The post Rajya Sabha passes Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill appeared first on The Edge Media.
]]>The Bill proposes that even if a bank is temporarily unable to fulfil its obligations due to restrictions such as moratorium, depositors can access their deposits to the extent of the deposit insurance cover through interim payments by the Deposit Insurance and Credit Guarantee Corporation (DICGC). For this, the Bill seeks to insert a new Section in the DICGC Act, 1961.
Replying to a brief debate, Sitharaman said the legislation would provide relief to small bank depositors.
She said the proposed legislation will also help depositors of 23 cooperative banks which are under stress.
“PMC Bank depositors will also benefit from this bill,” she said.
Thousands of depositors of the fraud-hit multi-state cooperative bank are facing hardship. The PMC Bank is currently under reconstruction.
The bill also seeks to amend Section 15 of the DICGC Act to enable the Corporation to increase the ceiling on the amount of premium, with the prior approval of the Reserve Bank of India (RBI).
Besides, it will also provide that the DICGC may defer or vary the receipt of repayments due to it from the insured bank and to empower the Corporation to charge penal interest in case of delay in repayment by the banks to the Corporation.
Though the RBI and the central government keep monitoring the health of all banks, there have been numerous recent cases of banks, especially cooperative banks, being unable to fulfil their obligations towards depositors due to the imposition of moratorium by the RBI.
Earlier this week, the Union Cabinet cleared amendments to the DICGC Act.
Last year, the government had increased insurance cover on deposits by five times to Rs 5 lakh.
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]]>The post Key takeaways of today’s announcement by Nirmala Sitharaman appeared first on The Edge Media.
]]>Here are some key points :
*Govt extends Atmanirbhar Bharat Rozgar Yojana from June 30, 2021, to March 31, 2022. Over 21.4 lakh people of nearly 80,000 establishments have already benefited from the scheme, said Sitharaman.
*To further boost tourism, Sitharaman announces ₹10 lakh loan to travel agencies and ₹1 lakh loan to tourist guides.
*Once visa issuance starts again, first 5 lakh tourist visas to be issued free of charges, announces Sitharaman. “Once international travel resumes, first 5 lakh tourists who come to India will not have to pay visa fees. Scheme applicable till March 31, 2022, or will be closed after distribution of first 5 lakh visas. One tourist can avail benefit only once,” she said.
*”We are announcing a totally new scheme,” Sirtharaman said as she announced a “credit guarantee scheme to facilitate loans to 25 lakh persons through micro finance institutions.”
“The focus is on new lending, and not repayment of old loans,” she also said.
All borrowers (including defaulters upto 89 days) are eligible for the scheme. Lending will be upto ₹1.25 lakh.
*The government is expanding the scope of emergency credit line guarantee scheme. We are adding another 1.5 lakh crore to the existing corpus of ₹3 lakh crore, the finance minister announced.
*Finance minister Nirmala Sitharaman on Monday announced ₹1.1 lakh crore loan guarantee scheme for Covid-affected sectors. The healthcare to get ₹50,000 crore, aimed at upscaling medical infrastructure targeting underserved areas. ₹60,000 crores for other sectors, she announced.
*Eight new set of economic relief measures meant to boost growth, says Sitharaman in the briefing.
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]]>The post Businesses will get 2 lakh crore Diwali gift from the government, 10 sectors will get PLI benefits appeared first on The Edge Media.
]]>Finance Minister Nirmala Sitharaman informed the cabinet decision that the government will spend Rs 2 lakh crore in the next five years to provide production-based incentives to 10 sectors and to fund the viability gap funding of infrastructure projects.
He said that this will create jobs, support emerging sector and promote self-reliant India. Significantly, to give relief to the people and industry of the country troubled by Corona, the government is constantly giving relief packages. This can be called another relief package.
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]]>The post Honest Taxpayers to be Honoured by PM Modi on Thursday appeared first on The Edge Media.
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“The upcoming launch of the platform for ‘Transparent Taxation Honoring the Honest’ by the Prime Minister will further carry forward the journey of direct tax reforms, the Finance Ministry said in a statement on Wednesday.
The Ministry said the Central Board of Direct Taxes has carried out several major tax reforms in direct taxes in recent years. Last year the Corporate Tax rates were reduced from 30 per cent to 22 per cent and for new manufacturing units the rates were reduced to 15 per cent. Dividend distribution Tax was also abolished.
“The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws. Several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the I-T Department,” it said.
In the Budget, Finance Minister Nirmala Sitharaman had announced that CBDT will adopt a “taxpayer charter” which will ensure trust between a taxpayer and the administration and reduce harassment, as well as increase efficiency of the department. CBDT, which is the apex decision making body in direct tax matters, administers personal income tax and corporate tax.
“Wealth creators will be respected in this country,” she had said in her 2020-21 Budget speech. “We wish to enshrine in the statutes a “taxpayer charter” through this budget. Our government would like to reassure taxpayers that we remain committed to taking measures so that our citizens are free from harassment of any kind,” she had said.
– PTI
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]]>The post Finance Minister announced Rs 30,000 cr. special liquidity scheme, Rs. 45,000 cr. partial credit guarantee scheme 2.0 and Rs 3 lakh cr. collateral-free loan for business appeared first on The Edge Media.
]]>She said the rate of tax deducted at source (TDS) and tax collected at source (TCS) for non-salaried payments up to March 31, 2021, will be cut by 25 percent. The move will release Rs 50,000 crore in the system, she said.
The minister also extended by three months the government support to companies with less than 100 employees to meet retirement fund obligations. For all companies, the statutory obligation to pay 12 percent of basic salary as employer’s share to employee provident fund (EPF) contribution has been reduced to 10 percent to boost their liquidity.
To boost construction, all government agencies will give up to 6-months extension to all contractors to complete construction, and goods and service contracts. “Essentially this is to spur growth and to build a very self-reliant India,” she said. “It addresses ease of doing business, compliance, and due diligence and the intention is also to build local brands.”
Prime Minister Narendra Modi had on Tuesday evening announced the raising of spending to Rs 20 lakh crore or about 10 percent of India’s GDP, to help the economy get back on its feet after weeks of the lockdown.
Sitharaman said collateral-free loans will benefit 45 lakh small businesses. The loan will have 4-year tenure and will have a 12-month moratorium, she said, adding the loans will be guaranteed by the government.
Also, Rs 20,000 crore subordinate debt will be provided for stressed or loan defaulting MSMEs, she said, adding this would benefit 2 lakh such businesses. A fund of funds for MSME is also being created, which will infuse Rs 50,000 crore equity in MSMEs with growth potential.
The government also changed the definition of MSMEs to allow units with higher investment as well as introduced turnover criteria to allow more companies to remain small businesses to get fiscal and other benefits. Also, to help them get more business, global tenders for government procurement up to Rs 200 crore will be barred.
The finance minister announced a Rs 30,000 crore special liquidity scheme for non-banking financial institutions (NBFCs), housing finance firms (HFCs) and microfinance institutions (MFIs) with a view to provide credit support to them and create confidence in the market.
Further, a Rs 45,000 crore partial credit guarantee scheme 2.0 was also announced for NBFCs, HFCs, and MFIs with low credit rating to help them extend a loan to individuals and MSMEs
News source : – PTI
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