L

7W(

CIAL
y irwirw/

COHPILATIOl:E S TOOE AND A K eUPTA

CODE N0.61022060
 UNION BUDGET - FY 2018-19

The Central Govt. budget for the financial year 2018-19 was presented by the Finance Minister in Parliament on
February 01, 2018. The salient features are:are:
Agriculture and Rural Economy
1. Govt. considers agriculture as an enterprise. It proposes to double farmers' income by 2022(75^^ year of
independence). Emphasis in budget allocations is, on generating higher incomes for farmers.
2. As per pre-determined principle, Govt. proposes to keep MSP for the all unannounced crops of kharif at
least at 150% of their production cost.
3. If price of the agriculture produce in the market is less than MSP, Govt. proposes to purchase either at MSP
or work in a manner to provide MSP for the farmers through some other mechanism.
4. Proposal to develop and upgrade existing 22,000 rural haats into Gramin Agricultural Markets(GrAMs).
GrAMs, electronically linked to e-NAM and exempted from regulations of APMCs, will provide facility to
make direct sale to consumers and bulk purchasers.
5. An Agri-Market Infrastructure Fund with a corpus of Rs.2000 crore will be set up for developing and
upgrading agricultural marketing infrastructure in the 22000 GrAMs and 585 APMCs.
6. For PM Krishi Sampada Yojana (a flagship programme for boosting investment in food processing)
allocation is being doubled to Rs.l400 crore in BE 2018-19.
7. Government proposes to launch an "Operation Greens" (for potato, onion and tomato)on the lines of
"Operation Flood". It shall promote Farmer Producers Organizations(FPOs)for agri-logistics, processing
facilities and professional management. Allocation Rs.500 crore for this purpose made.
8. Proposal to extend KCC facility to fisheries and animal husbandry farmers for working capital needs.
9. Bamboo ('Green Gold') grown outside forest areas removed from the definition of trees. Proposal to launch
a Re-structured National Bamboo Mission with an outlay of Rs.1290 crore.
10. Government had set up a Long Term Irrigation Fund in NABARD to meet funding requirement of irrigation
works. Scope of the Fund would be expanded to cover specified command area development projects.
11. Proposal for setting up a Fisheries and Aquacuiture Infrastructure Development Fund for fisheries sector
and an Animal Husbandry Infrastructure Development Fund for financing infrastructure requirement of
animal husbandry sector with total Corpus of Rs.10,000 cr.
12. Increase in volume of institutional credit for agriculture sector from Rs.lO lakh crore In 2017-18 to Rs.ll
lakh crore for the year 2018-19.
13. Presently, lessee cultivators are not able to avail crop loans. NITI Aayog will evolve a suitable mechanism to
enable access of lessee cultivators to credit, without compromising the rights of the land owners.
14. PM Ujjwaia Scheme was launched, with a target to provide free LPG connections to 5 cr poor women.
Proposal to increase the target to 8 crore poor women.
15. Govt. had launched PM Saubhagya Yojana for providing electricity to all households. 4 crores poor
households are being provided with electricity connection free of charge by spending Rs.16000 crore.
16. Under Swachh Bharat Mission, Govt. has constructed more than 6 crore toilets. Govt. is planning to
construct around 2 crore more toilets.
17. Govt. will establish a dedicated Affordable Housing Fund (AHF) in National Housing Bank,funded from
priority sector lending shortfall and fully serviced bonds authorized by the Government of India.
Health, Education and Social Protection
1. Government is implementing a comprehensive social security and protection programme. Allocation on
National Social Assistance Programme this year has been kept at Rs.9975 crore.
2. Proposal to treat education holistically without segmentation from pre-nursery to Class 12.
3. Govt. proposes to increase digital intensity in education and move gradually from "black board" to "digital
board". Technology will be used to upgrade the skills of teachers through digital portal "DIKSHA".
4. To provide the best quality education to the tribal children in their own environment, by 2022, every block
with more than 50% ST population and at least 20,000 tribal persons, will have an Ekalavya Model
Residential School on par with Navodaya Vidyalayas.
5. To step up investments in research and related infrastructure in premier educational institutions, including
health institutions, proposal to launch a major initiative named "Revitalising Infrastructure and Systems in
Education (RISE) by 2022" with a total investment of Rs.l,00,000 crore in next four years.
6. Govt. announced two major Initiatives as part of "Ayushman Bharat" programme aimed at making path
breaking Interventions to address health holistlcally, in primary,secondary and tertiary care system
covering both prevention and health promotion.
7. The National Health Policy, 2017 has envisioned 1.5 lac Health and Wellness Centres as the foundation of
India's health system.
8. Proposal to launch a flagship National Health Protection Scheme to cover over 10 crore poor and
vulnerable families (approximately 50 crore beneficiaries) providing coverage upto Rs.5 lakh per family, per
year for secondary and tertiary care hospitalization. This will be the world's largest government funded
health care programme.
9. Proposal to make villages, open-defecation-free Galvanizing Organic Bio-Agro Resources Dhan (GOBAR-
DHAN)for management and conversion of cattle dung and solid waste in farms to compost, fertilizer, bio-
gas and bio-CNG.
10. Government will expand the coverage under PM Jan Dhan Yojana by bringing all 60 crore basic accounts
within its fold and undertake measures to provide services of micro insurance and unorganized sector
pension schemes through these accounts.
MSMEsand Employment
1. Govt. has provided Rs.3794 crore to MSME Sector for giving credit support, capital and interest subsidy and
innovations.
2. Proposal to onboard public sector banks and corporates on Trade Electronic Receivable Discounting System
(TReDS) platform and link this with GSTN. Online loan sanctioning facility for MSMEs will be revamped for
prompt decision making by the banks.
3. Target of Rs.3 lakh crore for lending under MUDRA for 2018-19, set.
4. Govt. will contribute 12% of wages of the new employees in the EPF for all the sectors for next 3 years.
Also, the facility of fixed term employment will be extended to all sectors.
5. Proposal to amend the Employees Provident Fund and Miscellaneous Provisions Act, 1952 to reduce
women employees' contribution to 8% for first 3 years of their employment(existing 12% or 10%) with no
change in employers' contribution.
Infrastructure and Financial Sector Development
1. Railways' Capex for the year 2018-19 pegged at Rs.1,48,528 crore.
2. A 'Safety First' policy, with allocation of adequate funds under Rashtriya Rail Sanraksha Kosh is cornerstone
of Railways' focus on safety.
3. Other major steps include Increasing use of technology like "Fog Safe" and "Train Protection and Warning
System".
4. Redevelopment of 600 major railway stations is being taken up by Indian Railway Station Development Co.
Ltd. All stations with more than 25000 footfalls will have escalators. All railvyay stations and trains will be
progressively provided with wi-fi. CCTVs will be provided at all stations and trains to enhance security of
passengers. Modern train-sets are being designed at Integrated Coach Factory, Perambur. First such train-
set will be commissioned during 2018-19.
5. Regional connectivity scheme of UDAN (Ude Desh ka Aam Nagrik) initiated by Govt. last year shall connect
56 unserved airports and 31 unserved helipads across the country. Proposal to expand airport capacity
more than 5 times to handle a billion trips a year under a new initiative - NABH Nirman.
6. RBI issued guidelines advising Corporates to access bond market. SEBI will also consider mandating the
Corporates, to meet about 25% of their financing needs from the bond market.
7. Corporate bonds rated 'BBB' are investment grade. In India, regulators permit bonds with 'AA' rating only,
as eligible for investment. It is time to move from 'AA' to 'A' grade ratings. The Govt.and concerned
regulators will take necessary action.
8. Bharatnet project has enabled broadband access to over 20 crore rural Indians in about 250000 villages.
Govt. proposes to setup 5 lac wi-fi hotspots to provide broadband access to 5 crore rural citizens.
9. Distributed ledger system or the block chain technology allows organization of any chain of records or
transactions without the need of intermediaries. The Government will explore use of block chain
technology proactively for ushering in digital economy.
Building Institutions and Improving Public Service Delivery
10. Every enterprise, major or small, needs a unique ID. Government will evolve a Scheme to assign every
individual enterprise in India, a unique ID.
11. Capital of the Food Corporation of India will be restructured to enhance equity and to raise long-term debt
for meeting its standing working capital requirement.
12. Disinvestment target set at Rs.80,000 cr for 2018-19.
13. Strong Regional Rural Banks to be allowed to raise capital from market to increase their credit to rural
economy.
14. National Housing Bank Act is being amended to transfer Its equity from RBI to the Government.
15. Indian Post Offices Act, Provident Fund Act and National Saving Certificate Act are being amalgamated and
certain additional people friendly measures are being introduced.
16. To provide RBI an instrument to manage excess liquidity, RBI Act is being amended to institutionalize an
Uncollateralized Deposit Facility.
17. Securities and Exchange Board of India, Act 1992, Securities Contracts (Regulation) Act 1956, and
Depositories Act 1996, are being amended to streamline adjudication procedures and to provide for
penalties for certain infractions.
18. Govt. will formulate a Gold Policy to develop gold as an asset class. Gold Monetization Scheme will be
revamped.
19. The emoluments are proposed to be revised to Rs.5 lakh for the President, Rs.4 lakhs for the Vice President
and to Rs.3.5 lakh pm for the Governors.
20. Proposal to refix the salary and allowance of Members of Parliament with effect from April 1^ 2018 with
automatic revision of every 5 years, indexed to inflation.
Tax Incentive for promoting post-harvest activities of agriculture
1. Proposal to allow 100% deduction to companies registered as Farmer Producer Companies and having
annual turnover up to Rs.lOO crores in respect of their profit derived from post-harvest activities for a
period of 5 years from financial year 2018-19.
Incentivlsing micro,small and medium entrepreneurs
1. In the Union Budget, 2017, reduction of corporate tax rate to 25% for companies whose turnover was less
than Rs.SOcrore in financial year 2015-16 was approved. Proposal to extend the benefit of this reduced
rate of 25% also to companies who have reported turnover up to Rs.250 crore in the financial year 2016-
17. This will benefit the entire class of MSMEs which accounts for 99% of companies filing their tax returns.
Relief to senior citizen
1. Exemption of interestincome on deposits with banks and post offices to be increased from Rs.10,000/- to
Rs.50,000/- and TDS shall not be required to be deducted on such income, under section 194A. This benefit
shall be available also for interest from all fixed and recurring deposit schemes.
2. Raising the limit of deduction for health insurance premium and/ or medical expenditure from Rs.30,000/-
to Rs.50,000/-, under section 8QD. All senior citizens can claim benefit of deduction up to Rs.50,000 p.a. for
health insurance premium and/or any general medical expenditure incurred.
3. Raising the limit of deduction for medical expenditure in respect of certain critical illness from, Rs.60,000 in
case of senior citizens and from Rs.80,000/- in case of very senior citizens, to Rs.l lakh u/s 80DDB.
4. Proposal to extend PM Vaya Vandana Yojana up to March, 2020 under which an assured return of 8% is
given by Life Insurance Corporation of India. The existing limit on Investment of Rs.7.5 lakh per senior
citizen under this scheme is also being enhanced to Rs.lS lakh.
Further Measures to control cash economy
1. Currently, the income of trusts and institutions is exempt if they utilise the income as per Income-tax Act.
To have audit trail of the expenses, the payments above Rs.10,000 in cash shall be disallowed.
Misc. Issues
1. Govt. proposes to notify a new scheme where the assessment will be done in electronic mode which will
almost eliminate person to person contact leading to greater efficiency and transparency.
2. With GST roll, name of Central Board of Excise and Customs[CBEC] to be changed to Central Board of
Indirect Taxes and Customs (CBIC).
3. Govt. proposes to amend FRBM Act to set a 3% fiscal deficit target to be achieved by 2020-21.
 Largest firms account for much smaller exporte than
ECONOMIC SURVEY 2017-18 in other comparable countries. Top 1% of Indian firms
Economic Survey is a document that provides information about developments account only for 38% of exports unlike In other
in Indian Economy in the current year vis-a-vis the budget plans. It is prepared countries where they account for substantially greater
under guidance of Chief Economic Advisor and tabled by Finance Minister in share - (72, 68, 67 and 55% In Brazil, Germany,
Parliament. Highlights are as under: Mexico, and USA, respectively).
Major achievements of past year:Implementing GST, responding quickly Indian society exhibits a strong desire for a male
to transitional challenges, tackling longfestering Twin Balance Sheet challenge child. Most parents continue to have children until they
by sending stressd debtors to IBC & bank recap validation and first sovereign get the desired number of sons.
upgrade in 14 years. Sectoral Growth
.Economic growth pegged at 7-7.5 per cent for FY'19. 2017-18 industry growth seen at 4.4 per cent
. For the fiscal year 2016-17, the real GDP growth was 6.75% and the • 2017-18 farm sector gVowth seen at 2.1 per cent
Economic Survey predicts 7-7.5% growth in 2017-18. 2017-18 services sector growth seen at 8.3 per cent
.The key focus areas in the medium term are employment, education Fiscal deficit
and agriculture. Current account deficit for 2017-18 expected to
.In 2017-18, the Gross Value Added (GVA) at constant basic prices is average 1.5-2 per cent of GDP
expected to grow at the rate of 6.1% as compared to 6.6% in 2016-17. • Pause in general government fiscal consolidation
Agriculture, industry and services sectors are expected to grow cannot be ruled out in 2017-18
at the rate of 2.1%, 4.4%, and 8.3% respectively in 2017-18. Suggests modest (fiscal) consolidation that signals a
. India's GDP growth is highest among major economies of the world return to path of gradual but steady deficit reductions
having an average of 7.3% for the period from 2014-15 to 2017-18. Inflation, policy rates
• The next year's agenda include stabilizing the GST, soiving twin balance Persistently high oil prices remain a key risk, to affect
sheet (TBS) problem and implementing necessary actions, privatizing Air inflation
India, and ensuring macroeconomic stability. • If inflation doesn't deviate from current levels, policy
.50% increase in the number of indirect taxpayers has been recorded. rates can be expected to remain stable
.18 lakh new individual income tax filers been recorded since Nov 2016. • Average CPI Inflation seen at 3.7% in 2017-18
.Exports of readymade garments (man-made fibers) increased by about • Policy vigilance required next fiscal if high oil prices
16% due to Rebate of State Levies (ROSL). persist or stock prices correct sharply
• 5 States namely Maharashtra, Gujarat, Karnataka, Tamil Nadu and • Policy agenda for next year — support agriculture,
Telangana account for 70% of India's exports. privatise Air India, finish bank recapitalisation.
.India's internal trade in goods and services is 60% of GDP. • Tax collection by states, local governments
.IBC mechanism is being used actively to resolve NPA problem. significantly lower than those In other federal countries
• 2017-18 averaged the lowest Inflation In the last six years. • Urban migration leading to feminlsatlon of farm sector
• Rs20,339cr approved for Interest subvention in 2017-18. • Rs 20,339 cr approved for Interest subvention for
.The ratio of domestic saving to GDP reached 29.2% In 2013 to a peak of farmers In current fiscal
38.3% in 2007, before falling back to 29% in 2016. • FDI in services sector rises 15% in 2017-18 on reforms
.Weighted average collection rate (incidence) of GST is about 15.6 per cent. • Fiscal federalism, accountability to help avoid low
As such, the single tax rate that would preserve revenue neutrality Is between equilibrium trap
15 to 16 per cent. • India's external sector to remain strong on likely
.Tax departments have gone in for contesting several tax disputes but also improvement in global trade
with a low success rate, which is below 30 per cent. • Swachh Bharat initiative improved sanitation coverage
In rural areas from 39% In 2014 to 76% in Jan 2018
Key Indicators of Indian Economy • Priority to social infrastructure like education, health
2016-17 2017-18 to promote inclusive growth
Data category 2015-16
• Centre, states should enhance cooperation to deal
12189854 12985363
GDP at constant prices (Rs.Cr) 11381002 with severe air pollution
GDP growth rate(%) 8.0 7.1 6.5 •Suvey 2017-18 in pink colour to highlight gender issues
11185440 11871321 • FDI in services sector rises 15% In 2017-18 on reforms
GVA at constant basic prices (Rs.cr)10490514
.For 2017-18, Gross national income at current prices
7.9 6.6 6.1
GVA growth rate(%) and constant prices (2011-12 serices) is Rs.16438895
Per capita net national Income (Rs.) 94130 103219 111782 cr and Rs.l2835004 cr. (annual growth rate 9.6% and
6.6%) repsectlvely.
251.6 275.7 134.7#
Foodgralns (million tonnes) .For 2017-18, Net national Income at current prices
WPI Inflation (%) -3.7 1.7 2.9 and constant prices is Rs.14710563 cr and
4.9 4.5 3.3 Rs.11404413 cr (annual growth rate 9.7% and 6.7%)
CPI Combined inflation(%) respectively
370 409
Forex reserves (USD billion) 360 .For 2017-18, Per capita net national income at current
3.9 3.5 3.2@ prices and constant prices is Rs.111782 and Rs.86660
Gross Fiscal deficit to GDP(%)
(annual growth rate 8.3% and 5.3%) respectively.
Revenue deficit to GDP(%) 2.5 2.1 1.9@
. For 2017-18, Gross Domestic Product at constant
Primary deficit to GDP(%) 0.7 0.4 0.1@ prices (2011-12) : Rs.12985363 cr and Rs.16627585
cr at current prices.
# Apr-Nov 2017 @Budget estimate
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
FINANCIALAWARENESS
January 2018
SRIKRISHNA PANEL SUGGESTIONS ON DATA PRIVACY: The Srikrishna Panel was set up on July 31 following a Government
decision to make Aadhar compulsory for all its services. The government gave the Panel three months time to suggest a Draft Bill Now
the Panel suggested in a White Paper for setting up a Data Protection Authority, Data Audit, Registration of data collectors enacting
provisions for protecting children's personal information, defining penalties and compensation In case of a data breach. Panel has also
suggested that the foreign entity that offers goods or services in the country may be covered under the law. Further the proposed law
may not be extended to Include data relating to companies and other juristic entitles.
GOVT. TO TAX UNSOLD INVENTORY UNDER REAL ESTATE: In a bid to curb hoarding of unsold inventory by real estate
developers, CBDT is set to tax unsold flats that have been lying with developers for more than a year. Fresh tax would be applicable on
such inventories from next financial year. The move would reduce developer's strategy of hoarding constructed property in anticipation
of price escalation in future. Tax rate could be anywhere between 8 and 10% of the total value of the property. The tax would be levied
on the property that is held under "Stock In Trade" by the developers.
LOAN POLICY OF ADB TO INDIA: Multi-lateral Funding Agency Asia Development Bank (ADB) has decided to provide loans up to $4
billion on annual basis Including non-sovereign debt during 2018-22 so as to accelerate inclusive transformation of India So
cumulatively, India, the Largest recipient of ADB, will get about $20 billion over a period of five years. As part of the country
strategy,2018-22, annual sovereign funding will Increase from $2 billion to $3 billion while private sector funding would t)e doubled to $1
billion.
SEBI FRAMING ALGO TRADING RULES FOR RETAIL INVESTORS: SEBI plans to Introduce rules on participation of retail investors
in algorithmic trading, a system widely regarded as giving Its sophisticated institutional practitioners an edge. SEBI is in the process of
determining the extent to which Individual investors should be allowed to use this automated trading system. Algo Trading uses
advanced mathematical models and computer programmes to create nimble trading strategies. Decisions are made and executed in a
fractions of a second at magnitudes a human being could not handle. This advantage over manual methods Is a concern for regulators
around the world.
GOVT SETS UP NATIONAL ANTI-PROFITEERING AUTHORITY: The Government has set up the National AntI- profiteering
Authority amid reports that some companies and particularly restaurants are not passing on the benefit of the GST rates cuts to the
consumers. The authority is mandated to ensure that the benefits of input credit and the reduction in GST rates on specified goods or
services are passed on to the consumers by way of a commensurate reduction In prices. The Screening Committee is expected to look
into complaints of local nature while the Standing Committee would ordinarily enquire into cases of mass impact with All India
ramifications.
CABINET GIVES NOD FOR NATIONAL NUTRITION MISSION: The Union Cabinet has approved the establishment of a National
Nutrition Mission to address serious incidence of malnutrition and stunting among infants in the country. The Nutrition Mission of
Rs.9000 Crore will be jointly launched by the Ministries concerned together with NITI Aayog. The Mission has set an ambitious goal of
reducing Incidence of stunting among
children from 38.4% now to 25% by 2022. The Mission is to be launched In January next year and will be rolled out in 162 backward
districts in six states initially and will be expanded further to 315 districts in the current financial year. The rest of the country will be
covered over the next two years.
SEBI RATCHETS UP GOVERNANCE STANDARDS FOR MUTUAL FUNDS: SEBI has prescribed that directors and auditors of mutual
fund companies should rotate every 10 years. Independent directors and independent trustees of MFs can now hold only two consecutive
five-year terms. An independent director will be eligible for reappointment after a cooling-off period of three years
' Further Asset
Management Company (AMC) should also adopt an auditor rotation policy. No auditor will be allowed to audit an AMC for more than two
consecutive five year terms. The auditor will be allowed reappointment after a coollng-off period of five years.
SUPREME COURT RULED ON DRT:(Case-Aggarwal Tracom Ltd. VS. Punjab National Bank) Supreme court has ruled that if there Is a
dispute between the buyer at the auction of a mortgaged property and the secured creditor, it should be resolved by the Debt Recovery
Tribunal(DRT) and not by a High Court.
SUPREME COURT RULING ON TAX BENEFIT FOR ADVANCE DEPOSIT;(Cases of Modipon Ltd. and Paharpur Cooling Towers Ltd)
The Supreme Court has ruled that the advance deposit of central excise duty constitutes actual payment of duty within the meaning of
Section 43B of the Central Excise Act and therefore the firms are entitled to the benefit of deduction of those amounts. Having regard to
the object behind the enactment of Section 43B, the Legislative intent would be achieved by giving benefit of deduction to an assessee
upon advance deposit of duty.
FBIL ROLLS OUT BENCHMARK RATE FOR MONEY MARKET: In an Endeavour to introduce a new benchmark that will provide a risk-
free reference rate for the money market. Financial Benchmarks India (FBIL) has developed the FBIL- Market Repo Overnight Rate (FBIL-
MROR) which will be published on each working day beginning December 12, 2017. The Clearing Corporation of India CQL) will be the
Calculating Agent for FBIL-MROR.
INDIA PLANS GOLD SOURCING STANDARDS: India is planning its own standards for gold refiners. Guidelines are being worked out
on the lines of rules set out by the Organisation for Economic Co-operation and Development (OECD). The OECD guidance is flexible and
can be adapted to specific market characteristics in India, as has been done in London, Dubai and China. This flexibility includes adapting
approaches to build on existing checks on imports of bullion and gold dore.
FINMIN TO FRAME A COMMON SET OF RULES FOR VALUATON OF STRESSED ASSETS: The Finance Ministry is working with
state-run lenders to frame a common set of rules for valuation of stressed assets for faster resolution of loans extended by a consortium of
multiple lenders. In case of joint lending, banks are unable to arrive at a common valuation, which stalls the resolution process Further
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
individual banks also fear that if Ciey agree to a certain haircut, it may not stand the scrutiny of vigilance agencies.
HIGHER EXPORT RELIEF UNDER FTP 2015-20: Mid-term review of die Foreign Trade Policy (FTP) 2015-20 has brought In additional
relief worth Rs.8450 Crore annually for the labour intensive and micro, small and medium enterprises (MSME)
sectors. Merchandise Export from India Scheme incentives increased by 2% for labour-intensive/MSME sectors. Services Export
Incentive Scheme incentives also increased by 2% for select sectors. Validity of scrips under the incentive schemes increased from 18
months to 24 months. GST rates on transfer/sale of scrips reduced to zero. Further self-declaration has also been allowed for duty-free
inputs for export production.
CANARA HSBC LIFE BEGINS VIDEO SERVICE FOR RTCE: In a first for the life insurance industry, Canara HSBC Oriental Bank of
Commerce Life Insurance Co. Ltd. has come up with a video service that seeks for Real-Time Customer Engagement (RTCE).Under the
video service, a customer can go to the website of the company and dick on the video service icon to directly engage with the company
for various sen/ice requests. This will be like Facetime and WhatsApp video. A lot of customers prefer looking at the face of a company
representative than interact only via voice. This will be real-time video engagement.
SEBI FOR ONUS ON RATING AGENCIES TO REVEAL LOAN DEFAULTS: In a substantial dilution of its earlier stand that listed
companies should make public any loan default within 24 hours of missing the repayment obligation, SEBI is now worldng on a new
disclosure framework which could put the onus on Credit Rating Agencies to recognise payment defaults. The move is meant to ease the
concerns raised by India Inc and banks against SEBI's earlier circular which has been withdrawn.
RBI CAUTIONS INVESTORS ON RISKS IN CRYPTOCURRENCIES: RBI has cautioned Bitcoin and other
cryptocurrency enthusiasts that they face potential risks, including financial, legal and those related to customer protection. RBI said that
it has not given any licence or authorisation to any entity to operate schemes or deal with bitcoin or any virtual currency. The statement
has been issued by RBI in the wake of a significant spurt In the valuation of virtual currencies and rapid growth In the Initial Coin
Offerings.
GOVT. PANEL FOR RELIEF TO STRESSED ASSET BUYERS; A Government-appointed Panel is planning to recommend amendments
to the Insolvency and Bankruptcy Code (IBC) by which the buyers of stressed assets may get exemption from paying the minimum
alternate tax (MAT) and the need for getting approval from the Competition Commission of India. Doing away with the approval process
completely might lead to one player exploiting its dominant position in the market, at the same time delay because of the approval
process can be avoided.
RBI LAUNCHES HELPLINE AGAINST PRIZE FRAUDS: Taking the fight to the arena used by fraudsters promising prize money from
RBI, now the Banking Regulator itself has launched an SMS Campaign and a "Missed Call" Helpline to warn people against such scams.
Typically, such fraudsters make calls or send SMSs and emails to gullible people promising lotteries and prize money from RBI-at times
from the RBI Governor himself-to trap them into sharing their banking account details or paying some "fees or charges" to get the
money.
GOVT. ISSUES WIND AUCTION GUIDELINES: The Power Ministry has issued the guidelines for the Wind Power Projects. As per
guidelines, the Project secured through auctions should have a minimum size of 25MW if it supplies power to one state and 50 MW if it
supplies to more than one state. Further, wind energy projects should have a minimum capacity utilisation factor (CUF) of 22% and will
be penalized if they fall below that mark. If the CUF is higher than specified in the bid document,
the excess power will be paid for by the buyer at 75% of the tariff decided.
MFIN SETS UP EMPLOYEE BUREAU: Microfinance Institutions Network (MFIN), a self-regulatory body of Microfinance Institutions
(MFIs), has launched an Employee Bureau in association with Global Information Solutions Company Equifax. The bureau will help in
maintaining a database containing details of staff, which would help MFIs improve the quality of hiring practices with better past-
employment checks. The database is expected to be comprehensive, having information across the hierarchy of MFI members.
GOVT. PROPOSAL ON REPLENISHING CASH IN ATMs; Concerned over attacks on cash carrying vans, the government has proposed
that ATMs should not be replenished with cash after 9PM in cities and private cash-transportation agencies must collect money from banks
In the first half of the day. The deadline for putting money in ATMs in rural areas would be 6PM and 4PM in Naxal-affected districts. Also,
specially designed cash vans, fitted with CCTVs and GPS must not carry more than Rs.5 Crore per trip. Nearly 8000 private vans ferry
around Rs.15, 000 Crore daily between banks, currency chests and ATMs across the country.
GOVT. INITIATES SURVEY ON JOBS UNDER MUDRA: Under attack from opposition on the lack of growth in employment
opportunities, the Government has tasked the Labour Bureau to ascertain the number of jobs created under MUDRA Scheme. This is a rare
instance when the government has commissioned a survey on its own scheme. Present surveys which have shown a declining trend in job
creation recently, were not able to access the employment generated through Government schemes.
SUPREME COURT EXTENDS AaDHAR LINKING DEADLINE: Supreme court has extended the deadline for Aadhar-bank linkage to
March 31, 2018, but only for Non-Aadhar holders opening new bank accounts. The Non-Aadhar holders have time till March 31 to enrol for
Aadhar and produce it before the bank authorities. During the interim, they can furnish their Aadhar enrolment application. This is an
interim arrangement. Meanwhile, the Constitution Bench extended deadline for mobile phone-Aadhar linkage from Feb 6 to Mar 31, 2018.
UNION CABINET APPROVES TO AMEND NEGOTIABLE INSTRUMENTS ACT: The Union Cabinet has approved to amend the
Negotiable Instruments Act. The amendment will allow a court to order interim compensatbn to the payee of a cheque, a part of the
amount at the trial stage itself. If the drawer is acquitted, the court may direct the payee to repay the amount paid as interim
compensation with interest. Similarly, appellate courts will be enabled to order the appellant to deposit a part of the compensation
awarded by the trial court at the time of filing appeal.
GOVT. TO REIMBURSE MDR TO PROMOTE DIGITAL TRANSACTIONS: The Union Cabinet has cleared the way for the Government
to bear the transaction cost of a merchant for payments made to it on all debit cards, BHIM UPI and Aadhar- enabled Payment System
(AePS) transactions, provided the transactions are up to Rs.2000. For two years starting Januaryl, the Government will reimburse
Merchant Discount Rate (MDR)- to banks. The Centre estimates that it will reimburse MDR of about Rs.1050 Crore in 2018-19 and Rs.l462-
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
Crore In 2019-20.
PARLIAMENTARY JOINT COMMITTEE ON FRDI BILL: The Financial Resolution and Deposit Insurance (FRDI) Bill was
Introduced in Parliament on the last day of the previous session. This bill is now before the Joint Committee of Parliament. With the
FRDI Bill Indicating that depositors' monies could be used for "bail-in" of failing banks, the bill has created widespread fear,
apprehension and panic amongst depositors. The apprehension is that deposits in banks would not be returned because of the "baii-ln"
clause in the Bill. Now the Joint Committee has sought extension of the deadline for submission of Its report to the last date of the 2018
Budget Session which has been acceded to by the Lok Sabha Speaker.
GRATUITY AMENDMENT BILL INTRODUCED IN LOK SABHA: The Government has Introduced a Bill in the Lok Sabha that will
empower it to notify a higher period of maternity leave and raise gratuity limit for employees. The gratuity limit for private sector is
expected to be.raised to Rs.20 Lakh from existing Rs.lO lakh In line with that in the government sector. Further, maternity leave period
for female employees is to be extended from existing 12 weeks to 26 weeks.
GOVT. OFFERS ONE-TIME SETTLEMENT TO COMPANIES OF DEBARRED DIRECTORS: The Ministry of Corporate Affairs has
announced a One-time Settlement Scheme for companies in which over three lakh directors were debarred/disqualified from their
boards. The directors had been penalized after it was found that their companies had not filed annual returns and financial statements
with the ROC for three consecutive years. The Scheme called "Condonation of Delay Scheme 2018" will open on January 1, 2018 for a
period of three months. The Scheme intends to give an opportunity for non-compliant, defaulting companies to rectify the default. The
scheme will allow defaulting companies to submit all documents that were due for filing till June 30, 2017. A fee of Rs.30000 will be
charged for condoning the delayed filing of the documents.
RBI PLACED BANK OF INDIA UNDER PCA FRAMEWORK: RBI has placed Bank of India under the "Prompt Corrective Action"
(RCA) Framework following an on-site inspection under the Risk Based Supervision Model carried out for the year ended March 2017.
This action is in view of high net NPA, insufficient CET-1 capital and negative ROA for two consecutive years. As of March-end, Bank of
India had net NPA (NNPA)of 6.90%, Common Equity Tier-1 (CET-1) capital of 7.17%, and Return on Average Assets(ROAA) of -0.24%
(in FY17)and -0.94% (in FY 16). According to the revised Framework of RBI, banks with weak balance sheets may be subject to among
other things, resolution processes such as amalgamation, reconstruction, winding up or mandatory actions such as restriction on
management compensation and director's fees.
PSBs NOT MEETING PERFORMANCE STANDARDS NOT RECEIVED GOVT. CAPITAL INSFUSION; The Centre did not release
around Rs.6500 Crore to 13 Public Sector Banks (PSBs) in 2016-17 under the Indradhanush Plan as none of the banks met performance
standards. The Government had allocated a sum of Rs.22, 915 Crore in 13 PSBs during the financial year 2016-17 under the first
tranche of capital infusion out of which a sum of Rs.l6, 414 Crore (75%) was Infused upfront. The remaining amount of Rs.6500 Crore
was supposed to be infused based on meeting the performance standards. According to the Indradhanush Plan, the performance
standards included efficiency of capital use, growth of both credit and deposits and reduction in operation cost.
COMPANY AMENDMENT BILL GIVES RELIEF TO CREDITORS: The Companies Amendment Bill passed by Parliament has brought
further relief for creditors involved in
insolvency proceedings allowing them to acquire shares of insolvent company at a discounted price. According to Section 53 of the
Amended Companies Bill, a company may issue shares at a discount to its creditors when Its debt is converted into shares in pursuance of
any statutory resolution plan or debt restructuring scheme. Earlier any share issued by a company at a discounted price was considered as
void.
PARLIAMENTARY PANEL FOR DEPUTATION OF IAS,IPS OFFICERS IN PRIVATE FIRMS; The Parliamentary Panel, in a unique
suggestion, recommended deputation of lA and IPS Officers in private sector to bring in domain expertise and competition. It is also
supported the entry of private sector specialists into government services to meet the need of expertise. The recommendation assumes
significance as NITI Aayog also suggested in one of their reports outsourcing public services to private hands in order to reduce
dependence on the government administrative machinery.
FINMIN ALLOWS MANUAL FILING OF REfUND CLAIMS: The Finance Ministry has allowed manual-filing of Refund Qaims to speed
up pending refunds of exporters and traders who are facing problems of blocked working capital under GST. The refund claims were kept
pending due to non-availability of the Refund Module of the Common Portal. Now the refund claims will have to be filed on monthly basis
by tax payers. However those assessees who have joined the Composition Scheme, will file the returns on quarterly basis.
IRDAI FRAMES GUIDELINES FOR INSURANCE FIRMS: IRDAI has cleared the way for setting up of IFSC-Insurance Offices (IIO).
With this, IRDAI has put in place the process of registration and operation of insurers and re-insurers in IFSC Special Economic Zones, in
alignment with the objectives of IFSC-SEZ. Now insurers and re-insurers from India and abroad are eligible to apply for registration to set
up HQs subject to certain norms. The registered IIO may be permitted to transact direct insurance business within the IFSC, from other
SEZs and from outside India. IIOs may be registered for carrying on business in various classes/sub-classes of life, general, or health
insurance as also re-insurance businesses.
GOVT. SETS UP "GO" TO EXAMINE COMPLAINTS AGAINST PSU, PSB: In a bid to enhance transparency and functioning of state-
run firms including public sector banks, the Centre has set up a "Group of Officials"(GO) to look into complaints against high-ranking
officers in these companies. The Group will examine complaints against CMD, Chief Executives, Workmen Directors, Officers' Directors of
Central public sector firms, public sector banks, financial institutions and public sector insurers. In cases where the officer against whom
complaint has been made is retiring in near future, the GO to submit the recommendations before the date of retirement of such officer.
FINMIN ASKS PSBs TO RATIONALISE OVERSEAS, DOMESTIC BRANCHES: The Finance Ministry has asked public sector banks to
look at rationalising their domestic and overseas branches as part of the reform process to strengthen their financials. The banks have
been advised to pursue closure of loss-making domestic and international branches as part of capital saving exercise. With regard to
overseas branches, the Ministry has asked the lenders to discuss consolidation and take a final call on closing some unviable operations.
SEBI FOR ALLOWING LISTING OF SECURITY RECEIPTS BY ARCs: SEBI may allow listing of security receipts (SRs) issued by an
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
Asset Reconstruction Company (ARC)on an exchange platform and approve norms for the same. Union
Finance Minister in his last budget, had proposed trading in SRs on an exchange platform. RBI wanted to have more clarity on the^ass
of Investors that could trade these instruments and on who could be considered a "Qualified buyer" under SARFAESI Act
GOVT.TO BRING FRAMEWORK TO REGULATE CRYPTOCURRENCY: The Government has decided to close the regulatory gaps to
keep a check on cyrptocurrencies including bitcoin. Currently, over a thousand cyrptocurrencies exist. It can be classified into broad
categories-Currency, Capital Assets, Intangible Assets. Status of currency could be subject to FEMA Regulations. It could be deemed as
capital assets if purchased for the purpose of investment. Now the Government is likely to define the cyrptocurrencies and bring in a
regulatory framework in the Union Budget 2018-19.
INSOLVENCY BILL FOR SMOOTHENING RESOLUTION PROCESS: The Government wlli give promoters of insolvent companies
more time to repay their dues and participate in the resolution process of bankrupt companies in the Bill that will replace the ordinance
that was promulgated last month to amend the IBC. The changes proposed in the bill will also clearly allow asset reconstruction .
companies, banks and alternate investment funds to participate in the bidding and clarify the status of guarantors in such companies.
SEBI RESTRICTS RATING AGENCIES MONOPOLY: SEBI has restricted the credit rating agencies (CRAs) from consolidating their
shareholding among each other. SEBI imposed a 10% cap on cross-shareholding f credit rating agencies, raised their net-wortfi criteria
to Rs.25 Crore from the current Rs.5 Crores and disallowed any seat on the rival's board. S8tF, Moody's and FITCH are the three of
World's Largest CRAs that dominate the business. With annual bond issuance of over
$100 billion, India has mouthwatering debt market for ratings and concentration of business had given rise to lobbies. SEBI's move on
CRAs will save the sector from monopolistic practices.
SBI TO OFFER STAFF PAID BEREAVEMENT LEAVE AND MEDICLAIM BENEFITS: State Bank of India has introduced a special
leave for employees who have suffered a bereavement in the family. This will be a one week paid leave on the loss of a family member.
Further, besides leave , the Bank also took decision to provide 75% subsidy on Medlclalm premium for retired employees earning
pension up to Rs.20, 000. For those earning Rs.20, 000-Rs.30, 000 pension , the subsidy would be 60% . The Bank has also expanded
scope of Mediclaim cover for employees family to 100% of claimed amount as against 75% earlier.
SEBI ALLOWED TRADING ON STOCKS AND COMMODITY DERIVATIVES ON SAME EXCHANGE: SEBI has allowed trading on
stocks and commodity derivatives on the same Exchange from next October. Investors can now trade gold, crude oil and wheat along
with Reliance and Infosys shares on BSE, NSE, MCX and NCDEX. They can use a single demat account and a single bank account for
both trades. Currently, investors can trade gold and crude oil on MCX, wheat on NCDEX and company stocks on BSE and NSE.

