RCEP talks trig­ger import surge worry

SBI to charge pro­cess­ing fees for home loans As Min­istries Fear Spike From China, Goyal May Seek More Items In Safe­guard List

The Times of India (New Delhi edition) - - Times Global - THE TIMES OF IN­DIA, NEW DELHI | FRI­DAY, OCTOBER 11, 2019 Rachel.Chi­[email protected] times­group.com Sid­[email protected] times­group.com

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2015 2016 2017 2018 2019 Bengaluru: SBI will start charg­ing pro­cess­ing fees for home loan bor­row­ers, top-up plans, and loans to cor­po­rates and builders. This de­ci­sion comes on the heels of the bank fac­ing a sharp dip in its in­ter­est in­come af­ter the RBI low­ered rates.

SBI, in an in­ter­nal cir­cu­lar, said, “the full waiver of con­sol­i­dated pro­cess­ing fee” of­fered dur­ing the fes­ti­val pe­riod for loan pro­pos­als sourced up to De­cem­ber 31, 2019 is with­drawn. “Waiver will con­tinue for pro­pos­als sourced up to Oc­to­ber15, 2019,” SBI said.

“On July 1, 2019, SBI linked its lend­ing rate to the bench­mark repo rate. Be­fore this, SBI was of­fer­ing the low­est rate in the mar­ket. Af­ter the de­ci­sion to link, the rates came down sharply,” a source said.

On July1, SBI had launched a soft­ware for au­to­mat­i­cally peg­ging home loans to the dy­namic mov­ing rate. This soft­ware was rolled back on Au­gust1, 2019. Fol­low­ing in­ter­nal dis­cus­sions that other charges should be levied to com­pen­sate for the low loan rate, SBI again rolled out its lend­ing soft­ware on October 1 (in essence peg­ging loans to the bench­mark rate).

Oth­ers such as pre­pay­ment charges, Cen­tral Registry of Se­cu­ri­ti­sa­tion As­set Re­con­struc­tion and Se­cu­rity In­ter­est (CERSAI) reg­is­tra­tion fee might be in­creased later, said sources. “Pro­cess­ing fee would be at around 0.4%. And would be within the Rs 10,000-30,000 (min­i­mum-max­i­mum) range for in­di­vid­ual bor­row­ers. For builders, a flat charge of Rs 5,000 has been rein­tro­duced,” sources said. New Delhi: Com­merce and in­dus­try min­is­ter Piyush Goyal heads to Bangkok for the fi­nal leg of ne­go­ti­a­tions for the pro­posed Re­gional Com­pre­hen­sive Eco­nomic Part­ner­ship (RCEP) Agree­ment, amid mount­ing wor­ries of an import surge, es­pe­cially from China, once the mega free trade pact, in­volv­ing 16 coun­tries, kicks in.

While the gov­ern­ment has sought to as­sure stake­hold­ers that it will have safe­guards to quickly block im­ports, at best 60-70 prod­ucts out of over 10,000 may be cov­ered by the mech­a­nism de­manded by Goyal at the last meet­ing. With sev­eral min­istries still not con­vinced about the plan, In­dia is ex­pected to de­mand that the list be widened, amid in­di­ca­tions that the Naren­dra Modi gov­ern­ment will go ahead with the deal, ar­gu­ing that In­dian com­pa­nies will have a chance to be part of the global value chain.

The min­is­te­rial meet­ing in Thai­land is seen to be the last ma­jor round of dis­cus­sion be­fore lead­ers meet in early Novem­ber to en­dorse the deal.

The big fear is China, with min­istries rang­ing from tex­tiles and in­dus­try to steel, electronic­s and even de­fence, want­ing that import re­stric­tions should be main­tained and du­ties should not be low­ered. Ex­perts be­lieve In­dian ex­porters may not gain much as agree­ments with other ma­jor coun­tries such as Asean mem­bers, Japan and South Fruits, mus­tard oil, palm oil, dairy prod­ucts Tyres, auto parts, white goods, footwear, paper prod­ucts Korea are al­ready in place. RCEP will only end up open­ing the mar­ket to China, with which In­dia has a mas­sive trade deficit. Of the $105bil­lion trade deficit with RCEP coun­tries, nearly half was with China.

In any case, In­dia’s de­mands on ser­vices have not found much trac­tion and sug­ges­tions such as visa-free traMo­bile phones, tele­com equip­ment, con­sumer electronic­s

vel in the re­gion for In­dian busi­ness­men have been trashed by ne­go­tia­tors from other coun­tries, al­though the fa­cil­ity is avail­able to the Chi­nese.

Over the last week, there have been sev­eral rounds of dis­cus­sions, in­volv­ing Goyal, ex­ter­nal af­fairs min­is­ter S Jais­hankar, fi­nance min­is­ter Nir­mala Sithara­man, home min­is­ter Amit Shah and Modi.

Num­ber of visa-free des­ti­na­tions JAPAN SIN­GA­PORE FIN­LAND Rank GER­MANY DEN­MARK ITALY SRI LANKA PAK­ISTAN

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