External Commercial Borrowing eligibility expanded to let hotel companies refinance rupee debt and fund capital expenditure.
Reserve Bank of India amended External Commercial Borrowing guidelines to allow Indian hotel sector companies to borrow under the ECB scheme for repayment of outstanding rupee loans and for financing fresh capital expenditure, subject to a project cost threshold qualifying criterion and without geographic limitation on project location.

National income revision highlights GDP slowdown and altered contributions from services, consumption, saving and investment.
First Revised estimates for 2011-12 show GDP growth at constant (2004-05) prices decelerating to about 6.2-6.3%, with the slowdown driven by weaker agriculture and secondary sector performance offset in part by stronger services (financing and insurance; real estate and business services; transport, storage and communication; electricity; trade, hotels and restaurants). Private final consumption expenditure rose in current and constant terms. Gross domestic saving fell as a share of GDP due to lower financial saving rates across household, corporate and public sectors, while gross fixed capital formation increased in value though its rate relative to GDP eased.

Interest rate reduction gives limited space to support growth while anchoring inflation expectations and easing liquidity.
The Reserve Bank lowered the policy repo rate, adjusted the linked standing facility rates and reduced the cash reserve ratio, injecting primary liquidity to ease tight systemic liquidity, support credit flow and encourage investment while maintaining a commitment to anchor medium term inflation expectations.

Crude oil price decline prompts marginal fall in rupee denominated oil cost and reflects exchange rate movement.
International crude oil price for the Indian Basket fell to US$ 110.35 per barrel on 28 January 2013 from US$ 110.64 on 25 January 2013; in rupee terms the price decreased to Rs 5,946.76 per barrel, a change attributed to the fall in the dollar-denominated price, with the exchange rate at Rs 53.89 per US$ on 28 January 2013.

Indian economy: calibrated monetary stance as growth slows, inflation stays elevated, CAD widens and reforms remain crucial.
Monetary policy must remain calibrated as growth likely undershoots projections and inflation, though moderating, remains elevated with upside risks from suppressed administered prices and food. A widening current account deficit driven by trade deterioration constrains monetary easing despite temporary financing from capital inflows. Tight liquidity from government cash balances prompted Reserve Bank liquidity injections and regulatory easing, but broad money growth stayed below targets and deposit growth lagged credit. Fiscal consolidation and structural reforms are needed to create space for policy, revive investment and sustainably address inflation and external vulnerabilities.

Bulk deposit rules: banks may vary interest rates and may disallow premature withdrawal for large term deposits, subject to disclosure.
Banks may classify single Rupee term deposits of a prescribed large size as bulk deposits and may offer uniform or differential interest rates for such bulk deposits of the same maturity. For deposits below that threshold the same rate must apply for the same maturity. Banks must disclose in advance the schedule of interest rates and ensure payment as per the schedule. Banks may determine penal rates for premature withdrawal and may disallow premature withdrawal of bulk deposits if notified at acceptance; deposits below the bulk threshold must be allowed premature withdrawal on request subject to penal rates.

Short-term cooperative credit structure reform: PACS as BCs, CRAR targets, mergers and CBS deadlines, capital mobilization and governance changes.
The Committee requires CCBs and StCBs to attain phased CRAR targets (7% by 2014 15, 9% by 2016 17), estimates additional capital needs for 209 CCBs (aggregate about Rs.4,000-6,500 crore under scenarios) and identifies about 58 CCBs likely unsustainable without consolidation. It mandates PACS to function as business correspondents of banks (with village depositors/borrowers becoming direct CCB clients), prescribes capital mobilisation instruments (interest bearing capital deposits, perpetual bonds, enhanced loan linked shares, temporary Tier II recognition), sets deadlines (31 March 2013 for sub 4% CRAR remediation; 30 September 2013 for CBS/RTGS/NEFT/ATM/POS), and proposes governance and statutory changes to strengthen regulation, elections, auditor panels and grievance redressal.

Long-term fixed rate loans recommended expansion via long-term bank bonds, longer tenors and structured resets to improve funding.
The Committee recommends issuance of long-term bonds by banks to match infrastructure exposures, promotion of long-tenor fixed deposits, and use of the long G Sec yield curve to enable longer-tenor fixed rate loans. It advises encouraging institutional investor participation, offering fixed-rate loans with periodic interest resets consistent with base rate rules, exploring take-out financing and securitisation, charging prepayment penalties only on outstanding principal and keeping them reasonable, and prioritising customer education; RBI will examine the recommendations.

Crude oil price increase reported for Indian Basket, raising rupee equivalent and reflecting exchange-rate movement.
International crude oil price for the Indian Basket rose to US$ 109.39 per barrel on 21 January 2013, producing a rupee-denominated price of Rs 5892.84 per barrel; the release attributes the rupee increase to the dollar price rise and records the rupee-dollar exchange rate on the reporting date, with comparative figures for the previous trading day and recent fortnightly periods.

Crude oil price decline reported; rupee appreciation reduced domestic barrel price despite marginal dollar movement.
The international crude oil price for the Indian Basket was reported at US$ 108.92/bbl for 18 January 2013 with accompanying rupee and exchange rate figures; the rupee price fell on that date owing to rupee appreciation, and the release provides comparative daily and fortnightly price and exchange rate data to explain domestic price conversion.

