Category: Banking

Banking Business

Foreign Analysts Fear Revision Of Rates By RBI In 2020

HT News

Analyst said on Monday that RBI could hike rates this year because of possible inflationary impact the economy would have while trying to meet the fiscal deficit target of 3.5% for FY2020-21.

The analysts pointed towards the finance minister Nirmala Sitharaman discussing disinvestment where the government under-performed to achieve the 3.8% fiscal deficit target in FY2019-20.

Analysis of growth

The government wants to push the growth but with the help of a clause that allows the government to stretch its commitments under the Fiscal Responsibility and Budget Management Act by 0.5%. But it would show that the government missed the target for the third consecutive year.

Analysts of foreign brokerage Bank of America welcomed the government’s stand while flagging risks to the target. They see a 0.30% if GDP upside risk to the fiscal deficit target because of high disinvestment assumption of Rs. 2.10 lakh crore in FY21 that is almost three times of FY20’s Rs. 65,000 crore.

Goldman Sachs analysis

The analysts said that the achievement of government relies on privatization initiatives. They also said that if the estimates of revenue collections don’t materialize, the government would have to resort to expenditure cuts again.

They further said that any rise in fiscal deficit would be accompanied by a spike in inflation but it is already beyond the comfort level of RBI. The analysts said that it is more likely that RBI could shift its monetary policy from neutral to accommodative in the weekly review and it is likely to hike the rates in 2020 as well.

Source: https://bit.ly/36XB02W

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Banking National

25 Crore Workers From 10 Central Trade Unions Call For 24-Hour Nationwide Bandh On January 8

HT News

The Centre of Indian Trade Unions (CITU) has called for Bharat Bandh against the disinvestment, privatisation and labour reform policies of the central government. According to CITU, ten central trade unions were supporting its cause.

CITU calls for a nationwide strike

CITU said that it had been over four years since the last Indian Labour conference took place in August 2015. In the last conference, the government created a Group of Ministers to consider the 12 point-charter of demands of the labour unions. But nothing happened after that meeting. It further said that the government started selling Public Sector Undertakings and natural resources to strengthen the failing economy.

Worker’s demand

The 24-hour strike is called to oppose privatization policies of the central government and present a 12-poing common demand like working-class on pay hike, fixing of the minimum wage, social security and uniform five-day week.

Services affected by Bharat Bandh

Banking services are more likely to get affected by the nationwide strike but private sector banks are likely to work as usual. But the transport sector is likely to get the maximum impact of the strike. According to SBI, only a few members of its unions are participating in the Bandh. Also, BJP-affiliated Bhartiya Mazdoor Sangh won’t participate in the strike.

Government on nationwide strike

The government has warned those participating in the strike of consequences the 24-hour strike. Their wages would be cut and they could face disciplinary action. The Ministry of Personnel has prohibited government employees from participating in the strike.

Source: https://bit.ly/2sOJGe8

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