India iran agree on crude payment mechanism

Oil pumping jacks, also known as "nodding donkeys", in an oilfield near Neftekamsk, in the Republic of Bashkortostan, Russia. Photographer: Andrey Rudakov/Bloomberg India's government is engaged on the issue of facilitating payments with Russia, and the Reserve Bank of India will do whatever the government decides, Deputy Governor Michael Patra said June 24. He did not offer any other details. The Deputy Governor's statements assume significance as the government had remained tight-lipped on the issue even as multiple meetings between banking representatives of both nations had taken place. Ever since the Russian invasion of Ukraine and the subsequent barrage of sanctions on Moscow by the West, trade between India and Russia has depended on routing transactions through smaller Russian banks which are as yet untouched by sanctions. Both nations had initially focused on establishing a barter mechanism involving a set of commodities. A key part of this would be an agreement … [Read more...] about India engaged on issue of facilitating payments with Russia: Deputy Governor Michael Patra

London (CNN Business) President Vladimir Putin said Wednesday that Russia is rerouting trade to "reliable international partners" such as Brazil, India, China and South Africa as the West attempts to sever economic ties. "We are actively engaged in reorienting our trade flows and foreign economic contacts towards reliable international partners, primarily the BRICS countries," Putin said in his opening video address to the participants of the virtual BRICS Summit . The "BRICS" acronym refers to an informal grouping of the five developing economies. According to Putin, trade between Russia and the BRICS countries increased by 38% and reached $45 billion in the first three months of the year. "Contacts between Russian business circles and the business community of the BRICS countries have intensified," Putin said. "For example, negotiations are underway to open Indian chain stores in Russia [and to] increase the share of Chinese cars, equipment and … [Read more...] about Putin says Russia is rerouting trade to China and India

(Representative image) India's current account deficit (CAD) fell to $13.4 billion in January-March 2022 from $22.2 billion in October-December 2021, according to data released by the Reserve Bank of India (RBI) on June 22. The deficit was $8.1 billion in January-March 2021. In percentage terms, the CAD in January-March 2022 was 1.5 percent of GDP, down from 2.6 percent of GDP the previous quarter. "The sequential decline in CAD in Q4:2021-22 (January-March) was mainly on account of a moderation in trade deficit and lower net outgo of primary income," the central bank said. India's merchandise trade deficit fell to $54.5 billion in the first quarter of 2022 from $59.8 billion the previous quarter, helping bring down the CAD. Close On the services front, the trade surplus edged up marginally to $28.3 billion from $27.8 billion in October-December 2021. Also helping the current account deficit to moderate was a lower net outgo of primary income, which … [Read more...] about India’s January-March current account deficit falls to $13.4 billion; FY22 CAD at three-year high

Abu Dhabi (CNN) He's arguably Iraq's best-known face abroad. Hoshyar Zebari, a Kurd, was the country's longest-serving foreign minister, often hobnobbing with Western diplomats and journalists, but also cultivating strong ties with neighboring Arab states to make his country's case. But a bid to crown his political career with a run for the presidency faced a major hurdle last week when Iraq's federal court suspended his candidacy due to past corruption charges, causing an election delay that risks exacerbating existing factional divisions. The presidential election was indefinitely postponed on Monday, stalling the already delayed formation of a new government. The results of October's parliamentary vote, in which pro-Iran factions were dealt a significant loss, were only confirmed in December due to political bickering over the results. A new president would be tasked with asking the winning bloc to form a government. The suspension was a blow to the … [Read more...] about Iraq faces deadlock after ‘West-friendly’ candidate suspended

The decline in current account deficit (CAD) in January-March on a quarter-on-quarter basis bodes well for the Indian economy, a deputy governor of the central bank said on June 24. “There is a sequential decline in CAD and this should be noticed because in the foreign exchange market people are betting that the current account deficit has gone haywire and we are losing control,” Michael Patra said at an event in New Delhi. “But the fact is that CAD in January-March 2022, the quarter of the war, was 1.5 percent of GDP, down from 2.6 percent of GDP the previous quarter,” Patra said “This augurs well for external viability because it is backed by strong merchandise export performance, earnings from computer and business services and a rejuvenation of remittances from Indians working abroad.” CAD fell to $13.4 billion in January-March 2022 from $22.2 billion in October-December 2021, according to data released by the Reserve Bank of India (RBI) on June 22. The deficit was $8.1 … [Read more...] about Sequential decline in current account deficit bodes well for external viability, says RBI Deputy Guv Patra

