 The Reserve Bank of India (RBI) released the draft guidelines to modify the loan system for delivery of bank credit, making the rules stricter to regulate larger borrowers enjoying working capital facility from the banking system. The draft specifies a minimum level of loan component in fund based working capital finance and a mandatory Credit Conversion Factor (CCF) for the undrawn portion of cash credit availed of by large borrowers. |
| Source- The Economic Times |
 According to Department of Industrial Policy & Promotion (DIPP), foreign direct investment (FDI) in India increased to US $61.96 billion in 2017-18. FDI inflow in previous fiscal was US $60 billion. In last four years perod, FDI inflows has jumped to US 4222.75 billion from US $152 billion. The main sectors that received maximum FDI were services, computer software and hardware, telecommunications, construction, trading and automobile. Major sources of FDI to Indian included Mauritius, Singapore, Japan, Netherlands, US, Germany, France and UAE. However, according to recent UNCTAD (United Nations Conference on Trade and Development) report, FDI to India decreased to US $40 billion in 2017 from US $44 billion in 2016, while outflows from India, the main source of investment in South Asia, has doubled. |
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 In a bid to check loan defaults, RBI stated that a Public Credit Registry (PCR) will be set up containing information on all borrowers to ensure financial stability. Following a report by Yeshwant M Deosthalee headed High-Level Task Force, RBI stated it has considered the recommendations and decided to set up a PCR in a modular and phased manner. |
| Source- The Hindu Business Line |
 Reserve Bank has stated that interest subsidy scheme on short-term crop loans of up to three lakh rupeeswill be implemented through the Direct Benefit Transfer (DBT) mode from the current financial year. The Centre has earmarked 15,000 crore rupees for 2018-19 towards interest subvention for short-term crop loans. The notification adds that the scheme will be required to be settled as applicable in Plan Scheme namely Scheduled Caste, Scheduled Tribe and North East Region among others. |
| Source- The Indian Express |
 RBI has made changes in the Gold Monetisation Scheme (GMS) to make it more attractive. The revamping of the scheme is aimed at enabling people to open a hassle-free gold deposit account. The short-term deposits should be treated as bank's on-balance sheet liability. These deposits will be made with the designated banks for a short period of 1-3 years (with a facility of rollover). Deposits can also be allowed for broken periods (e.g. 1 year 3 months; 2 years 4 months 5 days; etc.). |
| Source- The Hindu Business Line |
 Foreign Direct Investment to India decreased to 40 billion dollars last year from 44 billion dollars in 2016 while outflows from India, the main source of investment in South Asia, more than doubled, according to a new tradereport by the UN. According to the World Investment Report, 2018 by the UN Conference on Trade and Development (UNCTAD)global foreign direct investment flows fell by 23 percent in 2017, to USD 1.43 trillion from USD 1.87 trillion in 2016. |
| Source- The Hindu Business Line |
 The steadily expanding global economy should remain resilient, at least for a couple of years, the World Bank has stated. The anti-poverty agency predicts global growth will decelerate slightly from a solid 3.1 percent this year to 3 percent next year and 2.9 percent in 2020. The World Bank predicts that US growth will register 2.7 percent in 2018, aided by tax cuts, before slowing to 2.5 percent next year and 2 percent in 2020. China's growth is projected at 6.5 percent this year, 6.3 percent in 2019 and 6.2 percent in 2020. |
| Source- DD News |
 Monetary Policy Committee (MPC) of Reserve Bank of India has increased the policy Repo Rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.25 percent in the Second Bi-monthly Monetary Policy Statement (2018-19). Consequently, the reverse repo rate under the LAF stands adjusted to 6.0 percent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.50 percent. MPC revised CPI inflation for 2018-19 to 4.8-4.9% in the first half and 4.7% in the second half. The MPC stated that the GDP growth rate for 2018-19 is retained at 7.4 percent. |
| Source- The Hindu Business Line |
 The Indian economy grew 7.7% in the fourth quarter of 2017-18. The GDP had expanded 5.6%, 6.3% and 7%, in the first three quarters of 2017-18, according to the data released by Central Statistics Office. As per the Data, robust performance in manufacturing, construction and service sectors, as well as good farm output, contributed to the overall growth. The previous high GDP growth of 8.1% was recorded in the first quarter of 2016-17. |
| Source- AIR World Service |
 India's biggest lender State Bank of India (SBI) has revised its interest higher on retail fixed deposits or FDs below Rs. 1 crore. SBI has revision interest rates by up to 25 basis points in select maturities. The interest rate on SBI FDs with a maturity of one year to less than two years has been increased to 6.65% for the public, from 6.4% earlier. |
| Senior citizens will get an interest rate of 7.15% as compared to 6.9% earlier. SBI fixed deposits with a maturity of two years to less than three years will fetch an interest rate of 6.65%, higher than 6.6% earlier. Senior citizens will get 7.15% as compared to 7.10%. The interest rates across other maturities have been kept unchanged. |
| Source- The Times of India |
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