1. Viral Acharya’s Exit Raises Fresh Questions over RBI’s Independence
At a press conference on 6 June, just after the Reserve Bank of India (RBI) announced its third consecutive rate cut, the usually outspoken deputy governor Viral Acharya was quiet as his colleagues fielded queries from the assembled media.
Throughout the conference, Acharya kept his head down, eyes focused on his papers and hands busy scribbling away. To many journalists present in the RBI conference room that day, Acharya’s body language should have been an indication of his plans.
On Monday, RBI announced the resignation of Acharya, a move with implications for the bank’s independence and future monetary policy. Submitted a few weeks ago and possibly before the last meeting of RBI’s monetary policy committee (MPC) earlier this month, his resignation request is under consideration.
(Source: LiveMint)
2. Govt May Cut Interest Rates of Small Savings Schemes for July-Sept Quarter
The government may lower interest rates on small savings schemes for the July-September quarter, according to senior government sources.
The cut may only be for some – and not all – small savings schemes, and could be as high as 30-50 basis points.
The last round of changes in small savings rates were for the January-March quarter. The rates for one-year, two-year, and three-year time deposits were aligned with each other. The rates for the April-June quarter remained unchanged.
(Source: Business Standard)
3. L&T Tightens Its Grip on Mindtree, Buys out Nalanda Capital’s Stake
Singapore-based Nalanda Capital on Monday, 24 June, sold its entire 10.61 percent stake in Mindtree Ltd to Larsen and Toubro Ltd (L&T), signalling the likely end of the stiff fight put up by promoters to the first hostile takeover bid of an Indian software services company.
Nalanda sold its whole stake worth ₹1,707.46 crore to L&T in an ongoing open offer for shareholders of Mindtree. The 10-day open offer closes on 28 June.
Two people directly aware of the matter confirmed the transaction. It is, however, not known if Nalanda took the step following a show-cause notice by the Securities and Exchange Board of India (SEBI) to the firm for pressing Mindtree’s public shareholders to refrain from tendering shares to L&T at ₹980 per share in the open offer.
(Source: LiveMint)
4. Huawei Offers India a ‘No Back Door’ Pact
Huawei Technologies said it is willing to sign a “no back door" pact with the Indian government to assuage potential security concerns.
The statement from Huawei comes against the backdrop of the Chinese telecom major battling intense pressure from the US, which is pushing allies to ban the company from 5G networks on suspicions of espionage.
The company hopes the measure would help assure the Indian government about any cybersecurity breach that could arise at the vendor’s end.
(Source: LiveMint)
5. Indians’ Unaccounted Wealth Abroad Estimated At $216-490 Billion, Show Studies
Indians held between $216 billion and $490 billion in unaccounted wealth abroad over various periods between 1980 and 2010, according to three separate ‘black money’ studies conducted by three premier institutes.
The studies conducted by the three institutes – National Institute of Public Finance and Policy, National Council of Applied Economic Research and National Institute of Financial Management – found that the sectors where black money is found to be the highest include real estate, mining, pharmaceuticals, tobacco, bullion, commodity, film and education, said a report of the Standing Committee on Finance tabled in the Lok Sabha on Monday.
(Source: BloombergQuint)
6. India Approves Motor Bill With Steep Penalties For Traffic Offences
The central government on Monday approved the Motor Vehicle (Amendment) Bill that proposes hefty penalties for violation of traffic norms including up to Rs 10,000 fine for not providing way to emergency vehicles and Rs 10,000 for driving despite disqualification, an official source said.
The Bill, which was pending for approval in the Rajya Sabha, lapsed after the term of the 16th Lok Sabha ended.
“The Cabinet, chaired by Prime Minister Narendra Modi has approved the Motor Vehicle (Amendment) Bill. It provides steep penalties for violation of various traffic norms,” the source said.
(Source: BloombergQuint)
7. Yes Bank Co-Founder Rana Kapoor's Family Plans to Sell Mortgage Unit
Banker Rana Kapoor’s family is planning to sell a stake in their six-year-old mortgage finance company, people with knowledge of the matter said, as rising wariness in the credit market erodes growth prospects of shadow finance firms.
The family office run by the three daughters of the Yes Bank Ltd co-founder is working with Nomura Holdings Inc on the potential deal, according to the people, who asked not to be identified as the information isn’t public.
It has reached out to several private equity firms to gauge their interest, the people said.
(Source: Business Standard)
8. Monsoon Covers Half of India, to Help Farmers Accelerate Crop Sowing
India's annual monsoon rains have covered nearly half of the country and conditions are favourable for further advancement into the central and western parts this week, a weather department official said on Monday.
The monsoon's progress will help farmers to accelerate sowing of summer-sown crops, which has been lagging due to a delay in the arrival of monsoon rains.
"In the last three days, monsoon has gained momentum. It has covered the entire southern and eastern India," said an official at the India Meteorological Department (IMD), who declined to be named.
(Source: Business Standard)
9. Bimal Jalan Panel Report May Contain Dissent Note by Subhash Garg
The Bimal Jalan committee, tasked with reviewing the economic capital framework of the Reserve Bank of India (RBI), has deferred the submission of its report to the central bank for the third time. The panel will meet again in mid-July, after the presentation of the Union Budget on 5 July.
Also, Business Standard has learnt that the report would likely include a dissent note by Finance Secretary Subhash Garg, who is the government’s representative on the panel.
The main difference of opinion within the six-member panel is over the transfer of the RBI’s “excess” capital reserves.
While most panel members are in favour of a phased transfer of the RBI’s capital reserves to the government over the years, the government’s view, voiced by Garg, is for a one-time transfer. That is what Garg’s dissent note is expected to reflect.
(Source: Business Standard)
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