Banking and Financial News – 04 June 2014

RBI cuts SLR – (The Hindu)

• On 3 June 2014, RBI reduced SLR by 50 basis points to 22.50% effective June 14, 2014

• Key rates are unchanged.

• The SLR cut is expected to infuse around Rs.40,000 cr. Into the Banking System.

• RBI said it is committed to keep the economy on a disinflationary course, taking CPI inflation to 8% by Jan 2015 & 6% by Jan 2016.

• Eligible limit for foreign exchange remittances under the Liberalised Remittance Scheme (LRS) is enhanced to US $ 125,000 from US $ 75,000

• All Residents & NRIs (except Pakistanis & Bangla Deshis) are allowed to take out Indian currency notes up to Rs.25,000 while leaving the country.

India slips to seventh spot on FDI confidence index - India has slipped to its lowest position in over a decade in the foreign direct investment confidence index, which has been topped by the United States for the second year in a row, a study has showed. India was ranked second for three years in 2005, 2007 and 2012 and was placed on the third spot in 2010. This is the lowest ranking for India since 2001. (Zee News)

You can now invest up to $125,000 overseas - A strong rupee has emboldened Reserve Bank of India to relax some of the foreign exchange related restrictions including the individual overseas remittance limit of $75000 per year under the liberalized remittance scheme (LRS) which has been hiked to $125000. The central bank has also allowed foreign institutional investors to hedge their investments plus and additional $10 million using exchange traded currency derivatives. It has also promised to allow domestic entities the same flexibility. (Times of India)

If you cannot learn to forgive, you shall stay imprisoned with the unforgiven, let go of what was & live in the present. ~ Anonymous

Courtesy : The Hindu , Zee News