1. In a measure that would bring cheers to savings accounts holders, RBI asked banks to start calculating interest rates on these accounts on daily basis from April The move will enable saving accounts holders to earn better interest income on deposits since banks currently calculate interest on the lowest available balance, from 11th and the last date of a month. In the existing system, if one withdraws certain amount from his savings accounts on the last day of a month, he will lose interest on that amount for the whole month. But, under the new system, even if he withdraws in the last day of the month, he will get the interest income on the first 29 days of the month.
2. For the sixth year in a row, the EPFO subscribers are likely to get 8.5% interest on their provident fund (PF) deposits for 2010-2011.
3. In the backdrop of India and Switzerland re-negotiating a bilateral tax treaty for exchange of information on tax evaders, Swiss banks have made it clear that any country seeking secret account details must be specific with names of the individual and the bank involved. "The country requesting information must name the specific individual and also give the name of the bank involved... The idea is to protect the privacy of clients innocent of any wrongdoing, and we believe this is correct," a top official at the apex body of Switzerland-based banks, Swiss Bankers Association (SBA) said. The practice of secrecy in operations of Swiss banks has always been a big political issue, with many Indians alleged to have stashed away billions of dollars in secret accounts there.
4. On February 26, when the Honourable Finance Minister presents the Union Budget, he will have to balance the expectations of multiple stakeholders.From a macroeconomic perspective, 2009 has been a difficult year. The global slowdown impacted Indian businesses in a big way. One of the consequences of the slow-down has been that most companies have resorted to cost cuttings with special attention to reducing employee related costs. From the employees' perspective, reduced bonuses and increments, combined with increase in costs of most essential items due to inflation has caused a hole in their pockets. Salaried persons would be expecting some respite and would be hoping that the Finance Minister proposes measures in the Budget to bring some relief by way of tax concessions for the salaried class.
5. Notwithstanding a grim financial picture in the face of a troubled political situation, Andhra Pradesh Chief Minister K Rosaiah presented a tax-free budget for 2010-11 with an outlay of Rs 1,13,675 crore and a projected expenditure of Rs 1,13,660 crore.The budget estimates, presented to the state Assembly, show a fiscal deficit of Rs 12,983 crore, which will be about Rs 1,300 crore less than the revised estimates for the 2009-10 fiscal, and a revenue surplus of Rs 3,548 crore, up from Rs 2,942 crore.
6. Foreign exchange reserves rose $485 million to $279.2 billion during the week ended February 12, largely on account of revaluation of non-dollar assets in reserves. According to the latest Reserve Bank of India data, of the total foreign exchange reserves, foreign currency assets (FCA) rose by $521million, while the value of SDR (special drawing rights) and reserves with the IMF dipped by $28 million and $8 million, respectively, during the week. The rise in foreign exchange reserves could be largely due to dollar marginally paring the gains against the euro on news about the bailout of Greece, which ran into fiscal trouble earlier in the month, pointed out a treasury official at a public sector bank.
