- BANKERS’ PANEL INCORPORATES “SASHAKT INDIA AMC: Sunil Mehta, the Chairman of Bankers’ Panel said that an Asset Management Company (AMC) has been formulated for large stressed assets and will be called as “Sashakt India Asset Management” The Bankers’ Panel is working on faster resolution of stressed assets in banks. He further stated that now the panel is working towards identifying potential investors for an Alternative Investment Fund (AIF) which will fund the AMC. In July this year the government had proposed a Five Pronged Strategy under Project Sashakt to tackle large stressed assets and formed a Panel led by Mr Sunil Mehta.
- RBI REFUSES TO GIVE INFORMATION ON NPAs, LOAN DEFAULTERS TO SEBI: Security Exchange Board of India (SEBI) had sought information regarding Non-Performing Assets (NPAs) and Loan Defaulters List from RBI. The Reserve Bank of India has declined to pass on the said information. The denial of RBI to divulge the information is because it fears further data leakage as it becomes known to wider range of people which in turn will hurt the business prospects of the companies involved. The Central Information Commission (CIC) has sent a show-cause notice to the RBI Governor for not providing the information.
- RBI IMPOSES FINE OF Rs. 3.00 CRORE EACH ON DEUTSCHE BANK AND J&K BANK: The Reserve Bank of India has imposed a penalty of over Rs. 3.00 crore each on Deutsche Bank and J&K Bank for non-compliance of various norms, including Asset Classification and The penalties on these two banks have been imposed taking into account the failure of these banks to adhere to the directions issued by RBI.
- SEBI MAY TIGHTEN LIQUID MUTUAL FUNDS: The Securities Exchange Board of India (SEBI) is considering tightening the rules of Liquid Mutual Funds holding assets worth Rs. 8 lakh crore or more. This is to curb the volatility in flows following the challenges faced by the Finance companies in the wake of recent debt default by IL&FS.
- SEBI TIGHTENS DISCLOSURE, REVIEW NORMS FOR RATING AGENCIES: The Securities Exchange Board of India (SEBI) has tightened the disclosure and review norms for Credit Rating Agencies (CRAs). SEBI has ordered CRAs to analyse deterioration in the liquidity conditions of an issuer while monitoring its repayment schedules and also analyse any asset-liability mismatches. SEBI has also instructed CRAs to disclose parameters like liquid investments or cash balances, access to any un-utilised credit lines and adequacy of cash flows in a specific section on liquidity.
- OVER 2 LAKH ASSESSEES WHO MIGRATED FROM VAT TO GST OPTED OUT OF GST NET: Over 2 lakh Goods & Services Tax (GST) assessees have opted out of the GST net as their annual business turnover is below the threshold limit of Rs 20 Lakh. These are assessees who had migrated from the Value added Tax (VAT) regime to GST regime. This will benefit both the GST network and the tax assessees, as the GST network will now have less load and the concerned assessees will not be required to file the GST returns.
- DIRECT TAX COLLECTIONS TO EXCEED TARGET THIS YEAR: Direct Tax collection as on October 2018 has already crossed Rs. 5 lakh crore which is 44% of the net Direct Tax collection target. At this rate this will cross the budgeted target of Rs. 11.5 Lakh crore for the current fiscal. The Income Tax Department has already issued refund orders amounting to Rs. 1.15 lakh crore and hence from now onwards the net collections will increase.
- HOW DOES RBI BUILDS ITS RESERVES ? : The Reserve Bank of India builds its reserves from several factors. Mainly it is built from three sources. First, by interest on government bonds held for conducting open market operations, fees from governments market borrowing programme and income from investment in foreign currency assets. Second, is earnings retained after giving dividends to government. Third source is revaluation of foreign assets and gold.
This post first appeared on IMPACT OF DEMONITIZATION OF CURRENCY IN INDIA IN 2016, please read the originial post: here