GENERAL AWARENESS
DECEMBER 2017

Govt announced setting up 15^^ Finance Commission which is to be headed by- NK Singh, Former Revenue Secretary.
95% of Telecom Revenues is controlled by only Big Three Telecom Players- Bharti Airtel, Vodafone-Idea Cellular and Reliance
Jio.
South Africa's Demi-Leigh Nel Peters has been crowned as- Miss Universe 2017.
City where Global Entrepreneurship Summit 2017 inaugurated by PM Narendra Modi on 28^^ November- Hyderabad.
Seventh City for which PM Modi inaugurated Metro Rail System-
Hyderabad.
Transfer of debt by a related party to a non-related party can not dilute voting rights of creditors during resolution process- NCLT.
Jaipur-based Woman Entrepreneur Ajaita Shah with a focus on "Solar Technology" won- Global Innovation Competition .
Championship.
Currency Note which has become 100 Years Old on 1^^ December- RS. One Note.
The Most Searched Personality and winning Yahoo's People's Choice Award for Personality of the Year 2017- Prime Minister
Narendra Modi.
India has been re-elected to the Council of- International Maritime Organisation.
Bank which has successfully executed overseas transactions using Block-Chain Technology- South Indian Bank.
Academy, a deemed-to-be University, which Is the Highest Ranked Private University in India in the QS World Rankings- Manipal
Academy of Higher Education.
Centre for Excellence in Floriculture, which is to be set up in Tamiinadu by India and Israel- First Agro-Technology Development
Centre.
Magazine in which Indo-American Congress-woman Pramiia Jayapal has been featured for having assumed the mantle of a House "Leader
of the Resistance"-Poiitico Magazine's "Power List for 2018".
Country which has been banned by the Olympics Body from 2018 Winter Games over doping- Russia.
According to data released by Twitter, Prime Minister Narendra Modi has emerged after US President Trump as-"Most Tweeted-About
World Leader".
Bank which has launched a Digital Service to allow customers to open a PPF account Online- ICICI Bank.
"Kumbh Mela" which is the Largest Peaceful Congregation of Pilgrims on Earth has got- UNESCO's Intangible Status.
A Public Procurement Portal which has been launched by the govt. to monitor the implementation of the public procurement from MSMEs
by CPSEs- MSME Sambandh.
Railway Station which has earned the distinction of being the First Energy-Efficient "A1 Category" in the country- Kacheguda Rly.
Station(South).
Govt. extended the deadline by three months to March 31, 2018 for - Mandatory Linking of PAN with Aadhar.
Index according to which India has been ranked at 109 in Mobile Internet Speed and 76^^ in Fixed Broadband Globally- -
8
8
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
OOkla's Speedtest Global Index.
Company which has become the First to cross the date for accepting Resolution Plans from prospective bidders among 12 large corporate
defaulters referred by RBI for insolvency proceedings- Monnet Ispat & Energy. India is the First Country where the Bank, which has
committed more than $1 biiiion of financing- Asian Infrastructure Investment Bank.
Bank which has been placed by RBI under Prompt Corrective Action Framework in view of high NPAs- Corporation Bank.
Uttar Pradesh Election ranked 4^^ position after French, German and UK Elections in- Top Global Google Election Searches.
India's First Scorpeneclass Submarine, which has been commissioned by PM Modi describing it as a "Prime Example of Make in India"- INS
Kalvari.
Nationai Vehicle Registry Website which contains data iisted with all the Road Transport Authorities in the Country- VAHAN.
Oxford's International Word of the Year 2017- Youthquake.
Tribunal in which since the enactment of Bankruptcy Code, 2434 new cases have been filed- National Company Law Tribunal.
A Guinness World Record set in France for Wedding Dress measuring over 8095 metres iong- World's Longest Wedding Dress.
One-time Settlement Scheme, which has been announced by the government to the companies in which over three Lakh directors were
disqualified - Condonation of Delay Scheme 2018.
City which ranks 7*^^ in Most Expansive Office Locations List in the world- Delhi.
Country which has pitched for India's Global Power Status as it unveiled its new National Security Strategy- USA.
Nine-member Panel to be headed by Principal Chief Commissioner-rank Officer constituted by CBDT to submit report by Feb.28, 2018
on- Faceless and Nameless E-Assessment.
Two more Banks which have been placed under "Prompt Corrective Action" (PCA) Framework by RBI- Bank of India and United
Bank of India.
To bring Indian Business Schools on par with Global Standards, FICCI has launched- Business School Ratings.
A Bankruptcy Case which has become First to close post IBC Ordinance- 3EKPL Pvt. Ltd.
Ten Banks -lOB, Dena Bank, Corp. Bank, CBI, IDBI Bank, UCO Bank, United Bank of India, BOM, OBC and BOI have been placed by RBI
under- PCA Framework.
Bollywood Actor who has once again topped the Forbes' Annual List of the Highest-earning Entertainers in the Country- Salman Khan.
Aircraft AG600 which took-off in China on 24^^- World's Largest Amphibious Aircraft.
While India ranked 4^^ in newly opened Innovation Hubs during
2017 in the World, it ranked 2"*^ in Asia for- Innovation Centres.
An Online platform which has been launched for Central Government Employees to access their service-related information- E-HRMS.
Online Course Portal which is to be offered by HRD Ministry to offer nearly'300 online courses in Hindi and 10 other Indian Languages-
SWAYAM Portal.
Logo which Bengaluru City has got and becomes First City to have its own Identity on the Global Stage -**Bengaluru-BeU"
Countries, which lured foreign workers with the promise of "Tax- Free Life-Style", plan to impose 5% Tax on goods and services to
boost revenue after Oil prices collapsed- Saudi Arbia and UAE.
Amazon Founder Jeff Bezos with Net-worth of $99.6 billion replaced Microsoft Founder Bill Gates with net-worth of $91.3 billion and
ranked- Worid's Wealthiest Person.
SBiP, Moodys'and FITCH ,three Rating Agencies which dominate the business are- World's Largest Credit Rating Agencies.
Govt. has scrapped its previous directive to State Oil Companies to raise the price by Rs.4 every month on- Subsidised Cooking Gas
Cylinders.
An amount of Rs.7577 Crore pumped by Govt. in six Public Sector Banks-BOI, IDBI, CBI, BOM, Dena Bank and UCO Bank by way of-
Capital Infusion.
To promote Indian Engineering Goods Globally EEPC launched -
E-Catalogue.
Controversial Bansali's Film whose release prospects brightened with approval of Central Board of Film Certification having five
modifications and Title to be changed from- Padmavati to Padmavat.
 FINANCIAL AWARENESS ft GENERAL KNOWLEDGE

SRIKRISHNA PANEL SUGGESTIONS ON DATA PRIVACY:

The Srikrishna Panel was set up on July 31 following a
Government decision to make Aadhar compulsory for all Its
services. The government gave the Panel three months time to
suggest a Draft Bill. Now the Panel suggested in a White Paper
for setting up a Data Protection Authority, Data Audit,
Registration of data collectors, enacting provisions for protecting
children's personal information, defining penalties and
compensation In case of a data breach. Panel has also
suggested that the foreign entity that offers goods or services in
the country may be covered under the law. Further the
proposed law may not be extended to include data relating to
companies and other juristic entities.
GOVT. TO TAX UNSOLD INVENTORY UNDER REAL
ESTATE: In a bid to curb hoarding of unsold inventory by real
estate developers, CBDT is set to tax unsold flats that have been
lying with developers for more than a year. Fresh tax would be
applicable on such inventories from next financial year. The
move would reduce developer's strategy of hoarding

FINANCIAl constructed property in anticipation of price escalation in future.

