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Repo Rate Takes a Chill Pill at 6.5%

October 06, 2023

Good Afternoon☕

In a twist that left financial analysts feeling as steady as a well-tuned metronome, the Reserve Bank of India (RBI) played it cool and kept the repo rate unchanged at 6.5% during its Monetary Policy Committee Meeting on October 6, 2023. It seems the RBI is sticking to its guns with an accommodative stance, leaving everyone wondering if this is just the calm before an unexpected symphony of economic surprises! 🎶💰

Important News of the Day

1. RBI Monetary Policy Committee decision: Repo rate unchanged at 6.5%

The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% during the RBI Monetary Policy Committee Meeting on October 6, 2023. The decision was in line with the expectations of a majority of economists who estimated no change in RBI's key rates. The stance remains accommodative.

2. DoT dismisses Vodafone Idea's licence fee demand of ₹3,273 crore

The Department of Telecommunications (DoT) has dismissed Vodafone Idea's representation with respect to licence fee demand totalling ₹3,273 crore for FY16 and FY17. Vodafone Idea had sought correction of errors in licence fee demands up to FY 2016-17. The telco owes about Rs 700 crore to spectrum usage charges, licence fees, and other statutory dues. As of December 2022, Vodafone Idea had paid only 10-30% of licence fee and spectrum usage charges for the quarter. The company plans to clear about Rs 2,400 crore dues by September 2023.

3. Indian banks are making $64 billion from a freebie

Indian banks are making $64 billion from cashless transactions, which are free for customers. The country now rivals Japan in payment revenue, with more than 10 billion cashless transactions in August alone. Banks charge high volume users a fee, but the government provides funding to encourage low-value internet transactions. Despite being a free public utility, India's payment revenue swelled last year to $64 billion, behind only China, the U.S., and Brazil.

4. ED summons 3 close aides of Sanjay Singh in Delhi excise scam case

The Enforcement Directorate (ED) has summoned three close aides of Aam Aadmi Party (AAP) leader and MP Sanjay Singh in connection to the Delhi Excise Policy Scam. The three aides are Vivek Tyagi, Sarvesh Mishra, and Kanwarbir Singh. Sarvesh Mishra is expected to show up before ED today. ED alleges that Sarvesh, an associate of Sanjay Singh, has received Rs 2 crores on two occasions on behalf of Sanjay Singh at his home. Sanjay Singh has been sent to the ED's custody till October 10. He is the third AAP leader to be arrested by the agency in over a year.

5. Airlines welcome changes to IBC as a ‘positive step’

Indian airlines have welcomed the latest change made by the Ministry of Corporate Affairs (MCA) in the Insolvency and Bankruptcy Code (IBC) allowing aircraft lessors to recover their assets even after commencement of insolvency proceedings. This amendment boosts the confidence of lessors to lease more aircraft to Indian airlines. The change is seen as a positive step by the airlines.

Stock Market Update 📈

Air India has inaugurated a large warehouse facility in Delhi dedicated to storing engineering spare parts. This facility will support the airline's maintenance and repair operations by ensuring efficient storage and accessibility of crucial spare components. It represents a significant investment in improving Air India's engineering capabilities.

Sun Pharma has received approval from the US FDA for its alopecia drug called Deuruxolitinib, marking a significant milestone in the treatment of hair loss. Deuruxolitinib is expected to provide a new therapeutic option for individuals suffering from alopecia, a condition characterized by hair loss. This FDA approval reflects the drug's safety and efficacy in clinical trials, offering hope to those seeking effective treatments for this common hair-related disorder.

Nykaa, a popular Indian beauty and cosmetics retailer, has announced robust growth in its various business segments despite a delay in the festive season. This demonstrates the company's resilience and ability to thrive in challenging circumstances. Nykaa's diverse product offerings and strong online presence likely contributed to its continued success.

Bharat Heavy Electricals Limited (BHEL) has disbursed a final dividend of Rs 88 crore to the Government of India for the fiscal year 2022-23. This payment reflects BHEL's contribution to the government's revenue, as it is a state-owned company. The dividend signifies a financial transaction where BHEL shares a portion of its profits with the government as a shareholder.

Tata Elxsi, a leading technology company, is collaborating with the Indian Institute of Science (IISc) to develop an automotive cybersecurity solution. This partnership aims to enhance the security of connected vehicles against cyber threats, ensuring safer and more secure transportation in the future. The project combines Tata Elxsi's expertise in automotive technology with IISc's research capabilities to address the growing cybersecurity challenges in the automotive industry.

Breaking News: The Scoop You Can't Miss!

1. Distributor commission for LPG hiked to ₹73 per cylinder

The Indian government has increased the commission paid to LPG distributors to ₹73.08 per cylinder from ₹64.84 fixed in May last year. This comes at a time when the government has been announcing measures to curb LPG prices. The revision in commission was made by the petroleum ministry.

2. GST hiring rules may be eased

The Goods and Services Tax (GST) Council in India is expected to consider relaxing the norms for appointing members to the planned 31 GST appellate tribunals so that these dispute redressal forums can start their work quickly. The council is also expected to discuss the implementation of a 28% tax on online gaming.

3. Nokia opens 6G lab in Bengaluru

Nokia has opened a 6G lab at its global R&D center in Bengaluru, India. The lab will serve as a platform for collaboration among industry stakeholders and facilitate the testing of innovative solutions. The project aims to accelerate the development of fundamental technologies and innovative use cases for 6G. The lab is the first of its kind and is expected to contribute to the advancement of core technologies for 6G. The establishment of the lab is in line with the Indian government's vision of making India a global hub for innovation and technology.

4. India, UAE discuss bilateral investment treaty

India and the United Arab Emirates (UAE) discussed a bilateral investment treaty that could see the UAE invest in India's renewable energy, health, semiconductor, and asset monetization sectors. The discussions were held during the 11th meeting of the India-UAE High-Level Joint Task Force on Investments. The delegations also assessed the progress made on a plan to fast-track Indian investments into the UAE. The treaty aims to create favorable conditions for fostering greater investment by investors of one contracting party in the territory of the other contracting party.

5. Hero Group's consumer electronics business to seek ₹200 crore external funding

Hero Electronix, a subsidiary of the Hero Group, plans to raise ₹200 crore external funding by the end of the year to double its revenue by next year. The company's brand Qubo designs and markets products in the smart home and smart mobility segments, including home cameras, smart locks, and a range of dash cameras. The direct-to-consumer (D2C) brand is also rapidly expanding its presence offline.

World News 🌎

  • Who is Anthony Pratt? Billionaire linked to Trump's reveal of US nuclear secrets

  • Russia’s nuclear missiles can now reach targets in US

  • Rishi Sunak sparks uproar with remarks on transgender community

  • ExxonMobil nears $60 billion deal to buy Pioneer, become top US oil producer

  • Elon Musk's X is testing new premium subscription plans, CEO confirms

  • US shoots down Turkish drone near its troops in Syria.

  • ‘India deserves…’: Russia's Vladimir Putin lauds growth under PM Modi

  • Comedian Andrew Schultz roasts Canadian PM, calls him ‘Justinder'

  • 'Terrorist attack on Syrian military college, large number of casualties likely'

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