RBI move to waive NEFT, RTGS charges a big boost to digital transactions
The Reserve Bank of India's latest move to waive off charges on National Electronic
Funds Transfer (NEFT) and Real Time Gross Settlement System (RTGS) was expected for
some time now. There has been a strong push in favour of digital transactions, and the
costs and charges associated with digital payments have witnessed a steady downswing
in the last few years. Currently, an RTGS transaction would cost you anything from Rs. 5
to Rs. 50, depending on whether you are doing it via net banking or at the branch. With
the RBI waiving the fees, an RTGS transaction is set to become as convenient and fast as
UPI even when you transfer large amounts.
Courtesy: Financial ExpressHow EPFO plans to redeem half of its DHFL bonds
The Employees' Provident Fund Organisation (EPFO) has sought details of its cash-
generation plans from Dewan Housing Finance Ltd NSE -3.18 % (DHFL), as the
retirement fund manager has sought to redeem half its investment in the home
financier's bonds before maturity. State-managed EPFO had invested about Rs. 1,
crore in DHFL bonds about five years ago through private deals. These securities have a
'put option' after five years, which enables the investor to surrender the bonds now. The
home financier has already paid Rs. 52 crore of interest due on the bonds subscribed by
the EPFO.
Courtesy: The Economic TimesGovt may cut small savings interest rates by 30-50 bps for July-Sept quarter
In a move that may affect lakhs of depositors, the government might reduce interest rates
on some small savings schemes for the July-September quarter, according to a Business
Standard report. The cut in the interest rate s could be as much as 30-50 basis points (
bps=1 percentage point), it stated. The government hopes that cutting interest rates for
small savings schemes will push banks to lower their rates as well, which have been
hitherto reluctant to lower rates, citing higher rates for small savings schemes.
Courtesy: Money ControlBond rally in India at risk as RBI cash transfer delayed
Bond traders in India are getting worried that a six-week rally is coming to an end. An
official said on 24 June that a central bank panel would only make its recommendations th
on the transfer of reserves to the government next month. That surprised traders who
were pricing in as much as a Rs. 3 trillion ($43 billion) boost to state coffers from the
windfall. Expectations of the bonanza from the Reserve Bank of India helped fueled a
stellar rally in bondsthat pushed down yields to their lowest since October 2017. With
that in doubt, traders are concerned the government may exceed the Rs. 7.1 trillion of
borrowings announced earlier. “Clarity over the excess reserves would have been a
critical component of budget deficit estimates," said R. K. Gurumurthy, head of treasury
at Lakshmi Vilas Bank.
Courtesy: Live Mint