Inflation rate falls
New Delhi: The inflation rate fell to a two-decade low of 1.672 per cent for the week ended 17 July.

The fall in the rate is attributed mainly on account of higher base last year brought about by an abnormal increase in vegetable prices.
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CBDT clarifies on tax exemption 
Mumbai: The Central Board of Direct Taxes has said in a circular that if an employee donated to funds set up by the central government, he can claim tax deduction on the basis of a certificate issued by the employer.

However, it may not be possible for employees to obtain direct certificate of donations made via employer organisations to such funds.
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RBI panel on legal infrastructure
Mumbai: The Reserve Bank of India (RBI) is setting up a standing committee on legal infrastructure for the entire financial sector, including banking, capital market and debt market segments.

RBI sources said the proposed committee will have representatives from academics, the market, industry and the RBI.

The scope of the committee will be broader than the erstwhile Andhyarjuna committee, which was appointed to specifically look into the legal issues relating to the implementation of the Narasimham Committee -II's recommendations. The new committee is expected to study and recommend amendments to the entire set of financial sector laws.
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RBI inspecting IFCI books
New Delhi: The Reserve Bank of India is inspecting the accounts of Industrial Finance Corporation of India (IFCI) for 1998-99. The scrutiny comes following IFCI's heavy provisioning against accumulated bad debts, which resulted in a drop in net profit to Rs 23.5 crore in 1998-99 from Rs 370 crore in 1997-98.
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Moody's ranks India 59^th in banking sector
Mumbai: Moody's Investor Service has ranked India 59^th among a list of 74 countries on its annual assessment of average bank financial strength ratings.

Indian banks' average financial strength rating stands at E+ (very weak with relatively higher standing within the category) above China at very weak and Korea, Pakistan and Thailand even weaker. The lowest ranked country is Russia, whose banking system is rated at zero.

Japan and Mauritius are ranked AAA, Brazil and the Philippines at D+, while Germany, US, Singapore and the US are rated good with relatively higher standing within the category.

The highest rated country is the Netherlands, followed by Liechtenstein and Switzerland.
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