Prime Minister of India,Manmohan Singh on Friday suggested few steps that India wants to be taken to lift the current global economy crisis. Manmohan singh addressing leaders of 45 Asian and European countries at the ASEM summit in Beijing, said the first step would be to “de-clog” the global credit markets which had choked up as a result of the crisis.

Second step should be, multilateral financial institutions (MFI) like World Bank and IMF should step in with larger resources to invest in large infrastructure projects in developing countries, which can act as a stabilizer in the global economy.

Singh mentioned that The primary need should be coordinated action to restore confidence in the credit market.
India will make two important recommendations at the G-20 summit, both of which would be derived from the ASEM summit discussions. First, that there should be a “global monitoring authority” to help along “supervision and cooperation” in the global financial system. This is because the global economy is so integrated that its impossible for anybody to function in isolation. Second, that credit rating agencies - which gave investment grade ratings to toxic assets - should come under some kind of supervisory mechanism.

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Finding an online car loan is much easier these days as the online car finance is growing at a very rapid rate. Online car finance is much faster and hassle free than those conventional ones where people need to visit the market and look for all sort of available financers. Visiting a financer also doesn’t gives you a good chance of finding car loans. In online system, it’s just a matter of a few clicks and yes, you are done with it. You simply need to choose the site that offers car finance online, just check out all the available rates. If you feel interested in the rates, you can get a quote. Some websites directly offer you to fill the online application straight away. The company you applied for gets back quickly offering you car finance in agreeable cases and you can start off getting car finance. Only the basic details are required in form filling. When asked, one might have to contact their nearest branch for document submission, maybe, an address proof or something. The amount of interest vary from one site to another. Read the rest of this entry »

The Indian currency, rupee on Friday cross its crucial 50-level against US$.
At the Interbank Foreign Exchange (Forex) market, the Indian currency was struggling between 49.93 and 50.05 in the initial thirty minutes of trading.

The Bombay Stock Exchange benchmark Sensex also fall down by 277 points at 9,494.38 in early trade on Friday.

On Wednesday, the Indian government eased norms on overseas borrowing for Indian companies to boost inflows and help corporates raise funds for projects. But all these measures failed to cap the rupee movement.

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India is also affected by the global financial melt down, but some strong fundamentals and a pro-active monetary policy management will possibly allow India to ride this global financial crisis, a World Bank study says.

Some steps like prudent foreign debt management, high savings rate, solid financial sector health, and a pro-active monetary policy management that will likely allow India to ride the crisis without destabilising the financial sector.

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Microsoft on Tuesday announced a global initiative under the banner of ‘Global Anti-Piracy Awareness Day’ that will include educating consumers as well as enforcing legal action.The programme is launched in 49 countries, aims to end the trand of pirated softwares.

The anti-piracy initiative includes intellectual property awareness campaigns, engagements with partner businesses, educational forums, local law enforcement training, and legal actions against alleged software counterfeiters and pirates.
This initiative was rolled out in 49 countries. But after this also Microsoft’s director of intellectual property in Australia told the Sydney Morning Herald newspaper that the Redmond-based software giant would not be able to solve the problem fully ever.
“Are we able to solve absolutely every problem? No… there are some people who will always not want to pay for something and there are always people who will want to exploit,” she said in an interview to the Australian newspaper.

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The global financial crisis could cost some 20 million jobs worldwide, the International Labour Organisation (ILO) warned Monday. ILO Director-General Juan Somavia issued the warning in Geneva, coupled with the advice that “we need prompt and coordinated government actions to avert a social crisis that could be severe, long-lasting and global”.

By current calculations, worldwide unemployment could rise from 190 million last year to a level of 210 million by the end of 2009. With that number of people having to exist on less than $1 a day could rise by 40 million, he warned, “and those at $2 a day by more than 100 million”.

Almost all sector including construction, automotive, tourism, finance, services and real estate would be among the sectors to be hit hardest by the current crisis.

