1. RBI Allows Restructuring of MSME Loans up to ₹25 Crore
The Reserve Bank of India (RBI) on Tuesday allowed lenders to recast loans of stressed micro, small and medium enterprises (MSME), provided the total fund and non-fund based exposure to such a borrower does not exceed ₹25 crore. Such a debt restructuring, the central bank said, would not lead to a downgrade in asset classification.
“RBI has decided to permit a one-time restructuring of existing loans to MSMEs that are in default but ‘standard’ as on 1 January 2019, without an asset classification downgrade,” RBI said in a statement.
2. Demonetisation Wasn’t a ‘Jhatka’; Govt Had Warned People, Says Modi
PM Narendra Modi on Tuesday said demonetisation was not a ‘jhatka’ as the government had floated a scheme so that black money could be deposited and just a penalty would be levied.
In an interview to news agency ANI, the Prime Minister took questions on farm loan waivers, the Sabarimala issue, mob lynching etc. He said Urjit Patel sought to resign as RBI governor six to eight months before quitting.
(Source: Business Standard)
3. India Remains Fastest Growing Economy Ahead of China Despite Ups, Downs
India remained ahead of China to retain the tag of the world’s fastest growing large economy withstanding several ups and downs, spike in oil prices and global trade war like situation during 2018.
Indian economy’s roller-coaster ride during the year gone by was best captured by the GDP growth. In the first quarter of 2018-19 ending 30 June, it grew at an impressive 8.2 percent, after 7.7 percent in the first three months of the year.
Then it slipped to 7.1 percent in the next quarter ending 30 September. Fitch Ratings slashed India’s GDP growth forecast to 7.2 percent for the current fiscal, from 7.8 percent projected in September, citing higher financing cost and reduced credit availability.
4. NCLT Allows Govt to Open IL&FS Group Companies’ Past Financial Statements
The National Company Law Tribunal (NCLT) Mumbai today allowed the government’s plea for re-opening and re-casting of financial accounts of Infrastructure Leasing & Financial Services (IL&FS), and its subsidiaries IL&FS Transportation Networks Ltd (ITNL) and IL&FS Financial Services Ltd (IFIN) for the past five years.
In December, the MCA through its Western Regional Director Manmohan had filed a plea for re-casting of financial accounts for the three companies for the period between years 2012-13 and 2017-18.
5. Car Sales Grew 6% in 2018 on Low Base, String of New Launches
Domestic passenger car sales rose by 6.05% during a volatile 2018 to over 2.55 million units on the back of a low base before July and a string of new launches after the Auto Expo in February.
The trend in car sales was robust during the first half of the calendar year on the back of new launches, expectations of a healthy monsoon and a low base, but weakened since July due to factors such as the devastating floods in Kerala, unfavourable macroeconomic scenario, as well as regulatory changes and high fuel prices, which increased the cost of ownership.
6. GST December Mop-Up Drops to Rs 94,726 Crore
Revenue collection from Goods and Services Tax (GST) fell to Rs 94,726 crore in December from Rs 97,637 crore a month ago, as per data released by the Finance Ministry on 1 January.
Out of the total collection, Central GST (CGST) was Rs 16,442 crore, with states garnering Rs 22,459 crore State GST (SGST). At least Rs 7,888 crore was received as cess, with Rs 47,936 crore collected as Integrated GST (IGST), which is levied on inter-state supply of goods and services and is divided between states and the Centre.
7. ATF Price Slashed by 14.7% in Biggest Cut Ever, Costs Less Than Petrol
Jet fuel price on Tuesday, 1 January was cut by a record 14.7 percent on the back of decline in international rates, making it cheaper than both petrol and diesel.
The price of Aviation Turbine Fuel (ATF) – used to power airplanes – was slashed by Rs 9,990 per kilolitre, or 14.7 percent, to Rs 58,060.97 per kl, according to price notification issued by state-owned oil firms.
8. Account Opening Restarts at Paytm Payments Bank After RBI Nod
Six months after being asked by the Reserve Bank of India (RBI) to stop adding new customers following audit observations by the banking regulator, Paytm Payments Bank has once again started opening new accounts following a clearance, according to a report.
Noida-based Paytm Payments Bank, a unit of One97 Communications Ltd, issued front page ads in national dailies today saying that, “India’s most sincere bank is here. Welcome 2019 with revolutionary banking of Paytm Payments Bank. Open your savings account today”.
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