Textile exports may be hit by lower duty drawback rate
- The sharp reduction drawback rates announced by the government for
textile and clothing products may slow down exports of these goods,
according to the industry.
- The drawback rate announced for garments is 2% as against 7.7% earlier.
In the case of made-ups, it was 7.3% and has been reduced to 2% now.
- The Excise and Service Tax components have been subsumed under the Goods
and Services Tax and only the basic Customs Duty is refunded under the
drawback scheme. This was on expected lines. But, the reduction in drawback
rates is steep and the GST system is not working as expected, said industry
sources. There is a delay in refund of the input tax under GST.
- Annual textile exports have been stagnant for the last three years at
about $37 billion. The reduction in drawback rates will become another
contributing factor to slow down exports, said sources.
- The government should extend the transitional provision for duty
drawback and Rebate of State Levies (ROSL) till the end of March next year,
said industry representatives.
- Currently, the ROSL scheme provides for refund of State levies on export
goods for garments and made-ups.
- However, the scheme does not cover the embedded State levies, such as
electricity tax and market cess, from fibre to made-ups, he said.
Interest rates, rupee hurting growth
- Lower interest rates, better exchange rate management and a demand push
are imperative to cope with the present economic slowdown that has been led
by a slump in the manufacturing sector, a top government official said,
hinting that the Reserve Bank of India needed to align its monetary policy
to push growth as inflation targets are well under control, despite a spike
- The remarks assume significance in the backdrop of growth slowing to
5.7% in the first quarter, with the slowdown blamed on the lingering effects
of demonetisation and de-stocking by producers ahead of the Goods and
Services Tax regime’s roll-out in July.
- Industry bodies have indicated that a turnaround is only likely in the
second half of this year.
- Once the effect of demonetisation and GST wears off, we should expect to
see those sectors picking up. But those sectors have also been affected by
the appreciation of the currency. So it’s a combination of one-off factors —
demonetisation, GST plus the appreciation of the currency.
- Pointing to the central bank’s heavy interventions in the foreign
exchange market over the last three months to prevent excessive appreciation
of the rupee, the official said that the real competitiveness of the
currency has improved a little bit because the Chinese yuan has also been
strengthening against the U.S. dollar.
- The Centre’s reservations on the monetary policy adopted by the central
bank were articulated in the Economic Survey’s second volume released in
August, where it was pointed out that the RBI’s inflation projections have
been over-estimated by at least one percentage point for six of the 14
previous quarters and actual inflation had been below target for over ten
months (till August).
- The Survey had said there was room for a 50 basis points to 100 basis
points cut in policy rates by the RBI.
Global pact on Trade Facilitation in Services to tap services potential
- India, which has proposed a global pact on ‘Trade Facilitation in
Services’ (TFS) has called for tapping the full potential of the services
sector to boost the world economy.
- Commerce Minister Suresh Prabhu, representing India at the ‘Asia-Europe
Meeting’ (ASEM) Economic Ministers’ meeting in Seoul, said Asia and Europe
must look at ways to boost services trade, which has a multiplier effect on
- India had submitted to the World Trade Organisation (WTO) a proposal for
the TFS, aimed at easing norms, including those related to the movement of
skilled workers across borders for short-term work, to boost global services
trade growth. India is keen that the TFS proposal gains traction before the
WTO’s Ministerial Conference in December in Argentina.
SBI unveils bond index at LSE
- The State Bank of India has introduced the FTSE SBI Bond Index series in
partnership with the global index provider FTSE 100, which the bank hopes
would give investors from India, U.K. and globally, tools to analyse India’s
government bond market, and drive growth in this market.
- “With the launch of this index along with FTSE Russell, our intention is
to give people a benchmark on which they can make investment calls,” said
Arundhati Bhattacharya, chairman, SBI, at the unveiling at the London Stock
- “With respect to the Indian government bond market, we didn’t have any
international indices on which international investors could take a call as
to whether they would like to come in and invest,” she said.
- There is a lot of capital wanting to come into India. But what we lacked
was enough depth in terms of the various types of products it is important
to have benchmarks on which people can rely; so, this index, launched in
collaboration with the London Stock Exchange, will ensure that international
investors have a benchmark that is transparent, well governed and something
they can easily rely on.
- “We have a few products in mind and we are sure that given that India is
a very good destination at this point of time for investors that there will
be enough interest in in and that people will innovate and have products
based on this.”
