Four-tier differentiated regulatory prescription for Urban Cooperative Banks
The Reserve Bank of India (RBI) on Tuesday issued final guidelines for urban cooperative banks (UCBs), accepting the NS Vishwanathan committee’s recommendation to implement a four-tiered regulatory framework, among others. The four-tiered regulatory framework is based on the size of deposits of the banks and their area of operations. The major recommendations which have been…
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RBI renews the Statement of Commitment (SoC) to the FX Global Code (“Code”).
The Reserve Bank of India (RBI) on Wednesday has signed its renewed Statement of Commitment (SoC) to the FX Global Code (“Code”). The FX Global Code (Code) is a compilation of best market practices, formulated by Central Banks and market participants, developed under the auspices of Bank for International Settlements (BIS), Basel. The Code sets…
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Why India’s GST tax system is considered regressive compare to tax system of other countries?
Paying taxes under a direct tax system or indirect tax system like GST is inevitable. In India, eighty percent of total revenue is earned by the Government through taxes, and the remaining twenty percent is from non-tax revenue like dividends earned from profits of public sector enterprises, interest, fines, regulatory charges, etc. The impact of…
Read article 18 per cent GST on bank charges for issue of cheque book and loose cheque leaves
The GST Council has agreed to levy an 18 percent cess on cheques, irrespective of whether they are in loose or in book form with effect from July 18, 2022. There will be a 5 percent GST if rooms worth more than Rs 5,000 (non-ICU) are rented out in hospitals.Pre-packed and labeled food items like…
Read article What is Account Aggregator system in banking?
The Account Aggregator (AA) system is a financial data exchange where banks, fintech, or NBFCs can exchange customer data after taking consent from such users. The entities which facilitate the data exchange are known as account aggregators. Under the account aggregator system, a lender who requests the data is called financial information user (FIU), and…
RBI liberalises with several measures to improve the forex in-flow
RBI today announced several measures in order to enhance forex inflows to the country while ensuring overall macroeconomic and financial stability. “The global outlook is clouded by recession risks. Consequently, high-risk aversion has gripped financial markets, producing surges of volatility, sell-offs of risk assets, and large spillovers, including flights to safety and safe-haven demand for…
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