Breaking News - 17th August 2023

Financial News 17th August 2023 

1.GSTN seeks firm to prepare roadmap for transitioning IT systems to GST 2.0:

Before the Goods and Services Tax (GST) system started in September 2017, Infosys got a contract worth Rs 1,320 crore to build the technology foundation for the GST Network. 

Now, Infosys' agreement to help with the technology behind GST is ending in September 2024. So, the GST Network (GSTN) is looking for a consulting company to help them find a new company to take over this job. They want this new company to create a plan (like a roadmap) for how to upgrade the system to a better version called GST 2.0. 

2.Rupee falls to near 10-month intraday low in early trade, appreciates later:

Outside influences are affecting the value of the Indian currency, while the internal economic foundation remains robust. On a Thursday when trading began, the Indian rupee lost value compared to the US dollar, coming close to the lowest point in almost 10 months. This drop happened because of rising interest rates on US government bonds, global cautiousness about risks, and uncertainty caused by political conflicts around the world. 

3.RBI likely sold dollars via PSBs to keep rupee from record lows:

It seems that the Reserve Bank of India (RBI), which manages the country's money, probably sold some US dollars. They did this to help the Indian rupee's value get closer to 83 rupees against the US dollar. This action was taken to prevent the rupee from reaching its lowest value ever. Traders, who are people who buy and sell money, mentioned this to Reuters, a news agency. They believe that the RBI used public banks to do this. 

4.FM Sitharaman invites JBIC for engagement with NIIF, EXIM Bank of India:

Sitharaman, who is a government official, told the governor of JBIC (a bank from Japan) about different plans that the government has, including something called PM GatiShakti and other strategies to help the "blue economy" grow. The governor of JBIC liked what the Indian government is doing. They praised the efforts to make it easier for people to invest money in the country by using different methods like PLI schemes and the National Infrastructure Pipeline. They also mentioned improvements in the GST system. 

5.Govt planning to sell 11.36% shares in Indian Railway Finance Corp via OFS:

In order to follow a rule set by Sebi (an organization that regulates financial markets), the government needs to do something to a company called IRFC. Right now, the government owns most of IRFC, about 86.36%. To follow the rule, they have to reduce their ownership by around 11.36%. This is because Sebi wants companies to have a certain amount of their ownership available to the public, and the government needs to make sure IRFC meets that requirement. 

6.Indian Bank opens specialised startup cells in 10 cities across the country:

The Indian Bank, a government-owned bank, has created special places called "startup cells" in various cities like Ahmedabad, Bengaluru, Coimbatore, and more. They did this to help startups with their specific banking needs. This bank, based in Chennai, made special banking services just for startups. These services are like a collection of customized banking products designed specifically for startups, considering what they need. 

7.There’s a lot of opportunities in growth, acquisition financing: Eshwar Karra, CEO, Strategic Situations Fund, Kotak Alternate Asset Managers:

Kotak, a financial company, has started a fund called Kotak Strategic Situations Fund II. They've gathered $1.25 billion (around Rs 10,200 crore) so far, and their goal is to reach $1.6 billion. Eshwar Karra, who leads this fund at Kotak, talked about their plans and how they're making business deals in an interview with Raghavendra Kamath.