Inflation driven by crude oil prices prompts government to coordinate fiscal and supply measures to moderate prices.
Inflation is chiefly driven by sustained crude oil price increases, with administered and market-priced petroleum products accounting for the bulk of recent week-on-week rises; other groups showed limited movement. The Government, after consulting the central bank, has implemented fiscal measures including tax cuts, will explore further tax options, considers monetary actions to quell expectations, and will use public wheat and rice stocks via the Public Distribution System to moderate food prices and contain inflation.

Service tax applicability on hire purchase finance clarified as outside the specified service provision, affirmed on appeal.
The determination held that hire purchase finance is distinct from hire purchase and therefore does not fall within the specified taxable service provision under the Finance Act, 1994; that finding was affirmed on appeal, confirming that such financial accommodation is outside the contested service tax head concerning banking and other financial services.

Service tax on chit fund commissions: abatement allows tax on a reduced portion of commission without CENVAT credit.
Services in relation to chit funds are taxable under banking and other financial services; the Government notified a 30% abatement on the value of the commission charged by the person conducting the chit, and providers opting for this abatement must pay service tax on the remaining 70% of commission without availing input credit under the CENVAT Credit Scheme.

Debt waiver for agricultural loans extends relief to small and marginal farmers and defines eligible loan types and lenders.
The Debt Waiver and Debt Relief Scheme covers direct agricultural loans to marginal, small and other farmers by scheduled banks, regional rural banks, cooperative credit institutions and local area banks and comes into force immediately. Direct Agricultural Loans include Short Term Production Loans-repayable within eighteen months and including working capital for plantations and horticulture-and Investment Loans for capital investment and allied agricultural activities. Group loans qualify only where banks maintain disaggregated data. Definitions of cooperative credit institution and marginal farmer (up to one hectare) delimit eligibility.

Recovery agent engagement standards: banks must ensure due diligence, authorised identification, training, grievance redressal and legal repossession compliance.
Reserve Bank prescribes that banks implement due diligence on recovery agencies and individual agents (including antecedent verification), disclose agency identity and contact details to borrowers, ensure agents carry bank authorization and identity documents, record telephonic communications, maintain grievance redressal mechanisms and refrain from forwarding accounts while legitimate complaints are pending. Contracts must not incentivise intimidatory conduct; agents should receive standardised training and certification; repossession clauses must be legally valid and comply with statutory enforcement procedures; and Reserve Bank may impose bans or supervisory sanctions for abusive practices.

Commemorative coin issuance: non-circulating high-denomination coin and circulating low-denomination coin released via central bank for collectors
Government authorised two commemorative coins with specified metal compositions and distinct circulation statuses: the higher-denomination coin is designated non-circulating, while the lower-denomination coin is placed into general circulation via the Reserve Bank of India; collector sets combining both coins will be sold by the India Government Mint.

Mandatory electronic tax payment required; banks instructed to implement the government notification via central bank directions.
Mandatory electronic payment of tax is required for specified categories of taxpayers effective 1.4.2008; the Central Government notified the requirement and the central bank issued directions to banks to implement the notification and facilitate electronic tax remittance by affected taxpayers.

Monetary tightening likely as wholesale inflation surge driven by food and manufactured price rises pressures policy response.
Monetary tightening may be prompted by a sharp rise in wholesale price-based inflation to 7.41% for the week ended March 29, driven mainly by week-on-week increases in fruits and vegetables, pulses, cereals, condiments and spices and selected manufactured items. Specific item movements include rises in fruits and vegetables, pulses, wheat, marine fish, certain minerals and sugar, while milk, maize and some imported edible oils softened. The inflation surge, despite a high year-earlier base, is likely to influence the Reserve Bank's upcoming annual credit policy to restrain inflationary pressure.

Regulation of recovery agents mandates call recording, background checks and standardised training, plus public disclosure of agent lists.
The second draft prescribes recording of calls, publication of updated recovery agent lists on bank websites, periodic antecedent verification of agent employees including possible police checks, additional conditions for asset repossession, continuation of recovery where borrowers make frivolous complaints, use of credit counsellors for sympathetic cases, and nationwide training and a common examination for agents via IIBF or equivalent institutes; the draft is issued for public comments following earlier feedback.

Debt waiver and debt relief package to regularise farmer accounts and compensate lenders over a structured multi year cash schedule.
The Government will implement a debt waiver and debt relief package for farmers, with small and marginal farmers as primary beneficiaries and other farmers eligible for one time settlements. Farmer accounts will be regularised by the specified cut off and cleared by the announced deadline; compensatory cash payments to lending institutions will be made over a 36 month period, front loaded to support cooperative institutions and RRBs. Financing will follow a hierarchy-tax revenues, then non tax and non debt receipts, with borrowing only as last resort-and provisional data will be audited to finalise costs and beneficiaries.

Respect for banknotes: public urged not to deface or misuse currency to preserve note integrity and circulation.
The Reserve Bank of India appeals to the public to refrain from using banknotes for garlands, decorations, places of worship, or showering at social events because such actions deface notes and shorten their life; it stresses that banknotes are a symbol of the sovereign, states it is supplying clean notes across the country, and urges public cooperation to preserve currency condition and circulation.

Portfolio Investment Scheme permissions allow foreign and non-resident investors to acquire company equity through markets
The Reserve Bank notified that under the Portfolio Investment Scheme, Foreign Institutional Investors and Non-Resident Indians/Persons of Indian Origin may purchase equity shares and convertible debentures of M/s. Monnet Ispat & Energy Limited through primary markets and stock exchanges, subject to company-designated limits of paid-up capital after Board and General Body resolutions enabling such investment.

FDI liberalization expands sectoral ownership caps and clarifies approval and compliance conditions for foreign investment.
Targeted FDI liberalisation revises sectoral ownership caps and approval conditions: aviation maintains 49% for scheduled carriers (no foreign airline participation) while permitting up to 74% for non scheduled/charter/cargo and ground handling (NRIs 100%); petroleum removes compulsory divestment and raises PSU refining equity to 49% with prior approval; commodity exchanges allow 26% FDI and 23% FII with 5% single investor cap; credit information companies permit 49% foreign investment with government and RBI clearance and 24% FII in listed CICs; titanium mining allows 100% FDI with value addition and tailings disposal safeguards; Press Note 2(2005) exclusions clarified for industrial parks and registered FIIs under PIS.

Net international investment position rises as capital inflows boost reserve assets and external investment liabilities.
The IIP as at end-June 2007 records an increased net international investment position due to substantial capital inflows, with reserve assets and direct investment abroad driving asset growth and portfolio, direct and other investments expanding liabilities; reserve assets exceeded external debt and the share of non-debt liabilities rose because of higher direct and portfolio investment inflows.