Tax rate could be anywhere between 8 and 10% of the total
value of the property. The tax would be levied on the property
that is held under "Stock in Trade" by the developers.
LOAN POLICY OF ADB TO INDIA; Multi-lateral Funding
Agency Asia Development Bank (ADB) has dedded to provide
loans up to $4 billion on annual basis including non-sovereign

AWARENESS debt during 2018-22 so as to accelerate inclusive transformation

of India. So cumulatively, India, the Largest redpient of ADB,
will get about $20 billion over a period of five years. As part of
the country strategy,2018-22, annual sovereign funding will
increase from $2 billion to $3 billion while private sector funding
would be doubled to $1 billion.
SEBI FRAMING ALGO TRADING RULES FOR RETAIL
INVESTORS: SEBI plans to introduce rules on participation of

January 2018 retail investors in algorithmic trading, a system widely regarded

as giving its sophisticated institutional practitioners an edge.
SEBI is in the process of determining the extent to which
individual Investors should be allowed to use this automated
trading system. Algo Trading uses advanced mathematical
models and computer programmes to create nimble trading
strategies. Decisions are made and executed in a fractions of a
second at magnitudes a human being could not handle. This
advantage over manual methods is a concern for regulators
around the world.
GOVT SETS UP NATIONAL ANTI-PROFITEERING
AUTHORITY: The Government has set up the National Anti-
profiteering Authority amid reports that some companies and
particularly restaurants are not passing on the benefit of the
GST rates cuts to the consumers. The authority is mandated to
ensure that the benefits of input credit and the reduction in GST
rates on specified goods or services are passed on to the
consumers by way of a commensurate reduction in prices. The
Screening Committee is expected to look into complaints of local
nature while the Standing Committee would ordinarily enquire
into cases of mass Impact with All India ramifications.
CABINET GIVES NOD FOR NATIONAL NUTRITION
MISSION: The Union Cabinet has approved the establishment
of a National Nutrition Mission to address serious incidence of
malnutrition and stunting among infants in the country. The
Nutrition Mission of Rs.9000 Crore will be jointly launched by the
Ministries concerned together with NITI Aayog. The Mission has
set an ambitious goal of reducing incidence of stunting among

