Issue: 1259
· India's higher gold import
duty could cut demand by up to 60 tonnes in 2026: WGC.
· SBI boosts AI-powered banking
with new digital journeys for retail, corporate customers.
· JPMorgan names Rahul Badhwar
senior country officer for India.
· NBFC access to term money
market likely to lift volumes by 40-60%.
· NPCI partners HSBC India, JP
Morgan Payments for real-time forex settlement.
· RBI appoints Ravi Shankar as
executive director to head statistics dept.
· ATF price slashed by Rs.5/litre
to Rs.110 as global oil prices soften.
· Odisha approves Rs.5,468
crore scheme for free education from KG to PG.
India’s GST collections
touch Rs 1.95 lakh crore, grow at fastest pace in 13 months: India’s GST collections
expanded at the fastest pace in 13 months in June, with gross revenues rising
13.9 percent year-on-year to Rs 1.95 lakh crore, driven largely by a sharp
increase in tax collections from imports. Gross GST collections stood at
Rs 1.71 lakh crore in June 2025, implying a strong acceleration from May 2026,
when collections had grown just 3.2 percent year-on-year. The June print marks
the strongest annual expansion since May 2025, when GST revenues had risen 16.4
percent. A major driver of the surge was import-related GST revenue, which
jumped 34.6 percent year-on-year to Rs 60,038 crore from Rs 44,600 crore a year
earlier.
(Moneycontrol)
PMI Manufacturing dipped to
54.2 in June: With
some moderation in demand, Purchasing Managers’ Index (PMI) for manufacturing
slipped to 54.2 in June, S&P Global reported on Wednesday. Job creation
grew at its weakest rate though prices have come down. PMI in May was 55. The
index is derived based on responses from purchasing executives of 400
companies. Index above 50 shows expansion, while below 50 means contraction.
(Business Line)
Rupee posts biggest one-day
fall in over three weeks amid stronger dollar: The rupee recorded its
sharpest single-day decline in more than three weeks on Wednesday, weakening
0.61 per cent against the US dollar amid broad dollar strength and weakness in
Asian currencies. The domestic currency settled at 95.25 per dollar, down 59
paise from the previous close of 94.66 per dollar. It has fallen 5.64 per cent
so far in the current calendar year, whereas in the last one year, the local
currency has weakened by 10.2 per cent against the greenback. Since the start
of the current financial year, it has weakened by 0.46 per cent. The decline
came as the dollar strengthened against major currencies after US Treasury
yields rose, while most Asian currencies also traded lower.
(Business Standard)
Banks eye M&A financing
opportunity as RBI norms kick in: Banks are gearing up to expand
their presence in India’s mergers and acquisitions (M&A) financing market
as the Reserve Bank of India’s new framework allowing lenders to fund
acquisitions comes into effect, opening a segment that has so far been dominated
by private credit funds and foreign banks. The move comes amid sustained
dealmaking activity. India Inc. recorded 190 M&A and private equity
transactions worth $10.2 billion in May, including 76 M&A deals valued at
$6.3 billion. Banks have already started positioning themselves to tap the
opportunity. In June, Bloomberg reported that State Bank of India (SBI) plans
to join a consortium of global lenders to finance Sun Pharmaceutical
Industries’ nearly $12 billion overseas acquisition, with the bank expected to
commit up to $1 billion, subject to board approval.
(Financial Express)
Ind-Ra downgrades Jana SFB
promoter entities to default; bank’s ratings on watch: India Ratings & Research
(Ind-Ra) has downgraded the non-convertible debentures (NCDs) of TPG-backed
Jana Holdings, the holding company of listed Jana Small Finance Bank (SFB), and
Jana Capital to default after the entities extended the repayment schedule by
six months to end of December. The rating agency has also placed Jana SFB’s Rs.3,750
crore of NCDs and Rs.2 lakh of fixed deposits on Rating Watch with Negative implications.
Jana Holdings and Jana Capital together had repayments of around Rs.4,200
crore, including principal and accrued interest, due on June 30. “While the
entities had previously met debt repayments through refinancing, they were
unable to do so on this occasion,” Ind-Ra, the rating agency said on Wednesday.
