Bad times for the economy could soon be over, if macroeconomic numbers released earlier in the week are any indication. With developed economies doing well, exports looked up, showing a growth of 13 per cent in August 2013 over the same month last year. At the same time, the trend of shrinking gold imports continued, resulting in a narrower trade deficit. Industrial production numbers released towards the end of the week also shored up confidence. The IIP for July grew by 2.6 per cent over July 2012, backed by a double-digit growth in capital goods output.
RBI crackdown on unregulated NBFCs
After defaults from companies such as Rose Valley and the Saradha group, the RBI plans to get tough on companies accepting deposits from the public. Remedial measures could include speedy initiation of legal action. The RBI also runs public awareness campaigns. Although 12,230 non-banking financial companies (NBFC) are registered with the RBI, the regulator is actively monitoring only 236 deposit-taking NBFCs and the systemically important ones. Besides, an RBI survey has found that there are 96 companies accepting deposits without registering with the RBI. Guidelines for raising money through NCDs (non-convertible debentures) and for gold loan companies are also on the cards.
