Do you know the meaning of Fiat money and Seigniorage?
The article explains the growing demand for US Dollars and how the US economy has benefitted from the Seigniorage The unlimited notes and coins issued under the minimum reserve system are called Fiat money. The cost of issuing fiat currencies is paltry compared to their face value. Since the fiat currencies are issued and underwritten…
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Central notifies GSTN to exchange information with ED, FIU under PML Act
The Centre on Saturday (July 7) issued a notification to include the Goods and Services Tax Network (GSTN) under the ambit of the Prevention of Money Laundering Act (PMLA). The above notification was issued under Section 66 of the PMLA. The disclosure of information provided will facilitate sharing of information between the GSTN, Enforcement Directorate,…
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Tax collected at Source (TCS) enlarged on foreign remittances effective from July 1, 2023
In line with the existing Liberised Remittance Scheme (LRS) in India, any resident individual including a minor is free to remit up to US Dollars 2,50,000 or its equivalent in one financial year for overseas education, traveling abroad for business and private visits, to patients for medical treatment, or to a person for accompanying as…
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Govt. hikes tax on international credit card spends on foreign trips
The Ministry of Finance on May 16 notified that the Foreign Exchange Management (Current Account Transactions) Rules 2000 amended to include international credit card payments under LRS. Under LRS a resident can remit money abroad up to a maximum of USD 2.50 lakh per annum without the authorization of RBI. According to the notification, the…
Read article Cessation of LIBOR: Complete transition away from LIBOR from July 1
The Reserve Bank of India (RBI) today issued an advisory to banks and other RBI-regulated entities, underlining the need to take steps to ensure a complete transition away from the London Interbank Offered Rate (LIBOR) from July 01, 2023. The key messages in the advisory include: Banks should ensure no new transactions are linked to…
Why did regulators decide to decommission LIBOR?
Edited and updated on 12.05.2023 ”LIBOR”, once labeled as the world’s most important benchmark was discredited because of the 2008 financial crisis when authorities in the United States and Britain found traders had manipulated it to make a profit that sparked an investigation by Britain’s Financial Services Authority (FSA). The LIBOR rigging scandal of 2008…
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