Breaking News - 9th August 2023

Financial News 9th August 2023

1.RBI MPC: Repo rate announcement by Governor Das tomorrow; all you must know: 

RBI governor Shaktikanta Das announcing the rates in the policy announcement on Thursday. 

All eyes will be on the repo rate, currently at 6.5 per cent. It has been hiked by 250 basis points since May 2022. The banks in India fix their interest rates on deposits as well as on loans based on the repo rate.

2. Govt broadens access to 'vostro' accounts to facilitate rupee trade: 

India has allowed banks in 22 partner countries, including Russia and UK, to open "vostro" accounts in the country, the government told parliament on Tuesday, to help facilitate trade in rupees. 

Vostro accounts are accounts a domestic bank typically holds on behalf of a foreign bank, denominated in the currency of the former.

3. Credit card default increases by 1.94% to Rs 4,072 crore in FY23-24: 

All cooperative banks are required to comply with the guidelines issued by the Reserve Bank of India (RBI) from time to time. 

Credit card default rose to Rs 4,072 crore or 1.94 per cent at the end of March 2023, Parliament was informed on Tuesday.

4. 28% GST on casinos, online gaming, racing to up revenue collection: FM

Online gaming industry supplying actionable claims and some horse race clubs are currently paying GST at the rate of 18 per cent on platform fees/commission ranging from 5 to 20 per cent of the full face value, while some horse race clubs are paying 28 per cent on the full face value.

5. RBI's rate-setting panel starts 3-day deliberations on monetary policy: 

BofA Securities in a report said it expects the RBI MPC to deliver a hawkish hold on August 10 while retaining the stance as withdrawal of accommodation 

Amid expectations of another status quo on the key interest rates, RBI Governor Shaktikanta Das headed high-powered rate-setting panel MPC on Tuesday began its three-day meeting to firm up the next bi-monthly policy. 

The decision of the six-member Monetary Policy Committee (MPC) would be announced on Thursday, August 10, by Governor Das.

6. Indian private credit funds, non-bank lenders filling gap left by banks: 

Private credit funds lend to these companies at 12%-18%, splitting transactions into tranches. The riskiest of such credit can yield up to 20%-24% 

A growing number of Indian alternative investment funds are expanding their private credit business, filling a void left by banks and non-bank lenders and mirroring a pick-up in activity across Asia. 

Private credit funds typically invest in debt or hybrid securities of unrated and lower-rated companies.

7. Rupee appreciates, govt bond reverses gains post US non-farm payroll data: 

The yield on the benchmark 10-year government bond ended flat at 7.20 per cent.

8. How to write a Will for property in India by yourself and include pets too: 

Making a Will is important for individuals to ensure a smooth distribution of assets after their demise among family members. It has often been seen that family members of a deceased person get into legal fights when there is no Will.

9. New Mutual Fund offers a chance to make money from innovative and disruptive technologies: