Greece crisis may trigger outflows from India: Finance Secretary
PrintListen to this Article
The economic crisis in Greece may trigger capital outflows from India and the government is consulting the RBI to deal with the situation, finance secretary Rajiv Mehrishi said on Monday.
Stating that the Greece situation has no direct impact on India, he said there may be some indirect effect via Europe on capital inflows and outflows here.
"Greece criss does not have any effect directly on India. (But) interest rate may firm up in Europe. In case of firming up of interest rate in Europe, there can be outflow of capital from India," Mehrishi told reporters in Delhi.
Terming the situation as dynamic and evolving, he said, the crisis may have an indirect impact on India by way of its outcome on the European currency euro.
"To the extent it affects the euro, there might be some indirect impact on India. If yields on euro bonds go up, then it might impact inflows and outflows from India," he said.
He said nobody can predict how the situation evolves. "Obviously we are in touch with the RBI but they will do what they have to do," he said.
Asked if any Indian company has an exposure in Greece, he said, "I don't know."
"If yields on G-Sec go on in the US, then it might impact inflows and outflows in India. We really don't know how they (foreign investors) will relocate their portfolio," he added.
Greece early Monday imposed capital controls and closed banks until at least July 6 after Prime Minister Alexis Tsipras decided to call a July 5 referendum on a proposed bailout package. (Hindustan Times)
Category : Finance | Comments : 0 | Hits : 539
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has approved the Terms of Reference for the Sixteenth Finance Commission. The Terms of Reference for the Sixteenth Finance Commission will be notified in due course of time. The 16th Finance Commission’s recommendations, upon the acceptance by the government, would cover the period of five (5) years commencing April 1, 2026. Article 280(1) of the Constitutions lays down that the modalities for setting up of a Fin...
Finance Act, 2023 received the assent of the President on the 31st March, 2023. Finance Bill, 2023 receives President's assent on Mar 31, 2023 and now its Finance Act, 2023. The Finance Act, 2023 has been enacted vide Gazette Notification dated today, March-31-2023. After obtaining the assent of the President of India, the Finance Bill, 2023 has been enacted as Finance Act, 2023.
The Finance Ministry has asked public sector banks to explore fintech partnerships and co-lending opportunities to expand their business. In the recently concluded performance review of PSBs by the Finance Ministry, sources said, lenders were asked to focus on technology and data analytics to push their lending. The ministry also urged the heads of the public sector lenders to strengthen IT security systems and cybersecurity to check fraud. &...
The Enforcement Directorate (ED) on Thursday said it has provisionally attached various immovable and movable properties worth Rs 2.14 crore of entry operators working for Shakti Bhog Foods Limited and their Chartered Accountants, in connection with a money laundering case pertaining to the bank loan fraud of Rs 3,269.42 crore. A senior ED official said that properties belonging to Devkinandan Garg, Ashok Kumar Goel, Mahesh Kumar, Devender Kumar and other entry operators a...
In a significant verdict, the Supreme Court Thursday ruled that the recommendations of Goods and Services Tax (GST) Council are not binding on the Union and the states and only have a persuasive value. The Supreme Court said that Parliament and state legislatures possess simultaneous power to legislate on GST and the recommendations of the council are the product of a collaborative dialogue involving the Union and states. It said that the GST Council...
Comments