RBI likely to hike CRR , Repo Rate and Reverse Repo Rate

Ahead of the Reserve Bank’s quarterly monetary policy, RBI  is likely to signal interest rate hikes to suck out liquidity from the market and check prices from spiraling further.  Reserve Bank may also raise the amount banks need to park with the apex bank (CRR) by up to 50 basis points.  Reserve Bank could raise the short-term borrowing (reverse repo) rate by 25 basis points. Reserve bank is likely to hike cash reverse ratio by up to 50 basis points.

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Income tax department decided to take up fewer tax returns for scrutiny this year

If you’re worried about what questions your income tax officer will ask about your returns, you can relax a bit. The department has decided to take up fewer tax returns for scrutiny this year. The Central Board of Direct Taxes had issued an internal circular in December 2009, asking commissioners to select fewer cases for scrutiny.

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Beauty rides vitamin M

Nutritionist Dr Sarita Davare, recently caught in the tax net (the income tax department recovered Rs 7.5 crore from her), is the city’s best kept secret. We spent the best part of the day trying to get a picture of the lady, but failed. However, the recent IT raid on her brings the spotlight on big bucks that the fitness industry rides on.

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Mergers of banks will not be forced by Government

Mergers on individual banks will not be forced, and no time frame has been set for the consolidation process in the banking system, financial services secretary R Gopalan said today. Merger of state-run banks should be done with a view to bring in good synergies, on mutual interests of the concerned entities, and government will not compel the consolidation process on individual banks, he said said at a Bancon conference here.

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Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) Section 24- Investment in Government and other approved securities by Urban Co-operative Banks (UCBs)

RBI/2009-10/ 262

UBD (PCB) BPD Cir No. 34 /16.26.000/2009- 10 December 17, 2009

Please refer to our circulars UBD.BR.Cir.19/ 16.26.00/ 2001-02 dated October 22, 2001 and UBD(PCB) CO BPD Cir No:28/16.26. 00/2008-09 dated November 26, 2008 on the captioned subject.

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List of terrorist individuals/organisations – under UNSCR 1267(1999) and 1822 (2008) on Taliban/Al-Qaida Organisation

RBI/2009-10/255,  RPCD.CO.RF.AML.No.6638/07.02.12/2009-10, December 15, 2009

List of terrorist individuals/organisations – under UNSCR 1267(1999) and 1822 (2008) on Taliban/Al-Qaida Organisation

Please refer to our letter RPCD.CO.RF.AML.No.4865/07.02.12/2009-10 dated November 9, 2009 on the captioned subject. We have since received from the Government of India (Ministry of External Affairs) copies of notes (copies enclosed) dated September 3, 2009;

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RBI will ask banks to provide details of their direct and indirect exposure to Dubai

The Reserve Bank of India (RBI) on Friday said it would ask banks to furnish details of their direct and indirect exposure to Dubai World, the beleaguered Dubai government-owned holding company which asked for more time to repay its debt.

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RBI may soon issue new Norms on NPA

The Reserve Bank said it will soon come out with norms for banks to augment the capital requirements that the lenders have to keep aside against bad assets. “We will be issuing the circular (provisioning against NPAs) so you can then see details on that,” RBI deputy governor Usha Thorat told.

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