RBI on Friday (January 31, 2020) advised all the scheduled commercial banks, RRBs, Co-operative banks and authorised card payment networks that henceforth they may provide cash withdrawal facility at POS terminal with the approval of their Board. Hitherto banks are required to obtain one-time permission from Reserve Bank of India for offering the above facility…
An excess of estimated expenditure over the estimated revenue over a specific period of time is known as fiscal deficit. The term deficit financing is generally referred to as a technique used by a government to manage the ‘Fiscal Deficit’ in budgetary situations. Governments across the world normally resort to cover the deficit (the gap…
The Reserve Bank of India on Thursday (January 16, 2020) has introduced new rules to enhance the security of card transactions. As per RBI notification, while issuing and reissuing the debit and credit cards, banks must ensure that all the debit cards and credit cards are enabled only for domestic transactions at ATMs and point…
RBI vide notification dated December 24, 2019, permitted all the Prepaid Payment Instrument Issuers to introduce a new type of semi-closed PPIs. These cards can be used only for the purchase of goods and services and not for funds transfer. The new PPIs will have the following features: The Semi -closed Pre-paid instrument (PPI) up…
Micro Finance Companies: MBFC is any non-banking financial company licensed under section 25 of the Companies Act, 1956. These companies are engaged in micro-financing activities. With effect from November 08, 2019 the eligibility criteria for classification under ‘Qualifying Assets’ for NBFC-MFIs are revised. The Reserve Bank of India (RBI) in it’s circular dated November 08,…
The Reserve Bank of India vide. Circular No. DOR.RRB.No.21/31.01.001/2019-20 dated November 1, 2019, permitted RRBs (Regional Rural Banks) to issue Perpetual Debt Instruments (PDI) eligible for inclusion as Tier 1 capital so as to maintain prescribed CRAR. The Perpetual Debt Instruments (PDI) is issued by way of bonds or debentures in Indian Rupees only. The…
Payments in the online space are facilitated by a number of intermediaries like the payment gateways and payment aggregators. These intermediaries act as the conduit between merchant & customer who is willing to pay for the services availed or the goods purchased. In online payments all the debit and credit transactions are routed through credit…
In order to benefit from diversification of risk as also to encourage innovation and competition, Reserve Bank on 15th October 2019 announced to offer on-tap authorisation for the following entities: Bharat Bill Payment Operating Unit (BBPOU). Trade Receivables Discounting System (TReDS). White Label ATMs (WLAs). The entities desirous to function / operate / provide platforms…
The Central Board of Direct Taxes (CBDT) has notified on September 12, 2019, the ambitious E-assessment Scheme, 2019. The scheme is also called faceless or nameless assessment, for income-tax payers. With the launching of the scheme all your income tax returns (ITR) would be assessed and scrutinised in complete electronic mode without any human interface.…
Today (August 29, 2019)RBI notified to all the Scheduled Commercial Banks including RRBs / Urban Co-operative Banks /State Co-operative Banks / District Central Co-operative Banks /All Authorised Card Networks with regard to Point of Sale transaction. The Banking Regulator said that it has come to their notice that many banks are not following in letter…