Issue: 1029
Cost of government borrowing rises amidst softening interest
rate regime: The
cost of government borrowing has gone up even as the Reserve Bank of India is
ushering in a softer interest rate regime, with the market unwilling to ease
yields. This is borne out by the auction of the new 10-year Government Security
(G-Sec/GS), conducted by the RBI on Friday. The 6.48 per cent coupon rate that
emerged at the auction of the new 10-year G-Sec is 15 basis points higher than
the coupon rate of the current 10-year benchmark paper (6.33 per cent GS2035). The spike in yields on August 25 was on account
of concerns then that the Government may borrow more to make up for the revenue
shortfall due to GST cuts, he added. From the high of 6.60 per cent, yields
have now stabilised at 6.52 per cent.
(Business Line)
India’s efforts to increase exports to Russia gets a boost with
Putin’s assurance on softening trade imbalance: Russian President Vladimir Putin’s
assurance that measures were being devised to soften the trade imbalance
between India and Russia while encouraging New Delhi to keep purchasing oil
from Moscow has come as a shot in the arm for ongoing efforts of the Commerce
Department to push exports to the country. The Indian government is engaged
with various export sectors to identify tariff and non-tariff barriers that
could be addressed by Russia to increase imports from the country and bridge
the ballooning trade deficit of $59 billion.
(Business Line)
India's forex reserves fall $2.3 billion to $700.23 billion,
shows RBI data: India’s foreign exchange (forex) reserves fell by
$2.3 billion to $700.23 billion in the week ended September 26, latest data
from the Reserve Bank of India (RBI) released on Friday shows. Last Friday,
forex reserves had declined by $396 million to $702.57 billion. This week's
data shows that foreign currency assets, a major component of the reserves,
decreased by $4.393 billion to $581.757 billion.
Foreign
currency assets include foreign currencies, bonds, and securities held by a
country’s central bank in currencies other than its own.
(Business Standard)
RBI proposes easing ECB norms: Flexible limits, relaxed rules,
wider access for India Inc borrowing: RBI has proposed a significant easing of
rules for External Commercial Borrowings (ECBs), aimed at making overseas
fundraising simpler and more attractive for Indian companies. The draft
framework, issued on October 3, 2025, seeks to rationalise the Foreign Exchange
Management (Borrowing and Lending) Regulations, 2018 under FEMA, 1999The draft
framework highlights four major changes: Borrowing limits tied to financial
strength, Market-determined interest rates, Simplification of end-use and
maturity rules and Expansion of borrower and lender base. In addition, the RBI
has proposed simplifying reporting requirements to reduce compliance burdens.
(Business Today)
RBI slaps penalties on American Express Banking Corp, HDB
Financial Services: The Reserve Bank of India (RBI) on Friday said
it has imposed a penalty of Rs 31.80 lakh on American Express Banking Corp for
non-compliance with certain directions on 'Credit Card and Debit Card -
Issuance and Conduct'. The central bank has also imposed a penalty of Rs 4.2
lakh on HDB Financial Services for non-compliance with certain provisions of
the 'Reserve Bank of India (Know Your Customer (KYC) Directions, 2016'.
(Economic Times)
RBI grants self-regulatory body status to FIDC for non-bank
lending sector: The Reserve Bank of India granted
"self-regulatory organisation" status to the Finance Industry
Development Council (FIDC) on Friday to help ensure regulatory compliance in
the non-banking lending sector. This
action aims to enhance compliance in the non-banking lending sector. SROs
develop industry standards and ensure member adherence. They also collaborate
with the RBI for regulatory oversight. FIDC represents major non-banking
financial companies. This strengthens financial market regulation.
(Economic Times)
RBI reports widening credit-deposit growth gap amid rising loan
demand: Bank credit growth is increasingly outpacing
deposit mobilisation, with the gap widening as deposit rates fall sharply.
Despite this, bankers anticipate higher loan demand in the festive season and
Q3, driven by lower GST rates and the Reserve Bank of India's regulatory push
to boost credit flow and bank resilience.
(Economic Times)
Banks move to continuous cheque clearing, funds in hours from
October 4: Banks
will transition to a continuous cheque clearing system from the fixed batch
format starting Saturday, a move which will enhance customer convenience,
industry experts said. Under the new system, cheques will no longer be
processed in fixed batches. Instead, cheques received at bank branches will be
scanned and sent to the clearing house continuously during the presentation
session, which runs from 10 am to 4 pm. The clearing house will release cheque
images to drawee banks on a continuous basis, allowing each cheque to be
settled on a near real-time basis, instead of following the current T+1-day
clearing cycle.
(Business Standard)
Govt launches probe into e-commerce platforms charging extra for
COD orders: The
government has launched a formal investigation into e-commerce platforms
charging extra for Cash-on-Delivery (COD) orders, calling the practice a “dark
pattern” that misleads and exploits consumers. “The Department of Consumer
Affairs has received complaints against e-commerce platforms charging extra for
Cash-on-Delivery, a practice classified as a dark pattern that misleads and
exploits consumers,” Consumer Affairs Minister Pralhad Joshi said in a post on
X on October 3. “A detailed investigation has been initiated and steps are
being taken to scrutinize these platforms closely. Strict action will be taken
against those violating consumer rights to ensure transparency and uphold fair
practices in India’s growing e-commerce sector,” he added.