Personal hearing in compounding is optional; applicants may submit information and appearance choice does not affect penalty.
The Reserve Bank of India clarified that appearing for a personal hearing in compounding under FEMA is optional; applicants may submit prescribed information with or after the application, may choose whether to appear, and are encouraged to appear personally rather than be represented, with the choice having no effect on the penalty. Rule 8(2) requires the compounding authority to afford an opportunity to be heard and to decide compounding applications expeditiously within the prescribed timeframe.

Portfolio investment scheme limits: company authorised to raise non resident investment ceiling, subject to FEMA compliance and RBI conditions.
Crew B.O.S. Products Ltd. passed board and shareholder resolutions to raise its non resident investor limit to 24% under the Portfolio Investment Scheme; RBI notified the enhancement subject to Regulation 5(3) of the FEMA Notification and reiterated that the Indian company retains responsibility for compliance with FDI policy, FEMA rules and downstream investment obligations, with monitoring and purchase approvals governed by RBI cut off and clearance procedures.

Under-recovery on diesel increases, raising OMC daily fiscal burden and reflecting higher international crude prices.
The PPAC increased the under-recovery on High Speed Diesel effective 16 January 2013 to Rs 9.60 per litre, raising OMCs' combined daily under recovery on Diesel, PDS Kerosene and Domestic LPG to about Rs 384 crore; Domestic LPG and PDS Kerosene under recoveries are computed monthly and receive separate government per unit subsidy support. The adjustment reflects reviewed international crude prices and exchange rates provided alongside the fortnightly computation.

Bank account numbering: RBI panel recommends longest IBAN, retain IFSC branch identifiers, and three-year coexistence.
The Committee recommends retaining the IFSC branch identifier because many banks rely on it for validation, reconciliation and failed-transaction handling; IFSC should continue for routing (and any new payment system should use IFSC). It advocates a uniform account numbering standard using IBAN and, after evaluating options, recommends the Longest IBAN (26 characters: country code, check digits, 4-character bank id using existing IFSC bank code, and an 18-digit BBAN allowing existing account numbers to be retained). IBAN and existing numbers should co-exist for about three years while banks implement technical and operational changes.

India financial system stability assessment: authorities accept phased reforms to strengthen supervision, liquidity management, and market infrastructure.
The FSAP finds manageable near term risks to India's financial stability but identifies structural and supervisory gaps: high public ownership, large group exposures, and mandatory SLR/CRR holdings that constrain market development; limited de jure regulator independence; incomplete consolidated supervision; and weaknesses in insurance solvency, issuer reporting, auditing, CCP liquidity management, and insolvency law. It recommends phased reform: strengthen statutory regulator autonomy, expand information sharing and supervisory colleges, tighten large exposure and related party rules, reduce SLR gradually to deepen bond markets, bolster resolution and deposit insurance powers, enhance CCP liquidity arrangements, and modernize insolvency and secured transactions frameworks.

Audit compliance obligations: banks must recover inadmissible payouts, fix official responsibility, issue certificates and monitor post-waiver lending.
The audit of the Agricultural Debt Waiver and Debt Relief Scheme, 2008 found benefits extended to ineligible accounts, claims on loans to intermediary MFIs, incorrect benefit amounts, reimbursement of inadmissible charges, non-issuance of waiver certificates and lack of monitoring of fresh loans. The Reserve Bank requires banks to recover inadmissible or excess payments, fix responsibility of officials and auditors, consider FIRs where records were tampered with, issue missing waiver certificates promptly, and begin monitoring outcomes for beneficiaries, and to report completion to the regional office.

Retail participation in government securities can be boosted through technology, retail oriented products and reduced transaction barriers.
The document sets out that retail participation in government securities is essential to diversify demand and stabilise the G sec market, and describes regulatory and operational measures undertaken by the Reserve Bank of India-legal facilitation under the Government Securities Act, non competitive bidding, odd lot trading, multi modal settlement, web based access for gilt account holders, DvP III settlement extension, widened NDS OM membership and mandated retail turnover targets for primary dealers-alongside policy recommendations: investor education, retail oriented product issuance (including inflation indexed bonds), leveraging technology and branch networks, market making for odd lots, consolidation of securities and reduction of transaction costs.

Crude oil price rises internationally while rupee appreciation reduces the rupee-denominated price and alters domestic valuation.
International crude oil price for the Indian Basket rose to US$ 109.57 per barrel on 09 January 2013 from US$ 109.11 on the previous trading day, while the rupee-denominated price fell to Rs 6021.97 per barrel on 09 January 2013 from Rs 6037.06 on 08 January 2013 due to rupee appreciation, with the exchange rate at Rs 54.96/US$.

Crude oil price update shows a rise, with exchange rate depreciation amplifying rupee-denominated increases.
Announcement of an upward revision in the international crude oil price for the Indian Basket, with corresponding rupee-denominated increase attributed to both a higher dollar price and rupee depreciation; tabulated day-to-day and fortnightly comparative figures for the crude benchmark and exchange rate are provided for short-term price tracking.

Foreign exchange earnings growth from tourism rises, with concurrent increases in foreign tourist arrivals and monthly receipts.
Foreign exchange earnings from tourism increased in 2012 in both rupee and US dollar terms with higher annual and December receipts compared to 2011; foreign tourist arrivals also rose overall in 2012 and for December year on year. Monthly arrival estimates use port data and FEEs are compiled from central banking sources.