All NBFCs with 10 or more Branches are now mandated to adopt Core Banking Solution
It has been decided by RBI that NBFCs ‘Middle Layer’ and ‘Upper Layer ‘ NBFCs with 10 and more ’Fixed point service delivery units’ as on October 1, 2022 shall be mandatorily required to implement ‘Core Financial Services Solution (CFSS)’, akin to the Core Banking Solution (CBS) adopted by banks. The CFSS shall provide for seamless customer interface in digital offerings and transactions relating to products and services anywhere.
The inflation expectations of RBI may be optimistic and with the probability of it being wrong at 85 per cent, it may have to catch up with rate hikes despite its dovish stance. One of the financial Services (Nomura) has forecast inflation at 5.8% in FY’23 higher than the RBI’s projection of 4.5%. Higher inflation could be counterproductive to growth as there could be diminishing returns to growth from a continued high inflation tolerance. This is because higher inflation is not conducive to durable growth because, while it can lift some sectors like housing, it also leads to financial repression, squeezes real disposable incomes and creates a more volatile investment return environment for firm.
Guidelines for appointment of Statutory Auditors for NBFCs
Fresh guidelines are issued by RBI for appointment of Statutory Auditors for commercial banks, primary urban co-operative banks and NBFCs including Housing Finance Companies. As per the new statutes, entities with an asset size of Rs.15,000 Crore and above should have their statutory audit conducted under joint audit of a minimum of two audit firms. Maximum tenor for such appointments will be three years and the same auditor will not be eligible for reappointment in the same organisation for the next 6 years.
Russia-Ukraine conflict raises big risks for global economy
Russia’s attack on Ukraine and retaliatory sanctions from the West may not portend another global recession. However the conflict threatens to inflict severe economic damage on some countries and industries that could mean hardships for millions of people.. Russia is the world’s third-biggest producer of petroleum and is a major exporter of natural gas.Ukraine’s farms feed millions around the world. And financial markets are in a precarious spot as central banks prepare to reverse years of easy-money policies and raise interest rates to fight a resurgence of inflation. Those higher rates will likely slow spending and raise the risk of another downturn
Formal job creation surges in December 2021, as evidenced by payroll data
Formal Job Creation surged in December 2021 with net new employees and subscribers added to the Employees Provident Fund Organisation, the Employees State Insurance Corporation and the National Pension Scheme, suggesting an uptick in the Indian labour market. This is contrary to November when the ESIC and NPS had witnessed a decline. The payroll data by the ministry of statistics and programme implementation, released on Friday, shows net new subscriber addition under the Employees State Insurance Corporation jumped by 46.8% to 1.52 million compared to 1.03 million in November 2021. This is the highest addition to ESIC in the fiscal so far.
How to Optimise Tax Savings using Housing Loans – Eight Steps at your command
With its tax incentives, a home loan might be one of the best tax-saving tools for someone servicing it, especially if he/she has used up all other avenues. While low interest rates and tax saving prospects of a home loan are well-known and sought-after, not many know the mix of optimum loan amount and tenure that provides the best of both worlds in terms of lowest cost and fastest repayment.This tax-saving avenue also comes with many limitations and delivers the best savings only when used smartly. Here is a look at how Smart use of home loan can deliver best tax saving at the lowest cost. Using your home loan smartly
Remote work model sees rise in compensation to employees in India – Indeed Report
Remote work and hybrid work have seen a rise in popularity because of Covid-19, job site Indeed’s new report: “Third Wave and the future of Remote/Hybrid Work” has been revealed. As per the new report, 60% of the employees surveyed say remote work has been the biggest work trend, post-pandemic, followed by hybrid work (42%). Employers share a similar view, with 64% considering remote work, followed by hybrid work (45%), to be the biggest trends.
Apple and other US Tech giants may prefer fines to Compliances ?
Some US tech giants may prefer to pay a fine rather than comply with antitrust rules, the European Union’s antitrust chief said, and cited Apple’s fight with the Netherlands’ competition authority as an example. The Dutch Authority for Consumers and Markets (ACM) imposed a EUR-5-million (roughly Rs. 40 crore) fine on Apple on Monday, the fifth such penalty in successive weeks, linked to claims Apple does allow access to non-Apple payment methods for subscriptions to dating apps. European Commission Vice President and digital chief Margrethe Vestager said Apple’s behavior could indicate other big companies behave similarly
Russia-Ukraine crisis might give India Opportunity to export more wheat
The Russia-Ukraine crisis might give India an opportunity to export more wheat in the global markets and domestic exporters should tap this opportunity,sources said on Thursday. India’s central pool stood at 24.2 million tonnes,twice more than the buffer and strategic needs, they said. More than a quarter of the world’s wheat export comes from Russia and Ukraine. Russia is the world’s largest exporter of wheat, accounting for more than 18 percent of international exports.
