Business News: RBI Fines, Trade Deficit High, Saudi Ends Petrodollar, Hyundai IPO, Fuel Prices, Airtel Spectrum, Trai Denial, FY24 ITR Guide

RBI slaps Rs 1.45-cr penalty on Central Bank for violation of norms. The Reserve Bank of India (RBI) has imposed a penalty of Rs 1.45 crore on Central Bank of India for violation of certain regulations and norms relating to the lending operations and also with regard to customer protection. The lender was found to have breached norms relating to working capital loans and timely redress of complaints related to unauthorized electronic transactions. Separately, RBI slapped a Rs 96.4 lakh fine on foreign bank Sonali Bank PLC of UK. RBI imposed the penalty for contravention of the directions on credit information, KYC, and SWIFT Operational Control. Monetary penalties are based on regulatory compliance deficiencies, rather than on the validity of customer transactions or agreements.

Merchandise exports from India went up 9.09% year-on-year to $38.13 billion in May 2024, while imports rose 7.7% to $61.91 billion, leaving a trade deficit of $23.78 billion in May. For April-May 2024, exports were 5.1% higher at $73.12 billion, and imports 8.89% up at $116 billion. Engineering, electronics, and pharmaceuticals saw high growth during the month under review. Oil imports shot up by 28% as compared to the corresponding period while gold imports were marginally down. Commerce Secretary Sunil Barthwal was more optimistic as export trend has been positive and there is not much cause to worry about the trade deficit given strong FDI and services exports.

Saudi Arabia has just dumped its 50-yr-old petrodollar agreement with the United States, where it sold oil only in US dollars for security and military protection. What could be devastating for the US is the fact that global demand for the US currency will decline, as shall be demonstrated herein. For one, transactions of the day will become increasingly unstable due to more volatile exchange rates and financial turbulence. Also, it will motivate Saudi Arabia to form an alliance with other giant powers as well diversify the oil market in terms of receiving various currencies as payment for the sale of oil.

Hyundai Motor India Ltd. Or HMIL will be filing initial papers with Sebi to raise at least $ 3 billion. Through this initial public offering company will make it possibly the largest IPO in India. The leading is going to overcome LIC's Rs 21,000 cr share sale. This would be the first IPO by a standalone automaker in India since Maruti Suzuki listed in 2003. India's second-biggest carmaker, HMIL, could dilute 15-20% stake and mops up to aBLbc. 55,550 cr. HMIL sold 7% higher on a year-on-year basis in May 2024.

As of June 15, 2024, oil marketing companies in India check and reset petrol and diesel prices daily at 6 am based on the global crude oil prices coupled with exchange rate fluctuations, and freight charges, VAT and local taxes further push the price for a litre up or down state-wise. Prices per litre at present are: Rs 94.72 in Delhi, Rs 104.21 in Mumbai and Rs 107.41 in Hyderabad. Actually, the price of fuels has not increased since May 2022 because the government reduced the taxes levied on the fuel. The main factors driving the price are: the prices of crude oil, exchange rates, taxes, refining, and demand.

Bharti Airtel prepaid the Department of Telecom a sum of Rs 7,904 cr -- clearing all its deferred liabilities for spectrum acquired in 2012 and 2015 auctions. The payments for Rs 8.67 cr and Rs 29,129 cr were fully paid at high interest rates of 9.75% and 10%. This has brought down the company's consolidated net debt significantly to Rs 2,04,646 cr as of March 31, 2024, from Rs 2,13,126.4 cr now earlier in the year.

Trai rubbishes reports of charging consumers for holding multiple SIMs or numbering resources amid a release of the consultation paper to revise the National Numbering Plan, having in mind efficient management and proper reserve of telecommunication identifiers. Trai's has a very transparent practice. There will be location stakeholder consultation. International best practices will be taken into account. Recommendations to DoT will be very methodical.

Since June 15, 2024 is over, being the deadline for the issuance of Form 16, hence it is advisable that taxpayers go for an early filing of ITR due for FY24, so as to avoid any penalty. Predator is enumerated below: This guide enumerates the steps involved in filing ITR online for AY2024-25, starting from the collection of all necessary documents to registration on Income Tax e-Filing Portal, to choosing the correct ITR form based on sources of income, to the filling of details involving income and deductions, to validating the form, calculating tax payable, paying it, and verifying return. Choosing the old tax regime with deductions or the new regime, devoid of exemptions with lower tax rates.