RBI allows NRIs to subscribe to chit funds on non-repatriation basis In reference to the terms of Regulation 4(b) (i) of Notification No. FEMA 1/2000-RB dated 3rd May 2000, no person resident outside India shall make investment in India , in any form, in a company or partnership firm or proprietary concern or any entity, whether incorporated or not, which is engaged or proposes to engage “in the business of chit fund”. The extant guidelines for subscription to the chit funds have been reviewed in consultation with the Government of India and accordingly, it has been decided to permit Non-Resident Indians (NRIs) to subscribe to the chit funds, without limit, on non-repatriation basis subject to the following conditions: ·         The Registrar of Chits or an officer authorised by the State Government in accordance with the provisions of the Chit Fund Act in consultation with the State Government concerned, may permit any chit fund to accept subscription from Non-Resident Indians on non-repatriation basis; ·         The subscription to the chit funds shall be brought in through normal banking channel, including through an account maintained with a bank in India . Reserve Bank has since amended the subject Regulations accordingly through the Foreign Exchange Management (Permissible Capital Account Transactions) (Second Amendment) Regulations, 2015 and Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India ) (Second Amendment) Regulations, 2015 which have been notified. These  directions have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

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April 2015 IIP grows at about 4.1% and May 2015 CPI inflation at 5.01%

April 2015 IIP grows at about 4.1% Growth in industry output, as measured in terms of IIP, for the month of April 2015 is estimated at 4.1% as compared with 2.5% during March 2015. The growth in the three sectors mining, manufacturing and electricity in April 2015 stands at 0.6%, 5.1% and (-)0.5% respectively as compared to 1.1%, 2.8% and 1.96% in March 2015. Capital goods growth stands at 11.1% during April 2015 as compared to 8.7% during March 2015. The growth in Basic goods stands at 2.8% during April 2015 as compared to 2.6% in March 2015. Consumer goods have grown at 3.1% during April 2015 as against  (-)0.39% during March 2015. May 2015 CPI inflation at 5.01% Rural India inflation stands at 5.5% in May 2015 as compared to 8.2% in May 2014 and Urban India inflation stands at 4.4% in May 2015 as against 8.4% in May 2014 The all India general CPI (Combined) for May 2015 stands at 5% as compared to 4.9% in April 2015. The inflation rates for rural and urban areas for May 2015 are 5.5% and 4.4% as compared to 5.3% and 4.4% respectively, for April 2015. Rate of inflation during May 2015 is high in pulses and products at 16.62%, Pan, tobacco and intoxicants at 9.5%, Spices at 8.8%, milk and milk products at 7.4%, and fuel and light at 6%.       All India annual inflation rates (%) for April 2015 and March 2015 Category Annual inflation rate (April 2015) Annual inflation rate (April 2015) Rural Urban Combined Rural Urban Combined Food and beverages 5.16 5.08 5.13 5.38 5.41 5.36 Pan, tobacco and intoxicants 8.86 10.99 9.50 8.67 10.63 9.22 Clothing and footwear 7.09 4.65 6.12 7.05 4.84 6.15 Housing – 4.64 4.64 – 4.65 4.65 Fuel and light 7.41 3.42 5.96 6.97 3.43 5.60 Miscellaneous 4.56 3.13 3.85 4.13 2.51 3.32 General Index (All Groups) 5.52 4.41 5.01 5.37 4.36 4.9 Source: PHD Research Bureau, compiled from MOSPI Note: CPI (Rural) for Housing is not available Consumer Price Index for the month of May 2015 for rural, urban and combined stood at 122.4, 120.7 and 121.6 respectively.

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Russia turned to Asian partners – Medvedev

Western sanctions have encouraged Russia to work more actively with Asian partners, Russian Prime Minister Dmitry Medvedev said prior to this month’s EU summit in Brussels. The EU will then make a decision on anti-Russian sanctions.

“In economic terms, of course, all those sanctions, introduced against us, stimulated us to ensure more active cooperation with Asian countries. Thank you very much too all those states that have adopted them,” Medvedev said to reporters at XVII World Congress of Russian Press Thursday.Russia turned to Asia, as the West don’t give money and push Russian companies out of business, he added.

Russia’s choice of trading partners will be based on national interests, but the markets in the Asia-Pacific region and BRICS are of utmost importance, said the PM.

“Sixty percent of the world GDP is there. The whole global growth is mainly in the Asia-Pacific region and in the BRICS countries. Therefore, it is essential for us to gain a foothold in the partner states of the Eurasian Economic Union and the Asia-Pacific region,”said Medvedev.

However, Russia hasn’t closed the door to Europe, he added.