The monetary policy committee (MPC) of the RBI kept the key policy rates unchanged on Thursday. The repo rate now stands at 4%, and the reverse repo rate at 3.35%.Various economists had expected the central bank to overlook a 6%-plus inflation rate and bat for reviving growth with a 25 basis points repo rate cut. Inflation is on the rise in the economy. Consumer price index (CPI) inflation averaged at 6.7 % in March quarter and little lower at 6.5% in June quarter. ICRA had on Wednesday said both one-time restructuring and extension of moratorium could pose challenges to lenders.
One can transfer his home loan balance to another lender if the bank taking over offers cheaper interest rates. The borrower will not have to bear any pre-payment or foreclosure charges on loan switching. However, the new lender could levy a processing charge since it will treat the loan as fresh disbursement. It could also ask you to submit all KYC and property documents, bank statements, income proofs, original documents with the existing lender and previous loan account statement, among other things. The lender will initiate the loan assessment process and disburse the amount after these standard checks are completed.
Revenue of mall operators is set to halve this fiscal because of the Covid-19-driven lockdowns, CRISIL’s analysis of the top 10 malls indicated. The decline in revenues is because multiplexes, food courts, restaurants and gaming zones have not yet opened in many locations. These businesses contribute around 22% of the total revenues. For other categories, such as apparels, cosmetics, electronics, and bookstores, which contribute around 75% of mall revenues, consumption is still low at 30-35% of previous years’ numbers in the first month of operations post reopening. Businesses are negotiating with mall owners for waiver in lease payments and discounts.
Softbank backed Oyo Hotels & Homes has announced it is restoring full salaries of employees with a fixed compensation of up to Rs 8 lakh. The decision means pay cuts for as many as 60% of employees across India and South Asia stand reversed, and that they will receive their full salary in the next payroll. The company will gradually restore salaries of all other employees in phases by December this year. For other employees, around 12.5% of the total 25% cut will be restored from October 2020 and the remaining 12.5% pay cut will be restored effective December 2020.
Spot gold soared to a record above $2,000 an ounce as investors continue to seek a haven for their assets amid daunting economic and geopolitical risks. Spot gold hit a record high of $2,030.72 in early Asian trade, but later dipped to $2,014.41. U.S. gold futures rose 0.7% to $2,032.30. "Despite of potential short-term pullback, the mid-to-long-term prospect of gold and other precious metals remains bullish against the backdrop of low interest rate environment and fiscal + monetary stimulus," said DailyFx strategist Margaret Yang. The U.S. dollar fell 0.3% against its rivals, making gold cheaper for holders of other currencies.
Finnish telecom giant Nokia has threatened to pull out support for maintaining BSNL’s network if its dues worth Rs 910 crore are not cleared immediately. The company which controls nearly 40% of BSNL’s network said it would not be possible to infuse any further capital in maintaining the installed equipment. BSNL has not made payments to Nokia since March, despite its commitment to clear the dues in monthly installments by September 2020. Nokia has large number of employees dedicated to BSNL and has also warned state-run BSNL about the impending job losses as it will be forced to terminate employees.
Tata Motors is looking to induct a foreign strategic partner in its India passenger vehicle business by transferring the business unit to a wholly-owned subsidiary for Rs 9,417 crore. Tata Motors is in talks with multiple automakers, among them European and East Asian, to sell up to 49% stake in its India passenger vehicle business. The subsidiary, TML Business Analytics Services, to be renamed Tata Motors Passenger Vehicles, will issue fresh shares to Tata Motors towards the Rs 9,417 crore payment. Post demerger, Tata Motors will be left with the commercial vehicle business and investments in JLR and other subsidiaries.