- She anticipated products emerging in the next three to five months
following necessary approvals. “Even though there may not be products in the
interim, we expect it to be used by international investors.”
- WaqasSamad, CEO of fixed income and multi asset at FTSE Russell said
they would be working to develop index products that could “create greater
awareness and foster liquidity across the Indian domestic fixed income
Centre to speed up GST refunds
- The Centre termed as “wild estimates,” exporters claiming that working
capital was getting blocked due to delay in Goods and Services Tax (GST)
refunds. However, it was working out a mechanism to expedite the refund
- “There are various figures also being discussed on the blockage of such
(working capital) funds (post-GST), which are wild estimates.... (and) not
based on facts,” an official statement said.
- Virtually rejecting claims by exporters that about $10 billion worth of
funds is estimated to be a blocked (till December 2017) due to the delay in
refunds, the Centre said in respect of 66% value of exports, exporters had
preferred duty drawback scheme instead of taking actual refund of input
taxes in the pre-GST regime.
- On the mechanism for expediting refunds, it said, “We are trying to find
a way of giving refund by linking form (GST Return) GSTR 1 with form GSTR 3B
and, therefore, for the month of July, where form GSTR 1 is already filed,
the authorities would be in a position to process the refund applications.”
- Allowing refund based on GSTR-3B and GSTR-1 submission will ease up
working capital and business issues for exporters who have had their funds
- The Centre said while the GSTN application for refund was getting ready,
the Centre was in the process of finding other ways of giving refund, if
necessary, through a manual procedure.
- In the meantime, the State and Union government authorities have been
asked to clear the pending refund claims of Central Excise and VAT for the
pre-GST period so that exporters will get immediate relief.
SAT pulled up SBI Life for refund delay
- The Securities Appellate Tribunal (SAT) has pulled up SBI Life Insurance
for delaying hearing of the matter related to a refund of Rs. 275.29 crore
to policy holders.
- In March 2014, Insurance Regulatory and Development Authority of India (IRDAI)
ordered SBI Life to refund Rs. 275.29 crore which, according to the
regulator, was the quantum of excess commission collected from holders of
Dhanaraksha Plus Limited Premium Paying Term policy.
- In 2015, SAT had granted interim relief to SBI Life by directing IRDAI
not to take any coercive action to recover Rs. 275 crore till the tribunal
passed final orders in the matter. The appellate body imposed costs of Rs.
10,000 on SBI Life for dragging the matter for more than two years after
having received a reprieve in the form of a stay on the IRDAI order. The
tribunal posted the matter to October 31 for hearing.
- While the policy had two premium payment options single premium and
two-year premium paying plan the regulator found that the corporate agents
of SBI Life, that mostly included State Bank of India and its associate
banks, did not reveal to the policy holders the availability of single
- The share of commission was less in a single premium option when
compared with the two-year premium plan.
- Senior advocate Janak Dwarkadas along with DMD Advocates appeared for
SBI Life while IRDAI is being represented by Suvan Law Advisors along with
senior counsel KevicSetalwad.
- Meanwhile, the public issue of SBI Life Insurance, which closed was
subscribed 3.58 times with bids received for 31.55 crore shares as against
8.82 crore shares on offer, in the price band of Rs. 685 to Rs. 700.
Mobile operators unhappy with cutting termination charge
- Terming telecom regulator TRAI’s decision to cut mobile termination
charges by 57% “retrograde”, leading telecom operators Bharti Airtel and
Vodafone said the move would benefit just one operator and would worsen the
financial health of the already stressed industry.
- They are extremely disappointed with the latest regulation on the IUC,
especially at a time when the industry is facing severe financial stress.
- Bharti added that the interconnect usage charges (IUC) rate of 6 paise
fixed by TRAI had “been arrived at in a completely non-transparent fashion
and benefits only one operator which enjoys a huge traffic asymmetry in its
- The sharp drop in the rate would only help transfer part of “its [the
beneficiary operator’s] cost to other operators, thereby further worsening
the financial health of the industry.”
- “This is yet another retrograde regulatory measure that will
significantly benefit the new entrant alone while adversely affecting the
rest of the industry as a whole,” Vodafone said in a statement. Unless
mitigated, the decision would have serious consequences for investment in
rural coverage, undermining the government’s vision of Digital India,
- While Reliance Communications welcomed the move.