(Moneycontrol)
NITI proposes measures to ease foreign firms' operations in
India: NITI Aayog has proposed an optional presumptive
taxation regime for foreign companies operating in India, aimed at reducing
litigation, bringing greater certainty, and easing compliance costs. The
recommendation appeared in the think tank’s latest Tax Policy Working Paper
Series-1 released on Friday. Under the proposed
scheme, foreign firms could opt in to a simplified mechanism where they pay
taxes on a predefined, sector-specific percentage of their gross revenues from
India. Firms choosing this route would benefit from safe harbour protection as
tax authorities would not separately litigate the existence of an PE for that
activity, relieving them from maintaining exhaustive books locally.
(Business Standard)
Maharashtra launches e-bond system for import-export, replaces
paper bonds: In a move aimed at simplifying trade and boosting
business efficiency, the Maharashtra government on Friday introduced a new
'e-bond' system for import and export transactions, replacing the traditional
paper stamp bonds. With the adoption of the e-bond system, Maharashtra has
become the 16th state in the country to do so, Revenue Minister Chandrashekhar
Bawankule said in a statement.
(Business Standard)
Aadhaar card update fees hiked: Government revises charges for
demographic, biometric, and document updates: UIDAI has announced a revision in Aadhaar
update fees, effective October 1, 2025. The new structure, applicable until
September 30, 2028, increases charges for demographic, biometric, and document
updates. This is the first major revision in nearly five years, with another
hike scheduled from October 1, 2028, to September 30, 2031. Under the revised charges, Aadhaar generation
remains free for residents, but registrars will receive Rs 75 for children
under 5 years and Rs 125 for those above 5 years. Mandatory biometric updates
for children aged 5–7 and 15–17 remain free, while adults pay Rs 125. Demographic updates, such as changes to name,
address, or date of birth, now cost Rs 75, whether done online or at enrolment
centres. Proof of Address (PoA) or Proof of Identity (PoI) document updates
also cost Rs 75. Aadhaar reprints are priced at Rs 40. From
October 2028, fees will rise further. Registrars will be compensated Rs 90 for
children’s Aadhaar generation and Rs 150 for residents above 5 years. Biometric
updates for all categories will cost Rs 150. Demographic and document updates
will be charged at Rs 90, while Aadhaar reprints will cost Rs 50.
(Moneycontrol)
PFRDA jointly Launches NPS for Goa’s Driver Community with
GoaMiles and HDFC Pension Fund (PoP): In a
special initiative aimed at strengthening social security for the informal
workforce, PFRDA jointly launched National Pension System (NPS) for Goa’s
Driver Community with GoaMiles and HDFC Pension Fund (PoP). The initiative will provide nearly 5,000
drivers operating on the GoaMiles platform with access to structured retirement
planning. At the event, 50 Permanent Retirement Account Numbers (PRANs) were
distributed to drivers, symbolizing the rollout of the scheme. GoaMiles will
contribute in each of NPS account of the mobility partners. The initiative
reinforces PFRDA’s mission of making “Every Profession, One Pension” a reality
and spreading the message that “NPS Zaruri Hai”
(PiB)
Centre bars cough syrups for children below 2 years: The
Union government has barred the prescription of cough and cold medications for
children under the age of two following reports of child deaths allegedly
linked to contaminated syrups in Madhya Pradesh. The Directorate General of
Health Services (DGHS), under the Union Health Ministry, issued the advisory
directing all states and Union Territories to enforce this restriction. It
emphasized that cough syrups are generally discouraged for children under five
and should only be used in older children after thorough clinical evaluation
and under strict supervision.
(Business Today)
BROWN BAG MEETING
§ A
brown bag meeting is an informal meeting or training that generally occurs in
the workplace around lunchtime. This type of meeting is referred to as a brown
bag meeting or a brown bag seminar because participants typically bring their lunches,
which are associated with being packed in brown paper bags.
§ Meetings of this kind don't necessarily have to occur during the lunch hour and can take place at any time during the workday or after hours. They usually are held in conference rooms.
RBI KEY RATES
Repo
Rate: 5.50%
SDF:
5.25%
MSF
/Bank Rate: 5.75%
CRR:
3.50%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR /
1 USD : 88.7775
INR /
1 GBP : 119.3211
INR /
1 EUR : 104.0804
INR
/100 JPY: 60.1600
EQUITY INDEX
Sensex: 81207.17 (+223.86)
NIFTY: 24894.25 (+57.95)
Bnk NIFTY: 55589.25 (+241.30)
World Animal Day: October 4th is
celebrated as World Animal Day, an international day dedicated to raising
awareness and improving the welfare of animals worldwide.
Historical events: On October 4th,
the world witnessed India's Accession Day in 1947, marking the signing of the
Instrument of Accession by the Maharaja of Jammu and Kashmir. Globally, 1957
was a landmark year as the Soviet Union launched Sputnik 1, the first
artificial satellite, ushering in the Space Age, while 1966 saw Lesotho gaining
independence from British rule.
****Have a nice Day****
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