forex seminar

Two controversial proposals in budget

Making PAN the sole basis for investor identification and enhancing the threshold for TDS on interest from bank deposits are the two most investor friendly announcements in the budget for the financial sector. THIS TIME the Finance Minister's budget speech dwelt on some issues that had been doing the rounds earlier. The separation of the debt management function from the Reserve Bank of India and vesting it with an autonomous body functioning under the Government has been talked about since 2001. This model, in vogue in advanced countries, is meant to ensure that the RBI carries its core central banking function of monetary management unhindered by debt management issues. There is bound to be a transition period before the Government assumes the role. Many more announcements will be made and a roadmap drawn up.