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
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consolidated processing fee” offered during the festival period for loan proposals sourced up to December 31, 2019 is withdrawn.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.
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