International Financial Services Centres (IFSC) Authority approves the International Financial Services Centres Authority (Banking) Regulations, 2020.

 

♦ Setting out the prerequisites for setting up IFSC Banking Units (IBUs). 

♦ Allowing people occupant outside India (having total assets at least USD 1 Million) to open unfamiliar money accounts in any uninhibitedly convertible cash at IFSC Banking Units (IBUs). 

♦ Allowing people inhabitant in India (having total assets at least USD 1 Million) to open unfamiliar money accounts in any unreservedly convertible cash at IFSC Banking Units (IBUs) to embrace any passable current record or capital record exchange or any mix thereof under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India. 

♦ Setting out the reasonable exercises of IBUs including credit upgrade, credit protection, and deal, acquisition of portfolios, take part in figuring and relinquishing of fare receivables and attempt gear renting, including aeroplane renting. 

♦ Allowing the Authority to decide the business that a Banking Unit might be allowed to direct in INR with people occupant in India and people inhabitant outside India, subject to settlement of the budgetary exchange comparable to such business in unreservedly convertible unfamiliar money.

 

The wholesale price inflation data for the month of October 2020 was released.

 

♦The wholesale price-based inflation is measured by the Wholesale Price Index (WPI).

♦Wholesale Inflation rose to its highest level in eight months, reaching 1.48% in October 2020, compared with 0% in October 2019 and 1.32% in September 2020.

♦Wholesale price inflation data was released by the Ministry of Industry and Commerce.

♦The inflation rate for manufactured goods reached a 19-month high of 2.1 months, and the core inflation rate rose to the highest level in 18 months at 1.7%.

♦Core inflation excludes volatile commodities from the commodity basket that tracks “overall inflation”. 

♦These volatile commodities mainly include food and beverages (including vegetables) as well as fuel and light oil (crude oil).

 

Inflation denotes to the increase in the price of most goods and services that are used daily or daily, such as food, clothing, housing, entertainment, transportation, consumer necessities, etc. It measures the average price change of a basket of goods and services over time. Inflation indicates a decline in the purchasing power of a country`s currency unit. This may eventually lead to a slowdown in economic growth. However, moderate inflation is needed in the economy to ensure that production is promoted. In India, the inflation rate is mainly measured by two main indexes-WPI (Wholesale Price Index) and CPI (Consumer Price Index), which measure price changes at the wholesale and retail levels respectively.

 

The Wholesale Price Index measures the changes in the prices of goods sold and traded in bulk by wholesale businesses to other businesses. Published by the Office of Economic Adviser, Ministry of Commerce and Industry. It is the most widely used inflation indicator in India. Major criticism for this index is that the general public does not buy products at wholesale price. The base year of All-India WPI has been revised from 2004-05 to 2011-12 in 2017.