourhood gets paid by cash, even though a few of them have bank accounts. And with the supply of cash reduced to a trickle, the industry is starting to worry about what the new year will bring.
(Source: Livemint)
8. Centre Grants Rs 200 Crore for Tirupur Dyeing Units
The Centre has sanctioned Rs 200 crores for Tirupur’s dyeing industry that was on the verge of closure due to a severe financial crisis after making huge investments in the country’s first Zero Liquid Discharge projects for effluents.
Tirupur is a hub of the textile processing and knitting industry providing employment to over five lakh persons and contributes 22 percent of India’s total garment exports.
On the Textiles Ministry’s recommendation, the Finance Ministry has sanctioned the funds for Tamil Nadu for 18 common effluent treatment plants set up at a cost of Rs 1,013 crore. The Rs 200 crore assistance is in the form of an interest free loan to be converted into grant, based on the performance of these plants.
(Source: The Hindu)
9. Cement Deals Dominate Top Five M&A Deals in 2016
Fuelled by a consolidation wave and rising confidence in the country’s economic growth prospects, merger and acquisition (M&A) activity increased to $69.75 billion across 1,195 announced transactions in 2016, beating the previous record of $66.96 billion seen in 2007, when dealmaking was at its peak, according to data compiled by Thomson Reuters.
The year witnessed major transactions such as the sale of Essar Oil Ltd, merger of Reliance Communications Ltd and Aircel Ltd, and acquisition of Max Financial Services Ltd’s life insurance business by HDFC Standard Life Insurance.
(Source: Livemint)
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