(Financial Express)
New LCR norms: Banks eye
non-financial entities’ deposits: Banks are looking to scale up
deposits from non-financial entities after the revised liquidity coverage ratio
(LCR) norms provided more favourable treatment to such funds. The move is also
expected to open up fresh business opportunities for lenders. The final norms,
which came into effect in April, rationalised the treatment of wholesale
funding from “other legal entities”. As a result, deposits from non-financial
entities such as trusts (educational, charitable and religious), partnerships,
and limited liability partnerships (LLPs) now carry a lower run-off factor of
40%, compared with the earlier 100%. The run-off factor indicates the
likelihood of deposits being withdrawn from a bank. A higher run-off factor
requires banks to maintain more high-quality liquid assets (HQLA), mainly
government securities, that can be quickly liquidated during periods of
financial stress.
(Financial Express)
Canara Bank, Indian Bank
credit growth outpaces deposits: Leading public sector banks,
including Canara Bank and Indian Bank, are experiencing a sustained trend where
their loan disbursements are expanding at a quicker pace than customer
deposits. Canara Bank saw its advances surge by 18%, while Indian Bank reported
a 13.9% rise in credit. This robust credit expansion, particularly in retail,
agriculture, and MSME sectors, signals a dynamic lending environment for these
financial institutions.
(Economic Times)
Bharti Airtel's NBFC arm
begins commercial operation: Bharti Airtel's non-banking
financial arm, Airtel Money, has officially begun its commercial operations
after securing a license from the Reserve Bank of India. The company,
registered as a Type II Non-Deposit accepting NBFC, plans to be capitalized
with Rs 20,000 crore over the coming years, with Bharti Airtel contributing 70%
and the promoter group the remaining 30%.
(Economic Times)
RBI's new Integrated
Ombudsman Scheme comes into effect from 1 July: The Reserve Bank of India's
(RBI's) revamped Integrated Ombudsman Scheme came into effect on Wednesday,
introducing a new framework for resolving customer complaints against banks, NBFCs,
prepaid payment instrument (PPI) issuers and credit information companies. The
scheme retains the "One Nation, One Ombudsman" approach, under which
complaints are handled without regard to the location of the customer or the
regulated entity. Under the new framework, customers must first approach the
concerned regulated entity. If the entity fails to respond within 30 days or if the customer is dissatisfied with the
response, the complaint can be escalated to the RBI Ombudsman within 90 days. The
Ombudsman may facilitate a settlement between the parties or, where a deficiency
in service is established, pass an award directing the regulated entity to take
remedial action or pay compensation. The scheme allows compensation of up to Rs.30
lakh for consequential losses and up to Rs.3 lakh for loss of time, expenses,
harassment and mental anguish.
(Business Standard)
WhatsApp reacts to govt
notice, says username feature not yet live: WhatsApp has not yet rolled out the ability to use
usernames on its platform, with the feature set to launch gradually later this
year, a company spokesperson said on July 1. The response comes shortly after the Indian
government issued a notice to WhatsApp (Meta), over the proposed rollout of the
messaging app's “usernames” feature, saying it may increase online fraud,
phishing, digital arrest scams and impersonation attacks. In the notice
addressed to the Chief Compliance Officer, WhatsApp LEC (Meta), India
Operations, the government directed Meta to furnish a detailed explanation on
the feature within three days of receiving the notice. The government has also directed Meta not to roll
out the usernames feature until consultation on the matter is completed to the
satisfaction of the government.
(Moneycontrol)
Fuel-starved Russia buys
Indian gasoline after Ukraine drone strikes cripple refineries: Russia has started seaborne imports of
gasoline from India, two industry sources said on Wednesday, in an effort to
mitigate fuel shortages triggered by Ukrainian attacks on its energy
infrastructure. Fuel shortages are being felt across Russia's 11
time zones with rationing, long queues at filling stations and a record
gasoline price increase. The Kremlin said on Tuesday that Russia was in contact
with other countries and discussing imports of fuel at acceptable prices.
