Viral Acharya : RBI’s priority is cleaning up banks books
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Viral Acharya : RBI’s priority is cleaning up banks books

The cleaning up of banks’ books was the Reserve Bank of India’s (RBI’s)  priority, Viral Acharya, the bank’s deputy governor, said on Saturday. Asked if cleaning up non-performing assets of banks took precedence over cutting interest rates for the RBI, Acharya replied, “That is our number one priority.” He was speaking on the sidelines of the Delhi Economics Conclave.
According to the minutes of June meeting of the Monetary Policy Committee, Acharya maintained tolerance for a slightly higher rate of interest was justified to ensure that banks “do not find relatively low the hurdle rate for evergreening (perennial extension) of bad loans”.
“What is required for monetary policy to do its job better is to address the stress on bank (and highly indebted borrower) balance sheets,” Acharya had said. The MPC had held interest rates in that meeting, drawing criticism from the government.
Speaking at the conclave earlier, Acharya said demonetisation had led to a change in the way Indians saved. “Saving seems to have had a pretty non-linear shift since November and December. The flows that are going into mutual funds, structured investment programmes as a form of savings... if you look at insurance premium collections over seven or eight months, these are all massively on the rise,” Acharya said.
Speaking in the session, Harvard University Professor Kenneth Rogoff said India’s demonetisation held lessons on how not to carry out such an exercise. He said the time taken to withdraw high-denomination bills from circulation should be five-seven years. “India did this almost overnight,” he added.
“It takes six months to one year to print a new currency supply due to technical difficulties in producing counterfeit-resistant currency. India’s biggest problem was that it did not have nearly enough new notes on hand to exchange the old notes,” he pointed out.
Rogoff also said India should maintain a 4-5 per cent consumer-price inflation target. Headline retail inflation hit a record low of 1.54 per cent in June.
 
IT layoffs: Techies have job waiting even outside sector
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IT layoffs: Techies have job waiting even outside sector

Nasscom, the apex body of information technology (IT) companies in India, has said while per capita employment in the IT sector is declining, the employment opportunity outside the sector is increasing. The industry body plans to research on the impact of technology in other areas, said Nasscom President R Chandrasekhar.
Due to automation and other technology, per capita employment is gradually declining in the IT sector, and also in absolute terms the total quantum of employment in the sector is down from its peak of 240,000 people on a net basis to 130,000-150,000, said Chandrasekhar. The Nasscom president was speaking at a panel discussion on trends in the IT industry organised by the Southern India Chamber of Commerce and Industry (SICCI) in Chennai.
"It looks like the employment opportunities have shrunk. However, the employment opportunity outside of the sector has gained importance because technology has become more pervasive. We are looking at researching the impact of technology in other areas," he said. "Flipkart is believed to have created almost 400,000 jobs. Though it is not part of the technology sector, it is a product of the technology application in e-commerce," he added.
Increasingly, opportunities for technically skilled personnel is spreading across sectors, where a combination of technology skills, domain knowledge and soft skills is needed. The nature and combination of skills have become more important than a uni dimensional skill. This is because the value today has shifted to the junction point between technology and domain or the point between domains. "The good news is, even if you are not a techie, the technology industry is creating a space for you somewhere else," he said.
The customer budget on technology was increasing and the industry was also growing. The domestic industry, growing at 11-12 per cent, showed new opportunities. The domestic business was expected to gradually grow faster, Chandrasekhar added.
GST Impact : Business houses get time till August 16 to opt for GST
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GST Impact : Business houses get time till August 16 to opt for GST

The government has extended the deadline till August 16 for businesses to opt for composition scheme under the GST regime. "With a view to ease the compliance burden of provisionally migrated small taxpayers opting to pay tax under the composition scheme, it has been decided to extend the time limit for filing intimation for composition levy up to August 16, 2017," the finance ministry said in a statement. Small businesses with turnover of up to Rs 75 lakh were earlier given time till July 21 to opt for the scheme in the Goods and Services Tax regime. The government is mindful of the concerns of tax payers, especially the small taxpayers, arising from transition to the GST regime from July 1, 2017, the ministry said. To opt for composition scheme, the taxpayer needs to log into his account at the GST Portal www.gst.gov.in and select 'Application to opt for the Composition Scheme' under 'Services' menu. They have to fill up the Form GST CMP-01 to opt for the scheme. Under composition scheme, traders, manufacturers and restaurants can pay tax at 1 per cent, 2 per cent and 5 per cent, respectively. The ministry further said taxpayers willing to cancel their GST registration can do so till September 30,2017. "Taxpayers who were provisionally migrated by virtue of being registered under the existing laws, but who are no longer required to be registered under GST, the period of applying for Cancellation of Registration is being extended up to September 30, 2017," it said.
There are over 70 lakh excise, VAT and service taxpayers who have migrated to the GSTN portal for filing returns in the GST regime which kicked in from July 1.  Besides, there are over 8 lakh new taxpayers who have registered on the portal. These new registered taxpayers can opt for the composition scheme at the time of registration.
Chinese daily warns India : Don’t bank on US and Japan, you’ll lose
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Chinese daily warns India : Don’t bank on US and Japan, you’ll lose

