Policy
Work begins on credit index for MSMEs to boost funding
The Indian government is developing a 'Creditworthiness Index' to improve credit access for micro and small businesses. The index will rate companies across industries using common parameters, assisting lenders in evaluating borrowers with limited financial history. This initiative is part of a larger plan to enhance credit access and support MSME growth.
'India committed to bridging gender pay gap, digital divide'
At the UN Asia-Pacific Ministerial Conference, India pledged to boost women's participation in non-traditional sectors, address gender pay disparities, and close the digital divide. The nation highlighted its accomplishments in promoting gender equality, including a significant increase in women with bank accounts and a rise in gender budgeting.
Follow KYC guidelines or face regulatory action: RBI DG to banks
RBI Deputy Governor Swaminathan J urged private sector banks to prioritize customer-centricity and adhere to KYC guidelines with empathy. He emphasized the importance of robust grievance mechanisms and warned of regulatory action against banks neglecting customer service and transparency.
Assocham asks govt to consider single TDS rate in next Budget
Assocham, in its pre-budget recommendations, proposed a single TDS rate of 1-2% for resident assesses to simplify tax compliance and reduce litigation. The chamber also advocated for decriminalizing certain TDS defaults and extending tax neutrality to amalgamation and demerger processes, including slump exchange.
CCPA to bring regulatory framework for diamond industry to protect consumers interest
While a carat of lab-grown diamond costs about Rs 65,000-Rs 80,000, the price of a carat of natural diamonds is Rs 4-Rs 4.5 lakh. At present, section 12 of the Legal Metrology Act, 2009, provides the unit of mass for diamonds, pearls, and precious stones as the carat, equivalent to 200 milligrams or one five-thousandth of a kilogram, ensuring standardised measurements for consistency in commercial transactions across the diamond industry.
Capital restructuring norms for CPSEs updated to add value
India's finance ministry has revised guidelines for capital restructuring by central public sector enterprises (CPSEs), aiming to enhance their value creation and shareholder returns. Key changes include a revised minimum annual dividend requirement and increased flexibility for share buybacks, bonus share issuance, and share splits.
Public procurement norms may be tweaked to aid makers under PLI
The govt is considering changes to its public procurement rules to benefit manufacturers participating in PLI schemes. One proposal being evaluated is granting deemed local supplier status to companies that contract manufacturing to PLI beneficiaries. This move aims to boost domestic production and provide greater market access to PLI participants in government procurement.
FM Nirmala Sitharaman flags mis-selling of insurance, calls for collateral free loans to MSMEs
Indian Finance Minister Nirmala Sitharaman raised concerns about insurance mis-selling, emphasizing its contribution to higher borrowing costs for customers. She urged banks to focus on affordable lending rates to support industrial growth and advocated for digital financial inclusion. Sitharaman highlighted India's economic resilience and the need for transparency in banking practices.
Finance Commission open to view alternate index for devolution to states: Chairman Arvind Panagariya
The 16th Finance Commission is exploring alternative indices for fund allocation to states grappling with natural disasters and unique challenges. Chairman Arvind Panagariya emphasized the need for a transparent and universally acceptable index, acknowledging the growing severity of disaster-related issues and the widening economic gap between states.
Financial services Secretary Nagaraju M sceptical about crypto, backs RBI's cautionary stance
Department of Financial Services Secretary Nagaraju M expressed skepticism about cryptocurrencies, echoing the Reserve Bank of India's cautious stance. He highlighted concerns regarding financial stability and emphasized the need for a cautious approach. Nagaraju also urged microfinance companies to practice responsible lending and stressed the importance of climate-proofing infrastructure finance.
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DIPAM issues revised capital restructuring norms for CPSEs
India's Finance Ministry has updated guidelines for capital restructuring by Central Public Sector Enterprises (CPSEs), requiring a minimum annual dividend payout and introducing measures like share buybacks and splits to enhance shareholder value.
Govt initiatives helping attract foreign investors in India: CII
Government initiatives like Make in India and PLI schemes are attracting foreign investors to establish bases in India, according to CII. Increased infrastructure investments and favorable geopolitical conditions are also contributing factors to the rise in FDI inflows.
K. Sanjay Murthy to be the new Comptroller and Auditor General of India
The Central government appointed K. Sanjay Murthy as the new Comptroller and Auditor General (CAG) of India, replacing Girish Chandra Murmu. Murthy, currently serving as the Secretary of the Department of Higher Education, will assume office as CAG effective immediately. His appointment was made by the President under Article 148 of the Indian Constitution.
RBI Guv Shaktikanta Das raises concerns over complaints being misclassified as 'customer queries' by banks
Reserve Bank Governor Shaktikanta Das voiced concerns over banks miscategorizing customer complaints as "queries" and urged bank boards to prioritize customer centricity. He emphasized the importance of trust in banking and addressing concerns to ensure the industry's stability and growth.
Govt pushes back on key RBI proposals fearing hit to credit growth
The Indian government is pushing back on two key proposals from the Reserve Bank of India (RBI) aimed at increasing bank reserves for infrastructure projects and online deposits. The RBI proposed banks set aside 5% of loans for infrastructure projects under construction and another 5% for "run-off" reserves on digital deposits.
RBI governor Shaktikanta Das' term likely to be extended further
The Indian government is expected to extend the term of Reserve Bank of India (RBI) Governor Shaktikanta Das for a second term, making him the longest-serving RBI chief since the 1960s. Das, appointed in December 2018, has already served beyond the typical five-year term.