The number of payments transacted on UPI hit an all-time high of 149 crore (1.49 billion) in July this year, with the value of transactions reaching Rs 2.91 lakh crore, NPCI data showed. The previous high was 134 crore (1.34 billion) transactions in the preceding month of June, while the value of transactions was Rs 2.61 lakh crore. During the April-July period, the cumulative transactions on UPI reached 631 crore. The value transacted stood at Rs 6.31 lakh crore. In FY 2019-20, the number of UPI transactions was 1,252 crore, while the value of payments was Rs 21.32 lakh crore.
US President Donald Trump only agreed to allow Microsoft Corp to negotiate the acquisition of popular short-video app TikTok if it could secure a deal in 45 days. Trump said on Friday he was planning to ban TikTok in the US amid concerns that its Chinese ownership represents a national security risk because of the personal data it handles. The proposed acquisition of TikTok, which boasts 100 millions US users, would offer Microsoft a rare opportunity to become a major competitor to social media giants such as Facebook Inc and Snap Inc. Microsoft also owns professional social media network LinkedIn.
About 40.05 crore bank accounts have been opened under the government's flagship financial inclusion drive Pradhan Mantri Jan Dhan Yojana (PMJDY). Deposits in Jan Dhan bank accounts are in excess of Rs 1.30 lakh crore. The scheme was launched on August 28, 2014 by PM Narendra Modi- government with an aim to provide universal access to banking and need based credit facilities to the people in the country. Accounts opened under the PMJDY are Basic Savings Bank Deposit (BSBD) accounts with additional features of RuPay debit card and overdraft. There is no requirement of maintaining minimum balance in BSBD accounts.
US manufacturing activity accelerated to its highest level in nearly 18 months in July as orders increased despite a resurgence in new COVID-19 infections, which is raising fears about the sustainability of a budding economic recovery. Survey from the Institute for Supply Management showed about 72% of industries reported growth last month. The ISM said its index of national factory activity jumped to 54.2 in July from 52.6 in June. That was the strongest since March 2019 and marked two straight months of expansion. A reading above 50 indicates growth in manufacturing, which accounts for 11% of the US economy.
The government is considering measures to prevent trade partners in Southeast Asia from re-routing Chinese goods to India with little added value. India is planning to raise quality standards of imports, impose quantity restrictions, stringent disclosure norms and initiate more frequent checks at ports of entry for goods coming from many Asian countries including Malaysia, Thailand, Vietnam and Singapore. The moves will target imports of base metals, electronic components for laptops and mobile phones, furniture, leather goods, toys, rubber, textiles, air conditioners and televisions, among other items. China is India's second-biggest trading partner, with trade worth $87 billion in FY19.
The government may soon impose licensing requirements on imports of furniture, toys and sports goods, amid a push for self-reliance or Atmanirbhar Bharat. The government is also reportedly planning to hike import duties for certain products to make their imports more expensive. Other industries where the government might restrict imports include air-conditioners, leather, footwear, agro-chemicals, ready-to-eat food, steel, aluminium, copper, textiles, electric vehicles, auto components, TV set-top boxes, CCTVs, ethanol & bio-fuels. The government recently placed imports of tyres and colour TVs on the restricted list, most of which come from China, which means imports of these products require licenses.
Cash-strapped airlines are unlikely to refund about Rs 3,000 crore they owe to passengers against tickets cancelled for flights during and after the national lockdown. Detailed data of refunds shared by airlines show they have issued credit shells worth Rs 3,000 crore that can be used for travel at a future date. Estimates also show about Rs 1,500 crore has been refunded to passengers — a substantial part through the utilization of credit shells by passengers. The government is also of the view that airlines, facing financial crunch, cannot be forced to pay these refunds, as they do not have funds.
Facebook has introduced 'official music videos' in India to showcase music videos from labels like T-Series Music, Zee Music Company, and Yash Raj Films on its platform. Users will be able to watch content from the country's top music labels - T-Series Music, Zee Music Company, and Yash Raj Films. Facebook said 'official music videos' will "create new social experiences that go beyond just watching the video". Users can access the videos on Facebook Watch. They can also access and discover music videos directly on their news feed allowing friends and family to share their favourite music, or through search.