All posts tagged: Forex

Import duty on gold, Storm and Withholding tax

Import duty on gold, Storm and Withholding tax

Published by Parlour News

Preliminary Examination: Current events of national and international importance.   Mains Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. What’s the ongoing story: AFTER HIKING import duty on gold, the government and the Reserve Bank of India are learnt to be considering multiple measures to attract foreign investment inflows including a cut in the withholding tax rate on government bonds, if not completely eliminating it. Key Points to Ponder: • What is Withholding tax? • What is foreign portfolio investment (FPI)? • What is Foreign Direct Investment (FDI) • What is the difference between FDI and FPI? • What is the primary objective behind reducing withholding tax? • Why does Government wants greater foreign participation in the financial and debt market? • What are the benefits and risks of increased foreign portfolio investment in India? Key Takeaways: • Withholding tax is akin to a tax deducted at source and is paid by foreign investors on interest income they receive on their holding of Indian bonds. At present, …

RBI tightens forex rules, bans non-deliverable Re contracts | Business News

RBI tightens forex rules, bans non-deliverable Re contracts | Business News

Published by Parlour News

3 min readMumbaiApr 2, 2026 01:51 AM IST The Reserve Bank of India (RBI) has directed authorised dealer (AD) banks to discontinue offering non-deliverable derivative contracts involving the Indian rupee to both resident and non-resident users, with immediate effect. The move is aimed at strengthening oversight in the foreign exchange derivatives market. According to the new guidelines, banks and other ADs are prohibited from entering into or facilitating any non-deliverable derivative transactions linked to the rupee. It is seen as part of a broader effort to curb speculative activity and enhance transparency in currency markets as the rupee has come under pressure in the wake of the West Asia conflict. The rupee, which had fallen below 95, closed at 94.81 against the dollar Wednesday. However, Wednesday’s directive provides some operational flexibility. Authorised dealers may continue to offer deliverable foreign exchange derivative contracts, provided these are strictly used to meet genuine hedging requirements of clients, the RBI said. Importantly, users availing such contracts must not simultaneously hold offsetting positions in non-deliverable derivatives. To ensure compliance, dealers …

Number Theory: billion of reserves gone in 14 weeks

Number Theory: $70 billion of reserves gone in 14 weeks

Published by Parlour News

Jan 14, 2025 09:03 AM IST . India’s foreign exchange reserves stood at $634.6 billion on the week ending January 3, the Reserve Bank of India (RBI) said in its weekly statistical supplement released on January 10. This number has fallen in every week except one since the week ending October 4, 2024, the data shows — slipping from an all-time high $704.9 billion in the week ending September 27, 2024. Representational image. Recommended Topics Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it’s all here, just a click away! –Login Now! See More Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it’s all here, just a click away! –Login Now! See Less Disclaimer: We do not own any of the content, ideas, images, or text presented here. All rights belong to their respective owners. For more information and to view the original source, please visit the following link: Source link

Rupee rises 6 paise to 84.35 against US dollar in early trade | Business News

Rupee rises 6 paise to 84.35 against US dollar in early trade | Business News

Published by Parlour News

The rupee appreciated 6 paise to 84.35 against the US dollar in morning trade on Monday, supported by a firm trend in domestic equities. Forex traders said factors like elevated Dollar Index levels, and a nearly 5 percent surge in crude oil prices over the past week driven by the escalation of the Russia-Ukraine conflict pose significant headwinds for the USD/INR pair. At the interbank foreign exchange, the rupee opened at 84.38, moved in a tight range, and touched 84.35 against the greenback, registering a gain of 6 paise over its previous close. On Friday, the rupee recovered from its all-time low level and appreciated 9 paise to close at 84.41 against the US dollar. The Indian rupee opened with gains as FPIs selling decreased considerably and markets rose last Friday, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP. “RBI has also warned banks from taking long side positions in the USDINR pair for speculation purposes,” Bhansali added. Meanwhile, the dollar index, which gauges the greenback’s strength against a …

India’s forex reserves fall to USD 675.653 billion as of November 8, says RBI – India TV

India’s forex reserves fall to USD 675.653 billion as of November 8, says RBI – India TV

Published by Webster

Image Source : PTI/FILE PHOTO India’s forex reserves fall to USD 675.653 billion as of November 8 According to data released by the Reserve Bank of India on Friday, India’s foreign exchange reserves fell by USD 6.477 billion to USD 675.653 billion in the week ended November 8. This is a steady decline from last week’s decline of USD 2.675 billion, while reserves stood at USD 682.13 billion. It had reached a record high of USD 704.885 billion at the end of September but has been steadily declining since then. Key components show decline Foreign currency assets, the largest component of reserves, fell by USD 4.467 billion to USD 585.383 billion. These assets, denominated in dollars, are also subject to fluctuations in value due to movements in other currencies such as the euro, yen, and pound. Gold reserves fell from USD 1.936 billion to USD 67.814 billion. It was USD 60 million in Special Drawing Rights (SDRs), which is USD 18.159 billion. India’s reserve position with the International Monetary Fund (IMF) also declined by USD …

Alleged FEMA violations: ED raids Forex firms in Mumbai, seizes Rs 4.6 crore in foreign currency | Mumbai News