10
 FINANCIAL AWARENESS ft GENERAL KNOWLEDGE
children from 38.4% now to 25% by 2022. The Mission Is to be
launched In January next year and will be rolled out In 162
backward districts in six states initially and will be expanded
further to 315 districts in the current financial year. The rest of
the country will be covered over the next two years.
• SEBI RATCHETS UP GOVERNANCE STANDARDS FOR
MUTUAL FUNDS: SEBI has prescribed that directors and
auditors of mutual fund companies should rotate every 10 years.
c Independent directors and independent trustees of MFs can now
hold only two consecutive five-year terms. An independent
director will be eligible for reappointment after a cooling-off
period of three years. Further, Asset Management Company
(AMC) should also adopt an auditor rotation poiicy. No auditor
wili be allowed to audit an AMC for more than two consecutive
five year terms. The auditor will be allowed reappointment after
a cooling-off period of five years.
• SUPREME COURT RULED ON DRT: (Case-Aggarwal Tracom
Ltd. VS. Punjab National Bank) Supreme court has ruled that if
there is a dispute between the buyer at the auction of a
mortgaged property and the secured creditor, it should be
resolved by the Debt Recovery Tribunal (DRT) and not by a High
Court.
• SUPREME COURT RULING ON TAX BENEFIT FOR
ADVANCE DEPOSIT: (Cases of Modipon Ltd. and Paharpur
Cooling Towers Ltd) The Supreme Court has ruled that, the
advance deposit of central excise duty constitutes actual
payment of duty within the meaning of Section 43B of the
Central Excise Act and therefore the firms are entitled to the
benefit of deduction of those amounts. Having regard to the
object behind the enactment of Section 43B, the Legislative
intent would be achieved by giving beneht of deduction to an
assessee upon advance deposit of duty.
• FBIL ROLLS OUT BENCHMARK RATE FOR MONEY
MARKET: In an Endeavour to introduce a new benchmark that
will provide a risk-free-reference rate for the money market,
Financial Benchmarks India (FBIL) has developed the FBIL-
Market Repo Overnight Rate (FBIL-MROR) which will be
published on each working day beginning December 12, 2017.
The Clearing Corporation of India CCIL) will be the Calculating
Agent for FBIL-MROR.
■ INDIA PLANS GOLD SOURCING STANDARDS: India is
planning its own standards for gold refiners. Guidelines are
being worked out on the lines of rules set out by the
Organisation for Economic Co-operation and Development
(OECD). The OECD guidance is flexible and can be adapted to
specific market characteristics in India, as has been done in
London, Dubai and China. This flexibility includes adapting
approaches to build on existing checks on imports of bullion and
gold dore.
• FINMIN TO FRAME A COMMON SET OF RULES FOR
VALUATON OF STRESSED ASSETS: The Finance Ministry is
working with state-run lenders to frame a common set of rules
for valuation of stressed assets for faster resolution of loans
extended by a consortium of multiple lenders. In case of joint
lending, banks are unable to arrive at a common valuation,
which stalls the resolution process. Further individual banks also
fear that if they agree to a certain haircut, it may not stand the
scrutiny of vigilance agencies.
• HIGHER EXPORT RELIEF UNDER FTP 2015-20: Mid-term
review of the Foreign Trade Policy (FTP) 2015-20 has brought in
additional relief worth Rs.8450 Crore annually for the labour
intensive and micro, small and medium enterprises (MSME)
sectors. Merchandise Export from India Scheme Incentives
increased by 2% for labour-lntensive/MSME sectors. Services
Export Incentive Scheme Incentives also increased by 2% for
select sectors. Validity of scrips under the incentive schemes
Increased from 18 months to 24 months. GST rates on
transfer/sale of scrips reduced to zero. Further self-dedaration
has also been allowed for duty-free inputs for export production.
CANARA HSBC LIFE BEGINS VIDEO SERVICE FOR RTCE:
In a first for the life insurance industry, Canara HSBC Oriental
Bank of Commerce Life Insurance Co. Ltd. has come up with a
video service that seeks for Real-Time Customer Engagement
(RTCE).Under the video service, a customer can go to the
website of the company and click on the video serwce icon to
directly engage with the company for various service requests.
This will be like Facetime and WhatsApp video. A lot of
customers prefer looking at the face of a company
representative than interact only via voice. This will be real-time
video engagement.
SEBI FOR ONUS ON RATING AGENCIES TO REVEAL LOAN
DEFAULTS: In a substantial dilution of its earlier stand that
listed companies should make public any loan default within 24
hours of missing the repayment obligation, SEBI is now working
on a new disclosure framework which could put the onus on
Credit Rating Agencies to recognise payment defaults. The move
is rneant to ease the concerns raised by India Inc and banks
against SEBI's earlier circular which has been withdrawn.
RBI CAUTIONS INVESTORS ON RISKS IN
CRYPTOCURRENCIES: RBI has cautioned Bitcoin and other
oyptocurrency enthusiasts that they face potential risks,
including financial, legal and those related to customer
protection. RBI said that it has not given any licence or
authorisation to any entity to operate schemes or deal with
bitcoin or any virtual currency. The statement has been Issued
by RBI in the wake of a significant spurt in the valuation of
virtual currencies and rapid growth in the Initial Coin Offerings.
GOVT. PANEL FOR RELIEF TO STRESSED ASSET BUYERS:
A Government-appointed Panel is planning to recommend
amendments to the Insolvency and Bankruptcy Code (IBC) by
which the buyers of stressed assets may get exemption from
paying the minimum alternate tax (MA"Q and the need for
getting approval from the Competition Commission of India.
Doing away with the approval process completely might lead to
one player exploiting its dominant position in the market, at the
same time delay because of the approval process can be
avoided.
RBI LAUNCHES HELPLINE AGAINST PRIZE FRAUDS;
Taking the fight to the arena used by fraudsters promising prize
money from RBI, now the Banking Regulator itself has launched
an SMS Campaign and a "Missed Call" Helpline to warn people
against such scams. Typically, such fraudsters make calls or
send SMSs and emails to gullible people promising lotteries and
prize money from RBI-at times from the RBI Governor himself-to
trap them into sharing their banking account details or paying
some "fees or charges" to get the money.
GOVT. ISSUES WIND AUCTION GUIDELINES: The Power
Ministry has issued the guidelines for the Wind Power Projects.
As per guidelines, the Project secured through auctions should
have a minimum size of 25MW if it supplies power to one state
and 50 MW if It supplies to more than one state. Further, wind
energy projects should have a minimum capacity utilisation
factor (CUF) of 22% and will be penalized if they fall below tJiat
mark. If the CUF is higher than specified in the bid document,
11
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
the excess power will be paid for by the buyer at 75% of the
tariff dedded.
MFIN SETS UP EMPLOYEE BUREAU: Miaofinance
Institutions Network (MFIN), a self-regulatory body of
Microfinance Institutions (MFIs), has launched an Employee
Bureau In association with Global Information Solutions
Company Equifax. The bureau will help in maintaining a
database containing details of staff, which would help MFIs
improve the quality of hiring practices with better past-
employment checks. The database is expected to be
comprehensive, having information across the hierarchy of MFI
members.
GOVT. PROPOSAL ON REPLENISHING CASH IN ATMs:
Concerned over attacks on cash carrying vans, the government
has proposed that ATMs should not be replenished with cash
after 9PM in cities and private cash-transportation agencies must
collect money from banks in the first half of the day. The
deadline for putting money in ATMs in rural areas would be 6PM
and 4PM In Naxal-affected districts. Also, specially designed cash
vans, fitted with CCTVs and GPS must not carry more than Rs.5
Crore per trip. Nearly 8000 private vans ferry around Rs.15, 000
Crore daily between banks, currency chests and ATMs across the
country.
GOVT. INITIATES SURVEY ON JOBS UNDER MUDRA:
Under attack from opposition, on the lack of growth in
employment opportunities, the Government has tasked the
Labour Bureau to ascertain the number of jobs created under
MUDRA Scheme. This is a rare instance when the government
has commissioned a survey on its own scheme. Present surveys
which have shown a declining trend in job creation recentiy,
were not able to access the employment generated through
Government schemes.
SUPREME COURT EXTENDS AaDHAR LINKING
DEADLINE: Supreme court has extended the deadline for
Aadhar-bank linkage to March 31, 2018, but only for Non-Aadhar
holders opening new bank accounts. The Non-Aadhar holders
have time till March 31 to enrol for Aadhar and produce It before
the bank authorities. During the interim, they can furnish their
Aadhar enrolment application. This is an interim arrangement.
Meanwhile, the Constitution Bench extended deadline for mobile
phone-Aadhar linkage from Feb 6 to Mar 31, 2018.
UNION CABINET APPROVES TO AMEND NEGOTIABLE
INSTRUMENTS ACT: The Union Cabinet has approved to
amend the Negotiable Instruments Act. The amendment will
allow a court to order interim compensation to the payee of a
cheque, a part of the amount at the trial stage itself. If the
drawer is acquitted, the court may direct the payee to repay the
amount paid as interim compensation with interest. Similarly,
appellate courts will be enabled to order the appellant to deposit
a part of the compensation awarded by the trial court at the
time of filing appeal.
GOVT. TO REIMBURSE MDR TO PROMOTE DIGITAL
TRANSACTIONS: The Union Cabinet has cleared tiie way for
the Government to bear the transaction cost of a merchant for
payments made to it on all debit cards, BHIM UPI and Aadhar-
enabled Payment System (AePS) transactions, provided the
transactions are up to Rs.2000. For two years starting Januaryl,
the Government will reimburse Merchant Discount Rate (MDR)-
to banks. The Centre estimates that it will reimburse MDR of
about Rs.1050 Crore in 2018-19 and Rs.l462 Crore in 2019-20.
PARLIAMENTARY JOINT COMMITTEE ON FRDI BILL: The
Financial Resolution and Deposit Insurance (FRDI) Bill was
introduced In Parliament on the last day of the previous session.
This bill is now before the Joint Committee-of Parliament. With
the FRDI Bill Indicating that depositors' monies could be used for
"bail-in" of failing banks, the bill has created widespread fear,
apprehension and panic amongst depositors. The apprehension
is that deposits in banks would not be returned because of the
"bail-in" clause in the Bill. Now tiie Joint Committee has sought
extension of the deadline for submission of Its report to the last
date of the 2018 Budget Session which has been acceded to by
the Lok Sabha Speaker.
GRATUITY AMENDMENT BILL INTRODUCED IN LOK
SABHA: The Government has introduced a Bill In the Lok Sabha
that will empower it to notify a higher period of maternity leave
and raise gratuity limit for employees. The gratuity limit for
private sector is expected to be raised to Rs.20 Lakh from
existing Rs.lO lakh In line with that in the government sector.
Further, maternity leave period for female employees is to be
extended from existing 12 weeks to 26 weeks.
GOVT. OFFERS ONE-TIME SETTLEMENT TO COMPANIES
OF DEBARRED DIRECTORS: The Ministry of Corporate Affairs
has announced a One-time Settlement Scheme for companies in
which over three lakh directors were debarred/disqualified from
their boards. The directors had been penalized after it was found
that their companies had not filed annual returns and financial
statements with the ROC for three consecutive years. The
Scheme called "Condonation of Delay Scheme 2018" will open
on January 1, 2018 for a period of three months. The Scheme
intends to give an opportunity for non-compliant, defaulting
companies to rectify the default. The scheme will allow
defaulting companies to submit all documents tiiat were due for
filing till June 30, 2017. A fee of Rs.30000 will be charged for
condoning the delayed filing of the documents.
RBI PLACED BANK OF INDIA UNDER PGA FRAMEWORK:
RBI has placed Bank of India under the "Prompt Corrective
Action" (RCA) Framework following an on-slte inspection under
the Risk Bas^ Supervision Model carried out for the year ended
March 2017. This action is in view of high net NPA, insufficient
CET-1 capital and negative ROA for two consecutive years. As of
March-end, Bank of India had net NPA (NNPA) of 6.90%,
Common Equity Tier-l (CET-1) capital of 7.17%, and Return on
Average Assets (ROAA) of -0.24% (in FY17) and -0.94% (in FY
16). According to the resnsed Framework of RBI, banks with
weak balance sheets may be subject to among other things,
resolution processes sudh as amalgamation, reconstruction,
winding up or mandatcwy actions such as restriction on
management compensation and director's fees.
PSBs NOT MEEHNG PERFORMANCE STANDARDS NOT
RECEIVED GOVT. CAPITAL INSFUSION: The Centre did not
release around Rs.6500 Crore to 13 Public Sector Banks (PSBs)
in 2016-17 under the Indradhanush Plan as none of the banks
met performance standards. The Government had allocated a
sum of Rs.22, 915 Crore in 13 PSBs during the financial year
2016-17 under the first tranche of capital infusion out of which a
sum of Rs.l6, 414 Crore (75%) was infused upfront. The
remaining amount of Rs.65O0 Crore was supposed to be infused
based on meeting the performance standards. According to the
Indradhanush Plan, the performance standards included
efficiency of capital use, growth of both credit and deposits and
reduction in operation cost.,
COMPANY AMENDMENT BILL GIVES RELIEF TO
CREDITORS: The Companies Amendment Bill passed by
Parliament has brought further relief for creditors involved in
12
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
insolvency proceedings allowing them to acquire shares of
insolvent company at a discounted price. According to Section
53 of the Amended Companies Bili, a company may issue shares
at a discount to its creditors when its debt is rorwerted Into
shares in pursuance of any statutory resolution plan or debt
restructuring scheme. Earlier any share issued by a oampany at
a discounted price was considered as void.
PARLIAMENTARY PANEL FOR DEPUTATION OF IAS,IPS
OFFICERS IN PRIVATE FIRMS: The Parliamentary Panel, in a
unique suggestion, recommended deputation of lA and IPS
Officers in private sector to bring in domain expertise and
competition. It is aiso supported the entry of private sector
specialists into government services to meet the need of
expertise. The recommendation assumes significance as NITI
Aayog also suggested in one of their reports outsourcing public
services to private hands in order to reduce dependence on the
government administrative machinery.
FINMIN ALLOWS MANUAL FILING OF REFUND CLAIMS:
The Finance Ministry has allowed manual filing of Refund Claims
to speed up pending refunds of exporters and traders who are
facing problems of blocked working capital under GST. The
refund claims were kept pending due to non-avaiiabflity of the
Refund Module of the Common Portal. Now the refund claims
will have to be filed on monthly basis by tax payers. However
those assessees who have joined the Composition Scheme, will
file the returns on quarterly basis.
IRDAI FRAMES GUIDELINES FOR INSURANCE FIRMS:
IRDAI has cleared the way for setting up of IFSC-Insurance
Offices (IIO). With this, IRDAI has put In place the process of
registration and operation of insurers and re-insurers in IFSC
Special Economic Zones, In alignment with the objectives of
IFSC-SEZ. Now insurers and re-insurers from India and abroad
are eligible to apply for registration to set up HQs subject to
certain norms. The registered 110 may be permitted to transact
direct insurance business within the IFSC, from other SEZs and
from outside India. IIOs may be registered for carrying on
business in various classes/sub-classes of life, general, or health
Insurance as aiso re-insurance businesses.
GOVT. SETS UP ''GO" TO EXAMINE COMPLAINTS
AGAINST PSU, PSB: In a bid to enhance transparency and
functioning of state-run firms including public sector banks, the
Centre has set up a "Group of Officials" (GO) to look into
complaints against high-ranking officers in these companies. The
Group will examine complaints against CMD, Chief Executives,
Workmen Directors, Officers' Directors of Central public sector
firms, public sector banks, financial institutions and public sector
insurers. In cases where the officer against whom complaint has
been made is retiring in near future, the GO to submit the
recommendations before the date of retirement of such officer.
FINMIN ASKS PSBs TO RATIONALISE OVERSEAS,
DOMESTIC BRANCHES: The Finance Ministry has asked public
sector banks to look at rationalising their domestic and overseas
branches as part of the reform process to strengthen their
financials. TTie banks have been advised to pursue closure of
loss-making domestic and international branches as part of
capital saving exercise. With regard to overseas branches, the
Ministry has asked the lenders to discuss consolidation and take
a final call on closing some unviable operations.
SEBI FOR ALLOWING LISTING OF SECURITY RECEIPTS
BY ARCs: SEBI may allow listing of security receipts (SRs)
issued by an Asset Reconstruction Company (ARC) on an
exchange platform and approve norms for the same. Union
Finance Minister in his last budget, had proposed trading Ui SRs
on an exchange platform. RBI wanted to have more darHy on
the class of Investors that could trade these instruments arwl on
who could be considered a "Qualified buyer" under SARFAESI
Act.
GOVT. TO BRING FRAMEWORK TO REGULATE
CRYPTOCURRENCY: The Government has dedded to dose
the regulatory gaps to keep a check on cyrptocurrendes
including bitcoin. Currently, over a thousand cyrptocurrendes
exist. It can be classified into broad categories-Currency, Capital
Assets, Intangible Assets. Status of currency could be subject to
FEMA Regulations. It could be deemed as capital assets if
purchased for the purpose of Investment. Now the Government
is likely to define the cyrptocurrendes and bring in a regulatory
framework In Wie Union Budget 2018-19.
INSOLVENCY BILL FOR SMOOTHENING RESOLUTION
PROCESS: The Government will give promoters of Insolvent
companies more time to repay their dues and partidpate in the
resolution process of bankrupt companies in the Bill that will
replace the ordinance that was promulgated last month to
amend the IBC. The changes proposed in the bill will also dearly
allow asset reconstruction companies, banks and alternate
investment funds to participate in the bidding and darify the
status of guarantors in such companies.
SEBI RESTRICTS RATING AGENCIES MONOPOLY; SEBI
has restricted the credit rating agencies (CRAs) from
consolidating their shareholding among each other. SEBI
imposed a 10% cap on cross-shareholding f aedit rating
agencies, raised their net-worth criteria to Rs.25 Crore-frora-the
current Rs.5 Crores and disallowed any seat on the rival's board.
S&P, Moody's and FITCH are the three of World's Largest CRAs
that dominate the business. With annual bond issuance of over
$100 billion, India has mouthwatering debt market for ratings
and concentration of business had given rise to lobbies. SEBI's
move on CRAs will save the sector from monopolistic practices.
SBI TO OFFER STAFF PAID BEREAVEMENT LEAVE AND
MEDICLAIM BENEFITS; State Bank of India has Introduced a
special leave for employees who have suffered a bereavement in
the family. This will be a one week paid leave on the loss of a
family member. Further, besides leave , the Bank also took
decision to provide 75% subsidy on Mediclaim premium for
retired employees earning pension up to Rs.20, 000. For those
earning Rs.20, OOO-Rs.30, 000 pension , the subsidy would be
60% . The Bank has also expanded scope of Mediclaim cover for
employees family to 100% of claimed amount as against 75%
earlier.
SEBI ALLOWED TRADING ON STOCKS AND COMMODITY
DERIVATIVES ON SAME EXCHANGE: SEBI has allowed
trading on stocks and commodity derivatives on the same
Exchange from next October. Investors can now trade gold,
crude oil and wheat along with Reliance and Infosys shares on
BSE, NSE, MCX and NCDEX. They can use a single demat
account and a single bank account for both trades. Currently,
Investors can trade gold and crude oil on MCX, wheat on NCDEX
and company stocks on BSE and NSE.
NOVEMBER / OCTOBER 2017
GOVT. ANNOUNCES PACKAGE FOR AILING PUBLIC
SECTOR BANKS: The Government announced a fresh package
for ailing Public Sector Banks through Rs.2.11 Ukh Crore
infusion that will provide them share capital for lending and
revive Investment which Is also crucial for job creation In the
13
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
economy. During the current financial year and next year, the
government will also use the Recapitalisation Bonds to the tune
of Rs.1.35 LaWi Crore. Further, the Government will also provide
budgetary support of Rs.18, 000 Crore and Rs.58, 000 Crore will
be raised by banks through a fresh issue of shares while
ensuring that government holding stays above 52%.
GOVT. INTRODUCED TUS TO REVIVE POWERLOOM
SECTOR: Ttie Union Ministry of Textiles has Introduced a
Technology Up-gradation Scheme (TUS) in association with the
Energy Efficiency Services Ltd. (EESL) to revive the ailing power-
loom Sector. The initiative-"SAATI-H" (Sustainable and
Accelerated Adoption of efficient Textile technologies to Help
small Industries) entails complete replacement of age-old
technology with the most modern one without any upfront cost
to be paid by power-loom owners. EESL would procure energy-
efficient power-looms, motors and repair kits in bulk and provide
them to the small and medium power-loom units at no upfront
cost.
SUPREME COURT RULING ON FORFEITING EARNEST
MONEY;(Case-Sunil Kumar VS State of MP)The Government of
MP auctioned certain plots in 1996 and Sunil Kumar's bid was
the highest. He deposited Rs.3 Lakh but later some new four
conditions were stipulated in the contract which he refused. The
government forfeited the amount. Sunil Kumar moved to the
Civil Court and High Court but he failed. However after 21 years,
he won the case from Supreme Court. The Apex Court chastised
the MP Government for forfeiting Wie earnest money in the
auction and asked to refund the money to the depositor with 9%
interest and pay costs. The Supreme Court told the MP
Government that It should act "like an Honest Person while
dealing with the case of an individual citizen".
NEW PPF AND NSCs RULES FOR NON-RESIDENTS: Under
the new rules issued by the Government, Indian Residents
having investments in Public Provident Fund or National Savings
Certificates will not enjoy high returns under these schemes if
they become Non-Residents. These investments will be deemed
to be closed on the day the investor becomes Non-resident.
Subsequently, they will be paid interest at the much lower post
office savings bank rates.
BHIM TO PROMOTE UPI AS SINGLE MEANS FOR MOBILE
PAYMENTS; BHIM emerged as a direct competitor for Bank-led
UPI Apps like Axis Pay, SBI Pay as well as non-bank UPI Players
like Flipkart-owned PhonePe. Now, with the rebranding, bank-
led UPI Apps are being renamed as Bhim SBI Pay, Bhim Axis
Pay. National Payments Corporation of India (NPCI) which runs
the BHIM Application and manages the UPI railroads has notified
banks to place BHIM/UPI prominently at merchant checkout
locations.
FINMIN CLARIFIES CASH SALE OF CROPS: The Finance
Ministry has clarified that cash sale of agricultural produce of up
to Rs.2 Lakh by the farmer to the trader will not result in
disallowance of expenditure or require the farmer to quote his
PAN number or Form No.60. Such a transaction will also not lead
to prohibition against the farmer under the newly inserted
section 269 ST of the Income Tax Act that bars cash dealings
above Rs.2 Lakh on a single day.
SEBI INTRODUCED ONLINE MECHANISM FOR CLEARING
CORPORATIONS: SEBI has introduced an online mechanism
for clearing corporations to make it convenient for them to do
business. The digital platform would help clearing corporations
to complete registration and other regulatory filings with SEBI
much faster and in a more cost-effective manner. All applicants
desirous of seeking registration/renewal as a clearing
corporation shall now submit their applications online only.
SUPREME COURT RULING ON "TRIBUNALS"; (Case-
International Asset Reconstruction Co. VS Official Liquidator of
Aldrichpharma &. others) The Supreme court has ruled that the
time limit for moving an appeal to the Debt Recovery Tribunals
is different from the period set In the Limitation Act because the
Recovery of Debts and Bankruptcy (RDB) Act Is a special law
and the rules set by It should be followed. The Apex Court
further said that a Tribunal is not a court though it has the
trappings of a court. It is not limited by the rules of the Code of
Civil Procedure and can devise its own procedure.
NCC RULING ON SMS ALERTS: The National Consumer
Commission (NCC) has directed ICICI Bank to pay compensation
to Karan Singh who did not get SMS Alerts while his savings
account was being pilfered by unknown persons. The Bank
defended itself, arguing that the Card and PIN were only with
Singh and therefore it was not responsible. Haryana State
Commission rejected the plea stating that the SMS Alerts service
was not used to inform of the debits. It asked the bank to
refund the losses and pay compensation with Interest. That
decision was upheld by the National Consumer Commission.
INSOLVENCY CODE -FRAMEWORK TIGHTENED FOR
RESOLUTION PROCESS: The Insolvency and Bankruptcy
Board of India (IBBI), the insolvency regulator-has tightened the
due diligence framework on resolution applicants including
promoters. Corporate resolution applicants including promoters
will now be put through a stringent test as regards credibility
and creditworthiness before a resolution plan is approved by the
committee of creditors. Prior to approval of a resolution plan,
the committee of creditors has now been empowered to take
into account the antecedents, creditworUiiness and credibility of
a resolution applicant, including promoters.
IRDA TO INSURANCE COMPANIES ON AaDHAR & PAN:
IRDA made it mandatory for companies to link Aadhar with
every Individual policy. The move comes as the Supreme Court
has asked banks not to spread panic through text messages on
deadlines for linking bank accounts to Aadhar. The Implication is
that the Insurers may hold claims until policy holders submit
their Aadhar and PAN Number. IRDA has quoted the Central
Government's Gazette Notification dated June 1, 2017 which has
made Aadhar and PAN/Form No.60 mandatory for availing of
financial services including insurance.
GST COUNCIL MADE CHNAGES IN GST RULES; GST
Council decided to lower the tax rate on 178 items leaving just
50 items in the top 28% rate slab under GST. The Council has
also decided to increase the threshold for the Composition
Scheme to an annual turnover of Rs.l.SCrore. However an
amendment to the GST Law will first have to be passed by
Parliament. Further a uniform tax rate of 1% will be levied under
the scheme, which allows for quarterly filing of returns and
payment of taxes. GST Council also decided to do away with the