State-guided Chinese daily Global Times today issued yet another threat that if India doesn't withdraw its forces from Doklam, China may get prepared for a military confrontation and resolve the conflict through non-diplomatic means. The paper reminded India as to how it had underestimated Beijing in 1962 and cautioned not to repeat the 'same mistake'. Global Times' strongly-worded editorial came a day after Foreign Minister Sushma Swaraj told the Parliament that there was no question of pulling Indian forces back from the Doklam territory unless China does the same. Swaraj also stated that all other countries support India's stand on the current stand-off. However, the Global Times writes that, "She (Sushma Swaraj) was lying to the parliament." The Global Times also termed India's act on the border as incursion. It said: "First, India's invasion of Chinese territory is a plain fact. New Delhi's impetuous action stuns the international community. No other country will support India's aggression. Second, India's military strength is far behind that of China. If the conflict between China and India escalates to the intensity where their row has to be resolved through military means, India will surely lose." The Chinese daily also refused to agree on the withdrawal of forces from the both sides, an idea that Sushma Swaraj put forward to begin the diplomatic talk. The editorial said: "India should abandon the fantasy of a long-term standoff at Doklam. China will by no means agree to the withdrawal of troops from both sides in order for talks to be held. Doklam is Chinese territory. The withdrawal of Indian troops must be a precondition for talks and China will not compromise on this stance." In what could be called a warning to New Delhi, it further said that "If Indian troops continue trespassing into China's territory, what Beijing may do next is to get prepared for a military confrontation and resolve the conflict through non-diplomatic means." The Chinese mouthpiece also confirmed that what the People's Liberation Army or PLA has been doing - deployment of troops and military drills - on the border is not for show. It said: "Now that the PLA has moved in on the China-India border, they will definitely not call back troops unless they recover the Chinese territory." Talking about grave military escalations, the paper said: "China cannot afford to lose an inch of territory. If New Delhi remains stubborn, India should get prepared for all possibilities from a potentially grave escalation of tension in the future."  Boasting about China's military capabilities, the Global Times wrote that the PLA's mobility and logistics capability could not be matched by that of its Indian counterpart. "PLA troops may appear in any area beyond the line of actual control that was previously controlled by India. The China-India border area may become a stage where China showcases the achievement of its long-term military development and reforms," it further stated. The Global Times calls the military strength compassion between India and China 'extremely comical'. "They (India) bragged that India has more troops in the area but they fail to realize that the PLA's strong capability to deploy troops can reverse the balance of power at the border within a day. The PLA's long-range combat capability can also allow its troops in remote area to provide fire support to troops at the border," it said. Support that India has from the United States and Japan, China thinks, "is illusory". It said: "India should by no means count on support from the US and Japan because their support is illusory. If India fancies the idea that it has a strategic card to play in the Indian Ocean, it could not be even more naive. China does hold a lot of cards and can hit India's Achilles' heel, but India has no leverage at all to have a strategic showdown with China." Talking tough on delay in withdrawing the Indian troops, it wrote: "That the later India withdraws troops, the greater the risk that it will face from a military counteraction and the more clout it will lose politically. China's military pressure on India will increase every day and India will end up losing face and be totally disgraced."
This is the reason why Mukesh Ambani got emotional at Reliance AGM
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This is the reason why Mukesh Ambani got emotional at Reliance AGM

While addressing shareholders at 40th annual general meeting (AGM) of Reliance Industries in Mumbai today, Chairman Mukesh Ambani got emotional while remembering his late father, Dhirubhai Ambani. Mukesh's mother Kokilaben Ambani burst into tears. It was an unusual sight for the shareholders because annual general meetings of companies are mostly sombre affairs offering little space for emotional expression.  Yet, the Reliance AGM was the perfect moment for such an emotional outburst from Mukesh Ambani and his mother. Today, Reliance Jio has come very close to the dream that Mukesh Ambani's father had decades ago. Dhirubhai used to say if you made a phone call cheaper than a postcard, you would revolutionise the lives of millions of Indians. Mukesh Ambani's Reliance Jio not only made a phone call totally free, it has made even the handset cheaper than a postcard. That's what it announced at the AGM. The new JioPhone will be available for free, though buyers will have to deposit a fee of Rs 1,500 which will be refundable after three years on returning the phone. This means the phone will be available at an effective price of zero.  
Rs 10k crore bonds to be sold by RBI in August
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Rs 10k crore bonds to be sold by RBI in August

