Category Archives: Economy

Economy

Users to pay at kirana stores through mobile

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Now even the micro transactions for the payments of local taxi fares and kirana stores are all set to go cashless. Such micro transactions can be made possible with the help of National Payment Corporation of India on September 10, 2012 extending the interbank payment service for merchants.

There are chances of the mobile transactions to go high as the credit cards and debit cards payment are much higher than that of the mobile at just 25 paise per transaction, which makes it feasible for the banks to offer it for payments as low as a few rupees. But mobile payment services are already available, IMPS until now allowed only person to person transfers.

Due to which only 39 million account holders in 50 banks are registered for mobile banking but the transactions have been very low. AP Hota, the MD and CEO at the NPCI said, “There are around 10 million kirana stores, but the total number of point of sales terminals in India is less than seven lakhs. IMPS will facilitate micropayments over the counter electronically”.

Out o the 50 banks  seven banks including ICICI Bank, SBI and Standard Chartered have enabled IMPS merchant payments, while another five are getting it enabled and the rest are expecting to join in due course of time.

Economy

Petrol, diesel, kerosene and LPG likely to go up after monsoon session

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The Finance Ministry has said that it does not have any money to provide for fuel subsidy. This has hinted that there are possibilities that there might be a hike in the prices of petrol, diesel, domextic cooking gas (LPG) and kerosene.

A top official from the oil ministry said, “This (hike) is imminent. There is no question of holding back now”. There are possibilities that the prices might be increased after the current monsoon session of the Parliament comes to an end on September 7, 2012.

The prices of the domestic LPG, diesel and PDS kerosene rates have not been changed since June 2011 even through the cost of the production has soared to 28 percent. Reports say that the state owned fuel retailers are losing Rs. 560 crore per day on the sale of diesel and cooking fuel due to which they are forced to resort to short term borrowing to meet funds needed for importing crude oil.

At the end of June the borrowings of the three fuel retailers have shot up to Rs. 1,57,617 crore from Rs. 1,28,272 crore as on March 31. The companies are also losing Rs. 5 per litre on petrol , a fuel which was decontrolled in June 2010 but the rates have moved with cost.

Economy

Prices of aviation turbine fuel hiked

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In some additional burden for the aviation industry in India, the jet fuel prices have been hiked by a steep 7.6 percent. This is the biggest ever increase which has taken the price to the all time high of Rs. 72,282 kilolitre.

The price of the aviation turbine fuel in Delhi has been hiked by Rs. 5,146 per kilolitre or 7.6 percent to Rs. 72,281.92 per kl which will take effect from midnight on September 1, 2012. The price rise is considered as one of the biggest increases and has been done due to the international oil rates and dip in the value of rupee against the US dollar.

The new rates will surpass the previous high in the ATF price of Rs. 71,028 per kl in the month of August, 2008. But in terms of percentage, the hike is lower than the 12 percent hikes effected from June 16, 2009 when the prices were hiked by Rs. 3,948.59 per kl to Rs. 36,251 per kl.

The recent price hike will be the fourth straight increase in the rates since the month of July. This has also added that burden on the already cash strapped airlines. Jet fuel constitutes of about 40 percent of the airline’s operating costs.

Economy

RBI to introduce rupee symbol in Rs. 1,000 rupee note

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The Reserve Bank of India on August 28, 2012 said that it will soon be launching Rs. 1,000 denomination bank notes with the rupee symbol. Till now the Rs. 1,000 rupee note did not have the rupee symbol which was created by D. Udaya Kumar.

The RBI also said that the new notes will be launched with improved security features. The Bank in a notification said, “The Reserve Bank of India will shortly issue Rs 1,000 denomination banknotes incorporating rupee symbol, with inset letter ‘L’, in both the numbering panels, in the Mahatma Gandhi Series-2005 with improved security features”.

The bank notes will also have the signature of the RBI governor D Subbarao and it will also have the year of printing 2012 on the reverse of the banknote. The design of the new notes will be similar to the Rs. 1,000 bank notes in the Mahatma Gandhi Series 2005.

The RBI also said, “All the banknotes in the denomination of Rs 1,000 issued by the Bank (RBI) in the past will continue to be legal tender”. The design of the rupee sign was presented to the public by the government of India on July 15, 2010, through an open competition among the Indian residents. Before the adaptation, the common symbols like Rs. or Re. were used.

Economy

Milk prices not to be increased despite dry weather

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This year, India has been hit by below-average monsoon in many parts of the region. Despite the drought like conditions in the major milk production regions, milk is available in abundance with fears that the prices might rise.

However, there is no shortage of milk due to the adequate milk powder stock in the country. So a price rise may not be in cards mainly due to the reason that there is no shortage due to the diversion of milk to milk products. Even the private sector dairies in the state of Maharashtra are mostly in to milk products unlike the dairies in the south which deal with liquid milk and its products like ice cream and curd.

Till a few months back there was a ban on the export of milk powder. The ban has now been lifted but the dairies say that the international market are not remunerative for the Indian players.

Most of the dairy regions in Maharashtra are facing drought conditions which has brought down the fresh milk production. But there is no shortage of liquid milk. Even in the dairies in the south do not foresee any hike in milk prices.