 The Central Board of Direct Taxes (CBDT) announced that no withholding tax will apply on interest payments made by an Indian company or a business trust to a non-resident in respect of offshore rupee-denominated bonds issued between September 17, 2018 and March 31, 2019. The move is expected to incentivise foreign exchange inflows into India through low-cost offshore rupee-denominated bonds, popularly referred to as masala bonds. Legislative amendments in this regard will be done in due course. |
| Source- The Hindu Business Line |
 The government has proposed amalgamation of Bank of Baroda, Vijaya Bank, and Dena Bank to create India’s 3rd largest globally competitive Bank. Finance Minister Arun Jaitley announced that the amalgamation will increase the banking operations and no employee will face any service condition adverse to present conditions. The government had announced in the budget that consolidation of banks was also in the agenda of the government. Earlier, the government had merged five subsidiaries of SBI into State Bank of India. |
| Source- The Hindu |
 Federal Bank, which is in the process of formation of a wholly owned subsidiary company, has executed MOU with Infopark Kakkanad for leasing space in their campus. The Bank has already obtained in principle approval of the Reserve Bank of India for the creation of a subsidiary company. The proposed company will integrate and handle all the back-end operations of the Bank. This move towards having a distinct and exclusive outfit for back-end activities is a stride is in line with the practice of progressive financial institutions. |
| Source- DD News |
 India’s overall exports (Merchandise and Services combined) in April-August 2018-19 (as per the RBI Press Release) are estimated to be USD 221.83 Billion, exhibiting a positive growth of 20.70% over the same period last year. Overall imports in April-August 2018-19 are estimated to be USD 269.54 Billion, exhibiting a positive growth of 21.01% over the same period last year. |
1. Merchandise Trade
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2. Trade In Services
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| Source- Press Information Bureau (PIB) |
 The Reserve Bank to purchase government securities (G-secs) worth Rs 10,000 crore on September 19, a move aimed at inducing liquidity in the system. The purchase of the government securities will be done through Open Market Operations (OMO). When the RBI thinks there is excess liquidity in the market, it resorts to the sale of securities, thereby decreasing the rupee liquidity. Similarly, when the liquidity conditions are tight, it may buy securities from the market, thereby increasing liquidity in the market. |
| Source- News on Air |
 The government has announced an array of steps to check the rising Current Account Deficit (CAD), and the fall in rupee. The steps include removal of withholding tax on rupee-denominated bonds known as Masala bonds issued till March 2019, relaxation for Foreign Portfolio Investment (FPI), and curbs on non-essential imports. The government has decided on a number of steps to contain CAD, which widened to 2.4% of the GDP in the first quarter of 2018-19. |
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The steps to be taken by the government to attract dollar inflows into the country include:
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| Source- The Indian Express |
 Inflation based on wholesale prices eased to a four-month low of 4.53% in August on softening of prices of food articles, especially vegetables. The Wholesale Price Index-based inflation stood at 5.09% in July and 3.24% in August last year. Data released by the commerce and industry ministry on Friday showed a 4.04% decline inflation in food articles in August compared with a 2.16% fall in July. The wholesale price index is an index that measures and tracks the changes in the price of goods in the stages before the retail level. |
| Source: News on Air |
 According to the data released by Central Statistics Office (CSO), Index of Industrial production (IIP) grew at 6.6% in July on the back of good performance by the manufacturing sector and higher offtake of capital goods and consumer durables. The IIP growth for June was also revised downwards to 6.8% from the provisional estimate of 7% released in July. The IIP growth in April-July period was 5.4% compared to 1.7% year ago. |
The Index of Industrial production growth in different Sectors:
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| Source- The Economic Times |
 The Reserve Bank of India has released new guidelines through a gazette notification for all notes which wereintroduced post note ban, or notes which were introduced as part of the Mahatma Gandhi New Series. With this, the RBI has ended the lack of clarity over the exchange of the Rs 2000 or Rs 200 currency notes, introduced post demonetisation. Till now, there were clear rules for the value of soiled, damaged or mutilated Rs 5, 10, 20, 50, 100 and 500 notes, but the public was facing problems with the exchange of damaged Rs 200 and Rs 2000 notes as the rules for their exchange were yet to be amended. The Reserve Bank of India (Note Refund) Rules earlier only specified currency notes of Rs 5, Rs 10, Rs 50, Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 denomination. The Rs 2000 and Rs 200 (issued in November 2016 and September 2017 respectively) could not be governed by the old rules due to their difference in size. As per the new Reserve Bank of India (Note Refund) Amendment Rules, 2018, "the undivided area of the single largest piece of the note" for a damaged Rs 2000 note must be 88 square cm for a full refund, and 44 square cm for half refund. The Rs 2000 note is 109.56 square cm in dimension. For a damaged Rs 200 note, the criteria is 78 square cm for a full refund, and 39 square cm for half refund. |
Know About Types of Notes:
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| Source- The Hindu Business Line |
 India’s current account deficit (CAD) widened to a four-quarter-high at 2.4% of gross domestic product (GDP) in April-June period on the back of rising crude oil prices, from 1.9% of GDP in the January-March quarter of 2017-18, according to data released by the Reserve Bank of India (RBI). Merchandise trade deficit expanded to $45.7 billion in the June quarter against $41.6 billion in the March quarter as crude oil prices zoomed past $75 per barrel. Net services exports, at $18.7 billion, were lower than in the preceding quarter ($20.2 billion) due to lower realization from IT services. |
| Source- The Livemint |
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