Budget 2021 Updates

Finance Minister Nirmala Sitharaman listed Health & well-being,     Physical & financial capital & infrastructure,    Inclusive development for aspirational India,    Reinvigorating human capital,     Innovation & R&D, and     Minimum Govt & Maximum Governance as the main pillars of Budget 2021. The highlights of budget 2021 announcements are as under: TAX RULES FOR INDIVIDUALS: No…

RBI’s discussion paper proposes a 4-tier regulatory framework for NBFCs

The Reserve Bank of India has released today (January 22, 2021), the Discussion Paper on Revised Regulatory Framework for NBFCs- A Scale-Based Approach. The paper proposes the regulatory and supervisory framework of NBFCs shall be based on a four-layered structure– Base Layer, Middle Layer, Upper Layer and a possible Top Layer. NBFCs in lower layer…

“Worst is behind us, though the recovery path remains uncertain,” says Financial Stability Report

On Monday (11.01.2021), the Financial Stability and Development Council in its report bi-annual report said that Indian banks may see bad loans double despite signs of an improvement in the economic impact of the COVID-19 pandemic. The council is an umbrella group of regulators and releases the FSR report twice yearly to give a detailed…

From April 1, entities to quote LEI for all payment transactions of above 50 crores

The Legal Entity Identifier (LEI) is a 20-digit number used worldwide that will uniquely identify every legal entity or structure to a financial transaction. Pursuant to the Global Financial Crisis, the Legal Entity Identifier (LEI) code is conceived at the initiative of ‘Group of 20, financial stability Board’ for the purpose of better risk management.…

NPCI introduces RuPay contactless (offline) features

National Payments Corporation of India (NPCI) said that it has introduced RuPay Contactless (Offline) feature.The card comes with a reloadable wallet feature where customers can store money to ensure quick and hassel-free transactions compared to regular credit/debit card transactions. The RuPay NCMC (National Common Mobility Card) offline wallet can be used to make ticket payments…

The requirement of AFA for card transactions/ e-mandates relaxed to Rs.5000 from Jan 1

“Enhancing Security of Card Transactions”, wherein users were provided the option of a switch on / off or set limits for various card features, including for contactless transactions at Points of Sale (PoS) terminals. RBI has relaxed the AFA (Additional Factor of Authentication) requirement for values up to Rs. 5000- per transaction with effect from…

SEBI introduces a new level of risk area and labeling norms on dividend options for mutual fund schemes

The Capital market regulator SEBI has reviewed the guidelines for product labeling in mutual funds and has decided to introduce, ‘Very High Risk’ as the sixth risk profile for the MF schemes. According to SEBI notification, this new mutual fund rule shall be in force with effect from January 1, 2021, to all the existing…