The Union Budget for the financial year 2019-20 was presented by finance minister Smt. Nirmala Sitharaman in Parliament on Friday July 5, 2019. The major impact on budget 2019 proposal on common man is as follows. Individual tax payers with income up to Rs.5 lakh taxable income will get full tax rebate after permissible deductions…
An individual require filing income tax return, if his/her gross total income exceeds the basic exemption limit of income of Rs.2.5 lakh before permissible deductions under Sections 80C to 80U. The people with gross total income below exempted limit of Rs.2.5 lakh or Senior citizen of above 60 years and below 80 years with gross…
Banks & Financial Institutions are generally free to determine the lending rates on loans and advances. The method to arrive at Lending Rate has changed drastically over the last decade. The Lending Rate like BPLR, Base Rate, and MCLR internal benchmark rates are used by individual banks to determine the interest rates on their credits.…
For individuals: No change in personal income tax slabs. Full tax rebate on taxable income (after all applicable deductions) up to Rs. 5 Lakh continues as announced in the interim budget of 2019. 3% surcharge for those in the income bracket ₹2 crore to5 crore, and 7% surcharge on income of ₹5 crore and above.…
The Reserve Bank Friday (June 28, 2019) relaxed the leverage ratio (LR) for banks from the quarter commencing October 1, 2019. The RBI communiqué said that the decision to relax the leverage ratio for banks is to help them boost their lending capacity. As per RBI notification the leverage ratio stands reduced to 4 per…
RBI fixed base rate of 9.18 for Non-Banking finance Companies and Microfinance Institutions effective from July 1st 2019. So the borrowers of these institutions will be charged not less than the above base rate for the quarter beginning from July 1. The Reserve Bank of India in a circular during 2014 had communicated to NBFCs…
Monetary policy talks about achieving the ultimate objective of economic policy of the country. It discusses to the use of monetary instruments under the control of the central bank to regulate levels such as interest rates, money supply and availability of credit with a view to achieving the objectivity. The Monetary Policy Framework intends to…
Monetary policy decisions by central banks can have far-reaching implications for the economy, investors, small depositors and borrowers. Till the formation of MPC, RBI used to take monetary policy decision on Repo interest rates based on multiple indicator approach. The Governor of RBI being the focal point was subjected to hectic lobbying ahead of each…
In January 2014, the expert committee headed by Dr. Urjit Patel recommended revising the monetary policy framework, and it came up with its report. In the report it was suggested that RBI must abandon the existing ‘multiple indicator approach’ and make inflation targeting the primary objective of its monetary policy. As per the recommendation, the…
Monetary policy decisions by central banks can have far-reaching implications for the economy, investors, savers and borrowers. Between1980 to 1998, RBI adopted operating method of monetary policy ‘monetary targeting with feedbacks’. This method has been later altered pursuant to liberalization of financial markets and opening up of the economy and short-term deviation in the relationship…
