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HDFC Bank to speed up financial inclusion in Odisha

Promising to speed up the financial inclusion in Odisha,especially in rural Odisha,HDFC announced that it will increase the no of branches from 61 to 102 in the state by the year end. The current coverage of HDFC bank in rural Odisha is 60 pc and after opening the new branches the share in rural Odisha will go up to 75pc. Apart from two wheeler loans,car loans,commercial vehicle loans and gold loans ,the thrust is on the tractor loans and agri input loans through priority sector lending to agriculture sector. In addition to deposit mobilisation,the bank is lending to all sections of people in Odisha and the focus was now on micro-financing and loans for the farm sector like crop loans. http://www.thehindubusinessline.com/industry-and economy/banking/article3949109.ece

Second phase of consolidation of Regional Rural banks begins

The second phase of Regional Rural Banks will is expected to begin this month,with at least ten regional level rural banks likely to be formed by this year end. The states in which the state-level RRBs are likely to be formed include Asssam,Punjab,Uttarakhand,Jharkhand,Chhattisgarh,Kerela,Tamilnadu,Himachal Pradesh,Jammu and Kashmir & Haryana. There were 196 RRBs in our country in 2005.As per the policy decision by the government of India,the amalgamation started in 2005 itself.Presently the no of RRBs in our country is 82 down from 196.There are 46 amalgamated and 36 standalone banks. The main aim of the process is to have economis of scale and financial inclusion .

http://www.business-standard.com/india/news/second-phaseregional-rural-banksconsolidation-begins/189269/on

Standard insurance for rural,social sector

Insurance development and regulatory authority of India issued a draft proposal on composite standard insurance product for the rural and social sector. The draft proposes range of insurance coverage from Rs 40000 to Rs 200000 with a multiple of 10000. The insurance product should cover at least 5 years and at most 25 years for individual insurance plans. For groups they will have an additional facility of one year renewability covers. The minimum age for entry for such product is 18 years and the maximum age will be 50 years. For insurance of life cover the upper limit is 70 years.

http://www.business-standard.com/india/news/standard-insurance-for-rural-socialsectors/487247/

Tata to tap rural market for telecom expansion

Inorder to expand its market presence in telecom sector the Tats telecom is planning to tap rural market. In the process of expansion it is venturing into the hinterlands of Tamil Nadu. Our customer base has grown up in the Rs 12,000 Cr telecom and we have 40 per cent gain from rural sectorRanjan Gupta Chief Operating Officer of Tata Tele Services said.

http://ibnlive.in.com/news/tatas-to-tap-rural-telecom-market/294580-60-120.html

FDI in retail

Opting for big bang reforms,the government allowed politically-risky 51 per cent FDI in multi-brand retail. There are many views on the effects of this critical move on Indian economy particularly on agriculture sector. The retail sector of India handles about $ 250 billion every year,and is expected by veteran economists to reach to $660 by the year 2015.The business in the organised retail sector in India, is to grow most and faster at the rate of 15-20 % every year, and can reach the level of $100 billion by the year 2015.Here,it is noteworthy the retail sector in India contributes about 15% of national GDP,and employs a massive workforce of it, after the agricultural sector. AT Kearney(a globally famous international management consultancy) recognised India as the second most alluring and thriving retail destination of the world,among other 30 growing and emerging markets.
The FDI in India's retail business can be made through any of the followingroutes.

1.Joint Ventures 2.Franchising 3.Sourcing of supplies from small-scale sector 4.Cash and carry Operations 5.Non Store Formats With this move the local kirana stores will be benefitted and particularly the producers will get the real worth of their hard work,they will get at least 15-20 pc more than what they are getting now.The Commerce minister Mr Anand Sharma told. In addition to this it can create huge employment opportunities for people. The cabinet committe on Economic Affairs diluted local sourcing norms for 100 per cent FDI in single brand retail by dropping the provision of 30 per cent compulsory sourcing from small and medium enterprises(SMEs).

http://www.livemint.com/Opinion/FlIFuuqRPibzBBItfUW23I/Beneficial-effects-of-FDIin-retail.html http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/fdiin-multi-brand-retail-will-help-increase-productivity-rbi-deputy-governor-subirgokarn/articleshow/16653318.cms http://www.globaljurix.com/foreign-direct-investment-retail-fdi.php http://english.samaylive.com/business-news/676513582/ccea-clears-fdi-in-multibrand-retail-and-aviation-sector.html

http://www.thehindu.com/news/national/fdi-in-retail-cabinet-note-was-readiedduring-nda-regime-says-sharma/article3954798.ece

Government Disburses Rs 1.36 Lakh Crore as Farm credit till June 12

The government has disbursed about Rs 1.36 lakh crore of agriculture credit to farmers in the first quarter of current fiscal year against the target for the current fiscal year Rs 5.75 lakh crore. From kharif 2006-07 farmers are receiving crop loans up to a principal amount of Rs 3 lakh at 7% of interest. In 2009 government has announced an interest subvention of 1% interest subvention to those farmers who repaid their short term loans as per schedule.Source: Economic Times dated 10 Oct 12