- With voice calling becoming free, TRAI’s move will provide a
level-playing field , Reliance said.
- While the top operators had pitched for doubling mobile termination
charges (payable by the operator whose subscriber makes a call to the
operator whose subscriber receives the call) “to recover their cost,” the
newer rival had suggested zero charges and shifting to the bill-and-keep
- Asked about the impact the move may have on the stressed telecom sector,
Finance Minister Arun Jaitley said, “I have not had the benefit of reading
the full reasoning, so it wouldn’t be appropriate for me to comment... It is
for the concerned players to explore whatever remedies are there for them.”
69 anchor investors got shares from SBI
- SBI Life Insurance Company has allotted 3.18 crore equity shares
aggregating to Rs. 2,226 crore as part of the anchor allocation. The shares
were allotted at the upper end of the price band at Rs. 700.
- The anchor allocation saw participation of a total of 69 investors that
included HDFC Mutual Fund, Canada Pension Plan Investment Board, ICICI
Prudential Mutual Fund, Government of Singapore, Abu Dhabi
- Investment Authority, Wells Fargo Emerging Markets Equity Fund, Aranda
Investments Pte, Reliance Mutual Fund, Birla Sun Life Mutual Fund and Kuwait
Investment Authority Fund among others. A total of 14 mutual funds applied
through 49 schemes for the anchor portion.
- Meanwhile, the public issue of SBI Life, which opened, was subscribed
0.9 times on the first day with bids received for 83.66 lakh shares against
8.82 crore shares on offer in the price band of Rs. 685 to Rs. 700 per
share. The IPO will close for subscription on Friday.
- At the upper end of the price band, the issue will mop up Rs. 8,400
crore. Post the public issue, the promoter stake will come down to 84.1%
from the current 96.1%.
- Since 2010, SBI Life has been the country's largest private life
insurer, in new business premium generated each fiscal. According to HDFC
Securities, in fiscal 2016-17, the company had a market share of individual
rated premium of 20.69% among private life insurers and 11.16% of the entire
life insurance industry in India.
Peer-to-peer lending platforms will be treated as NBFCs’
- Peer-to-peer lending (P2P) platforms will be treated as non-banking
financial companies (NBFCs) and thus regulated by the RBI.
- P2P lending is a form of crowd-funding used to raise loans which are
paid back with interest. It can be defined as the use of an online platform
that matches lenders with borrowers in order to provide unsecured loans.
- The Reserve Bank of India specifies a non-banking institution that
carries on ‘the business of a peer to peer lending platform’ to be an NBFC.
As per the RBI, the business of a P2P lending platform is defined as the
service of loan facilitation, via online medium or otherwise, to “the
participants who have entered into an arrangement with that platform to lend
on it or to avail of loan facilitation services provided by it.”
- The RBI had floated a consultation paper in April 2016 on such lending
Significant oil discovery by ONGC in Arabian sea
- State-owned Oil and Natural Gas Corp. (ONGC) has made a significant oil
discovery to the west of its prime Mumbai High fields in the Arabian sea.
- The discovery in the well WO-24-3 is estimated to hold an in-place
reserve of about 20 million tonnes.
- Mumbai High, India’s biggest oil field, currently produces 205,000
barrels of oil per day (just over 10 million tonnes per annum) and the new
find would add to that production in less than two years time.
- In all, nine objects or zones were tested and all of them were found to
be hydrocarbon bearing. The last object tested flowed 3,300 barrels of oil.
ONGC is carrying out a further appraisal of the discovery and has intimated
upstream regulator Directorate General of Hydrocarbons.
- This is a mid-sized discovery but a significant one.The new find, which
comes almost 50 years after ONGC began production in Mumbai High, will help
the company maintain production levels from the basin for a longer time than
Strategy to revive investment
- The Centre will ‘very soon’ disclose its strategy to revive moribund
private investment, Finance Minister Arun Jaitley said. Mr. Jaitley has held
several discussions with top officials and ministers on tackling the
slowdown in the economy.
- The Finance Minister, who is expected to brief Prime Minister Narendra
Modi soon on the options available for revitalising the economy’s growth
momentum, conceded that ‘there is a problem’ of private investment.