distinction of AC and Non-AC Restaurants and levy a flat 5% tax
with no input credit on all eateries.
LOGISTICS SECTOR GETS INFRASTRUCTURE STATUS:
The Logistic Sector has been granted "Infrastructure Status" -
allowing investment In warehousing subject to conditions by the
Government in the Institutional Mechanism meeting held
on November lO.The move will enable the logistic sector to avail
Itself of infrastructure lending at easier terms with enhanced
limits, access to larger amounts of funds as External Commercial
Borrowings (ECB), access to longer tsnor funds from Insurance
14
 FINANCIAL AWAREMESS & GENERAL KNOWLEDGE
Companies and Pension Funds and be eligible to borrow from
India Infrastructure Rnancing Company Ltd. To acress these
funds, the minimum investment should include Rs.50 Crore and
minimum area of 10 acres. Additionally, it should have
Investment in either cold chain or in a warehousing fecility.
UNION CABINET APPROVES WAGE POLICY FOR CPSEs:
The Union Cabinet has approved the 8*^^ round of Wage
Negotiations for Workmen in Central Public Sector Enterprises
(CPSEs). As per Framework, no budgetary support would be
provided by the government for any wage increase and the
entire financial implication would be borne by the respective
CPSEs from their internal resources. In case of CPSEs for which
the government has approved restructuring/ revival plan, the
wage revision will be done as per the provisions of approved
plan only. Further CPSE managements are free to negotiate
wage revision for workmen where the periodicity of wage
settlement of five years or 10 years has expired. However the
managements are to ensure that the negotiated pay scales do
not exceed the existing scales.
UNION CABINET APPROVES 15TH FINANCE
COMMISSION; The Union Cabinet has approved the setting up
of the is'-^ Finance Commission that will prescribe the formula
for devolution of taxes between the Centre and States for the
five years commencing from April 1, 2020. The Finance
Commission is a Statutory Body under Article 280(1) of the
Constitution and it Is set up every five years to decide on how
the net proceeds of taxes would be shared between the Centre
and States. It also decides the-principles of Grants-in-Ald of the
revenues of the States out of the consolidated Fund of India.
PRESIDENT SIGNS ORDINANCE TO AMEND
BANKRUPTCY CODE: The President has signed the Ordinance
to amend the Insolvency and Bankruptcy Code. The
amendments aim to keep out such persons who have willfully
defaulted, are associated with NPA or are habitually non-
compliant and therefore, are likely to be a risk to successftil
resolution of Insoivency of a company. It also places restrictions
for such persons to participate In the resolution or liquidation
process. Companies, promoters and associate companies
undergoing insolvency resolution or liquidation under the code
would not be eligible to be bid for the stressed assets.
SUPREME COURT VERSION ON ARBITRATION AND
SARFAESI: (Case-MD Frozen Foods Exports VS Hero Rncorp
Ltd) Supreme Court has ruled that the proceedings under the
SARFAESI Act and Arbitration can proceed simultaneously. The
Apex Court further said that the SARFAESI proceedings are in
the nature of enforcement proceedings, while arbitration is an
adjudicatory process.
KOTAK PANEL RECOMMENDATIONS ON CORPORATE
GOVERNANCE OF LISTED COMPANIES: Kotak Panel has
given their recommendaHons on the corporate governance of
the Listed Companies. According to the recommendations, any
listed entity should have at least 6 against existing 3 directors on
the Company Board. Every listed entity should have at least one
woman director on its board. Minimum meetings should be
increased from four to five. Maximum number of directorship
should be reduced from ten to seven by April 1, 2020. Further,
at least half the number of directors of a listed entity should be
independent by Aprill, 2020. .
EC8 TO ASK BANKS TO COVER BAD LOANS BY 100%
PROVISION: The European Central Bank (ECB) plans to ask
Euro Zone Banks to set aside enough cash to cover 100% of
their non-performing loans over the next several years. Euro
Zone Banks are having nearly Eurol Trillion bad loans, dogging
up their balance sheets and holding back lending. The main
problem of Itie banks Is that the weak credit growth oRsets the
stimulus they are trying to provide through low Interest rates.
RBI ISSUES FINAL GUIDELINES ON P2P FIRMS: RBI has
finally Issued final guidelines for tlie existing Peer-to-Peer (P2P)
lending platforms in the country. From now onwards, all the P2P
platforms will be known as "NBFC-P2P". As per RBI guidelines,
all the existing P2P players in the country will be required to
obtain a Certificate of Registration to become an ""NBFC-PZP".
Such players shall have a net-owned fund of more than Rs.2
Crore. AP2P firm can not raise deposits or lend on its own. It is
also not allowed to cross-sell any products except loan specific
insurance products.
RBI TO SWITCH OVER TO "EXTERNAL BENCHMARIC
FROM "INTERNAL BENCHMARK": An Internal RBI Group,
formed after the August 2017 Policy Review, had suggested
switching over to an external benchmark in a time-bound
manner so that better rates were available to borrowers. The
Study Group observed that internal benchmarks such as the
base rate/MCLR have not delivered effective transmission of the
monetary policy. RBI had pulled up the Lenders for keeping
interest rates on loans at a higher level and said it would make
another system to fix rates for such loans.
SEBI ISSUES NORMS TO NEX CLONES IN MF SCHEMES:
In a bid to end duplication of schemes launched by Mutual
Funds (MFs) SEBI has categorized schemes under five different
heads to bring in uniformity. SEBI has categorized MF Schemes
under the broad heads of Equity, Debt, Hybrid, Solution-
Oriented and Others. SEBI said that different schemes launched
by MFs needed to be distinct In terms of asset allocaOon and
investment strategy.
SUPREME COURT RULING ON BOUNCED CHEQUE:(Case-
Chandigarh-based Company M/S Meters and Instruments Pvt.
Ltd. and Others) The Supreme Court has allowed a court to
discharge an accused in a cheque bounced case from
prosecution as the complainant was willing to compensate the
accused. As of now, the courts were not empowered to
discharge the accused without the consent of complainant even
If the accused had agreed to pay the amount to the
complainant. Now the Supreme Court has ruled that where the
cheque amount with interest and cost, as assessed by the court
is paid by a specified date, the court is entitled to dose the
proceedings in exercise of Its powers under Section 143 of the
Act read with Section 258 CRPC.
CENTRE TO DISQUALIFY FIRMS CONVICTED FOR
FRAUD: According to new Disinvestment Guidelines, the Centre
will disqualify any company convicted for fraud and serious
corporate offences from participating in the privatization of
state-owned enterprises. Any firm facing a conviction by a court
of law or indictmentyadverse order by SEBI will be disqualified.
While selecting bidders earlier, the Centre used to look into the
criteria like net-worth and experience. It has now been decided
to look into these additional criteria for qualification or
disqualification of parties seeking to acquire stakes In CPSEs.
SEBI IMPOSES STERN ACTION FOR NON-COMPLIANCE
OF SHARE-HOLDING NORMS: SEBI has tightened the rules
on listed companies not adhering to norms with regard to
Minimum Public Share-holding (MPS). The Listed Companies
which are non-compliant will have to pay a fine of Rs.5000 a
day. In addition, the entire promoter holding except for
15
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
compliance to MRS, will be frozen by depositories. The
promoter group and directors of the particular company will not
be allowed to hold any position In other companies. Further, if
non-compliance continues for over one year the amount of fine
will be doubled to Rs.lO, 000 and such companies may even
face compulsorily de-listing of their shares from stock
exchanges.
BASEL REGULATORS NEAR TO FINAL DEAL ON CAPITAL
RULES: The Basel Committee met to finalise its "Basel-Ill
Rules" aimed at averting another global banking meltdown as
seen in 2007-09. Most of the rules of Basel-Ill are in force, but
the committee has hit resistance to finalise the last part of the
regulatory package. Europe and US have disagreed over the
extent which banks can use their own risk models to calculate
their capital requirements. Now Basel Committee is trying to set
an "Output Floor" that would limit the extent to which a bank's
capital requirements based on the lender's own risk model can
diverge from how they would be calculated under a more
conservative model set by regulators. Europe wanted a floor set
at 70% while the US has called for a tougher level of 75%.
SUPREME COURT VERSION ON DEPRICIATION: (Case-
Plasiblends India ltd. VS Commissioner of Income Tax) The
Supreme Court dismissed appeals of a large number of
companies against the Bombay High Court Ruling. As per Ruling,
"Even assuming that the assessees had an option to disclaim
current depredation in computing the business income, the
depreciation had to be reduced for computing the profits eligible
for deduction under Section 80-IA of the Income tax Act". The
ruling of the High Court was upheld by the Supreme Court
rejecting the argument of the company that depreciation can not
be thrust on them and it was optional.
SEBI ALLOWS FIIs TO TRADE IN IFSC: SEBI has allowed
Indian and Foreign Entities to set up a company in the
International Financial Services Centre (IFSC) to act as trading
members of stock exchanges. There may not be a need to form
a separate company. The same rule will be-applicable to any
such entity keen on operating as clearing member of a clearing
corporation in the IFSC. Earlier, the guidelines said that trading
members and clearing members desirous of operating in IFSC as
an intermediary, would need form a company to provide such
financial services relating to the securities market.
GOVT. FRAMES VALUATION RULES FOR UNLISTED
FIRMS: Ministry of Corporate Affairs framed valuation rules for
unlisted companies that will do away with arbitrariness at the
time of mergers and acquisitions (M&As) and transfer of shares.
These rules are limited to valuers and do not have the all-
important component of methodology of valuation. Till time the
methodology is framed by a committee to be set up,
International Standards will be followed. India has never had
rules for all companies, though there are separate norms for
listed companies by SEBI. Currently, SEBI has its own set of
valuation guidelines for listed companies on takeovers,
preferential allotment of shares and so on.
GOVT. PERMITS BANKS TO SELL MORE SMALL SAVINGS
SCHEMES: Until now, most of the small savings schemes were
sold dirough post offices. Now the Govt. has allowed all public
sector banks and top three private sector banks-ICICI Bank,
HDFC Bank and AXIS Bank to sell more small savings schemes.
So far, these banks were allowed to receive subscriptions under
the PPF, KVS, Sukanya Samridhi Account and Senior Citizens
Savings Scheme-2004. Now they can sell National Savings Time
Deposit Scheme 1981, National Savings Scheme, 1987, National
Savings Recurring Deposit Scheme 1981 and NSC VIII issue.
GOVT. NOTIFIES RULES FOR REGISTERED VALUERS: The
Government has notified that individuals, partnership entities as
well as companies can act as valuers under the Companies Act
after getting registered with an authority spedfi^ by the
Government. The Corporate Affairs Ministry has proposed to
specify the Insolvency and Bankruptcy Board of India as the
authority with respect to registration, recognition and ancillary
matters related to valuers. Those entities which are already
carrying out valuation activities have time till March 31, 2018, to
get registered with the specified authority.
GOVT. MADE MANDATORY FOR BANKS TO MATCH
ORIGINAL WITH PHOTOCOPIES: The Government has
made it mandatory for banks and financial institutions to check
the original identification documents of individuals dealing in
cash above the prescribed threshold, to weed out die use of
forged or fake copies. The new Rule, now requires the reporting
entity to compare the copy of officially valid (identification)
documents so produced by the client with the original and
recording the same on the copy. Official documents are required
to be obtained by the reporting entities from any one opening a
bank account as well as for any financial transaction of Rs.50,
000 and above.
RBI SETS UP TASK FORCE ON "PUBLIC CREDIT
REGISTRY"; RBI has constituted a lO-member "High-level Task
Force on Public Credit Registry (PGR) for India". It will, among
other things, suggest a roadmap for developing a transparent,
comprehensive and near-real-time PGR for India. YM
Deosthalee, Ex-GMD of L&T Finance Holdings is to head the
Task Force. The terms of reference of the Task Force include
reviewing the current availability of Information on credit in
India, assessing the gaps in India that could be filled by a
comprehensive PGR, and study the Best International Practices
on PGR.
SEPTEMBER 2017
NDB APPROVES LOAN FOR INFRA PROJECTS IN CHINA,
INDIA AND RUSSIA: Ahead of the BRIGS Summit, the New
Development Bank(NDB) of the 5 member group approved $1.4
billion loans for sustainable development projects in China, India
and Russia. The 4 projects approved are fully in line with
national development agenda in member countries and the
NDB's mandate of mobilizing resources for infrastructure and
sustainable development in BRIGS and other emerging
economies and developing countries.
NATIONALISED BANKS EXEMPTED FROM CCI APPROVAL
FOR MERGERS: Paving the way for fast-tracking consolidation
of public sector banks, the Government has exempted mergers
of Nationalised Banks from seeking fair trade watch dog
Competition Commission of India's approval. This exemption will
be applicable for 10 years. Mergers and acquisitions beyond a
certain threshold compulsorily require clearance from the CCI,
which is mandated to keep a tab on unfair business practices
across sectors.
UNION BANK LAUNCHED APP ROUTE TO RECOVER BAD
LOANS: Union Bank of India has launched an Mobile-based
Application (App)to recover its bad loans. By entering the postal
pin-code of the area in the App, the bank officer gets ali the
details about the borrowers and defaulting accounts under the
limits of that particular pin-code. If the officer decides to visit
16
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
the borrower In the locality concerned, he can upload the
photograph of the borrower and the premises on the App.
SEBI ALLOWS DEBT SECURniES TO BE USTED ON IFSC
EXCHANGES: SEBI has allowed debt securities to get listed on
stock exchanges In the International Financial Services Centre
(IFSC) even if these are issued elsewhere, but they will have to
follow all necessary listing and corporate governance norms.
SEBI has also allowed "over the counter" trading of debt
securities in an IFSC subject to clearing and settlement through
clearing corporations within such centres.
ISA APPROVES GROUP MEDICAL INSURANCE SCHEME:
The Managing Committee of Indian Banks' Association (IBA) has
approved a proposal for renewal of the group medical insurance
scheme for award staff and officers. The renewed policy with
United India Insurance will be effective for another one year
from October 1, 2017 to September 30, 2018 on existing terms
and conditions. Gross premium payable per family including GST
amounts to Rs.l2, 333 for Award Staff and Rs.l6, 443 for
Officers with sum assured for Rs.3 Lakh and Rs.4 Lakh
respectively.
SUPREME COURT RULING ON DEFAULTING FIRMS:
(Case- Innovative Industries VS ICICI Bank) The Supreme Court
has ruled that the management of a company undergoing
bankruptcy proceedings could not continue in Its role. The Apex
Court has said that the entrenched managements are no longer
allowed to continue in management if they can not pay their
debts. As per Insolvency Code, once an insolvency professional
is appointed by creditors, the management should step aside
and let the company be run by the professional. The Insolvency
Professional, in turn, will decide if the company must go for
liquidation after six months.
IRDAI TO INSURANCE COMPANIES ON USE OF AADHAR
FOR E-KYC: The Insurance Regulatory and Development
Authority of India (IRDAI) has clarified that the Insurance
Companies can access the details of policy holders provided by
the Unique Identification Authority of India (UIDAI) only with
the consent on a voluntary basis. In view of the Aadhar
regulations, the regulator informed the insurers that they should
perform the verification of clients through e-KYC, provided the
verification is done by biometric authentication and/or through
one time pass-word received on the policyholder's mobile
number or email address
STATE FINANCES IN INDIA DETERIORATE: Finances of
state governments are showing signs of increasing fiscal
imbalance. Fiscal deficit aggregated across the states
deteriorated as a percentage of GDP from 1.93% in 2011-12 to
3.03% in 2015-16. It was budgeted to further decline to 3.67%
in 2016-17. As such the deficit breached the ceiling of 3% for
the-first time since 2004-05. Besides, the number of states
having a fiscal deficit greater than 3% increased from 9 in 2011-
12 to 14 in 2014-15 and 19 in 2016-17.
FINMIN TO HEADS OF PSU BANKS ON CONSOLIDATION:
The Finance Ministry has informed ail the Heads of the Public
Sector Banks about the government's decision to set up a
Ministerial Panel to facilitate consolidation in the public sector
space. The Ministry wants banks to undertake an internal
exercise for the best match and come up with the merger idea
for the Alternative Mechanism set up for the purpose. The banks
should analyse regional balance, geographical reach, IT
compatibility, financial burden and human resource transition
while firming up the merger proposal for the ministerial panel.
This formal communication to CEOs of the banks from the
Department of Rnandal Services has set In motion the
consolidation process.
SUPREME COURT RULING ON BOUNCED CHEQUE:(Case-
Harlhara Krishnan VS J Thomas) Supreme Court has ruled tinat
every person signing a cheque on behalf of a company on
whose account a cheque is drawn, does not become the drawer
of the cheque. Such signatory is only a person duly authorized
to sign the cheque on behalf of the company/drawer of the
cheque.
HDFC BANK ALSO INCLUDED IN THE LIST OF D-SIB: RBI
has included the HDFC Bank in the list of "Too Big to fail"
Lenders, referred as "Domestic Systemicaliy Important Bank"(D-
SIB). India's Largest Lender SBI and ICICI Bank were classified
as D-SIB in 2015. With the inclusion of HDFC Bank in the list,
there will now be three"Too Big to fail" financial entities in the
country. D-SIBs are subjected to higher level of supervision so
as to prevent disruption in financial services in the event of any
failure. The additional Common Equity Tier-I requirement for D-
SIB has already been phased In from April 1, 2016 and wiil be
effective fully from April 1, 2019.
GOVT. INTRODUCED FAST TRACK MECHANISM FOR
START-UP: The Government has introduced fast-track
mechanism for Startups for filing patents. Startups were earlier
defined as companies that are only 5 years old with a maximum
turnover of Rs.25 Crore per year and working towards
innovation. With the rule revised, Startups will be eligible for an
8o% rebate in patent fees. The DIPP will bear the facilitation
cost on behalf of Startups and provide rebates in the statutory
fee for filing of applications. Under the faster clearance route,
the application fee for individuals and startups is Rs.8000, while
for established and older companies it is about Rs,60,000.
CENTRE IMPOSED CURBS ON COMPANIES HAVING
DUBIOUS TRANSACTIONS: After de-registering 2.09 Lakh
Companies for dubious transactions, the Centre has brought in
curbs on the operation of their bank accounts by their existing
directors and authorized representatives. Till the legal status of
such companies is restored to "Active" from the current "Struck
Off", the directors of such companies will not be able to operate
the bank accounts of these companies. Banks have been advised
to exercise enhanced diligence while iJealing with companies in
general and not only on "Struck Off"companies.
BANKS WITHOUT AaDHAR ENROLMENT CENTRES TO
FACE PENALTY: The Unique Identification Authority of India
(UIDAI), in July, had asked private and public sector banks to
open Aadhar Enrolment and Updation Facility in one out of 10
branches by August end. As many banks sought additional time
from the authority for setting up such facility on their premises,
UIDAI has allowed one more month to open the Aadhar
Enrolment Centres In a stipulated 10% of branches and will
impose Rs.20, 000 fine for every uncovered branch after
September 30, 2017.
SEBI PANEL SUGGESTS SPLITTING OF CMD ROLES: In
January 2015, the Government had separated the post of
Chairman and MD or CEO of Public Sector Banks. Now, SEBI
Panel has suggested that the roles of Chairman and Managing
Director (CMD) be splitted at listed companies to prevent a
potential conflict of interest arising out of the same person
playing the two roles. The MD should be resfxinsible for running
the company while the Chairman should manage and oversee
the Board. Separating the roles will ensure that the company is
run more professionally and power is not concentrated in the
hands of one individual.
17
 FINANCIAL AWARENESS a GENERAL KNOWLEDGE
CENTRE TO STATES FOR ALL GOVT. SCHEMES TO BE
UNDER DBT: After bringing a number of Central Government
Schemes under Direct Benefit Transfer (DBT), the Centre has
instructed the states to ensure that they pass tfieir own DBT
laws and create their own portals to bring in their schemes
under the DBT umbrella. Some 3500 Central and state
government schemes and programmes, with a total outlay of
Rs.6 Lakh Crore, are expected to be brought under the DBT
mission. Out of 3500 schemes and programmes, 3000 schemes
are expected to be from the states while 500 are Central
Schemes.
SEBI MOOTS TIGHTER NORMS FOR CREDIT RATING
AGENCIES: SEBI has proposed 10% cross-shareholding cap in
Credit Rating Agencies along-with other measures for tightening
the financial and operational eligibility of Uieir promoters. No
CRA should "directly or indirectly" hold more than 10% of
shareholding and/or voting rights in another CRA and shall not
have representation on the Board of the other CRA. Further,
SEBI's prior approval would be needed for acquisition of shares
or voting rights in a CRA that results in change in control. The
requirement would not be applicable for holdings by broad-
based domestic financial institutions.
RESOLUTION PLAN FOR NEXT SET OF STRESSED
ASSETS: A resolution plan, finalised for the next set of stressed
assets identified by RBI, will be subject to a rating requirement if
the plan for resolving their bad debts falls outside the scope of
Insolvency and Bankruptcy Code. (IBC). RBI has told the banks
that if any resolution plan is finalised outside the ambit of IBC,
the residual debt would have to be rated as investment grade by
two external aedit rating agencies for bank loan rating. In case
the plan fails to get the rating, the accounts vrould be referred
under the IBC before December 31.
COURT RULING ON PROPERTY SALE & CREDITOR ROLE:
(Case- United Bank of India VS. State of Bengal) The Calcutta
High Court has ruled that a secured creditor who sells the
mortgaged property has no interest In the immovable property
after the issuance of sale certificate. He can not approach the
District Magistrate to get possession of the property invoking
section 14 of the SARFAESI. After sale, the secured creditor can
no longer claim a security interest over such immovable property
as such security interest stands dissolved by the issuance of the
sale certificate.
ELECTORAL BONDS TO BE NOTIFIED; The Government is
set to notify the Electoral Bonds Scheme. CBDT has already
drafted the contours of the scheme which will bring in
transparency into political funding. The contours of the scheme
are largely in line with the budget proposal under which
donations over Rs.2000 to political parties will be through these
bonds. To ensure that only clean money goes Into political
funding, the purchase of bonds would be through cheque or
electronic means. Donors would purchase the bonds from
designated branches of only a few authorized banks. Every
recognised political party would also register with one
designated bank account in which all such bonds would be
redeemed.
GOVT. TO HELP STRANDED SMALL HYDLE PROJECTS
THROUGH IREDA: The Ministry of New and Renewable Energy
will help developers of stranded small hydropower projects by
providing concessional loans through the Indian Renewable
Energy Development Agency (IREDA). Concessional Loans are to
be extended at an interest rate of up to 2% by IREDA. Further
loan will be given up to 70% of the outstanding amount that
project developers owe to the primary lender. Currently, small
hydropower projects less than 25MW are eligible for benefits for
renewable energy that include cheap financing and assured off
take of generated power.
CBDT AND CORPORATE AFFAIRS MINISTRY SIGN MOU:
The Central Board of Direct Taxes and the Ministry of Corporate
Affairs Ministry have signed a MOU for automatic sharing of data
on regular basis. The MOU will ensure that both have seamless
PAN-Corporate Identity Number (PAN-CIN) and PAN- Director
Identity Number (PAN-DIN) linkage for regulatory purpose. The
information shared will pertain to both Indian as well as foreign
corporates operating In India. Both will also exchange any
information for the purpose of carrying out scrutiny, inspection,
investigation and prosecution.
SUPREME COURT RULING ON LOK ADALAT: Supreme
Court has ruled that an award passed in a Lok Adaiat set up
under the Legal Services Authorities Act can be challenged
before the High Court, alleging fraud or misrepresentation by
one of the parties. But such petitions can not be taken up by a
Civil Court after the award is passed. Only the High Court can
hear the petition challenging the award. The Supreme Court
stated so while setting aside the judgment of the High Court of
Andhra Pradesh/ Telengana in a case of sale of land in which
over 30 parties were involved.
SEBI ALLOWS REALTY, INFRA TRUSTS TO ISSUE BONDS:
SEBI has allowed Infrastructure Investment Trusts (InvITs) and
Real Estate Investment Trusts (REITs) to raise capital by issuing
debt securities. The move could help attract investors to the
capital-stan/ed property sector. In addition to allowing bond
issuances, SEBI also introduced the concept of strategic investor
for REITs similar to InvITs. Further SEBI had also decided to
consult on a proposal to allow REITs to invest at least 50% of
the equity share capital or Interest in the underlying holding
company and special purpose vehicle. Previously, raising capital
was allowed via launch of equity-oriented REITs and InvITs,
which offer indicative yields, not fixed yields. Debt-oriented
REITs and InvITs offer fixed returns to investors.
IRDAI TO ASK INSURERS TO CREATE DEBANTURE
REDEMPTION RESERVE: IRDAI is likely to ask insurers to
create a debenture redemption reserve (DRR). DRR provision
was added in 2000 to the India Companies Act 1956 and has
also been included under Section 71 of the Companies Act,
2013. Under this, an Indian Company that issues debentures has