(Moneycontrol)
RBI to take final
decision on Tata Sons listing: The Reserve Bank of India (RBI) on
Tuesday (June 30) said submission of documents would not automatically result
in the cancellation of the Certificate of Registration by non-banking financial
companies (NBFCs) and that it reserves the right to approve or disallow the
cancellation application. For Tata Sons, this implies that RBI will
have to decide whether it wants to approve Tata Sons' application to surrender
its NBFC-CIC licence. Till then, upper layer norms, including listing requirements,
prevail for Tata Sons. Further, the RBI issued a circular on
Tuesday clarifying the indirect receipt of funds. For context,
indirect receipt of public funds means funds received not directly but through
associates and Group entities which have access to public funds.
(Moneycontrol)
FSSAI pulls up energy drink
brands for misbranding, misleading claims: The Food Safety and Standards
Authority of India (FSSAI) has sent notices to various beverage players that
are selling products labelled as energy drinks for misbranding and misleading
functional claims. The food safety regulator said these beverage brands are
being marketed using energy drink descriptors on product branding and
labelling, which is not in compliance with the regulations. Notices have been
sent to all the key energy drink players in the country, including Red Bull and
PepsiCo’s energy drink brands such as Sting and Adrenaline Rush, besides
Monster Energy, Hell Energy and Campa Energy Drink-Gold Boost.
(Business Line)
NPCI partners with HSBC
India to enable real-time FX settlement for global UPI payments: he National Payments
Corporation of India (NPCI) Wednesday announced a strategic partnership with
HSBC India to provide real-time foreign exchange (FX) settlement for
cross-border payments. This collaboration aims to make international UPI
payments more seamless for Indians travelling abroad, a joint statement said. The
UPI system is now live in nine countries, including Singapore, the United Arab
Emirates, Nepal, Bhutan, Mauritius, France, Sri Lanka, Qatar and Cambodia,
enabling Indian travellers to make QR code-based payments directly from their
Indian bank accounts in Indian Rupees (INR), it said.
(Economic Times)
EPF Scheme 2026
notified under Social Security Code: The Ministry of Labour and Employment has
notified the Employees' Provident Fund (EPF) Scheme, 2026, replacing the
six-decade-old EPF Scheme, 1952, as part of the rollout of the Code on Social
Security, 2020. For salaried employees, the mandatory
contribution remains 12 percent of wages each from the employee and employer,
with the existing 10 percent rate continuing for notified establishments. The
government has also retained the statutory wage ceiling framework, meaning
mandatory contributions continue to be linked to the wage limit notified by the
Centre. The new scheme, however, introduces greater
flexibility. Employees can continue to make voluntary provident fund (VPF)
contributions above the statutory limit, while employers may choose to match
these additional contributions but are not obligated to do so. The
scheme mandates electronic record-keeping, online access to member accounts,
digital claim processing, regular disclosures and stricter governance by
trustees. Annual account statements must be issued electronically, and
establishments are required to facilitate online claim settlement within
prescribed timelines.
(Moneycontrol)
CLAWBACK
· A
clawback is a contractual provision requiring that money that's already paid to
an employee must be returned to an employer or benefactor, sometimes with a
penalty.
·
Many companies use clawback
policies in employee contracts for incentive-based pay such as bonuses. They're
most often used in the financial industry. Most clawback provisions are
non-negotiable. Clawbacks are typically used in response to misconduct,
scandals, poor performance, or a drop in company profits.
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 94.7323
INR
/ 1 GBP : 125.4205
INR
/ 1 EUR : 108.0267
INR
/100 JPY: 58.2200
EQUITY INDEX
Sensex:
76922.64 (+443.97)
NIFTY:
24005.85 (+140.10)
Bnk NIFTY: 58033.05 (+490.15)
Historical events: July 2 is a
significant date in history, marked by the assassination of Bengal’s last
Nawab, Siraj-ud-Daulah in 1757, the arrest of Subhas Chandra Bose in Kolkata
for inciting rebellion in 1940, and the signing of the Shimla Agreement between
India and Pakistan in 1972. Globally, it is known for the U.S. vote for
independence, the passage of the Civil Rights Act, and World UFO Day.
****Have a nice
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