MEAL vouchers and prepaid cards have come under the regulatory scanner. In an attempt to check possible moneylaundering, Reserve Bank of India (RBI) has proposed that only banks and finance companies be allowed to issue prepaid cards which are accepted outside a closed group. This means that issuers who are neither banks nor finance companies will have to restrict card issuance to a closed group.
The government is planning to issue a unique identification (ID) to every citizen from December 2009, which would help it in better governance, including targeting kerosene, cooking gas, food, fertiliser, education and electricity subsidies. The task of creating the database may soon be entrusted to the proposed agency — UID Authority of India (UIDAI).
PMAC had examined the issue at its meeting last week following criticism from several quarters. “The general view was to let the grading continue for some more time. Though, globally such a condition was not applicable in any market, it was felt, any experience on this count would benefit other regulators as well,” said a person associated with the exercise.
Any difficulties which are anticipated in the implementation of the change in computation of export duty from 1st January, 2009 may be brought to the notice of the Board by 20th November, 2008 positively.
These are uncertain times. The subprime mortgage crisis weighs heavily on the financial markets and it is starting to cause considerable collateral damage to the wider economy. The outlook for 2009 is bleak, and the major economies in the US and Europe can expect deep and prolonged recessions. Some asset managers have felt the full force of the downturn, as collapsing investor confidence has sparked a massive withdrawal of funds.
Despite the global euphoria that greeted Barack Obama’s landslide victory on Tuesday, U.S. stocks posted their greatest post-election decline in history — evidence that investors are now beginning to realize what we’ve been saying all along: All the king’s horses and all the king’s men can’t put the economy together again