RBI has issued new guidelines for card issuers for credit and debit card issuance (Representative Image) The Reserve Bank of India (RBI) released master directions for credit and debit card issuance on April 21. The RBI (Credit Card and Debit Card - Issuance and Conduct) Directions, 2022 shall apply to all Scheduled Banks (except Payments Banks, State Co-operative Banks, and District Central Cooperative Banks) as well as all Non-Banking Financial Companies (NBFCs) operating in India. The new directions shall be effective from July 01, 2022. "These directions cover the general and conduct regulations relating to credit, debit and co-branded cards which shall be read along with prudential, payment and technology & cyber security related directions applicable to credit, debit and co-branded cards, as issued by the Reserve Bank," RBI stated through its media release. Take a look at RBI's new guidelines for credit card issuers: 1) Card-issuers shall provide a one-page … [Read more...] about RBI’s new rules for credit, debit cards: All you need to know

In a letter to fintechs on June 20 RBI said that loading of credit lines into prepaid payment instruments (PPIs) such as wallets and prepaid cards is not permitted. "I think the RBI is in a civil war. One faction talks about innovation and inclusion. Another faction works hard to undermine this. This circular makes no sense to me at all." "They seem to have decided to close fintech companies in India. One blow coming after the other." These were just some of the messages being exchanged between founders of fintechs in India on WhatsApp groups on the evening of June 20th, minutes after a letter by the Reserve Bank of India (RBI) threatened to endanger their very existence. In a missive that went out to many startups in the evening, the RBI said that loading credit lines into prepaid payment instruments (PPIs) such as wallets and prepaid cards is not permitted. What seemed like a routine Monday swiftly turned into an existential crisis for many Indian fintechs. RBI … [Read more...] about RBI nukes multiple Indian fintechs through guidelines on prepaid instruments

Representative image A characteristic of the ongoing market correction has been heavy selling by foreign investors. Since October last year, they have withdrawn about net Rs 2.08 lakh crore equities, as per NSDL data. Not surprisingly, indices are trading lower by about 18 percent from their highs. Apparently the nine month long winter is likely to get even longer now. Commentaries from foreign money managers and expectations from domestic analysts suggest that it will take a lot of factors to culminate for them to come back. A couple of major reasons why foreign investors have been bearish on Indian markets are rising US dollar which has also led to more yields on bonds, and monetary tightening that is likely to have a negative impact on the economy. Concerns over near-term risks including tightening monetary conditions, a slowing economic outlook, likely earnings cut for the Nifty and headwinds from higher crude oil prices will likely keep them away, say analysts. BofA … [Read more...] about Long winter on the Street set to get longer! FIIs don’t seem to be coming back anytime soon

Rajnish Kumar’s three-year term as State Bank of India (SBI) Chairman was a roller-coaster ride from Day 1. A pandemic, a private bank bailout and a deep economic slowdown – all happened during his term. Kumar played a key role in bailing out Yes Bank. During his tenure, SBI has substantially cut down the chunk of toxic assets and successfully completed the amalgamation process of its associates. In an exclusive interview with Moneycontrol, Kumar opened up about the challenges he faced. Edited excerpts: How tough was your three years as SBI Chairman? Kumar : There were many challenges in the last three years. When I took charge, the merger process (with associates) was on, and then AQR (asset quality review) happened. There was significant stress on the books. And, of course, IBC (insolvency and bankruptcy code) also happened during that period. Having said that, I feel one can get tested only when there are challenges. If you are only doing your routine job, there is … [Read more...] about EXCLUSIVE: SBI needs to be watchful about corporate NPAs, COVID-19 impact, says Rajnish Kumar

- A + A (June 24): US President Joe Biden’s political fortunes have changed dramatically since his first Group of Seven (G7) summit last summer, or even his last visit to Europe in March. It couldn’t come at a worse time for his international allies as Russia settles into a long war with Ukraine. German Chancellor Olaf Scholz, who will welcome G7 leaders in the Bavarian Alps, views Biden as a driving force in sustaining pressure on Moscow and believes that unity among allies could fray once again if Republicans win back the White House in 2024, according to a German government official who requested anonymity to discuss internal thinking. It was only a year ago, on a sandy English beach in Cornwall, when European leaders celebrated that Donald Trump was gone and that the US had returned to the multilateral orbit. Now, that relief has been replaced with a sense of foreboding about whether Biden’s Democrats survive midterm elections and the president’s political … [Read more...] about Biden limps to G7 as allies fret over his troubles at home