Expected DA Slabs for the month of May'16 to July'16 - updated on 31.03.16 on announcements of Consumer Price Index for the month of Feb'16

Expected DA Slabs for the month of May'16 to July'16 - updated on 31.03.16 on announcements of Consumer Price Index for the month of Feb'16 as under

Today i.e. on 31.03.2016, CPI for the month Feb'16 announced as 6094.51. Earlier on 29.02.2016 CPI data for the month of Jan'16 announced as 6140.17. On assumptions that CPI data would remain as avergae of Jan & Feb 2016 for the next month Mar'16 in that situation the expected (tentatively) change in DA Slabs comes to decrease of 7 slabs for the month of May'16 - Jul'16, the expected DA payable in terms of percentage is as under : (However if we assume that CPI would remain sam as on Feb'16 in that situation the tentatively decrease is of 9 DA slabs, the expected DA calculator is revised on expectation of reduction of 7 slabs on assumption of average CPI of Jan & FEb for the month of March'16 )

( Reduction in expected DA raises a question in every one's mind that which item they find becomed cheaper. Are these the "achhe din" for Bankers and "achhe din" for pensioners by reduction in Interest rates on depsosits. )

DA Announced For Feb.16 - May 16

No clear info with RBI on Re 1's different title: RTI reply

The Reserve Bank of India (RBI) does not have a clear guideline regarding the printing of different titles on the currency note of Re 1 and that of other denominations, reply to an RTI query has revealed.

The Re 1 note bears the title 'Government of India', while other currency notes bear the title 'Guarantee by the Central Government'.

Activist Manoranjan Roy had filed an RTI query with the RBI recently seeking gazette copy or any other legal document with respect to the two different titles printed on Re 1 note and other notes.

In its reply, RBI's Central Public Information Officer Uma Shankar said, "The information sought is not available with us."

Notes of Re 1 bear the signature of Secretary, Ministry of Finance, while currency notes of all denominations carry signature of the Governor of RBI.

Roy said that the discrepancy in the title is ambiguous and, moreover, it seems like the RBI was doing its job "without clear-cut guidelines".

The activist also said the RBI Governor's signature on the currency notes, which are in both Hindi and English, should only be in one language. "These are definitely not part of security features on a currency note but definitely creates unnecessary ambiguity. It is time that the Finance Ministry take a note of it."

Banking governance will see reform: FM Arun Jaitley

Finance minister Arun Jaitley on Tuesday met representatives of banks, financial institutions and social sector groups as part of pre-budget consultative meetings with various stakeholders. He said focus would continue on governance reforms in banking and there was considerable improvement in opening of basic savings bank deposit accounts under the Pradhan Mantri Jan Dhan Yojana.

The finance ministry quoted Jaitley as saying that as part of governance reforms in public sector banks, Bank Board Bureau will replace the appointment board for appointment of whole time directors as well as non-executive chairmen to formulate appropriate growth and development strategies. Jaitley, in his meeting with social sector groups, said inclusive growth is high on the agenda and adequate measures can be expected to ensure social security for children, women and senior citizens.

Banks and FIs sought raising tax exemption limit to Rs 2.5 lakh, bringing down maturity period for taxfree term deposit to one year to promote domestic savings among other exemptions and putting affordable housing in the priority sector. HDFC Bank managing director Aditya Puri said certain tax-specific suggestions were made so as to encourage domestic savings. "Everybody was of consensus that public expenditure is necessary and if that is necessary then a balance will have to be done between fiscal deficit and expenditure, and may be it has to be delayed," he said.

Yes Bank managing director Rana Kapoor said the major point of the interaction was that overall savings in the country needs to be increased through a series of action to ensure domestic savings to create capital formation. "It was also suggested to bring down lock-in period on tax-free fixed deposits to one year from five years so that more depositors come into the system."

Social sector groups asked for doubling of allocation towards the health sector and higher rate of sin tax on tobacco products and alcohol in the budget. They sought allocation under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) be increased by Rs 5,000 crore and spending of 10% of GDP on the education sector. Other suggestions included insurance to farmers as a major initiative to address the distress in the agriculture sector and for achieving higher agriculture growth, and adequate provisioning towards a comprehensive and universal crop insurance scheme.

RBI, banks seek higher tax sops under 80C

The Reserve Bank of India and financial sector bosses on Tuesday made a strong pitch for higher incentives for savings, including raising the tax benefit for investing money in fixed deposits and public provident fund (PPF) to Rs 2.5 lakh from Rs 1.5 lakh currently.

Sources said RBI deputy governor Urjit Patel kicked off the customary pre-budget consultation with finance minister Arun Jaitley with a suggestion to "significantly" increase savings, which was followed by demands to raise the cap by bankers as well as insurance companies.

"We need to increase the savings rate in the economy and take it back to 35% of GDP. For that, enhancing section 80C (of Income Tax Act) to Rs 2.5-3 lakh will be helpful," Yes Bank MD & CEO Rana Kapoor said.

Bankers said the ceiling should be enhanced, especially at a time when real interest rates (net of inflation) had turned positive after several years.

Taking a cue from RBI's Patel, Life Insurance Corporation chairman SK Roy suggested that the government could impose sub-limits within the section 80C exemptions, said a source present in the meeting.

Under the current rules, the government allows deduction of up to Rs 1.5 lakh for investment in various savings instruments such as fixed deposits with a tenure of five years or more, provident fund, PPF and life insurance schemes.

The suggestion came amid recommendations from some private sector bankers that the government should lower the quantum of tax-free bonds that are issued, if not completed do away with them. They argued that the bonds were being bought by high net-worth individuals such as film stars and were not benefiting the common man. The bonds issued by certain institutions compete with bank deposits.

Bankers also demanded tax should be deducted on interest of above Rs 50,000 as against the current Rs 10,000.

In addition, Kapoor said, there were suggestions on making the gold monetization scheme more attractive. A finance ministry statement said bankers also suggested that interest rate on small savings schemes such as PPF should be rationalized and linked to the yield on five-year government securities.

Banks as well as the RBI have been demanding the change to ensure that investors don't park funds in PPF and National Savings Scheme, which offer higher rates, and instead opt for fixed deposits with banks. Bankers say higher deposit rates don't allow them to lower lending rates, something that the government has been seeking.