Germany to give 900 million euros to India

Germany will be making available almost 900 million euros for India to be used for investment in economic development cooperation, energy generation and efficiency as well as environmental protection.

This is the major outcome of the Indo-German government negotiations on development cooperation this week in New Delhi, a press release issued by the German Embassy on Thursday said.

German Ambassador Michael Steiner said that "with the latest round of Indo-German negotiations, our development cooperation has reached an all-time high." Noting that India is a global power in the making and yet it faces enormous challenges in strategic areas such as economic development, energy and environment, the envoy said quick progress is a necessity.

"Germany has excellent know-how in particularly these areas. This is why we join hands and step up our cooperation right now. Sustainable development cooperation with India stands for our long-standing bilateral commitment and a partnership at eye-level," he said.

Steiner said the commitment places the focus of Indo-German development cooperation on sustainable economic development, especially in rural areas.

Steiner said Germany will provide a loan to India to help improve energy efficiency and connection of renewable energy sources to the Indian grid. " Germany will also continue to partner with India in the field of climate and environmental protection.

Source: http://www.moneycontrol.com

9 ways to be smart with credit cards

Credit cards have turned into an integral part of modern living as they facilitate in making purchases and paying bills without carrying cash. They make life easy and help maintain a record of our expenses and help us dispute charges for undelivered and defective things. In addition, they enable us to earn reward points. However, credit cards could make you overspend and get into debt.

One can be very smart in playing a game only when he knows the rules of the game very well and follows the same diligently. Similarly, to be smart with your credit card you need to know the rules of the credit card usage. Let me unbundle the same for you.

1. Do not have many credit cards
It is true that credit cards definitely help in emergencies and facilitate payments. But having too many credit cards could tempt us to overspend and get into credit card debt that could be difficult to recover from. In addition, it is best to avail of reward points on one credit card, so that you could encash the points more quickly.

2. Cultivate and maintain an emergency fund
Most of us believe that credit cards can definitely help in medical and unexpected emergencies, but it is unwise to consider it as a general rule. A much better alternative would be regular setting aside money as an emergency fund for such unexpected emergencies. This will prevent getting into credit card debt.

3. Repayment capacity should determine credit card spending
It is right that using credit cards in place of cash helps. But this applies to purchases that we can afford only and also repay immediately. Spending more than what you can repay is highly undesirable and could get you into credit card debt. 

4. Avoid cash advance withdrawals
It is best to live within your means and avoid making cash advance withdrawals even in emergencies. This is the worst thing you can do with a credit card. Having a smart spending plan will help you in not falling into this trap.

5. Avoid bank transfers without valid reasons
Avoid making balance transfers from one credit card to the other. This will avoid payment of balance transfer fees and getting into further credit card debt that could turn vicious. However, transfer of bank transfers like taking advantage of lower interest rates could prove fruitful.

6. Make full payments in time
Being credit card smart requires you arranging for payment within a month or next billing date. Delay in repayment and minimum payment could affect your credit standing and make you also liable to pay high rates of interest that you could not afford. Not carrying any balance forward would relieve you of stress of getting into credit card debt.

7. Understand the credit card agreement fully
You should understand fully the agreement and other terms and conditions for the use of the credit card. This includes understanding transaction fees levied, interest rates, and when increased rates for credit would be charged. This would help take precautions to avoid getting into increased debt on credit cards.

8. Recognize the signs of credit card debt
Many consider a credit card a boon and fail to realize that they are getting into credit card debt. It is best to understand and recognize signs like skipping a credit bill to pay another, avoiding credit card payment statements, and charging more than your repayment capacity by purchasing luxuries. Failing to cultivate and maintain an emergency fund could also be a cause. Once you recognize these signs you can turn credit card smart.

9. Never lend your credit card
Being credit smart requires not trusting others with your credit card even if they promise to pay back in time. It is unwise because you will be responsible for the debt and charges. It is quite possible that credit card companies did not allot them a credit card because of certain adverse circumstances.

SOURCE: NDTV Profit

Gold prices set to rise as RBI tightens import norms

The Reserve Bank on Monday set stringent conditions for importers, linking inward shipments to future exports, a decision that will make gold prices costlier. Banks and authorized agencies will have to ensure that at least 20 per cent of imported gold is made available for exports, the Reserve Bank said.

Importers will be required to keep 20 per cent of the consignment with customs bonded warehouses, the central bank added.

The RBI also included dore, or unrefined gold, for the first time in its restrictions, clamping down on a loophole in import duty which was hiked to 8 per cent but currently only on refined gold.

"This will make our life miserable, these are indirect ways of restrictions on imports (for domestic jewellers)," said Haresh Soni, chairman of All India Gems and Jewellery Trade Federation, which has more than 40,000 members.

"...the exporter will be under pressure to export at any given price. If there is any export loss, the exporter will try recover it from domestic sales," Bombay Bullion Association ex-President Suresh Hundia said.

Exporters should benefit from the measures as supplies will now be guaranteed from any imports, said Pankaj Kumar Parekh, vice-chairman of the Gems and Jewellery Export Promotion Council, which has 5,000 members.

"This will be better than stopping imports (altogether), (but) this will reduce domestic supply," said Parekh.

The RBI and the government have taken measures to curb the rampant demand for gold, which makes India the world's biggest buyer and sent May imports to a record 162 tonnes as people took advantage of falling prices.

June imports fell back to 31.5 tonnes, but in a sign the authorities remain anxious ahead of traditional times for buying gold, the central bank said 20 pe rcent of imports must be used for overseas sales - giving exporters guaranteed supplies.

Last month, the RBI had ruled out any credit transactions for imports unless they were intended to make jewellery for export, as it looks to rein in a record current account deficit.

But on Monday, it said in its statement that "the extant instructions, as regards import of gold on consignment basis ... stand withdrawn."

India's current account deficit hit a record high 4.8 per cent of gross domestic product in the fiscal year that ended in March, fuelled in part by rising imports of gold, which are second only to oil in the country's shopping basket.

Gems and jewellery account for 16 per cent of total merchandise exports.

SOURCE: NDTV Profit

RBI further tightens gold import rules to curb demand

The Reserve Bank of India (RBI) on Monday moved to tighten gold imports again in an attempt to rein-in a record high current account deficit (CAD) by taming demand for the yellow metal.

The RBI asked all nominated banks and agencies to export at least one-fifth of every lot of imported gold in all forms, and locally make it available only for jewellers.

The central bank said banks need to retain 20 per cent of the imported gold in customs bonded warehouses, and will only be able to further import gold after exporting at least 75 per cent of the gold from those warehouses.

Last month, the RBI had ruled out any transactions for imports unless they were intended to make jewellery for export, as it looks to rein in a record current account deficit.

India's current account deficit hit a record high 4.8 per cent of gross domestic product in the fiscal year that ended in March, fuelled by rising imports of oil and gold.

Copyright: Thomson Reuters 2013