Mar 7, 2008

Economy News 7th March 2008

FM says farm loan waiver package to strengthen banking sector

Finance Minister (FM) P Chidambaram said on Thursday, 6 March 2008, that the Rs 60000-crore farm loan waiver package announced in Union Budget 2008-09 will strengthen the banking sector. The banking sector will be compensated in a way that the banks will not be constrained at all, Chidambaram told reporters after a meeting of the board of the Reserve Bank of India (RBI) on Thursday.

The RBI governor has told the board that the RBI is fully geared to support the government in implementing the scheme in a manner that the banking sector will be strengthened, not weakened, he said. Chidambaram said the government, central bank and banks would work together to implement the scheme.

 

Inflation above 5%

Inflation based on the wholesale price index rose 5.02% in the 12 months to 23 February 2008, higher than the previous week's rise of 4.89%, government data showed on Friday, 7 March 2008. The annual inflation rate was 6.20% during the corresponding week of the previous year

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