Released on = December 10, 2006, 10:31 pm

Press Release Author = RNCOS

Industry = Industrial

Press Release Summary = Banks to make a beeline for making the most of the emerging
opportunity. Exemption from service tax payment for banking services to units in SEZ
will direct.

Press Release Body = The Central Board of Excise and Customs (CBEC) has confirmed
the government decision of exempting banking services to units positioned in any of
the special economic zones from payment of service tax. The confirmation was made in
response to the query raised by Indian Banks Association (IBA).

This comes as a welcome relief both for the banks and the promoters of SEZs. Even
though there was perceptible rush among banks for setting up OBUs (offshore banking
units) in SEZs, the trend is limited to sectors governed by the crysts and troughs
of the global economy, such as commodity export. The global commodity export prices
had earlier seen a significant downturn and that had consequently affected the
business of OBUs.

This had been a major reason why RBI has decided to limit license allotment to banks
to set up OBUs in SEZs. Earlier tax on banking services had been raised to 12% from
10%. This includes essentially money transfer through different modes like
electronic fund transfer and banking services to issuers of capital market
instruments.

RNCOS’ recent report –“Indian Banking Sector Analysis
(2006-2007)”, talks about the emerging prospects of the Banking sector in
India. As per views by a senior research analyst at RNCOS –“the
burgeoning economic activity and encouraging prospects of growth in SEZs such as
exemption from CRR (cash reserve ratio) and SLR (statutory liquidity ratio) and
other statutory pre-emptions, will fuel the business of OBUs.” It’s also
predicted that since OBUs will observe international lending rates, service-based
revenue will increase considerably.

This report throws light on certain critical aspects of the banking sector
environment through:

- Insights into the trends in Indian Banking Sector.
- Pinpointing factors driving growth.
- Assessing the opportunities, strategies and challenges in the Indian Banking Sector.
- Identifying brand leaders and understanding the competitive environment
- The services driving Banking Sector in India.

The report further provides extensive research and objective analysis on the growing
banking sector services in India.

About RNCOS:

RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.


For more information visit: http://www.rncos.com/Report/FM005.htm

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Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
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info@rncos.com