Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: VAT RATES :: cpt :: form 3cd :: empanelment
 
 
« General »
 Fall in tax collection compounds crisis
 Govt sets up task force to review income tax laws
 Tax queries: Contact employer to get Form 16 error rectified
 Finance Ministry may hike monetary limit for filing tax appeals
 Compilation of all notifications issued ON
 Banking transaction tax to have cascading effect: NIPFP
 While filing tax in India, NRIs do not have to state overseas income
 Tax ease on cards, some daily use items may become cheaper
 It’s one year of GSTN, too
 SBI home, auto loan interest rates cut, set to be effective from Nov 1
 MNCs will have to furnish extra disclosures from March 2018

RBI MAY HIKE RISK WEIGHTS FOR REGULATED ENTITIES
August, 26th 2010

The Reserve Bank of India has hinted at the use of prudential measures to regulate the exposure of entities such as banks, non-banking finance companies and financial institutions to asset price cycles to strengthen the overall financial stability framework.

The central bank's comment is significant as it had, in its first quarter review of macroeconomic and monetary developments last month, expressed concern about the sustained and rapid rise in housing prices over successive quarters from the standpoint of their possible spill-over to demand pressures and the general price level.

Then, it also alluded to increasing uncertainties and corrections in domestic stock prices.

Bankers say the prudential measures that the RBI could resort to, could include upping risk weights and stepping up provision coverage so that credit becomes costly to sectors where credit is growing fast and the risk of default is high.

Stability framework

Referring to the persisting ambiguity about the role of monetary policy in relation to asset prices even after the global crisis, the RBI, in its annual report for 2009-10, said the use of prudential measures to regulate the exposure of regulated entities to asset price cycles could help strengthen the overall stability framework, even though volatility in asset prices may still persist.

The financial stability goal will require use of a combination of instruments involving regulation, supervision and monetary/macroeconomic policies to enhance the effectiveness of crisis prevention, the report said.

The central bank pointed out that monetary policy, in pursuing the growth objective, may remain accommodative for an extended period at times, which in turn could fuel credit and asset bubbles and thereby jeopardise the financial stability goal.

Similarly, the use of fiscal stimulus to limit the adverse real effects of a financial crisis could at times give rise to a fiscal crisis, which in turn could be a source of instability for the financial system.

Financial stability

Hence, in the process of balancing inflation and growth considerations in the conduct of macroeconomic policies, the RBI said financial stability has become a critical component which would add complexity to policy formulation.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions