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Govt considering 100% FDI in insurance intermediaries to attract more funds The FDI policy, at present, allows 49 per cent foreign investment in the insurance sector The government is considering allowing 100 per cent foreign direct investment (FDI) in insurance intermediaries with a view to give a boost to the sector and attracting more funds, sources said.Intermediary services include insurance broking, third party administrators, surveyors and loss assessors.The FDI policy, at present, allows 49 per cent foreign investment in the insurance sector, which includes insurance intermediaries. Sources said that there is a need to de-link the FDI cap in insurance intermediaries from insurance companies.Representations have been made to the government that these intermediary services should be treated at par with other financial services intermediaries, where 100 per cent foreign investment is permitted.Further, industry experts stated that the insurance sector is being impacted due

Half of EPFO board likely to be replaced At least half of the long term representatives on the central board of trustees of the Employees Provident Fund Organisation (EPFO) will make way for new members when the board is reconstituted by the end of this month, marking a shift from the past model that had no cap on tenure. This follows a decision last year that no board member will hold the post for more than two terms. Earlier, members could be re-appointed any number of times. The CBT, the apex decision-making body of the EPFO, is reconstituted every five years. The induction of new members is expected to help the organisation push through the modernisation agenda. The CBT, the apex decision-making body of the EPFO, is reconstituted every five years. The induction of new members is expected to help the organisation push through the modernisation agenda. The CBT comprises 10 members of trade unions or employees’ representatives, 10 members of employers’ representatives, and 20

Government likely to withdraw tax notice on free banking services Every bank offers a different slab of minimum balance to customers, based on which 'free services' are provided The tax department will likely withdraw a show-cause notice issued to several banks asking them to pay the service tax on ‘free services’ provided to customers, following the finance ministry’s intervention .The department of financial services (DFS) has presented the views of the banks that have opposed the tax to the revenue department. “We have spoken to the revenue department and requested them not to pursue the case. The matter will be settled and the case might not be pursued further,” said a senior finance ministry official. Some of the Directorate General of Goods and Services Tax Intelligence (DGGSTI) offices had issued the notice to some private banks, including ICICI Bank, HDFC Bank and Axis Bank, and a few public sector banks, including State Bank of India (SBI), asking them to pay

Economy under recovery after dual shock of demonetisation and GST: Research On the monetary side, areas of concern are rising bond yields which indicate potential slippages on the fiscal front The Indian economy is gradually coming out of the twin shock of demonetisation and GST which temporarily derailed growth, India Ratings said.The ratings agency, however, cautioned on the possible widening of the current account deficit (CAD) due to rising oil prices which was creating pressure on the currency. "Our research has shown that major macro parameters like manufacturing, capital goods production, non-food credit and consumption are showing signs of recovery," India Ratings chief economist Devendra Pant told PTI.On the monetary side, areas of concern are rising bond yields which indicate potential slippages on the fiscal front, he said."Things are improving now. If things behave as they are now and the policy remains conducive, growth in current fiscal is expected

Power Ministry, RBI meet on NPA norms postponed: Minister The Union Power Ministry's meeting with Reserve Bank of India (RBI) scheduled for Tuesday, on the revised RBI norms on banks' non-performing assets (NPAs), or bad loans, which have caused serious concern in the sector, has been postponed, according to Power Minister R.K Singh. As per the RBI's revised framework on NPAs issued in February, banks are required to classify even a day's delay in paying loan instalments as a default. Producers say this is too stringent for power companies, pointing to how they pay for coal in advance but discoms take 90-150 days to pay for the power.The ministry has approached the RBI seeking relaxation on the central bank's NPA norms."It (meeting) has been postponed and will take place some other day," Singh told reporters on the sidelines of a conference organised by state-run power generator NTPC .At a meeting with the government in March, the  Association of P

GST, bank balance sheet affected India’s growth: UN The goods and services tax as well as protracted issues of corporate and bank balance sheet problems pushed India’s economic growth downward in 2017, but a gradual recovery is expected and the economy is forecast to growth at 7.2% in 2018, according to a un report. According to estimates in the UN Economic and Social commission fo asia and the pacific's flagship publication Economic and Social survey of asia and pacific, india's GDP grew at 6.6% in 2017, down from 7.1%. The report said india's GDP is forecast to grow 7.2% in 2018   The Business Standard, New Delhi, 09th May 2018

Centre to release inflation index for 10 services as trial The Centre will come out with a Producers Price Index next month for 10 services, including telecom and railways on an experimental basis. The move will help track inflation in these services, which will also include ports, insurance banking and air travel The Business Standard, New Delhi, 09th May 2018