to create a redemption pool to protect the investors against the
possibility of default by the company.
IRDAI FOR UNIFORM METHOD IN PUBLISHING DEATH
CLAIMS PAID: IRDAI has asked the Insurers that in order to
have uniformity across the industry, they should use or publish
only annual figures of death claims paid ratios, based on the
number of policies alone. These figures should reflect the entire
financial year and be based upon the latest IRDAI Annual Report
or latest annual audited final figures submitted to the authority.
If an insurance advertisement contains death claims paid, then
the data for individual and group policies shall not be clubbed
together. In case of advertisements promoting the company's
brand without reference to products, only individual death claims
paid should be used.
GST COUNCIL LISTS NORMS ON ADMINISTRATIVE
CONTROL OF TAXPAYERS: In a bid to clarify the issue of
administrative control and improve coordination between the
Centre and the States, GST Council has defined the parameters
for control over taxpayers. As per notification, the division of
18
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
taxpayers under GST in each state will be done through
computer-based random sampling. According to the broad
formula for cross-empowerment, 90% of the small taxpayers
with an annual turnover of less than Rs.l.S Crore would be
under the administrative control of states. The remaining 10%
are with the Central Tax Administration. Similarly, all
administrative control of larger tax payers above Rs.l.S Crore
turnover was divided equally in the ratio of 50% each for the
Central and the State tax Administration.
GOVT. NOTIFICATION ON LAYERS OF COMPANYS'
SUBSIDIARIES: Govt. has notified that the companies can
have only 2 layers of subsidiaries under the Company Law.
While the rules would be applicable prospectively, companies,
that have already more than two layers of subsidiaries, have to
furnish details about them to the government. Banking and
NBFCs as well as Insurance and Government Firms have been
exempted from the restrictions. The rules will come into effect
from September 20. It assumes significance against the
backdrop of concerns that Shell Companies are being floated to
act as conduits for illicit funding activities. The Cap of two layers
of subsidiaries will not affect a company from acquiring an
overseas firm that has subsidiaries beyond two layers as per the
Laws of that Country.
GOVT. EXTENDED INTEREST SUBSIDY BENEFITS UNDER
PMAY: The Central Government has extended the benefits of
the interest subsidy scheme on home loans under the Pradhan
Mantri Awas Yojana (PMAY) by 15 months beyond December
this year. So, now the benefits will be available up to March
2019 under the Scheme. MIG beneficiaries with annual income
of above Rs.6 Lakh and up to Rs.l2 Lakh get an interest subsidy
of 4% on a 20-year loan component of Rs.9Lakh. Those with
annual income exceeding Rs.l2 Lakh and up to Rs.l8 Lakh
would get an Interest subsidy of 3%.
SUPREME COURT RULING ON "RTI" : (Case-Canara Bank
VS CS Shyam) Supreme Court has ruled in the judgment that a
Bank is not bound to disclose personal information about its
employees under the Right to Information Act. Releasing the
personal Information is protected by the Act and would amount
to invasion of privacy of the employees.
BBB TO OVERHAUL HUMAN RESOURCE PRACTICES IN PS
BANKS: The Banks Board Bureau (BBB) has asked all State-run
Banks to identify senior-level bank executives, who can be
groomed across functions to'prepare a pipeline of leaders to
take over as MD and CEO in future. The move is a part of the
Government's efforts to overhaul human resource practices in
Public Sector Banks (PS Banks). Officers at the DGM level are to
be identified who will be mentored by the BBB. Such identified
officers will move across all verticals such as IT, HR and
operations within the bank for a period of one year.
SEBI TO ALLOW MFs IN COMMODITY DERIVATIVES:
SEBI plans to allow mutual funds and portfolio management
service providers to participate in commodity derivatives market
in less than six months. SEBI is currently considering foreign
entities that have business interests in India either by way of
export or import, to take a position in the commodity derivatives
market. Before allowing them to participate, however, it is
necessary to have adequate risk management and surveillance
mechanisms in place. In June, SEBI opened up the commodity
market to hedge funds registered as Category-Ill Alternative
Investment funds.
GOVT. ASKS PSUs TO STEP UP CAPEX AND DIVIDENDS:
The Government has asked state-owned companies to spend an
additional Rs.25, 000 Crore in capital expenditure this fiscal year
above the budgeted combined capital spending targ^of Rs.3.85
lakh Crore for the Centre and PSUs. It also a^ed these
companies to declare liberal dividends to the government.
Additionally, the Centre said that it would borrow Rs.2.08 Lakh
Crore Gross during October 2017-March-2018.While the full year
borrowing estimate of Rs.5.80 Lakh Crore is being adhered to,
the borrowing programme will be reassessed in December based
on spending needs.
August 2017
GOVT. TO TIGHTEN SHELL COMPANIES SURGE: The
Centre had constituted a Task Force on "Shell Companies" in
February. It was to tackle effectively the malpractices of shell
companies in a comprehensive manner. During the past three
years, investigations have led to the detecb'on of more than
1155 shell companies that were used as conduits by over 22000
beneficiaries. The Centre is working to tighten regulations
governing the layers of subsidiaries that a company can have, in
much the same way that it did with investment companies.
EXPORT NORMS CHANGED TO CLEAR PROCEDURAL
MESS; In a move to sort out the procedural mess that exports
have got stuck into after the roll out of the GST, the Customs
Department has notified that currency exchange rates for
drawback purposes would be announced on a fortnightly basis.
The traders can now go back to paying the free-on-board value
of exports based on the rupee value according to the exchange
rate. Big exporters with good track record can give an Letter of
Undertaking (LUT) to the Customs Department while small
exporters would have to give a bond to seek IGSTexemption.
PSBs TO PERFORM BETTER FOR ESOPS INCENTIVES:
The draft guidelines sent by the Finance Ministry to the Heads of
five state-run banks stipulated that to grant "Employees Stock
Options" Scheme (ESOPs) for a particular financial year, banks
need to have a minimum provision coverage ratio - a measure
of the funds set aside by banks to cover bad loans -of 65% as
on March 31 and NPAs should not be more than 35% of net
worth. The Scheme is planned to come into force in 2017-18.
However, all, save two (SBI and Bank of Baroda) of the 21
state-run banks have a provision coverage ratio that is less than
65%. NPAs exceed 35% of net worth for all 21 banks. So, the
banks are required to perform better for getting ESOPS
incentives.
KOTAK COMMITTEE TO DISCUSS PSE SUCCESSION
POLICY: In early June, SEBI had set up the committee under
the chairmanship of Uday Kotak, Executive Vice-chairman and
MD of Kotak Mahindra Bank to help improve the standards of
corporate governance of listed companies. The Public Sector
Enterprises (PSEs) are criticized for not having requisite number
of independent directors on their boards, as a result they are
unable to comply with corporate governance norms such as
constitution of audit committee, remuneration and nomination
committee etc. Hence to overcome the challenges faced in
succession plan as well as getting independent directors, a need
is felt to create a transparent mechanism for the selection
process.
PINO PAYMENTS BANK FIRST GO LIVE: FINO is the 4th
Payments Bank launched in India. The other banks are Airtel
Payment Bank, Paytm Payment Bank and India Post Payment
Bank. FINO is the First Payment Bank to go live with 410
branches and over 25, 000 touch- points on day one itself. The
immediate priority is to stabilize the operations of the Payment
19
 FINANCIAL AWARENESS ft GENERAL KNOWLEDGE
Bank, bring the culture of customer service within the bank and
get new products launched. The Bank which has adopted the
Phygltal (both physical and digital) Model is looking to break
even by 2020.
is"*"" FINANCE COMMISSION TO BE SET UP BY GOVT.:
The Centre has Initiated the discussions on setting up the next
Rnance Commission, which would decide on the devolution of
tax revenue between the Union and State Governments. To be
known as the "Fifteenth Finance 'Commission", it would
recommend the formula for sharing taxes between the Centre
and the State and allocation of each state for the five year
period between 2020 and 2025.While the finance Panel is
typically set up about two years before the end of the previous
five year period, discussions this time have been advanced In
line with a proposal to change the fiscal year cycle to January to
December.
GOVT. TO NSDL TO SET UP NATIONAL ACADEMIC
DEPOSITORY: An Arm of depository services provider National
Securities Depository Ltd. (NSDL) assigned the job of
dematerializing education records to NSDL Database
Management following order from HRD Ministry to set up
National Academic Depository. The CBSE has been the first to
share the exam results of 27 Lakh students with the NSDL
Database Management. Further, now there will be no need for
physical authentication of educational certificates during
admissions as NSDL has started the process of dematerializing
education certificates.
GOVT. CONSTITUTES PANEL FOR DATA PROTECTION:
The Government has constituted a 10-member Committee of
Experts to deliberate on a data protection framework for the
country. The move assumes signiHcance on account of growing
digital transactions as also the rising concerns around safety of
personal data of citizens. The Panel will identify key data
protection issues and recommend ways to address them.
NITI AaYOG TO GOVT. TO RELIEVE OF G-20 DUTIES;
Arvind Panagariya, the outgoing VIce-Chairman of NITI Aayog
has suggested that the Government relieve the Think- Tank of
its G-20 duties and appoint a full-time Sherpa. To ensure that
the work of the NITI Aayog and G-20 engagements receive due
attention , it may be worth considering separating these roles in
future. A full-time G-20 Sherpa would in any case be a necessity
if India were to host tiie G-20 summit in the future.
RBI GROUP TO STUDY MCLR SYSTEM: The Marginal Cost of
Funds-based Lending Rate (MCLR) System was introduced in
April 2016 for improving the monetary transmission. MCLR, the
internal bench-mark lending rates have to be revised monthly.
This move was in response to banks failing to transfer the
benefit of rate cuts by RBI to its customers. The MCLR Rates,
unlike base rates, have to take the change in repo rates into
consideration and revise lending rates accordingly. However RBI
said that the base rate of some banks continued to be
significantly lesser than the MCLR even after the New System.
Now RBI will review the working of the system to improve
transmission. The Group will also explore ways to link bank
lending rates directly to market-determined benchmarks.
RBI TASK FORCE ON PUBLIC CREDIT REGISTRY: RBI
decided to constitute a high-level task force to review the
current availability of information on credit in the country to
assess the gaps that could be filled by a comprehensive public
credit registry. The task force will also suggest a road-map for
developing a transparent, comprehensive and near-real-time
credit registry for India. RBI feels that such a registry can
potentially help banks In assessment and pricing of aedit as well
as In making risk-based dynamic and counter-cyclical
provisioning.
GOVT. TO LAUNCH SECOND CPSE ETF: The Central
Government Is to launch its Second "Central Public Sector
Enterprises Exchange Traded Fund"(CPSE ETF). Government's
offering is being planned as an attractive and diversified which
may constitute 20-25 stocks from across-sectors. The First CPSE
ETF Basket had 10 stocks, mostly drawn from the minerals and
energy sectors. An ETF is a security that tracks an Index, a
commodity or a basket of assets like an index fund but trades
like a stock on an exchange . It provides diversification to
investors and is cheaper than investing in a fund.
GOVT. TO DOUBLE MINIMUM WAGES AND REVISE
FORMULA: The Government is considering for doubling of
minimum wages nationally to about Rs.18, 000 per month and
the Labour Ministry is set to relook at the formula currently used
to determine the floor level. The ministry is expected to take into
consideration a proposal to double the units or individuals
considered per family to six from three at present by including
dependent parents as well as considering each child as one unit.
Currently, husband, wife and two children in a family are
considered three units, based on which minimum wage is
determined for agriculture and non-agricuiture workers under
the Minimum Wages Act 1948.
AaDHAR MADE MANDATORY FOR DEATH CERTIFICATES:
The Government has made the Aadhar Number "Mandatory" for
death registration so as to ensure accuracy of the details
provided by the relatives of the deceased, thereby preventing
identity fraud. A person applying for a death certificate is
required to provide the Aadhar Number or Enrolment ID
Number of the deceased and other details as sought in the
application for the purpose of establishing the identity of the
deceased. If the applicant is not aware of the Aadhar number or
EID of the deceased, an undertaking has to be given.
SUPREME COURT RESERVES ORDER FOR PRE'2002
BANK RETIREES: The Supreme Court on August 1 reserved
judgment in a petition filed by various organisations seeking
100% neutralisation of DA for Pre- November 2002 bank
retirees. The arguments given on behalf of the retirees relate
that the IBA has unilaterally created an artificial classification by
wrongly dividing the retirees into different groups as pre-
November 2002 and post-November 2002. Further inflation
hurts all pensioners equally, irrespective of the- date of
retirement. DA is payable towards part-compensation on
account of price rise and hence there can not be different rates
payable to retirees merely on the basis of their date of
retirement.
SEBI WIDENS DEFAULT DISCLOSURE RULE:SEBI has made
it compulsory for listed companies to make a disclosure to the
stock exchanges if they default on any interest or principal
payment obligation to banks. At present, there was no
stipulation on companies to make disclosures with regard to
loans taken from banks and financial institutions. The
disclosures will have to be made within one working day from
the date of the first default. SEBI has also asked listed entities to
separately provide information to credit rating agencies on
default in a timely manner.
CBDT EASES NORMS FOR FOREIGN FUND MANAGERS:
CBDT has further relaxed norms for funds coming out of the 121
countries Including Mauritius and Singapore. The list does not
include Hong Kong and will not be applicable for funds there.
Presently, while corporate tax on foreign funds is 40%, capital
20
 FINANCIAL AWARENESS a GENERAL KNOWLEDGE
gains tax is 15% and zero in case of long-term capital gains in
listed securities. Now, the tax Department has said that the
three tough conditions will not apply to funds set up by
category-I and II of Foreign Portfolio Investors shifting to India
from these 121 countries and they will not be treated as
Permanent Establishment(PE)of the funds.
SECC DATA TO BE USED FOR RIGHT BENEFICIARIES: The
Government plans to use the Socio Economic and Caste Census
(SECC) 2011 data to identify individual beneficiaries for all its
schemes to ensure that benefits meant for deprived population
reach the right people. The Panel, headed by former finance
secretary Sumit Bose also recommended in favour of using SECC
data for rural development schemes and suggested a formula to
use some of the deprivation parameters to identify the
beneficiaries for specific schemes. Presently, only the rural
development ministry and a few departments use the SECC
data for their programmes.
PANEL ON CRYPTO-CURRENCY SUBMITS REPORT: The
Government-appointed Panel, constituted in April, has submitted
its report on "Crypto-Currency" to the Union Finance Minister.
The contents of the report has not yet been made public. The
Panel was tasked to examine the existing framework on
digital/crypto currencies both in India and Globally and come out
with measures for dealing with such virtual currencies on issues
relating to consumer protection, money laundering etc. The
Centre had given the three months time for submitting the
report. Already, there is an ongoing debate within the country as
to whether crypto-currencies Including Bitcoin should be
legalised or not.
PNB INTRODUCES BIOMETRIC ATTENDANCE REGISTER:
Punjab National Bank (PNB) has introduced Biometric
Attendance Register in place of the existing system of signing
attendance in the attendance register. The new system will be
implemented in branches/offices with immediate effect. Every
employee shall, immediately on arrival and also while leaving the
branch/office, mark his/her attendance in the biometric
attendance device. Manual attendance system will run parallel
up to August 31 to streamline the process. Reporting/exit
timings will be uploaded In the HR System automatically.
BILLS OF MSMEs DISCOUNTING AT TReDS PLATFORM:
Micro, Small and Medium Enterprises (MSMEs) supplying to big
parties/corporates can get their invoices discounted at or close
to banks' benchmark lending rates if they get on to the Trade
Receivables Discounting System (TReDS). This is so because
financers- banks and NBFCs (who are in factoring business)
discount suppliers' invoices on the TReDS platform based on the
strength of the corporate buyer's credit rating. Currently there
are two TReDS in the country-(l) RXIL(2) A.Treds and both are
RBI approved online marketplace, that bring together buyers,
sellers and financiers, who have to execute bilateral agreement
with the TReDS Platform to transact.
SEBI TO EXTEND TRADING HOURS FOR DERIVATIVES:
SEBI is planning to extend the trading hours for the Derivatives
Market. The move will provide investors the tool to price in news
flow that comes in after market hours. Currently, a lot of
foreign investors use global platforms which offer almost round
the clock trading on some Indian contracts-for trading or
hedging their underlying exposure to Indian stocks. Given the
current setting, there is a crises on the international
competitiveness of the Indian Exchanges. A decade ago, nearly
100% of the trading on the Indian underlying used to take place
domestically . Now, half of that has gone to overseas locations.
Our index, currency and interest derivatives are all getting
traded overseas which Is a big problem. Extending timing Is one
element which can help.
INDIA POST'S BANK NOT BEYOND TRIAL EXERaSE: The
Department of Posts, one of the 11 entities to get in-principle
nod from RBI in 2015 for Payments Bank, launched a pilot
service in Raipur and Ranchi this January . Though, armed with
a bank licence, the department could not go beyond a pilot, as it
struggled to find a company to take care of its tech
infrastructure needs. Now recently, India Post awarded Uie
System Integrator contract to US tech giant HP. According to the
mandate of RBI, the Payments Bank has to run most digital.
IRDAI TO INTRODUCE RISK-BASED CAPITAL NORMS
FOR INSURERS: The Insurance Regulatory and Development
Authority of India (IRDAI) may soon introduce risk-based capital
(RBC) method for fixing the solvency ratios of the insurers.
Currently, the solvency capital is fixed-based on the reserves
and the sum at risk for the life insurer. The drawback of the
current solvency method is that the level of confidence provided
by the capital held by the companies is not known. So ttie
capital held may be too high or too low given the risk profile of
the companies. The RBC method, on the other hand, is risk-
focussed and follows the standards adopted in developed
countries.
SUPREME COURT MADE PUC MANDATORY: Supreme
Court has ruled in the PIL of Environmentalist MC Mehta that the
insurers can not renew a motor insurance policy unless the
vehicle owner provides a "Pollution Under Control" (PUC)
Certificate. The Apex Court also asked the Ministry of Road
Transport and Highways to ensure that all fuel refilling centres in
the National Capital Region (NCR) have PUC Centre.
NEW NSSO SURVEY ON E-COMM ACTIVITIES: The
Government Is for the first time trying to get a handle on the
country's booming e-commerce market through a new survey
and data available through the GST. In its latest 74^ round
survey, the National Sample Survey Organisation (NSSO) is
asking the consumers if they have used e-commerce websites.
There is a question in the household consumer expenditure
survey, which is simply trying to see whether households use e-
commerce in any form as part of their usual household
transactions.
RBI's PAYOUT TO CENTRE FALLS: RBI's Central Board
approved the transfer of surplus to the government of India
amounting to Rs.30, 659 Crore for the year ended June 30,
2017.(RBI follows Julyl to June 30 Financial Year). In the Union
Budget 2017-18, it was assumed that around Rs.75, 000 Crore
would come from RBI compared with a little over Rs.76, 000
Crore in FY17. However, RBI's payout to the Centre has fallen
substantially. Demonetisation coupled with reverse repo auctions
undertaken to suck out excess liquidity in the banking system
seem to have taken a heavy toll on RBI's payout to the
government.
REGISTRATION BY CASUAL TAXPAYER UNDER GST; A
casual taxpayer is a person who occasionally undertakes
business transactions in a state or union territory where he/she
has no place of business. Navin Kumar, Chairman of GSTN said
that a casual taxpayer must go for registration as "Casual Tax
Payer" at least five working days prior to the commencement of
business. GSTN Chairman further said that the registration as a
"Casual Tax Payer" will be valid for 90 days. However he will
have the option to extend the registration maximum of 90 days
before the expiry of the initial 90 days period for which the
registration was granted.
21
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
BANKS EXPLORING USE OF ARTIFICIAL INTELLIGENCE
IN OPERATIONS: Several Banks have started exploring
adoption of Artificial Intelligence (AI) and Machine Learning
((ML) In their operational processes. By adopting AI and ML,
some banks have automated operational processes, resulting in
cost reduction and faster turnaround time. A few banks have
already initiated the process of building centralised data lakes
and institutanalising advanced analytics capabilities, either
internally or through captive vendors.
BIS TO INTRODUCE PHOTOCARD WITH HALLMARKED
JEWELLERY: The Bureau of Indian Standards (BIS) plans to
make hallmarking of gold jewellery compulsory and as a first
step, it has proposed photo-cards for hallmarked jewellery.
Currently, the hallmark logos on jewellery are very small and
difficult to decipher. The authenticity of these logos also remains
suspect. To address this problem, the BIS has proposed to
introduce a photo-card of the size of a aedit card, with each
hallmarked jewellery. This photo-card will carry all the details of
the product, including a magnified picture of the four hallmark
logos, the caratage of the jewellery, the name of the jewellery
shop and the name of the hallmarking centre.
CBEC LIBERALISES NORMS FOR LETTERS OF
UNDERTAKING: The Finance Ministry has further liberalized
norms for Letters of Undertaking (LUT) to help exporters who
have been facing difficulties under the GST Regime in timely
shipment of consignments. The Central Board of Excise and
Customs (CBEC) has now clarified that ail registered exporters
who have received remittances of Rs.l Crore or 10% of export
turnover in the previous fiscal will be eligible to get LUTs. It will
also be available to exporters of all kinds of supplies. The facility-
was earlier available only for manufacturer exporters.
GST RELIEF FOR HIMALYAN AND N-E UNITS STATES: As
many as 4284 industrial units in the North East and Himalayan
States will get GST relief in the form of refund of Central Share
of CGST and IGST. The Cabinet Committee on Economic Affairs
(CCEA) gave its nod for new scheme to refund the Central share
of Central GST(CGST) and Integrated GST (IGST) to these units
in lieu of the excise exemption lost due to the onset of GST and
scrapping of Excise laws from July 1 this year. A budgetary
support of Rs.27, 413 Crore for this scheme has also been
approved for die period from Julyl, 2017 to March 31, 2027.
CABINET APPROVES TERM IRRIGATION FUND: The
Cabinet gave its approval for raising Extra Budgetary Resources
of up to Rs.9020 Crore during-the financial year 2017-18. The
funds will be raised by NABARD through issuance of bonds at
6% per annum as per requirement. These funds will be for the
implementation of Accelerated Irrigation Benefits programme
(AIBP) works of 99 ongoing prioritized irrigation projects along
with their command area development works under-the PM
Krishi SInchaee Yojana.
PANEL REPORT ON VIRTUAL CURRENCIES: The Panel
constituted by the Finance Ministry has submitted Its report on
Virtual Currencies. While welcoming the use of new technologies
such as block chain, the committee is said to have proposed that
the use of crypto-currencies should not be permitted in the
country. It is also not in favour of a complete ban but is
understood to have recommended stringent provisions for
regulating it. The Finance Ministry will work out a roadmap to
regulate the use of virtual currencies such as Bitcoin.
SEBI TO EXCHANGES FOR AUDIT OF "SHELL COS": SEBI
has asked BSE and NSE to initiate audit on 100 out of 331
suspected shell companies in which the regulator had restricted
trading recently. The Exchanges are also considering freezing
promoters'shares of these shell companies till the time the audit
process is complete.• Most of the 331 suspected companies are
either non-operational or already barred from trading on
exchanges.
SUNREF INDIA PROGRAMME LAUNCHED: The National
Housing Bank (NHB) has joined hands with the French
Development Agency (FDA) and the European Union (EU) to
launch the "Sustainable Use of Natural Resources and Energy
Finance"(SUNREF) Housing India programme as part of efforts
aimed at scaling up green housing projects in India. SUNREF
Housing India will provide financing of €112mitlion to NHB
through a Credit Line of €100 million with FDA and a grant of
€12million financed by EU. The credit facility and grant
agreements were signed by NHB in July 2017. The Credit Line
will be available for a three-year time period that began from
July 2017.
CBEC CLARIFICATION ON GOLD IMPORTS: Central Board
of Excise and Customs (CBEC) clarified that the banks did not
pay any VAT on import of precious metals previously. They only
were paying customs duty. Now, under GST, 3% IGST is
payable on all imports of precious metals in addition to the basic
customs duty. IGST paid can be taken as Input tax credit by the
banks.
SUPREME COURT RULING ON TRIPLE TALAQ: The five-
judge constitution bench presided over by Chief Justice
J.S.Khehar delivered a split verdict 3:2 in three separate
judgments. The Apex Court declared that Triple Talaq among
the Muslim Community was unconstitutional.,Tfie order seeks to
overturn the conventional belief that it is the community itself,
