| The Central Board of Excise and Customs | | | | report -"Indian Banking Sector Analysis |
| (CBEC) has confirmed the government decision | | | | (2006-2007)", talks about the emerging |
| of exempting banking services to units | | | | prospects of the Banking sector in India. As |
| positioned in any of the special economic | | | | per views by a senior research analyst at |
| zones from payment of service tax. The | | | | RNCOS -"the burgeoning economic activity and |
| confirmation was made in response to the | | | | encouraging prospects of growth in SEZs such |
| query raised by Indian Banks Association | | | | as exemption from CRR (cash reserve ratio) |
| (IBA). This comes as a welcome relief both | | | | and SLR (statutory liquidity ratio) and other |
| for the banks and the promoters of SEZs. Even | | | | statutory pre-emptions, will fuel the |
| though there was perceptible rush among banks | | | | business of OBUs." It's also predicted that |
| for setting up OBUs (offshore banking units) | | | | since OBUs will observe international lending |
| in SEZs, the trend is limited to sectors | | | | rates, service-based revenue will increase |
| governed by the crypts and troughs of the | | | | considerably. This report throws light on |
| global economy, such as commodity export. The | | | | certain critical aspects of the banking |
| global commodity export prices had earlier | | | | sector environment through: · Insights |
| seen a significant downturn and that had | | | | into the trends in Indian Banking Sector. |
| consequently affected the business of OBUs. | | | | · Pinpointing factors driving growth. · |
| This had been a major reason why RBI has | | | | Assessing the opportunities, strategies and |
| decided to limit license allotment to banks | | | | challenges in the Indian Banking Sector. · |
| to set up OBUs in SEZs. Earlier tax on | | | | Identifying brand leaders and understanding |
| banking services had been raised to 12% from | | | | the competitive environment · The services |
| 10%. This includes essentially money transfer | | | | driving Banking Sector in India. The report |
| through different modes like electronic fund | | | | further provides extensive research and |
| transfer and banking services to issuers of | | | | objective analysis on the growing banking |
| capital market instruments. RNCOS' recent | | | | sector services in India. |