31.10.2007

• Key points in RBI’s credit policy
• CRR hiked by 0.5 % to 7.5 per cent from 10th November
• Bank, repo, reverse repo rates unchanged
• GDP growth outlook unchanged at 8.5% for 2007-08
• Inflation to be contained close to 5 per cent in FY'08
• Inflation expectation in range of 4-4.5 per cent
• Medium term objective on inflation is 3 per cent
• Oil companies permitted to hedge foreign exchange on overseas OTC exchange.
• Importers and exporters allowed call, put options
• Authorised dealers permitted to offer American Options
• Working group on RRB, core banking roadmap
• Financial aid to RRBs for IT implementation
• Action plan for National Electronic Clearing Service
• Hi-level committee to review lead bank scheme
• For a more detailed explanation of each measure announced in the policy and its impact it is very educative to look at this column that appeared in ET. Take a look.
• A bit about NDS – Negotiated Dealing System
• It is the official computer screen based trading system in government securities managed by RBI. All the banks and other allowed institutions (Primary Dealers) take part in trading through this system. These ‘members’ have an account (current account) with RBI. These members can in turn open what are called the SGL (Subsidiary General Ledger) accounts with their clients who are interested in taking part in this market.
• Do you know how much it costs to purchase an Airbus A-380 plane?
• The catalogue price of this plane is about $320 mn. That is Rs. 1280 crores if we assume an exchange rate of Rs. 40 per dollar!!
• What would happen if India doesn’t clear the Indo-US nuclear deal now?
• If India doesn’t take the agreement to its logical conclusion, then the deal with US will have to be started all over again. Under the American process, any legislation that doesn’t go through cannot be carried over to the next Congress.
• GAP to return Indian garment shipments
• GAP is a big US fashion company and is believed to have sourced around $800 mn worth of clothes from Indian sub-continent last year.
• There were allegations that the Indian suppliers engaged child labour in one of their factories. This has led to an international uproar and the consequence is that GAP is likely to return those shipments.
• Broadband penetration in India
• According to the latest figures, India has just about 2.3 mn broadband subscribers. That translates to a penetration of just 0.2% for broadband compared to 19.6% in the US, 20% in the UK and 32% in Denmark and Iceland.
• India has 39.5 mn wireline telephone subscribers compared to Denmark’s little over 3 mn.
• Despite having over 100 mn PCs (which hardly translates to about 3% PC penetration), 40 mn Internet users and 70 mn cable and satellite homes, broadband reaches only 2.3 mn users in India.
• PC penetration is 8% in China, 14% in Brazil and 15% in Russia.
• Take a look at the broadband penetration figures noted by us earlier in December 2006.
• Some noteworthy suggestions for improving broadband penetration in India.
• NELP VII
• New Exploration and Licensing Policy (NELP) VII round is due to be announced. It appears that the government is thinking of making it mandatory for Indian companies to have some foreign joint venture partners who have experience in deep sea exploration.
• The foreign partners should be those operators producing oil and gas from deep waters beyond 400 meters bathymetry (ocean depth).
• Standby mode turns an energy sucker
• Latest estimates show that 5% of electricity used in the US goes to standby power – ‘vampire electronics’, a phenomenon energy efficiency experts find terrifying as energy prices soar and the planet warms.
• About 40% of the electricity being used to power a home electronics is consumed while they are in the standby mode.
• China’s interesting name
• In Mandarin (the Chinese language) it is called Zhongguo.
• It roughly translates to ‘Middle Kingdom’.
• Brazil to host the 2014 World Cup Football?
• The South American country is the only nation bidding to host the tournament which is due to be staged on the continent under Fifa's rotation system.
• Is Mukesh Ambani the richest person on earth?
• Billionaire Mukesh Ambani on Monday became the richest person in the world, surpassing American software czar Bill Gates, Mexican business tycoon Carlos Slim Helu and famous investment guru Warren Buffett, courtesy the bull run in the Indian stock market.
• His net worth rose to $63.2 billion (Rs 2,49,108 crore).
• But Mukesh is disputing these calculations. He says he is worth about $50 bn. Let’s wait and watch what Forbes or Fortune have to say in this matter.