not parliament or courts, which should reform religious or
personal law.
CABINET APPROVES ALTERNATIVE MECHANISM FOR
PSU BANK MERGERS: The Cabinet has approved an
alternative mechanism to oversee proposals of amalgamation of
public sector banks. The proposals received from banks for in-
principle approval to formulate schemes of amalgamation shall
be placed before the Alternative Mechanism (AM). The decision
will be based only on commercial consideration by the Boards of
the banks involved. After getting in-principle approval, the banks
will take steps in accordance with the law and SEBI
requirements. The final scheme will be notified by the Central
Government.
SUPREME COURT RULING ON "PRIVACY": A Nine-Judge
Constitution Bench of the Supreme Court has ruled that "Right
to Privacy is intrinsic to life and liberty and an inherent part of
the fundamental freedoms enshrined in Part-Ill of the
Constitution". Reading out the common conclusion arrived at by
the Nine Judges on the Bench, Chief Justice said that the Court
has overruled its own Eight-Judge Bench and Six-Judge Bench
judgments delivered In 1954 and 1961 respectively that Privacy
is not protected under the constitution.
DIPP CLARIFICATION ON FDI PROPOSALS: The standard
operating procedures for processing FDI proposals under the
new approval mechanism specifies that in case an administrative
ministry decides to reject an application, it has to compulsorily
seek the concurrence of the Department of Industrial Policy &
Promotion (DIPP) within six-eight weeks of receipt of the
proposal. Now DIPP has clarified that the right to reject a
foreign direct investment proposal in a sector vests with the
designated administrative ministry and not the DIPP.
CCI EXPANDS LENIENCY NORMS TO INDIVIDULAS: The
Competition Commission of India (CCI) has expanded leniency
norms for Individuals, making them eligible for waiver of or
22
 FINANCIAL AWARENESS a GENERAL KNOWLEDGE
lower penalty. Prior to this, only companies were eligible to
apply for leniency. Section 46 of the CCI Act has a provision
called a leniency programme. This allows the waiving of or
Imposing of lower penalty on parties to a cartel tJiat inform
about it. As per leniency programme, the first applicant to
Inform the CCI receives an up to 100% waiver on penalty. The
second and third Informants receive up to 50% and 30% off
respectively. The CCI has the final word.
SUPREME COURT RULING ON STAFF RETURNING FROM
WORK "ON DUTY": (CASE-Daya Kishan VS. Dynemech
Systems) The Supreme Court has ruled that In a case of
compensation even if a person was killed while returning from
the place where he was sent on assignment, the death was "in
the course of employment" and his dependents are entitled to
compensation under the Employees' Compensation Act.
RBI DRAWS UP 2^0 LIST OF DEFAULTERS TO INITIATE
PROCEEDINGS UNDER CBS: Two months after RBI asked
banks to initiate insolvency proceedings against 12 defaulters In
the country, has now drawn up a second list of over 40
defaulters classified as NPA. Banks have been told to Initiate the
proceedings under the Insolvency and Bankruptcy Code (IBC)
against these defaulters within four months if there is no
resolution until then. Each bank has received a separate list
comprising of defaulting companies where it has exposure.
July 2017
RBI CAUTIONS PUBLIC ON CO-OP SOCIETIES
ACCEPTING DEPOSITS: RBI has advised members of the
public to exercise caution and carry out due diligence before
dealing with co-operative societies. RBTs advice comes in the
wake of instances of some societies accepting deposits from
non-members/ nominal members/associate members. RBI has
informed that such cooperative societies have neither been
issued any licence under the Banking Regulation Act 1949 nor
are they authorized by RBI for doing banking business.
SEBI ISSUES NEW FRAMEWORK ON CORPORATE BOND
MARKET: SEBI has put In place a new framework for
consolidation in debt securities as part of its efforts to deepen
the corporate bond market. Liquidity in the secondary market for
corporate bonds will be increased by way of minimal number of
ISINs (International Securities Identification Number). The ISIN
Code which hasl2 characters is used for uniquely identifying
securities such as stocks, bonds, warrants and commercial
papers. Under the new framework, an issuer will be permitted a
maximum of 17 ISINs maturing per financial year. A maximum
of 12 ISINs maturing per financial year will be allowed only for
Plain Vanilla Debt Securities. Furthermore an entity can issue up
to five ISINs every fiscal for "structured debt instruments of a
particular category.
CENTRE MODIFIES EXPORT INCENTIVE SCHEMES: The
Centre has modified existing Export Incentive Schemes,
removing most exemptions provided on input taxes to align
them with the GST Regime which has since been rolled out. Now
exporters importing inputs including machinery under various
schemes without paying import duties up to a given limit will
have to pay GST on it and later apply for refund. No exemption
from payment of IGST and compensation cess would be
available for Imports and they would need to pay IGST and take
input tax credit as applicable under GST. However imports under
Advance Authorisation will continue to be exempted from
payment of basic customs duty, additional custom duty and
education cess.
ESPOs TO BE LINKED TO BANKS' PERFORMANCE; The
proposed Employees Stock Option Plans (ESPOs) for public
sector banks to retain talent will be introduced for select banks
that meet the performance criteria. The framework the
Government has created to incentivize employees has been
referred to RBI for approval. The Finance Ministry had, in March,
agreed in principle to allow PSBs to offer stock options to their
employees frpm 2017-18. The ESOP option will likely 6e
available to banks making profits and doing well in terms of
managing NPAs. Shares equivalent to a certain proportion of net
profits are likely to go as ESPOs.
GOVT. TO MONETISE INFRA-ASSETS: The Government is
mulling leasing out operational roads, airports, ports ar>d other
infrastructure assets to the private operators to attract
investments and free up funds to step up public investment in
Greenfield Projects. NITI Aayog will prepare the list of projects
that can be offered to the private sector. Private investment in
the Greenfield Infrastructure has almost stalled because of
multiple execution risks involved and heavy indebtedness of
infrastructure companies.
GOVT. TO CLEAR REIMBURSEMENT SCHEME FOR
INDUSTRIES: The Government is to clear the reimbursement
scheme for Industries that have lost area-based exdse
exemption offered as incentives in states such as HP, Uttrakhand
under the GST Regime. Now, the GST Regime does not allow
any tax exemptions and incentives can be offered only by way
of tax refunds. To promote industrialization in special-category
and hill-states such as HP, Uttrakhand and those in the North-
East, manufacturers enjoy benefits under the area-based
exemption scheme and are not required to pay central taxes
such as excise duty and other state levies.
CBDT SOFTENS CASH TRANSACTION NORMS: The Centre
had, through the Union Budget, banned cash transactions of
Rs.2 Lakh or more from April 1, 2017. Now five categories of
transactions have been kept out of this restriction through an
executive order from CBDT. The restriction Is also not applicable
to any receipt by Government, banking company, post office
savings bank or co-operative bank. By this clarification, CBDT
has ensured that agents' aggregating money received from
various customers and depositing with the prepaid card issuer
will not be misinterpreted as violation of the norms.
CBDT REVISES TAX AUDIT FORM WITH NEW
DISCLOSERS MANDATE: CBDT has revised the Tax Audit
Form (3CD) stipulating more disclosures of information
including those on monies received for immovable property and
advances received In cash beyond specified limits. The revised
form also specifically refers to information on use of electronic
clearing system through a bank account in addition to payments
by way of account payee or bank draft. The Income Tax Law
currently stipulates tax audit for companies with turnover
exceeding Rs.2 Crore in a financial year. For professionals, the
threshold revenue limit for tax audit is Rs.50 Lakh in a financial
year.
CBDT CLARIFICATION ON CASH ACCEPTANCE OF LOAN
REPAYMENTS: CBDT has clarified on cash acceptance
restrictions on loan repayments made to NBFC and housing
finance companies. It has now made it clear that every
instalment collection would be considered as a "Separate Single
Transaction" for the purpose of determining the applicability of
Rs.2 Lakh cash collection limit introduced in this year's budget.
All the instalments paid for a loan should not be aggregated for
the purpose of determining applicability of Section 269ST. This
section is the provision that put restrictions on cash acceptance
23
 RNANCIAL AWARENESS & GENERAL KNOWLEDGE
from April! tfiis year. The Centre had banned cash transactions
of Rs.2 Lakh or more with effect from Aprill, 2017.
FINMIN TO SET UP ANTI-PROFITEERING BODY: The
Finance Ministry Is to set up a National Anti-profiteering
Authority to curb any unwarranted price hikes and also to clear
confusion over the new prices of items under GST. According to
die rules, the authority will have three- tier structure including a
Standing Committee of anti-profiteering, State-level Screening
Committees and a National Ant-profiteering Authority. The
Authority is empowered to make a company lower its prices and
refund money to consumers or deposit in the Consumer Welfare
Fund. It can also impose a penalty and cancel the registration of
the company.
SUPREME COURT RULING ON FAKE CASTE CERTIFICATS:
The Supreme Court has ruled that those using fake caste
certificates to avail of quota for admissions to educational
institutions or getting government jobs must lose the benefit the
moment the forgery Is discovered. In case the certificate
obtained or social status claimed is found to be false , the
parent/guardian /candidate should be prosecuted for making
false claim. If the prosecution end in a conviction and sentence
of the accused , it could be regarded as an offence involving
moral turpitude and disqualification for elective posts/offices.
SUPREME COURT ASKS BANKS FOR NO COERCIVE STEPS
AGAINST FARMERS: Supreme Court has said that the
financial institutions should not resort to coercive action for
recovery of loans from farmers in case of crop failure. The
government should step-in If there is any coercion. The Apex
Court said that the government's job is to prevent farmer's
suicides and not to distribute compensation. It said that the
government's approach towards the agrarian crises should be
preventive rather than compensatory.
CBEC RELAXES NORMS ON BONDS UNDER GST FOR
EXPORTERS: In a significant relief for exporters who have
been facing difficulties imder new tax regime, the Finance
Ministry has now relaxed rules and said that the exports can
continue under the existing bonds and letters of undertakings till
July 31. Exporters have to furnish a bond or LUTs in Form GST
RED-11 Instead of payment of integrated GST to release their
consignments. Further the bank guarantee should not exceed
15% of the bond amount and the Jurlsdictional Commissioner
can make a relaxation based on the track record of the exporter.
RBI TO SOLVE THE ISSUE OF''MISSING NOTES" BEFORE
ITS BALANCE SHEET FINALISATION: RBI is to solve one of
the best kept secrets of demonetisation - "Value of banned
currency notes which never came back to it". According to RBI
Accounting Policy, currency notes in circulation are considered
as a liability relating to the RBI Issue Department. Every
currency note, of all denominations, black or tax paid is the
liability of RBI. The issue assumes significance because- in
absence of the "Missing Notes" number, RBI can not finalise its
balance sheet for the year ended June 30, 2017 and declare
dividend or surplus to the government.
FINMIN CLARIFIES ON GST ISSUES: The Finance Ministry
has clarified that the gifts costing up to Rs.50,000 and
contractual perquisites such as housing to employees by
employers will not attract GST. Free housing to employees will
not attract GST if it is part of the cost-to-company and is
included in the contract between the employer and employee.
Similarly, the services by an employee to the employer in the
course of, or in relation to, his employment is outside the scope
of GST and does not constitute supply of goods or services.
ALL BANKS TO FACILITATE AaDHAR ENROLMENT: All
Banks including Private Sector Banks will have to provide Aadhar
enrolment and update facility to their customers who have been
asked by the government to link their bank accounts with the
Unique Identification Number by December 31 or face blocked
access. This comes in the wake of the country fadng a gigantic
task of linking all bank accounts to Aadhar after due verification,
as mandatory by a June 1 Notification of the Finance Ministry
that amended the Prevention of Money Laundering Act(PMLA).
SICK PSUs LAND TO BE LEASED FOR AFFORDABLE
HOUSING: Now, land with Sick Public Sector Undertakings
(PSUs) would be monetized or leased out to build low cost
affordable houses for the poor. In a bid to give fillip to its
Flagship Scheme "Hosing- for- All", the Government has
identified vast tracts of land in eight cities to ljuild low cost
houses. The Government has finalised a Public Private
Partnership (PPP) Model to provide affording housing.
NABARD FOR DIGITISATION OF SH6 ACCOUNTS:
NABARD plans to scale up the digitization of Self-help Groups
(SHG) accounts and expand digital coverage to 100 districts by
the end of this fiscal. An interesting dimension is that this digital
intervention will also help build credit history for each member
of an SHG and this would be passed on to credit bureaus. One
of the hurdles for banks in extending credit has been the
absence of credit history for the members of SHGs.
GOVT. TO COMPANIES ON INDEPENDENT DIRECTORS:
The Corporate Affairs Ministry has altered the Code for
independent directors under Schedule IV of the Company Law
which says that the companies will henceforth have to replace
Independent directors who resign or are removed from the
Board within 90 days against the earlier 180 days. However it
has exempted government companies from seeking
shareholders' nod for appointing Independent directors. Further
the independent directors of Government companies have also
been exempted from the norm that required their reappointment
to be on the basis of an evaluation of their performance.
GOVT. EXTENDS TIME-LINE FOR LISTED PSEs ON
PUBLIC SHAREHOLDING: Listed Public sector enterprises
including public sector banks will have until August 2018 to
comply with rules that prescribe at least 25% public
shareholding. The Finance ministry has amended the Securities
Contracts (Regulation) Rules to extend the timeline for.
compliance by a year. There are at least a dozen entities where
the Centre's direct holding is still in excess of 75%.Some such
entities are HUDCO, Coal India, MMTC, Indian Bank, Central
Bank of India, UCO Bank etc.
RBI ALLOWS PSB CHAIRMAN TO HEAD AUDIT PANELS:
RBI has allowed the non-executive Chairmen who head the
Boards of State-owned Banks to be nominated to the Audit
Committees of the Board of Directors of the Bank concerned.
The RBI's notification comes after the government split the posts
of chairman and Managing Director at public sector banks in
April 2015, with the chairman being a non-executive position,
while the managing director and CEO as executives to manage
the day-to-day functions of banks.
UIDAI ASKS BANKS TO OPEN AaDHAR ENROLMENT
CENTRES: The Unique Identification Authority of India (UIDAI)
has asked private as well as public sector banks to set up
Aadhar enrolment facility in at least one out of 10 branches in
the country. Suitable changes have been made recently In the
Aadhar regulations to facilitate this rule. At present, there are
25000 active enrolment centres across India but they operate
from their own premises. However, none of these centres are
being operated from bank premises. There are 120, 000 bank
24
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
branches in the counU7 and by this move 12000 Aadhar
enrolment and updation centres will be set up in those branches.
HIGH COURT RULING ON TAX DUES PRIORITY: (Case-
GMC Engineer & Contractor Ltd. VS. State of Rajasthan) In this
case, the property of SR Foils and Tissue Ltd. was attached by
Sales Tax Officers. Then ICICI Bank which provided loan to it,
auctioned the property and transferred the tide documents to
GMC, the highest bidder. However the Government invalidated
the auction and offered the property for sale for recovery of its
tax dues. This was challenged by GMC in the High Court. Over
this. The High Court followed the Supreme Court ruling and said
that diough banks and financial institutions might fall in the
category of secured creditors, the state dues will come first
when the property Is attached for non-payment of dues.
SEBI TELLS BANKS TO MAKE ADDITIONAL DISCLOSURE
ON LOANS: SEBI asked listed banks to make additional
disclosures on divergence in asset classification and provisioning
to stock exchanges in prescribed format. The Banks will have to
disclose where additional provisioning requirements by the RBI
exceeds 15% of the net profit for the reference period. If the
additional gross NPA identified by RBI exceed 15% of
incremental gross NPA for reference period, banks will have to
make disclosure to the exchanges, along with the annual
financial results filed immediately following communication of
such divergence by the RBI to the bank.
CABINET APPROVES ALTERNATIVE MECHANISM FOR
ETF: In a boost to the Centre's disinvestment policy. Cabinet
approved an alternative mechanism to decide on stake sales in
state-owned banks and creation and launch of exchange-traded
funds (ETFs). It will decide on disinvestment of PSBs, listed
public sector financial institutions and public sector insurance
companies through ETF or other methods, subject to the
government retaining 52% stake.
SEBI TO TIGHTEN DEPOSITORY RECEIPT REGULATIONS;
SEBI is planning to clamp down on depository receipts (DRs) as
part of efforts to check the flow of black money into the stock
market. SEBI planned to make it mandatory for foreign
depositories to reveal details of end-beneficiaries holding DRs
issued by Indian Companies. The new framework will align
know-your-customer (KYC) requirements for DRs with provisions
to prevent money laundering. SEBI has proposed DRs can be
exercised by the issuer only if information on beneficial
ownership is available.
CBDT CLARIFICATION ON TDS COMPUTATION UNDER
GST: The Central Board of Direct Taxes (CBDT) has clarified
that where the recipient of a service is required to deduct tax at
source (TDS) when making a payment to the supplier, the
amount of TDS shall be computed without grossing up for the
Goods and Service Tax (GST) component, which is also a part of
the bill. To enable TDS to be computed exclusive of the GST
component, it is vital that the GST component is indicated
separately.
COMPOSITION SCHEME UNDER GST REGIME: Composition
Scheme which provides easy compliance and a flat rate to small
businesses has had a muted response so far. The new GST
Regime was rolled out on July 1, 2017. Till now, of the 8 million
registrations on the GSTN, only O.lmillion or 1.25% have opted
for the composition scheme. The deadline of the scheme is likely
to be extended. Entities with an annual turnover of up to Rs.75
Lakh are eligible to apply under the scheme and they are
allowed to pay tax at the rate of 1% (Traders), 2%
(Manufacturers), or 5% (Restaurateurs). Those registered under
the scheme can not avail of input tax credit nor issue a tax
invoice. As a result, someone buying from a composition dealer
will not be able to dalm input tax on such goods.
PANEL FORMED FOR ANTI-PROFITEERING BODY: The
GST Council has formed a Panel under the Chairmanship of the
Cabinet Secretary to recommend eligible persons for Chairman
and members of the Anti-Profiteering-Body. The task of the
Body Is to ensure that the benefits of a reduction in tax on
supply of goods or services flow to the consumers. As per the
notified rules, applications seeking to invoke anti-profiteering
measures shall be examined by the Standing Committee arxl tf
the application relates to a local matter where the business is
located in only one state, It shall be first examined by a State
Level Screening Committee. The cases which are referred to the
National Profiteering Authority, it has the power to order the
business concerned to return the undue benefit availed along
with the Interest to the recipient of the goods or services. In
extreme cases It can Impose a penalty and even order the
cancellation of Its registration.
FINMIN ASKS PSBs ON BAD CONSORTIUM LOANS: The
Rnance Ministry has asked banks that If they have collectively
given a company project loan, which turns bad, they should not
break ranks and sell the loan piecemeal to the ARC. Instead,
they should sell the "consortium loan" lock, stock and barrel to
an ARC or a consortium of ARCs. Public sector banks,
collectively can realise better pricing on the sale of a project loan
given in consortium rather than by doing so singly.
NPCI FOR ALL BANKS TO SWITCH TO E-PAYMENTS BY
MARCH 2018: The National Payments Corporation of India
(NPCI) said that all banks in the country-induding cooperative
banks to migrate to digital payments mode by March 2018.
Currently 56 banks are shareholders of NPa which include 19
public sector banks, 17 private banks, 3 foreign banks, 10 RRBs
and 7 multi-state cooperaUve banks. NPCI has built a scheme
called the National Electronic Toll Collection System for
transaction processing, clearance and settlement, dispute
management and a mapper for capturing vehicle details.
GOVT. FLEXIBIUTY IN GOLD BOND SCHEME: Launched in
November 2015, the Scheme alms to discourage the estimated
300 tonnes of gold bars and coins purchased every year as an
Investment option. It Instead allows subscribers to Invest in
these bonds and earn Interest of 2.5% semi-annually. The bonds
can also be used as collateral and have income tax benefits.
Now thc-Government has inaeased the cap for subscription to
4KG per person per year from the earlier threshold of 500 Grams
annually. For trusts and similar entities the cap has been hiked
to 20KG per year. The ceiling will now be counted on financial
year basis and will include the bonds purchased during the
trading in the secondary market The Government can also give
higher commission to agents.
CANARA BANK LAUNCHES FIRST DIGITAL BRANCH :
Canara Bank, which has set an ambitious target of moving to
"Paperless" futuristic banking, launched Its Rrst "Digital Banking
Branch" in Bengaluru. Titled "CANDI" the branch will provide an
end-to-end digital experience to customers. The Bank, as part of
the run-up to Its digital foray, has introduced customer-friendly
mobile apps which help customers get most of the information
related to their accounts from the app without the need to visit
the branch. The most attractive feature of the Oigital Branch is a
humanold robot Uiat addresses basic queries of customers on
banking products and services. This is a First of its kind initiative
by a public sector bank in the country.
25
 FINANCIAL AWARENESS a GENERAL KNOWLEDGE
June 2017
MCA GIVES "LEGAL DEFINiriON" TO START-UP: Ministry
of Corporate Affairs, GOI has defined "Start-Up" as a private
company incorporated under the Companies Act 2013 and
recognised as a "Start-Up". The relaxations relate to allowing
start-ups to raise deposits from members (Shareholders) with
exemption from procedural compliance for 5 years. Also, Start
ups would not be required to prepare cash fiow statements.
Relaxation has also been_ provided on the board meetings front.
A company secretary of a start-up or a director can now sign
the annual return.
GOVT. ALLOCATE FUNDS TO HELP SMEs TO MEET GST
COMPLIANCE: The Government has set aside Rs.lOO Crore to
help Small and Medium Enterprises (SMEs) to tide over the GST
compliance issues. The cash would not be transferred to the
companies but would be used to set up help desks, awareness
camps and such infrastructure the SMEs can utilize to solve
their technology problems related to compliance. According to
the Government estimates, the SME sector consisted of 36
million units in 2016, providing direct and indirect employment
to over 80 million people. The Sector contributes about 8% to
GDP, 45% to manufacturing output and 40% to the exports
from the country.
GOVT. DIRECTS CBSE TO STOP PUBLISHING
OPERATIONS: Union HRD Ministry has directed the Central
Board of Secondary Education (CBSE) to stop publishing
textbooks as this is not part of its mandate. The Board-the only
one under the Central Government-publishes about 300 school
textbooks and most affiliated schools subscribe to. Nearly 19,
000 schools are currently affiliated to CBSE.
CIBIL UNVEILS SOLUTIONS FOR BANKS: Credit
Information Company TransUnion CIBIL launched a new
solution to help banks expand their customer base. The
product, CreditVision, looks at the past credit behavior of a
consumer, predicts risks and helps banks to expand credit
opportunities by studying his payment, exposure and spend
behavior. CreditVision could enable credit access to an
incremental 15 lakh borrowers annually without compromising
on risk.
SEBI PROPOSES NORMS TO REGULATE INDEX
PROVIDERS: SEBI has proposed ngw norms for index
providers with emphasis on more disclosures and greater
transparency while reworking indices by Including or excluding
stocks. Indices are generally composed by subsidiaries Of stock
exchanges and foreign entities such as S&P. At present, these
entities are not under the regulatory ambit of SEBI. The
Regulator has proposed a new code of conduct for Index
providers and measures to address issues such as avoiding
conflict of interest, aeation of robust audit mechanism and
whistle-blower framework to facilitate early detection of
misconduct.
BBB POWERS CURTAILED; In a major set- back to the
independent body Banks Board Bureau (BBB), the Government
has taken away the mandate to select candidates for financial
institutions. The move is also seen as conflict of Interest, since
some finance ministry officials are eying CEO positions
themselves. The bureau was mandated with the task to select
candidates for IIFCL, IFCI, SIDBI and EXIM Bank where the
CEO post is vacant. Previously, the government had overruled
BBB in selection of tiie top posts. The Government swapped
CEOs of two PSU banks -IDBI Bank and Indian Bank without
consulting the BBB.
RBI TO IMPLEMENT LEI CODE: RBI will implement the Legal
Entity Identifier (LEI) system for all participants In the over-the-
counter markets for rupee Interest rate derivatives, foreign
currency derivatives and credit derivatives In India, in a phased
manner. The LEI code has been conceived as a key measure to
improve the quality and accuracy of financial data systems for
better risk management post the global financial crises. RBI has
said that the entities without an LEI code would not be eligible
to participate in the OTC derivative markets after the date
specified In the schedule. According to the schedule for
implementation of LEI, entities regulated by various financial
sector regulators and corporate with net worth above Rs.lOOO