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The Delhi high court on Monday told the government that the homosexual trait in a human being cannot be termed as a ‘‘disease” and objected to the contention that if legalised, homosexuality would bring ‘‘devastation” to society.
‘‘Show us one report which says that it is a disease. A WHO paper says that it is not a disease but you are describing it as a disease. It is an accepted fact that it is a main vehicle that causes (AIDS) disease but it is not a disease in itself,” a Bench headed by Chief Justice A P Shah remarked in response to Additional Solicitor General P P Malhotra’s harping on the point that homosexuality was a disease that is responsible for the spread of AIDS in the country.

‘‘AIDS is already spreading in the country and if gay sex is legalised then people on the street would start indulging in such practises saying that the High Court has given approval for it. Legalising it would send a wrong message to our youth,” Malhotra maintained, at which HC took strong exception and said the matter (pertaining to legalising gay sex) was still under consideration and the Centre should not make such a submission.

‘‘Every citizen has the right to lead a decent and moral life in society and the right would be violated if such behaviour (gay sex) is legalised in the country,” Malhotra said arguing that an amendment in section 377 would mean subsequent tinkering around with marriage and divorce laws of each community as all have sodomy as a ground for divorce. The ASG claimed even section 375, which pertains to rape, would need an amendment to change definition of ‘‘consent” if homosexuality was legalised.

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Reserve Bank of India (RBI) continues its efforts to make money available to banks, mutual funds and businesses. Reserve Bank of India on Monday cut the repo rate - at which it lends overnight to banks - by 100 basis points (or one percentage point) to 8%, pleasantly surprising bankers and the stock market, which had expected it to be announced as part of the RBI’s credit policy later this month.

Given that the repo rate is also used to signal interest rates, the reduction - the first since 2003 - could translate into cheaper house loans, car loans and other consumer loans, bringing cheer to retail borrowers, consumers and businesses.Few banks like Union Bank of India have reduced home loan rates by 50 basis points to 11% on Monday. Other banks may also follow this.

Finance minister of India, P. Chidambaram on Monday said the repo rate cut would serve to moderate inflation by lowering interest costs. ICICI Bank joint MD Chanda Kochhar said the repo rate cut indicated an easing of monetary policy but the impact on deposit rates would need to be seen over time. Bank of India chairman T S Narayanaswamy said interest rates needed to come down to make lending more viable.

HOW REPO RATE AFFECTS YOU

WHAT IS REPO?
The rate at which RBI repurchases government securities from banks. In return, banks get cash to meet their short-term requirements. When RBI wants to signal to banks to lower interest rates, it reduces the repo rate.
WHY IS IT NEEDED?
Banks give long-term loans against short-term deposits. So, they need short-term funds to avoid asset-liability mismatch
IMPACT
Floating home loan rates, rates on other consumer loans may dip

Benchmark lending rates for companies may reduce

May usher in a lower rate regime if liquidity stays easy

Rates expected to come down

While RBI has reduced the repo rate, banks however feel that it doesn’t necessarily mean interest rates will come down immediately. ‘‘It’s too early to comment on whether interest rates will come down immediately. It’ll be difficult for them to come down in a big way. However, there are indications that rates might fall,” said Ashish Parthsarty, a senior treasury official in HDFC Bank.

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The employees’ association of the Reserve Bank of India (RBI), including officers and employees, under the banner of the United Forum of Reserve Bank Officers and Employees have decided to go on strike on October 21, 2008.

Employees have alleged that the withdrawal of the update of pension is a retrograde step since it is totally contrary to the decision of the central government to shower updation benefits both in salary and superannuation to millions of its own employees.

The other demands included grant of family pension at the rate of 30 per cent without ceiling in line with the central government scheme, computation of pension at an enhanced rate and improvement in pension scheme and gratuity consequent upon the acceptance of the recommendations of the Sixth Pay Commission report.

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