The Clearing Corporation of India Limited (CCIL) is now designated as ‘Trade Repository’ for the OTC interest rate and Foreign Exchange Contract. The designated trade repository will be regulated and supervised under section 34(2) of the Payment and Settlement Systems Act, 2007 (PSS Act). Being a Financial Market Infrastructure (FMI), the repository would function under…
The Government of India recently approved the repealing of all earlier schemes under existing National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS). A new Insurance scheme called “Pradhan Mantri Fasal Bima Yojana (PMFBY) is put in place which replaces the old schemes from Kharif 2016. For all loanee farmers who borrow…
In terms of Government announcement on February 2016, the interest rate on small savings schemes will be notified on quarterly basis hereafter, instead of earlier system of announcing for every year. Accordingly the Government h,as announced the interest rates for the following small savings schemes (for the quarter April 2016 to June 2016) wich are…
The diversion of funds means utilization of funds by the borrower in deviation of sanction terms of the lender, including any of the following occurrences. The credit facility extended for the working capital purposes, used by the unit for long term purposes, which is not in conformity with the sanction terms. The unit deploys borrowed…
Repo rate is the rate at which the RBI lends shotterm money to the banks against the security of all SLR-eligible transferable Government of India- dated Securities, Treasury Bills and State Development Loans (SDL). The repo auction framework is a new regime for liquidity management to keep overnight rates close to the repo rate. Under…
The salaried class in India had a lot of expectation from the budget 2016 in respect of IT exemption limit. But no changes have been made to existing tax slabs. However, a small relief is provided by increasing maximum tax relief from Rs.2000/- to maximum Rs.5000/-under section 87(a) to individuals whose income is less than…
Tax slabs for Individuals of below 60 years (Born on or after 01.04.1956). A). Up to Rs.2, 50,000: – Nil B). From Rs.2, 50,001 to Rs.5, 00,000:– 10% on taxable income which exceeds Rs. 2, 50,000/-. C). From Rs.5, 00,001 to Rs.10, 00,000:- 20% [Rs.25, 000/-+ 20% on amount which exceeds Rs. 2, 50,000/-] D).…
Udyog Aadhaar registration is the new system that replaced the earlier system of SSI registration and EM-I/II. The gazette notification dated 18.09.2015 brought an end to the legacy of registration of SSI and Entrepreneur Memorandum (EM-I/II) as all other online/ offline systems of registration of MSMEs created and maintained by Central/State/UT Governments cease to register…
RBI today (February 23, 2016) announced the extension of SAARC Currency Swap Arrangement till November 14, 2017. The RBI press release said that the above decision was taken in order to promote financial stability and economic cooperation within the SAARC region. The swap framework provides a backstop line of funding for the SAARC member countries…
Henceforth the customers of banks may submit Form A2 through online. RBI in its communiqué to Foreign Exchange Dealers (February 11, 2016) who offer internet banking facility to their customers informed that the Authorised Dealers (ADs) may allow online submission of Form A2. Further they may also enable uploading/submission documents if required for establishing the…