- “The government is seized of the issue and very soon, you will hear from
us. From day one, this is a proactive government,” Mr. Jaitley said
addressing the India Investor Summit 2017 organised by J.P.Morgan in the
- Stressing that the impact of the Goods and Services Tax (GST) on
inflation had been contained so far, Mr. Jaitley said among the sectors
currently excluded from GST, real estate could be brought under the new
indirect tax regime ‘most easily’.
- The Minister’s comment suggests that the inclusion of other products
currently outside GST’s purview, such as petroleum and alcohol, would take
- Petroleum Minister Dharmendra Pradhan had recently said his Ministry had
proposed bringing petroleum products under the purview of GST in ‘consumer
interest’ to ensure a uniform tax mechanism, instead of the current
dispensation where States levy a value-added tax (VAT) and the Centre levies
- Claiming that corruption had become ‘a thing of the past’ in the Union
government, Mr. Jaitley said the same was happening in States as well. “The
government has taken quick decisions, whether it is implementing GST or
- The Minister said the government ‘never had any reservations about
privatisation’ and had an ambitious target for disinvestment this year. The
ministerial group on ailing national carrier Air India’s sale had held a
meeting on Thursday, Mr. Jaitley informed investors.
- “In last few years, market was quite volatile at times, so the
government has to wait for the right time for the disinvestment,” he said.
- Mr. Jaitley said while he was ‘personally in favour of’ a Universal
Basic Income, the only reservation he had about implementing such a
programme was ‘the level of political maturity’ in India.
$5 bnworth Exhibition cum convention convention centre project
The Union Cabinet will soon take up the proposal for a “$5 billion-worth
world-class and state-of-the-art” Exhibition-cum-Convention Centre (ECC) in the
national capital — billed as the largest such facility in Asia when completed by
By this month-end, the Cabinet will consider for discussion a “note on
approval of the project and formation of a Special Purpose Vehicle (SPV) to
implement the same.
Part of the $100 billion Delhi Mumbai Industrial Corridor (DMIC) project, it
would be developed on Public-Private Partnership model using viability gap
funding of the Centre, if required.
The SPV will be given the rights to activities, including sub-leasing of land
parcels, sub-contracting project components, granting long term concessions to
private developers as well as fixing lease rentals.
The project became necessary as “India lacked an integrated world class
facility that can meet the requirements of global ECC operators in terms of
space, project facilities and transportation linkages,” the Centre had said.
Though the size of the global Meetings, Incentives, Conferences, Exhibitions
(MICE) market is about $280 billion and that of Asian MICE market about $60
billion, India did not benefit due to lack of world class ECCs, it said.
Rupee weakened amid fiscal stimulus speculation
- The rupee weakened by more than 50 paise, or 0.8%, against the dollar
amid growing speculation that the Centre was considering a fiscal stimulus
package to rekindle economic growth a move that could widen the fiscal
deficit and possibly risk fanning inflation.
- The rupee ended at a two-and-a-half month low, at 64.81 a dollar. The
yield on the 10-year benchmark government bond rose 10 basis points to
6.68%, its highest close since May 24.
- The Federal Reserve’s decision on Wednesday to start unwinding its
balance sheet starting October and signals that it would raise U.S. interest
rates one more time this year also lifted the dollar globally.
- “There was some speculation that government is considering stimulus
package, for which the fiscal deficit could miss its target,” said Anindya
Banerjee, currency analyst at Kotak Securities. “Rupee weakened against all
major global currencies,” he added.
- Currency dealers said a fiscal stimulus could result in the government
likely missing this year’s fiscal deficit target of 3.2% of GDP.
Finance Minister to chair economy review meet
- Amid worries about the state of India’s slowing economy, Finance
Minister Arun Jaitley chaired a high-level meeting to take stock of the
headwinds stalling growth and consider mechanisms to revive economic
- Commerce and Industry Minister Suresh Prabhu, Railway and Coal Minister
Piyush Goyal participated in the deliberations with top finance and commerce
ministry officials that went on for over two hours, but everyone remained
tight-lipped about the discussion and its outcome at its conclusion.
- India’s economic growth tumbled for the fifth successive quarter to 5.7%
in April-June this year, from 7.9% in the same period last year.
Tax officials should make every effort to bring all traders into GST net
- Tax officials should make every effort to bring all traders, including
smaller businesses with turnover of less than Rs. 20 lakh, into the Goods
and Services Tax (GST) net, Prime Minister Narendra Modi told taxmen.
