Weekly news

By Ankush Gupta

MBA 2A

Clarity on banking rules urgent

– World will be starved of capital and economy recovery imperiled if regulators dither in spelling out new rules for the financial sector

– To get back the global economy on the recovery road not to let prolonged uncertainty or misguided anti fervor block the resources

Set uniform gas price for power fertilizer companies

– Planning commission has favoured a uniform gas price for power and fertilizer sectors contrary to an independent recommendation to have different rates

– Recommendations are in context of a gas pooling mechanism being considered by the petroleum ministry

Drive to give more state funds to RRBs

– Indian government dedicated rural banks soon get a chunk of business from states

– Finance ministry asked the central bank to treat the rural bank on par with commercial banks

– Regional Directors of the central bank are expected to take up the issue in the upcoming meetings of State Level Bankers Committee (SLBC)

All exempt trusts in position to offer 9.5% returns

– EPFO has declared a 9.5% return for 2010-11 on the corpus managed by it after it found Rs 1,731 crore surplus

– EPFO has been paying a 8.5% return since 2005-06 and was expected to declare the same EPF rate in the current year as well but leaving the expectation behind they declared the great return for current year

Bank of Japan back in stimulus mode

– Bank of Japan pledged to pump more funds into the struggling economy and keeping interest rates virtually at zero

– Central Bank of Japan had eschewed government calls for more decisive action but in face of growing evidence Bank of Japan cut its overnight rate target

Entire interest income on PF to be tax exempt

– Finance Ministry assured the EPFO that the entire 9.5% interest on the accumulated corpus of account holders for the current fiscal will not be taxed

– Labour minister will go through the minutes of the meeting of central board of trustees of the EPFO which decided on the higher interest rate

Thanks