The Reserve Bank of India will sell sovereign bonds on August 10 via open market operations (OMO) in the third such sale this financial year to drain excess liquidity from the banking system. Based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct sale of government securities for an aggregate amount of Rs 10,000 crore, the central bank said in a statement on Friday. The OMO is a liquidity management tool used by the central bank. Earlier in July, it conducted two OMO sales of Rs 10,000 crore each. The monetary authority has been withdrawing cash via such daily operations as it aims to maintain a "neutral liquidity" stance. The system is still sloshing with excess funds of about Rs 3 lakh crore.
"This OMO should ideally send bond yields higher pushing prices down. But, it is unlikely to happen amid muted credit growth, with banks investing more in government bonds," said Soumyajit Niyogi, Associate Director at India Ratings.
 "Also, the market is expecting another quarter percent policy rate cut from the RBI, which in turn is helpful for offsetting any expected yield rise," he said. The benchmark bond yielded 6.45% Friday, a tad lower than its closing a day earlier. Bank loan growth has been at more than 7%, show the latest RBI data. This is way below the average double-digit growth seen in the past few years.
Munna Michael’s Day 1 in overseas
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Munna Michael’s Day 1 in overseas

The Sabbir Khan directed film Munna Michael starring Tiger Shroff , Nidhhi Agerwal and Nawazuddin Siddiqui has released on Friday July 21. This action dance entertainer has opened in 3000 screens in India and 400 screens in the overseas market. The movie however had a poor opening In this box office report we take a look at the overseas collections of Munna Michael on Day 1 (Friday). Australia box office 4,399 USD [Rs. 2.83 lacs] from 17 screens New Zealand box office 3,591 USD [Rs. 2.31 lacs] from 7 screens
Box Office : ‘Mom’ went from 23.8 cr to Rs. 9.23 crores in the 2nd week
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Box Office : ‘Mom’ went from 23.8 cr to Rs. 9.23 crores in the 2nd week

The Sridevi starrer Mom, a power packed suspense drama that marks the Bollywood debut of director Ravi Udyawar, has entered its second week. The film had opened to rave reviews couple of weeks ago and opened on an average note at the domestic box office. Followed by a positive word of mouth, Mom saw a slight jump in its first week collections which stood at Rs. 23.8 cr. However, the film had to later compete with the Ranbir Kapoor and Katrina Kaif starrer Jagga Jasoos in its second week. Although the latter failed to make a mark amongst the audience, Mom continued to see a decline in its collection and ended up collecting Rs. 9.23 cr in its second week. Currently, the film’s total collection amounts to Rs. 33.01 cr.
Cooperative bank : RBI rejected Rs 22 crore in old notes
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Cooperative bank : RBI rejected Rs 22 crore in old notes

A Pune cooperative bank on Friday complained to the Supreme Court that RBI was not accepting scrapped currency notes of Rs 500 and Rs 1000 amounting to Rs 21.96 crore lying with it as deposits accepted before November 9, when the demonetisation came into effect. At a time when ten petitioners are awaiting a fresh window for exchange of scrapped currency notes, senior advocate P Chidambaram told a bench of Chief Justice J S Khehar and Justice D Y Chandrachud that the cooperative bank has been writing to RBI and NABARD, but there has been no response so far. Appearing for Pune District Central Cooperative Bank Ltd, Chidambaram said that at the beginning of the demonetisation exercise, the cooperative banks were permitted to accept deposits in scrapped currency notes but it was discontinued a week later. "These banks have accepted deposits worth over Rs 100 crore and are not being able to exchange it... There was no logic in not accepting scrapped notes which documents establish were accepted before demonetisation." The bench sought RBI's response in two weeks.
Reliance Industries announced the issue of bonus shares to its shareholders
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Reliance Industries announced the issue of bonus shares to its shareholders

Country's largest private sector conglomerate Reliance Industries on Friday announced the issue of bonus shares to its shareholders. The issue in the ratio of 1:1, which means every RIL shareholder will get one share for every share held, is the largest bonus issue in India. Chairman and managing director Mukesh Ambani said in the past 40 years, the RIL stock has reached Rs 1,000 to over Rs 16.50 lakh till now. The significant rise in share price shows the stock has doubled investor's wealth in every 2.5 years. On an year-to-date basis, the stock is up 47 percent and has risen 56.51 per cent on an yearly basis. The stock closed 3.76 percent or 57 points higher at 1586 level on the BSE.