- NEW NOTES ISSUED AFTER DEMONETIZATION BECOME UNUSABLE AFTER 2 YEARS: New notes of Rs. 500 and Rs. 2000 were issued after the demonetization phase. These notes which were introduced with higher security features are becoming unusable within just two years of circulation. As per a report published by a Hindi Newspaper “Amar Ujala”, this is happening because the paper quality of the new notes is not good compared to the earlier notes. If the currency becomes unusable, it cannot be loaded in ATMs as the sensors inside the ATMs cannot detect poor quality notes. But government has denied any compromise with the quality of notes and said the new notes have higher security features to stop counterfeiting.
- SBI TO BLOCK INTERNET BANKING FACILITY OF ITS CUSTOMERS WHOSE MOBILE NUMBER IS NOT LINKED TO THE ACCOUNT: State Bank of India has issued a notice stating that net-banking facility will be blocked for those of its customers who have not linked their mobile numbers to their respective accounts. As per RBI advisory, it is mandatory to register your mobile number to avail internet banking services. Banks must register mobile numbers of their customers for SMS alerts for electronic banking transactions like internet and mobile banking services.
- GST ON BANKS’ FREE SERVICES: Over the last few months the tax department has issued preliminary notices to banks seeking to levy Goods & Service Tax (GST) on free services such as issue of cheque books, ATM usage and refund of fuel charges etc. The GST notice are separate from those served in April 2018 to recover about Rs. 40,000 crore in service tax and penalties from all banks. Most of the banks are now considering passing on the GST cost to the customer.
- MEGA FOOD PARKS (MFPs) TO BECOME OPERTAIONAL THIS YEAR: The government’s dream project—Mega Food parks (MFPs) is all set to be operational as 14 MFPs will become operational this year. The estimated investment is around 3,500 crore and it will create around 70,000 new jobs. Creation of MFPs aims to bring together farmers, processors and retailers and link them with the market so as to ensure maximum benefit to the farmers.
- THREE LAKH CRORE STRESSED ASSETS WERE ADDRESSED IN INSOLVENCY LAW IN LAST 2 YEARS: Since its inception in December 2016, the Insolvency Law has helped in addressing stressed assets worth 3 lakh crore in the last two years. More than 9,000 cases have come for redressal under the Insolvency & Bankruptcy Code (IBC).
- CENTRE TO INFUSE Rs. 42,000 CRORE IN PSU BANKS BY MARCH 2019: The government will infuse Rs. 42,000 crore in the state-owned banks by March 2019. The next instalment will be released by next month. The government earlier this year had pumped Rs. 11,336 crore in 5 PSBs – Punjab National Bank, Allahabad bank, Indian overseas Bank, Andhra bank and Corporation Bank.
- LARGE INDIAN COMPANIES MUST BORROW 25% IN BONDS FROM APRIL 1st 2019: The Securities Exchange Board of India (SEBI) has said that Indian Companies with long term outstanding loans of Rs.100 crore and above will have to raise at least 25% of their fresh borrowings in bonds from April 1ST This is an effort to strengthen the Indian Corporate Bond market which is relatively low compared to international markets.
- NOW NO NEED FOR NRIs TO REVEAL DETAILS OF FOREIGN BANK ACCOUNTS: As per the latest ruling by Income-Tax Appellate Tribunal (ITAT) now Non Resident Indians (NRIs) need not reveal details of their Foreign Bank accounts and assets to Indian authorities. The Tribunal has also ruled that the onus of proving that the assessee has parked undeclared income arising from India in Foreign Bank accounts lies with Income Tax Department.
This post first appeared on IMPACT OF DEMONITIZATION OF CURRENCY IN INDIA IN 2016, please read the originial post: here