- Currently, traders with less than Rs. 20 lakh annual turnover have to
register under GST only if they are supplying goods to other States.
- PM said that in order to enable all traders to take the maximum benefit
of GST, we should work towards ensuring that all traders, including even
relatively smaller traders with a turnover of below Rs. 20 lakh, should
register with the GST system.
- Urging tax officials to fix clear targets for sprucing up tax
administration by 2022, the PM said his government was creating an
environment that shattered the confidence of the corrupt, while creating
trust among honest taxpayers.
- He asked the officers to use data analytical tools to pro-actively track
and determine undeclared income. Mr. Modi also asked taxmen to improve their
work-culture and inculcate a “sense of urgency” and “measurability” in their
Greater use of technology to help the farmers
- Commerce secretary Rita Teaotia called for greater use of mobile app
technology and integrated traceability systems to identify the farmers and
laboratories from where farm produce is sourced and tested.
- Ms. Teaotia was speaking at the unveiling of a new mobile application
with an integrated traceability system ‘Hortinet’.
- The app was developed by Agricultural and Processed Food Products Export
Development Authority for facilitating farm registration, testing and
certification of fruits and vegetables for export from India to regions such
as the European Union.
- The mobile app will allow farmers to apply online to facilitate their
GDP growth is slow
- India’s GDP grew at 5.7% between April to June 2017 — the slowest pace
recorded in 13 quarters or since the NDA government assumed office in May
2014 — led by a sharp decline in industrial activity that officials ascribed
largely to an inventory drawdown by firms ahead of the rollout of GST from
- GDP growth in the last quarter of 2016-17 was 6.1%, marking a steady
decline from the 7.9% clocked in the April to June quarter. The gross value
added (GVA) in the economy grew at 5.6%, same as the previous quarter but
sharply lower than the 7.6% growth in the first quarter of the last year.
Economist Ajit Ranade pointed out that this is the sixth continuous quarter
marking a decline in growth.
- “The principal decline in growth is on account of industry, which comes
in at 1.6% compared to 7.4% last year,” Chief Statistician TCA Anant said.
- Industrial output grew by 3.1% in the previous quarter. Analysts
reckoned this to be the worst quarter for the manufacturing sector in five
years, with growth at 1.2% compared to 5.3% in the previous quarter and
10.7% in the same quarter last year. That mining activity also shrank by
0.7%, compared to a 6.4% growth last quarter, didn’t help.
- Dr. Anant stressed that a large part of this dip was due to a rise in
input costs as well as an unprecedented “high level of inventory
de-accumulation” in the first quarter as firms were worried if the GST
regime would grant them input tax credits for output generated before its
- The numbers are consistent with the longer run narrative of decline and
since the WPI effect is now working itself out of the system, subsequent
periods would restore to more normal levels of growth and you will not see a
downfall in growth, which you saw from the second quarter of last year,
going ahead,” he said.
- While the services sector did fairly well, growing at 8.7% compared to
9% in the same quarter last year, the gross value added by the agriculture
sector dipped from 2.5% in the first quarter of last year to 2.3%.
- “Even though the crop production side has seen an increase compared to
last year, overall agriculture comes in marginally lower because of the
other elements of agriculture, which is principally animal husbandry that is
slightly lower,” the Secretary in the Statistics and Programme
Implementation Ministry said.
- The Finance Minister also said that manufacturing has ‘bottomed out,’
services have improved and gross fixed capital formulation has turned
positive. Gross fixed capital formation, which reflect the investments into
the country, stood at a four-quarter high of 29.8% of GDP, but was still
lower than the 31% clocked in the same quarter of 2016-17.
- Rating agency Crisil said the growth data suggests that the gains to the
tax base from demonetisation may have been overemphasised in haste.
- “The difference in GDP and GVA growth is net product taxes. So given
that GDP growth at 5.7% is only 10 basis points more than the GVA growth of
5.6%, claims of real tax gains from enlarging tax base after demonetisation
seems a too-early conclusion. However, this may see pick-up going ahead as
the government firms up its accounting exercise,” Crisil said in a note.
Telecom sector to form Panel for providing relief
- ‘The Inter-Ministerial Group (IMG), formed to look into the financial
woes of the telecom sector, on submitted its report after over three months
- It is learnt that the IMG, in its report which had not been made public,
had made some suggestions for providing relief to the sector while pointing
out that “green shoots” of recovery were visible in the sector.
