Despite the spurt in economic activity, the persistent high rate of inflation remains the biggest concern for the economy. RBI Governor Shaktikanta Das said, earlier this month it was voted in favor of increasing the repo rate by 0.50% only to bring the rising inflation under control.
In the details of the Monetary Policy Committee (MPC) meeting released by the central bank on Wednesday, the governor said an increase in the repo rate will strengthen the RBI’s commitment to price stability. The primary goal for the central bank is to keep inflation under check. This is a precondition for sustainable growth in the medium term. The 6-member MPC, headed by Das, had agreed to increase the repo rate for the second time to 4.9 per cent on June 8.
Repo rate may increase again
The Governor said that the time is opportune for another hike in the policy rate to effectively tackle inflation. That’s why I will vote for 0.50 per cent hike in repo rate once again. This will help in controlling high inflation. Along with this, it will also help in mitigating the effects of adverse supply related problems.
$30 billion increase in foreign exchange reserves
The country’s foreign exchange reserves have increased by $30.3 billion in 2021-22. During 2020-21, an increase of $ 99.2 billion was registered in it. RBI said on Wednesday that during this period the foreign exchange reserve increased by $ 47.5 billion. On the other hand, the current account deficit stood at 1.2% of GDP in 2021-22. There was a surplus position of 0.9 per cent in 2020-21.
The Income Tax Department has issued a detailed guideline regarding TDS deducted on Virtual Digital Assets (VDA). Under this, it will be necessary to tell the date of cryptocurrency transfer and the mode of payment. The Finance Act-2022 has added section 194S to the Income Tax Act. Under this, one percent TDS will be deducted from July 1 on payment of VDA or crypto of more than Rs 10,000 in a year.
In order to implement the new provision, the Central Board of Direct Taxes on June 21 made certain amendments in the Income Tax Rules with respect to filing of TDS returns in Form 26QE and Form 16E. The notification states that TDS deposited under section 194S has to be deposited within 30 days from the end of that month. In this way the deducted tax will be deposited in Form 26QE along with the challan.
ICICI Bank has increased the interest rates on Fixed Deposits (FDs). Deposits of less than 2 crores will get 5 bps more interest. Now interest from 2.75 to 5.75% will be available on FDs of different times. You can also deposit money for 7 to 10 days. The new rate has come into effect from June 22.
Gold slips by Rs 205, silver by Rs 926
Gold prices fell by Rs 205 to Rs 50,487 per 10 grams in the Delhi bullion market on Wednesday due to softening of precious metals in the global market. Silver also became cheaper by Rs 926 to Rs 59,959 per kg. In the international market, gold was trading lower at USD 1,825 an ounce.
The number of domestic air passengers grew 5 times on a year-on-year basis to reach 12 million in May. In May last year, only 21 lakh people had traveled. IndiGo had 70 lakh passengers and 57.9 per cent market share in 1.20 crore. Air India had 8.23 lakh passengers.
5 lakh notice to SEBI Future
SEBI has sent a notice to Future Enterprises to pay Rs 5 lakh. This notice has been given in the case of Amazon not informing about the initiation of the arbitration process against the company. A threat has been given to confiscate the company’s assets and bank accounts for non-payment of 5 lakhs.
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