Alleged FEMA violations: ED raids Forex firms in Mumbai, seizes Rs 4.6 crore in foreign currency | Mumbai News

Published by Parlour News

The Directorate of Enforcement (ED), Mumbai Zonal Office, conducted a series of search operations at five locations in Mumbai on Thursday in connection with a suspected case of illegal foreign exchange transactions. The searches targeted the premises of multiple Full Fledged Money Changers (FFMCs), including M/s Kuntilaa Forex (KFPL), M/s Shagun Enterprises, M/s Capital India Finance, and M/s MDB Tours and Forex, under the provisions of the Foreign Exchange Management Act (FEMA), 1999. During the operations, ED officials said they seized a substantial haul of incriminating evidence, including electronic devices, foreign currency from multiple countries worth Rs4.6 crore and Indian currency amounting to Rs 4 lakh. The operation follows an investigation triggered by unusual financial activities within the Forex business of KFPL during the 2022–2023 financial year. The ED probe revealed that the bank accounts of KFPL, MDB Tours and Forex Pvt Ltd, and other linked entities were being used to deposit large sums of cash and receive funds from various unverified sources. Disclaimer: We do not own any of the content, ideas, images, or …

India’s forex reserves drop for fifth week amid RBI’s possible intervention to support rupee – India TV

India’s forex reserves drop for fifth week amid RBI’s possible intervention to support rupee – India TV

Published by Webster

Image Source : FREEPIK Coins, paper money and globe on white statistical background India’s foreign exchange reserves fell for the fifth consecutive week, falling $2.675 billion to $682.130 billion in the week ended November 1, according to RBI data. The record reserves of $704.885 billion are slowly dwindling, likely due to RBI intervention to support the rupee. Reserve levels falling after all-time highs Recent reserve declines that peaked last month included $3.7 billion, $10.7 billion, $2.16 billion and $3.463 billion in recent weeks. Current foreign reserves, including foreign currency assets (US$589.849 billion) and gold reserves (69.751 billion USD) was enough to cover about one year of projected imports. RBI’s guidelines for rupee stability While the RBI intervened to maintain market stability without a specific exchange rate target, it has historically managed the exchange rate by buying dollars when the rupee was stronger and sales when it was weak. This move has helped reduce volatility in the rupee, making it one of Asia’s most stable currencies and making India more attractive to foreign investors.   Disclaimer: …

ED searches locations across India in OctaFx illegal online forex trading case | Mumbai News

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The Enforcement Directorate (ED) on Thursday conducted search operations at various locations in Mumbai, Chennai, Kolkata and Delhi in connection with a case related to illegal online forex trading through international brokers, namely the OctaFx trading app and octafx.com. During the searches, bank funds to the tune of Rs 2.7 crore have been frozen and various incriminating documents and digital devices have been seized, the ED said on Saturday. The ED launched a money laundering investigation into the scam on the basis of a first information report (FIR) registered at Pune’s Shivaji Nagar police station. The FIR was lodged against several people for their alleged involvement in luring people with high returns and duping them under the pretext of forex trading through the OctaFx trading platform. The OctaFx online trading app and website are operating in India in association with India-based entity M/s OctaFx India Private Limited. According to the ED, the app and its website have not been authorised by the RBI to deal in forex trading. The trading platform is widely promoted on …

Govt asks traders to speed up pulses import from Myanmar using forex | Latest News India

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India and Myanmar have set up a new forex payment mechanism via the Punjab National Bank to ease cross-border movement of goods, especially pulses, which Indian importers are being encouraged to use to avoid logjams, a top official said. India’s output of pulses dipped to 23.4 million tonne in 2023-24 from 26.1 million tonne a year ago, the agriculture ministry estimated (REUTERS) Consumer affairs secretary Nidhi Khare last week reviewed trade arrangements between the two countries to speed up import of pulses from the conflict-ridden country, which is a major supplier of pigeon pea (tur) and black gram (urad) to India. Unlock exclusive access to the story of India’s general elections, only on the HT App. Download Now! Last year, the government found that importers of pigeon pea and black gram were hoarding their purchases in Myanmar by not bringing them to India immediately. This had created artificial scarcity and stoked prices. The consumer affairs ministry cracked down on hoarding by asking stockholding entities like supermarkets, millers and wholesalers to declare pulses inventories held by …

Enforcement Directorate Said to Have Not Yet Found Forex Breaches at Paytm Payments Bank

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An investigation into possible foreign exchange violations at Paytm Payments bank by India’s financial crime fighting agency has not yet found any breaches, a government source directly aware of the matter said on Monday. Last week, India’s Enforcement Directorate announced the investigation into overseas transactions by Paytm Payments Bank, a unit of One 97 Communications, popularly known as Paytm. Paytm shares have plunged more than 50 percent since the Reserve Bank of India announced on January 31 that Paytm Payments Bank could no longer accept new funds into its accounts or wallet. The rout has eroded around $3.1 billion (roughly Rs. 25,736 crore) in shareholders’ wealth. The investigation has found some lapses related so-called know-your-customer rules that verify the profiles of users, said the source. But, the “Enforcement Directorate has not yet detected any foreign exchange management act violations by Paytm Payments Bank,” the source said. There were also some issues with a suspicious transaction report not being generated by the bank, the source said, adding that the Enforcement Directorate is still ascertaining whether to bring …