- The report, which was finalised after discussions with stakeholders,
including banks and telecom firms, would now be placed before the Telecom
Commission, which was the highest decision making body in the Department of
- One of the recommendations made by the IMG is to extend the timeline for
deferred spectrum payment by telecom companies to 16 years instead of the 10
at present, a source said.
- The Telecom Commission’s next meeting is scheduled to be held on
September 8 and is likely to take up the IMG report.
WTO- farm subsidies
- India and China have jointly submitted a proposal to the World Trade
Organisation (WTO) calling for the elimination of the most trade-distorting
form of farm subsidies by the developed countries as a prerequisite for
consideration of other reforms in domestic support negotiations.
- This is an important proposal by India and China in view of the ongoing
negotiations for the upcoming 11th Ministerial Conference (MC) of the WTO to
be held in Buenos Aires in December 2017.
- It counters the efforts by some countries to target the subsidies of the
developing countries while letting the developed countries retain their huge
- The MC is the WTO’s highest decision making body. As per the joint
paper, developed countries, including the U.S., the EU and Canada, had been
consistently providing trade-distorting subsidies to their farmers at levels
much higher than the ceiling applicable to developing countries, the
Core sector output grew 2.4%
- Core sector output grew 2.4% year-on-year in July, helped by a low base
in sectors including steel and electricity.
- The production performance of eight core industries — which comprise
40.27% of the weight of items included in the Index of Industrial Production
(IIP) — in July 2017 was faster than June’s 0.8%, but slower than the 3.1%
pace recorded in July 2016. Cumulative growth during April-July, 2017-18,
- Nevertheless, half of the eight constituents recorded a YoY contraction
in July 2017, namely, refinery products, crude oil, cement and fertilisers.
- There was mixed evidence of post-GST inventory rebuilding, with a robust
pick-up in growth of steel output in July 2017 (9.2%) relative to June 2017
(5.8%), in contrast to the continued, albeit narrowing contraction in
production of cement (-2.0% in July 2017 vs. -6.3% in June 2017).
Cement output shrank for the eighth consecutive month.
- Given the favourable base effect and the rebuilding of domestic
inventories post-GST, we expect the IIP to revert to a YoY rise in July
2017, although the pace of growth may be subdued relative to the 5.2%
recorded in July 2016.
- Electricity generation registered a 5.4% growth in July 2017 from 2.2%
in June 2017 and 2.1% in July 2016. Besides a favourable base effect, this
also reflected a slight improvement in industrial demand following the
introduction of the GST regime. Coal production grew by just 0.7% in July.
Centre pushes for RBI to increase dividend
- The Centre is pushing for the Reserve Bank of India (RBI) to enhance its
dividend payout to the exchequer for the year 2016-17.
- The RBI transferred just Rs. 30,659 crore as dividend for the year gone
by to the exchequer less than half the Rs. 65, 876 crore it had paid in
- The government had budgeted for a Rs. 58,000 crore dividend from the RBI
in its Budget for this fiscal year.
- The RBI has calculated a surplus of Rs. 44,000 crore and has transferred
Rs. 30,000 crore to the government.
- The development assumes significance as the Centre had been downplaying
the central bank’s disclosure that about 99% of the demonetised Rs. 500 and
Rs. 1,000 currency notes had returned to the central bank with just about Rs.
16,000 crore remaining outside.
- This had dispelled the hope of a large surplus transfer from the RBI to
the government on account of notes that weren’t returned to the formal
system for fear of attracting the taxman’s attention.
- The government had issued an ordinance in December to extinguish the
Reserve Bank of India’s liability towards honouring such notes.
- The demonetisation exercise had hit RBI’s finances in a big way as the
cost of printing new notes more than doubled to Rs. 7,965 crore in 2016-17
compared with Rs. 3,421 crore in the previous year.
- RBI’s income for the period declined to Rs. 61,818 crore from Rs. 80,870
crore, while its total expenditure more than doubled to Rs. 31,155 crore,
from Rs. 14,990 crore.
- The central bank’s income was also impacted due to rupee appreciation
and liquidity mop up.
- Expenditure also increased due to higher printing and freight charges
for notes and higher provisions for the contingency fund.