A bill of exchange is a negotiable instrument issued by the seller (the creditor) and orders the buyer (the debtor) to pay a particular amount within a given period of time for the goods supplied or services rendered by the seller. On the due date of payment, the financial intermediary or the seller directly collects…
In its Statement on Developmental and Regulatory Policies dated August 6, 2020, wherein Reserve Bank of India (RBI) had announced the introduction of the Positive Pay System for Cheque Truncation System (CTS). On September 25, 2020, RBI has issued a circular stating that the Positive Pay System shall be implemented from January 01, 2021, for…
The Bilateral Netting of Qualified Financial Contracts Bill, 2020 (Netting Bill) was passed this week in both the houses of the Parliament. The Bill covers over the counter derivatives contracts which are entered into on bilateral basis outside clearing system. The Finance Minister Mrs.Nirmala Sitharaman while addressing the Rajya Sabha said that under existing laws,…
The Reserve Bank of India has today placed on its website the “’ Technology Vision for Cyber Security’ for Urban Co-operative Banks (UCBs) – 2020-2023”. The Technology Vision Document aims at enhancing the cybersecurity posture of the Urban Co-operative banking sector against evolving IT and cyber threat environment. The Central Bank laid down a set…
In our previous post “CERSAI Rules make mandatory registration of charges of every kind”, we have written about legal obligations of banks and financial institutions to register creation of security interest over an asset with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI). Effective from August 3, 2020, an upgraded…
The Lok Sabha on Saturday (September 19, 2020) passed the Companies (Amendment) Act, 2020 bill that seeks 72 changes to decriminalise certain offences under the Companies Act, 2013, in case of defaults but not involving frauds. “There are 48 sections we have amended to decriminalize them and 17 sections have been amended to improve the…
The Central board of direct tax (CBDT) in its press release said that “It may be noted that The Finance Act 2020 rationalised the procedure relating to approval/registration/notification of certain entities referred to the section 10(23C), 12AA, 35 and 80G of the act, with effect from 1st June 2020. As per the new procedure, the…
The Minimum Support Price or MSP is the rate at which the government buys grains from farmers. The aim of fixing MSP is to counter price volatility of agricultural commodities due to the factors like variation in their supply, lack of market integration and information asymmetry. It is fixed on the recommendations of the Commission…
The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020; The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 and The Essential Commodities (Amendment) Bill, 2020 – were introduced in the Parliament on September 14 to replace the ordinances issued during the lockdown. Lok Sabha has passed these bills…
For FY 2020-21, Salaried individuals, who have no business income, will have to choose between the existing and new tax regimes u/s 115BAC every financial year, as per their convenience. The new income tax rates are lower compare to old tax rate. However, anyone opting for the new tax regime will have to forego most…