1. RBI Steps in to Raise Deposit Insurance Cover for Customers from Rs 1 Lakh
The Reserve Bank of India (RBI) has told its subsidiary Deposit Insurance and Credit Guarantee Corporation (DICGC) to create a risk-based system for collecting premiums from banks to cover the deposit insurance of customers.
The RBI feels that a move to charge banks, depending upon how risky they are, is a prerequisite for hiking the bank deposit insurance limit of customers from Rs 1 lakh at present, a central bank executive said.
According to sources, the central board of the RBI, which met in Chandigarh on 11 October, had a detailed deliberation on the proposal to hike the deposit insurance of bank customers.
(Source: Business Standard)
2. Centre’s EPFO Dues Surge to Rs 9,115 Crore Amid Fiscal Pressure
The Union government’s statutory dues to the state-run retirement fund manager has ballooned to Rs 9,115 crore, reflecting the rising pressure on government finances.
The cumulative arrears to the Employees’ Provident Fund Organisation (EPFO) are only till the end of March and have increased since then, a senior government official said on condition of anonymity.
Of the total dues, Rs 8,063.66 crore is the government’s contribution to employees pension scheme (EPS) and the remaining amount is its arrears towards a minimum pension benefit for low-wage organized sector workers
(Source: Mint)
3. Distress Signal: Share of Youngest Workers in NREG Begins to Rise
The steady decline in the proportion of young workers, those between 18 and 30, under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has halted and has begun to rise in the wake of demonetisation and the rollout of GST.
There is no clarity on what could be the reason behind this rising trend of entry level workforce among MGNREGA workers but experts say this could be a reflection of rural distress and lack of employment opportunities.
An analysis of age-wise data of persons employed in MGNREGA indicates that the share of workforce in the 18-30 age bracket began moving up after financial year 2017-18. The total number of young workers (18-30 years) employed under the job guarantee scheme was more than 1 crore in 2013-14 which came down to 58.69 lakh in 2017-18. However, their number started rising again and reached 70.71 lakh in 2018-19.
(Source: The Indian Express)
4. Infosys Shares Sink in US on Charges of Misgovernance
For Infosys Ltd, it is more a case of being guilty until proven innocent, rather than innocent until proven guilty.
A whistleblower complaint against the company, alleging unethical practices to boost short-term revenue, has led to a massive sell-off in the company’s American depositary receipts (ADRs). On the New York Stock Exchange, Infosys ADRs fell 15 percent to $8.95 in early trading on Monday.
News reports say the whistleblower complaint was sent to the company’s board on 20 September. Still, the board has no adequate response yet for investors after a month has passed.
(Source: Mint)
5. India, US Likely to Announce Bilateral Trade Package Soon: Piyush Goyal
India and the US are likely to announce their first set of trade agreements soon, as both countries have "almost resolved’’ the broad contours of the package, Commerce & Industry Minister Piyush Goyal has said.
Both countries now want to look a much larger engagement in the coming days which could possibly lead to the announcement of a larger bilateral agreement, Goyal said speaking at the US India Strategic Partnership Forum’s Annual India Leadership Summit on Monday
(Source: Hindu BusinessLine)
6. DHFL’s Woes Mount as Forensic Audit Unearths Diversion of Funds
A forensic audit of Dewan Housing Finance Corp. Ltd (DHFL), conducted by accounting firm KPMG and submitted to lenders of the debt-ridden mortgage lender last week, has revealed several gaps in the financials, three people directly aware of the matter said.
“There was diversion to third-party private entities running into large sums," one of the three people cited above said on condition of anonymity. Mint could not ascertain the quantum of diversion, but a report published on the Moneylife website said that it was to the tune of Rs 20,000 crore.
(Source: Mint)
7. India Puts Us Above RCEP on Trade Deal
Trade minister Piyush Goyal on Monday signalled that India may ditch the China-led Regional Comprehensive Economic Partnership (RCEP) trade pact but go ahead with a trade agreement with the US.
India and the US have agreed on the broad contours of a proposed trade package and may announce it after closing the pending gaps, Goyal said at the US-India Strategic Partnership Forum in New Delhi.
However, speaking on the sidelines of the event, Goyal hinted that India may not rush to sign the RCEP trade pact, saying that it will ensure that its national interest in all sectors are protected before it does so.
(Source: Mint)
8. Tata Steel to Cut 2,500 Jobs in Europe to Save $930 Million in Costs: Report
Tata Steel Europe, a subsidiary of Tata Steel India, has decided to cut 2,500 jobs, or 25 per cent of its work force, in Europe to save $930 million in costs, Dutch media outlet NH Nieuws reported on Monday.
Quoting a memo to employees, the company said Tata Steel Nederland would have to contribute “a large part of this amount or ^170 million in cost savings”. The job cuts will be across Tata Steel’s Europe plants in the Netherlands, France, England and Belgium, the media outlet reported, citing Central Works Council’s Vice-chairman Gerrit Idema.
(Source: Business Standard)
9. Airtel Wants Fees on Incoming Calls from Other Networks till 2022
Telecom operator Bharti Airtel in its submission to sector regulator Trai has favoured charging incoming calls originating from network of other mobile phone service provider till 2022.
Vodafone Idea and state-owned BSNL have also favoured levying of the interconnect usage charge (IUC), currently 6 paise per minute, on every incoming calls from network of other operators. However, Jio has opposed continuation of the charges.
Trai had proposed to move from the current IUC regime to the BAK (bill and keep), regime where no operator will charge for mobile call transmission, from January 1, 2020. However, the regulator recently floated consultation paper on whether there is a need to defer the date of removing mobile call termination charges.
Airtel and Vodafone Idea have said IUC is a fee charged from a telecom operator for using infrastructure of other service provider to complete call of his subscriber.
(Source: PTI)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)