Crore have to obtain LEI by August 1, 2017.
SEBI ASKS BANKS TO EXPLAIN BAD LOAN UNER-
REPORTING: SEBI is examining the conduct and quality of
audits and disclosures at YES Bank, Axis Bank and ICICI Bank
on thar bad loans. The regulator has sought explanations from
the private sector lenders on whether they adhered to
disclosure requirements. The move comes after the RBI's report
on huge divergence in actual non-performing assets and those
disclosed -by banks. As directed by RBI, • disclosures on
divergence will be made as part of the notes to accounts of
audited financial results of the bank for March 2017.
RBI INITIATES PCA FOR DENA BANK: RBI has initiated
prompt corrective action (PCA) for Dena Bank in view of high
net non-performing assets and negative return on assets. Last
month, RBI had initiated PCA for IDBI Bank and UCO Bank In
view of their high MNPAs and negative ROA.
GOVT. TO CONDUCT NEW ANNUAL SURVEY ON
UNEMPLOYMENT: Amid attack on the government over
alleged jobless growth, Nm Aayog Vice Chairman has said that
the Government has decided to conduct an annual household
survey at both rural and urban areas to arrive at correct picture
of the number of employed and unemployed in the country.
The survey would be updated on quarterly basis.
ANTI-PROFITEERING AGENCY UNDER GST: The proposed
National Anti-profiteering Agency will have enough powers to
ensure that companies pass on the benefit of reduced taxes
under GST to customers. The new agency can summon
representatives of any company against which a complaint has
been filed and also initiate Investigations through other
government wings. Apart from ordering an Immediate reduction
in prices, the proposed authority may also be allowed to levy a
fine or call for a refund from the erring company. The authority
is likely to be notified soon so as to ensure-that companies do
not hike prices in anticipation of GST which Is to be rolled out
from July 1, 2017.
SUPREME COURT RULING ON BOUNCED CHEQUE;(Case-
Kumaran VS. State of Kerala) Supreme Court has ruled that
those who issue cheques which are dishonoured by the bank
can not get away from the payment of compensation by
undergoing imprisonment. They must still pay compensation to
the payee as ordered by the criminal court, according to new
interpretation of the provisions of the Negotiable instruments
Act, Criminal Procedure Code and the Indian Penal Code.
SUPREME COURT RULING ON TPS : (Case-Palam Gas
Service VS. CIT) The Supreme Court has said that the TDS
provision was mandatory and was applicable both in the
situation of actual payment as well as of the credit of the
amount. It covered not only those cases where the amount was
payable but also when it was paid. It operated Irrespective of
the method of accounting followed, cash or mercantile. The
intention of the lawmakers was to bring within the fold of all
such people who were liable to come within the network of
26
 FINANCIAL AWARENESS a GENERAL KNOWLEDGE
taxpayers.
CBDT NOTIFIES NEW RULES FOR CAPITAL GAINS TAX
EXEMPTION: CBDT notified rules specifying equity
transactions that will attract capital gains tax if securities
transaction tax (STT) was not paid on them. The move comes
after the Finance Act 2017 that aimed to curb the practice of
declaring unaccounted income as exempt long term capital gain
by entering into sham transactions. CBDT has specified
transactions where payment of STT would be mandated to get
the benefit of exemption from capital gains tax. These include
listed equity shares through preferential issues, allotment to
financial institutions pursuant to debt restructuring scheme
acquisitions by banks and securitisation companies and also by
modes such as gifts, holding subsidiaries, mergers and
acquisitions would also be exempt from the new rules.
CENTRE ON FDI PROPOSALS POST THE FIPB
ABOLITION: The Government had last month scrapped the 25
year old Foreign Investment Promotion Board (FIPB) as it looks
to attract more FDI by providing quick approvals under a single-
window Clearance Scheme. The Finance Ministry said
subsequent to the abolition of FIPB, concerned administrative
ministries have been allotted the work of granting approval for
foreign investment in the specific sector. The respective
ministries will have to decide on FDI proposals within 60 days of
the application and any rejection will need the concurrence of
the Department of Industrial Policy and Promotion.
5-CITY PILOT PROJECT ON PETROL AND DIESEL TO BE
ROLLED OUT NATIONWIDE: The Pilot Project for daily
pricing of petrol and diesel was first initiated in Puduchery,
Vishakhapattnam, Udaipur, Jamshedpur and Chandigarh from
May 1, 2017. Under the daily revision exercise, the moving
average of product price for the preceding 15 days with a lag of
two days Is taken into consideration for deciding the retail price.
Now the project will be rolled out nationwide in the second
fortnight of this month. The outlets that are not automated will
follow the fortnightly revision till these are brought under the
automation regime.
RBI WARNING ON FARM LOAN WAIVERS: RBI warned
that large scale farm loan waivers by state governments will
severely harm the country's fiscal health and may spur inflation.
RBI Governor Urjit Patel said that unless state governments'
budgets allow that fiscal space to go for a loan waiver, it would
be risky to tread on that path. Like RBI, NABARD also flagged
adverse effects of waiving off credit. There should not be
omnibus waivers and such schemes should be designed only for
the needy.
GOVT. TO UNVEIL PORTAL ON FDI PROPOSALS: The
Government will soon unveil a portal to replace the website of
the Foreign Investment Promotion Board (FIPB) that has been
dismantled as part of the ease-of-dolng business drive. DIPP
will be the administrative body to manage the portal that will
provide guidance on foreign direct investment. The website's
focus will be more on facilitation than approvals.
INDIA SIGNS OECD PACT TO PLUG TAX TREATY
LOOPHOLES: India has signed a ground-breaking multilateral
convention that will close loopholes in thousands of tax treaties
worldwide. The OECD convention aims to crack down on tax
evasion around the world, be it companies or investors, trying
to create a structures primarily to avoid or evade taxes. T^e
convention will modify India's treaties to curb revenue ioss
through treaty abuse and BEPS (Base Erosion and Profit
Shifting) strategies by ensuring that profits are taxed where
substantive economic activities generating the profits are
carried out.
GOVT. ISSUED NEW SAFE HARBOUR RULES: Introduced
by the CBDT in 2009, safe harbor refers to the drcumstarKss
under which income tax authorities will accept the transfer price
declared by the assessees without any question or scrutiny. The
new rules notified by the CBDT allow for operating profit
margins up to 24%. These were earlier as high as 30% for
some sectors and led to a tepid response from taxpayers, many
of whom chose to instead go for advance pricing agreements.
The new safe harbor regime is available for transactions limited
to Rs.200 Crore and is applicable even for assessees in the
current regime.
SUPREME COURT RULES OUT AADHAR FOR TAX
REURNS: The Finance Act 2017 had made Aadhar Card
mandatory for tax returns and PAN applications beginning
Julyl. For this. Section 139A was inserted in the Income Tax
Act. The Finance Minister had said in the Parliament that in a
situation where it has come to light that one citizen has up to
five PAN cards, to avoid that, PAN has been linked to Aadhar.
However the validity of section 139A had been challenged in
the court. Petitioners had contended that the Centre can not
"belittle" the Apex Court's 2015 Order holding the Unique
Identification Number as voluntary. Now the Supreme Court has
ruled that the Aadhar Card was not mandatory for filing income
tax returns for 2017-18. But all Aadhar Cardholders must link
the unique identity number with the permanent account
number(PAN).
NCC VERSION ON INSURANCE SETTLEMENT: The National
Consumer Commission has insisted that once an insurance
company accepts an offer of settlement by the insured person,
the amount shall be paid within seven days. Otherwise, it would
be "deficiency in service" defined in the Consumer Protection
Act, entailing payment of compensation.
GOVT. FIRM ON FARM LOAN WAIVERS: The Union Finance
Minister has said that the Farm Loan Waiver Schemes
announced by the states will not be financially supported by
Central Government. States have been asked to raise their own
resources for it. Government's stand has come in the backdrop
of loan waiver demands from farmers' organisations across the
country, after state governments of UP and Maharashtra waived
off the agricultural loans.
GST CONCIL GIVES RELIEF TO DIAMOND PROCESSING
INDUSTRY: In a relief to the Diamond Processing Industry,
The Goods and Services Tax Council has exempted import of
cut and polished diamonds after testing from payment of
Integrated GST (IGST). An exporter with an annual turnover of
Rs.5 Crore for each of the last three years may export cut and
polished diamond for testing. On their re-import within fiiree
months of export, these cut and polished diamonds will be
exempt from customs duty as well as IGST. Similarly, the
council has also exempted from IGST import of diamonds for
certification, grading and their subsequent re-export.
CIC TO RBI ON RTI REQUEST: Activist Subhash Aggarwal
had sought informabon about printing of Rs.l Note, which was
returned saying it was not addressed to the right Central Public
Information Officer (CPIO). Aggarwal approached the Central
Information Commission (CIC) with a prayer seeWng direction
to the RBI to nominate a Nodal Officer so that even if an RTI
application is not addressed to the CPIO of a particular
department of RBI, it may be directed to the concerned
department and is not returned to the RH applicant. On this,
CIC asked RBI to appoint the Nodal Officer as they are not
agreed with the current practice of RBI.
27
 FINANCIAL AWARENESS ft GENERAL KNOWLEDGE
SEBI SETS CRITERIA FOR OPHONS TRADING: SEBI has
set a minimum average daily turnover limit of Rs.200 Crore for
agriculture and agriculture-processed commodities to be eligible
for options trading and of Rs.lOOO Crore for other
commodities. To be listed on the options trading platform, both
agriculture and non-agriculture commodities should have met
the daily turnover criteria for the past 12 months. Further the
commodity on which options are traded should be among the
top five future contracts in terms of total trading turnover value
for 12 months.
GOVT TO ISSUE NEW NORMS UNDER PMAY (URBAN):
The Government will come out with the supplementary
guidelines for the Prime Minister Awas Yojana (PMAY) Urban to
enable private investment in affordable housing. So far, only
public partnership was allowed under PMAY (Urban). The
government has approved construction of 20, 25, 573
affordable houses for urban poor so far. M Venkaiah Naidu ,
Minister for Urban Development said that with cities now
moving forward on the path of well thought out course of
infrastructure development , a City LIveability Index will be
launched on 3une 23 which will measure the quality of life in
various cities.
NEW SCHEME FOR WOMEN FOR PURCHASE OF SMALL
COMMERCIAL VEHICLES: The Centre will launch a new
scheme to provide interest-free loan to women self-help groups
in rural areas for purchase of small commercial vehicles to
boost public transport and generate employment. Tbe new
scheme is likely to be called "Pradhan Mantri Gram Parivahan
Yojana" and to be launched on is'^ August. There will be a
ceiling of Rs.6 lakh on die loan amount. An individual can earn
up to Rs.6000-9000 per month. To begin with, the scheme will
be Implemented In 250 blocks across the country and the
Centre will provide interest-free loan for at least 1500
commercial vehicles with a sitting capacity of 10 each.
CBDT ISUSES DRAFT NORMS UNDER POEM: CBDT issued
norms for transitional provisions for foreign companies in the
first year of becoming resident firms based on their place of
effective management. However it has been clarified that the
tax on foreign companies qualifying as resident firms due to
their Place Of Effective Management (POEM) will be same as
that for any company -40%. Tbe draft notifications by the CBDT
provides exceptions, modifications and adaptation for
computation of total income, treatment of unabsorbed
depreciation, set off or carry forward of losses, collection,
recovery and special provisions for tax avoidance.
SEBI TIGHTENS DISCLOSURE NORMS: SEBI has tightened
compliance norms by levying hefty penalty and provision to
prosecute promoters of companies that do not comply with
disclosure norms. SEBI has prescribed a penalty of up to Rs.l
Crore and initiating enforcement action on defaulting
companies. SEBI has further said that the stock exchanges
should levy the fine If companies breach certain provisions of
the Issue of Capital and Disclosure Regulations. Exchanges to
impose a fine of Rs.20, 000 a day on companies that delay the
completion of bonus issue and do not approach the bourse for
listing of equity shares within 20 days from allotment of bonus
shares.
GOVT. MADE AaDHAR MANDATORY FOR OPENING BANK
ACCOUNTS: The Government has made the Aadhar Card
mandatory for opening bank accounts and for financial
transactions of Rs.50,000 and above. Existing bank account
holders have been asked to submit the Aadhar number issued
by UIDAI by December 31, 2017, failing which the account will
be deemed invalid. After June 1, if a person does not have an
Aadhar Number at the time of opening of account, then he has
to furnish proof of applicabon of enrolment for Aadhar and
submit the number to the bank within six months of opening of
account.
GOVT. NOTIFIED INSOLVENCY RESOLUTION FOR
START-UPS: The Government has notified provisions for fast-
track resolution of insolvency proceedings as a major relief to
struggling Start-ups. Under the Code, insolvency proceedings
will be completed in 90 days. As per Industry data, around 95%
of Start-ups are unsuccessful ventures and wind up within two
years of operations. The main code formulated for insolvency
proceedings mandate a firm's restructuring or exit within 180
days.
CVC ASKS BANKS ON FARUDS REPORTING; The Central
Vigilance commission (CVC) has asked public sector banks not
to report frauds below Rs.l lakh to local police unless their staff
is involved in such crime. Earlier banks were mandated to
report frauds of above Rs.lOOOO and below Rs.l Lakh to police.
The cases of frauds of up to Rs.l lakh and not below Rs.lO, 000
are to be scrutinized by the bank officials concerned for further
action.
GST COUNCIL EASES RULES FOR RETURN FILING: GST
Council has relaxed the rules for filing of returns as the GST is
to be rolled out on July 1, 2017 as already made the deadline.
The GST Council has eased for return filing by trade and
industry for the first two months. This will give the GST Suvidha
providers and assessees sufficient time to prepare their
systems. Accordingly, for July, assessees will have to self
declare and pay the GST through Form 3B by August 20 and for
August by September 20. While they have to up load invoice-
wise data on the GST Common Portal, the deadline for July has
now been pushed back to September 5 and for August to
September 20. No late fees or penalty would be levied.
FINMIN TO RBI FOR DEFERMENT OF BASEL-III FOR
BANKS: The Government has asked RBI to explore the ways to
defer the full implementation of international capital norms or
Basel-Ill norms for Indian Banks which is floundering in bad
debt. An extended timeline to meet the capital needs would
provide the necessary breather to banks to lend more while
they grapple with bad loans and raise capital. It Is imperative
for banks to meet the Basel-Ill regulatory norms by March
2019. According to the norms laid down by RBI, Indian Lenders
have to maintain a minimum common equity ratio of 8% and
total capital ratio of 11.5% by 2019. As per RBI esOmates,
state-run banks would require Rs.l Lakh Crore while the entire
banking sector would require an additional capital requirement
of Rs.5 Lakh Crore to meet the norms by 2019.
SEBI TO EASE NORMS TO EXPEDITE INSOLVENCY
PROCESS: SEBI Is likely to amend some of the existing
regulations to ease the insolvency process initiated by RBI and
other lenders against companies with high debt. SEBI is
planning to reduce the timeline for completion of takeover from
6 months to 30 days for acquirers in case of insolvency
proceedings. The Regulator is also considering doing away with
the price discovery formula used to arrive at open offer price
for such acquisitions. The price agreed upon by all stakeholders
including lenders and investors would be the final price for
acquisition.
SECONED CHANCE FOR DEPOSIT OF JUNKED NOTES
POST-DEMONETISATION: On November 8 last year, it had
announced an immediate withdrawal of the old series of Rs.500
28
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
and Rs.lOOO notes and their replacement with new rsSOO and
Rs.2000 notes in order to curb tax evasion and fate currency .
At that time banks and post offices were given a 50-day
window between November 10 and December 30 to accept
such notes from customers. Similarly, District Central Co
operative Banks were permitted to do so between November 10
and November 14. Now the Finance Ministry has given time to
banks and postcoffices till July 20 for deposit of junked notes
subject to valid reasons for non-deposit of the specified bank
notes and they were collected within the specified time period.
RBI EXPANDS SCOPE OF OVERSEEING COMMrTTEE: RBI
has reconstituted the Overseeing Committee (OC) to include
three new members. So far, the committee had only two
members. Now onwards OC will have five members Including a
Chairman, and will work through multiple benches as may be
necessary and constituted by the Chairman to opine the cases
referred to it by the banks. Further the scope of the committee
has been expanded to include cases of stressed assets where
the aggregate exposure of the banking sector to borrowing
entity is greater than Rs.500 Crore.
SUPREME COURT RUUNG ON CONCESSIONS: (Case-
Waryam Steel Castings Ltd. VS. Punjab State Power
Corporation) The Supreme Court has ruled that with the
introduction of the Electricity Act in 2003, all concessions
granted to heavy industries before the new law must be
understood to have come to an end unless they are explicitly
recognised and extended.
SUREME COURT RULING ON DAMAGES: (Case-Kanchan
Udyog Ltd. VS. United Sprits Ltd.) The Supreme Court has ruled
that a unilaterally projected profitability in a loan application
which is a mere assumption can not be the basis for
assessment of damages in a dispute when the contract is
terminated between the two companies.
NATIONAL CONSUMER COMMISSION RULING ON FD
RENEWAL: (Case- Bank of India VS. N.K.Jain) National
Consumer Commission has ruled that the instruction to a bank
on renewal of fixed deposits need not be in writing; it could be
oral or on the telephone.
RBI FOR STEEP HIKE IN PROVISIONING IN LOAN
CASES REFERRED TO NCLT: RBI has asked banks to set
aside at least 50% of the loan amount as likely losses for all
cases referred to the Insolvency process. RBI also said that the
provision should be 100% In those cases which do not get
resolved in the Initial mandatory period for loan restructuring
and instead are forced into liquidation.
RBI IN RTl RESPONSE ON LIABILITY OF BANKS FOR
LOSS IN LOCKERS: RBI has said in response to the query put
up by Kush Kaira, lawyer that the banks are not liable for any
compensation for theft or burglary of valuables In the safe
deposit boxes of the banks, as the locker-hiring agreement
absolves them of all liability. Over such response, the Lawyer
under the Transparency Law has now mov^ the Competition
Commission of India (CCI) alleging "Cartelization" and "anti
competitive practices" by the banks in respect of the locker
sen/ice.
CVC TO PROBE CORRUPTION CASES IN PRIVATE
SECTOR BANKS: The Central Vigilance Commission (CVC) can
now probe allegations of corruption in Private Sector Banks and
against their employees. RBI has given Its approval on this to
the CVC. The move comes after the Supreme Court last year
ruled that the CMC and other officers of Private Banks could be
seen as public servants when it came to the Prevention of
Corruption Act, 1988.
CENTRE TO INTEGRATE GST WITH PAN: With the advent
of GST from July,l 2017, the Centre Is going to Integrate the
direct and Indirect taxation system for all Individual taxpayers
by linking the GST number with the Permanent Account
Number (PAN) issued by the Income Tax Department The
move aims at curbing tax malpractices as aoss-diecking
income tax payments with GST payments Is expected to
prevent tax evasion. The move also would bring the GST-PAN
linked system in line with the prevailing PAN-based system for
income tax facilitating data exchange and tax payer comj^nce.
RBI DIRECTIVE ON WITHDRAWALS, TRANSFERS BY
PAYMENT BANKS: RBI said that a Payment Bank (PB) which
acts as a Business Correspondent of other banks arrd has a
sweep out arrangements with them, can facilitate withckawals
and transfers by the customer from his/her account wiffi the
other bank of which it is Business Correspondent (BC). Under
the BC arrangement and with prior specific or general consent
of the customer, PB may affect the transfer of funds deposited
by the customer into the customer's account with another
eligible bank so that the balance in his/her account with the PB
does not exceed Rs.l Lakh or any such lower amount as
specified by him/her.
GENERAL AWARENESS
DECEMBER 2017
Govt announced setting up 15^^ Finance Commission which is to
be headed by- NK Singh, Former Revenue Secretary.
95% of Telecom Revenues Is controlled by only Big Three
Telecom Players- BhartI Airtel, Vodafone-Idea Cellular and
Reliance Jto.
South Africa's Demi-Leigh Nel Peters has been crowned as- Miss
Universe 2017,
City where Global Entrepreneurship Summit 2017 inaugurated
by PM Narendra Modi on 28^ November- Hyderabad.
Seventh City for which PM Modi inaugurated Metro Rail System-
Hyderabad.
Transfer of debt by a related party to a non-related party can
not dilute voting rights of creditors during resolution process-
NCLT.
Jaipur-based Woman Entrepreneur Ajaita Shah with a focus on
"Solar Technology" won- Global Innovation Competition
Championship,
Currency Note which has become 100 Years Old on 1®^
December- Rs. One Note.
The Most Searched Personality and winning Yahoo's People's
Choice Award for Personality of the Year 2017- Prime Minister
Narendra Modi.
India has been re-elected to the Council of- International
Maritime Organisation.
Bank which has successfully executed overseas transactions
using Block-Chain Technology- South Indian Bank.
29
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
Academy, a deemed-to-be University, which is the Highest
Ranked Private University in India in the QS World Rankfngs-
Manipai Academy of Higher Education.
Centre for Excellence In Floriculture, which is to be set up in
Tamiinadu by India and Israel- First Agro-Technology
Development Centre.
Magazine in which Indo-American Congress-woman Pramila
Jayapal has been featured for having assumed the mantle of a
House "Leader of the Resistance"-Polltico Magazine's "Power
List for 2018".
Country which has been banned by the Olympics Body from
2018 Winter Games over doping- Russia.
According to data released by Twitter, Prime Minister Narendra
Modi has emerged after US President Trump as- " Most
Tweeted-About World Leader".
Bank which has launched a Digital Service to allow customers to
open a PPF account Online- ICICI Bank.
"Kumbh Mela" which Is the Largest Peaceful Congregation of
Pilgrims on Earth has got- UNESCO's Intangible Status.
A Public Procurement Portal which has been launched by the
govt. to monitor the implementation of the public procurement
from MSMEs by CPSEs- MSME Sambandh.
Railway Station which has earned the distinction of being the
First Energy-Efficient "A1 Category" In the country- Kacheguda
RIy. Station(South).
Govt. extended the deadline by three months to March 31, 2018
for - Mandatory Linking of PAN with Aadhar.
Index according to which India has been ranked at 109 in
Mobile Internet Speed and 76^^ in Fixed Broadband Globally-
OOkla's Speediest Global Index.
Company which has become the First to cross the date for
accepting Resolution Plans from prospective bidders among 12
large corporate defaulters referred by RBI for Insolvency
proceedings- Monnet Ispat 8i Energy. India is the First
Country where the Bank, which has committed more than $1
billion of financing- Asian Infrastructure Investment Bank.
Bank which has been placed by RBI under Prompt Corrective
Action Framework in view of high NPAs- Corporation Bank.
Uttar Pradesh Election ranked 4^^ position after French, German
and UK Elections in- Top Global Google Election Searches.
India's First Scorpenedass Submarine, which has been
commissioned by PM Modi describing it as a "Prime Example of
Make in India"- INS Kaivari.
' National Vehicle Registry Website which contains data listed with
all the Road Transport Authorities in the Country- VAHAN.
• Oxford's International Word of the Year 2017-Youthquake.
• Tribunal in which since the enactment of Bankruptcy Code,
2434 new cases have been filed- National Company Law
Tribunal.
■ A Guinness World Record set in France for Wedding Dress
measuring over 8095 metres long- World's Longest Wedding
Dress.
• One-time Settlement Scheme, which has been announced by the
government to the companies in which over three Lakh directors
were disqualified - Condonation of Delay Scheme 2018.
• City which ranks 7^^ in Most Expansive Office Locations List in
the world- Delhi.
• Country which has pitched for India's Global Power Status as it
-unveiled its new National Security Strategy- USA.
• Nine-member Panel to be headed by Principal Chief
Commissioner-rank Officer constituted by CBDT to submit report
by Feb.28, 2018 on- Faceless and Nameless E-Assessment.
• Two more Banks which have been placed under "Prompt
Corrective Action" (PCA) Framework by RBI- Bank of India
and United Bank of India.
• To bring Indian Business Schools on par with Global Standards,
FICCI has launched- Business School Ratings.
• A Bankruptcy Case which has become First to close post IBC
Ordinance- JEKPL Pvt. Ltd.
• Ten Banks -lOB, Dena Bank, Corp. Bank, CBI, IDBI Bank, UCO
Bank, United Bank of India, BOM, OBC and BOI have been
placed by RBI under- PCA Framework.
• Bollywood Actor who has once again topped the Forbes' Annual
List of the Highest-earning Entertainers in the Country- Salman
Khan.
• Aircraft AG600 which took-off in China on 24^^- World's
Largest Amphibious Aircraft.
• While India ranked 4^^ in newly opened Innovation Hubs"during
2017 in the World, it ranked 2"^ in Asia for- Innovation
Centres.
■ An Online platform which has been launched for Central
Government Employees to access dieir service-related
information- E-HRMS.
' Online Course Portal which is to be offered by HRD Ministry to
offer nearly 300 online courses in Hindi and 10 other Indian
Languages- SWAYAM Portal.
• Logo which Bengaluru Oty has got and becomes First City to
have its own Identity on the Global Stage -"Bengaluru-BeU"
• Countries, which lured foreign workers with the promise of "Tax-
Free Life-Style", plan to impose S% Tax on goods and services
to boost revenue after Oil prices collapsed- Saudi Arbia and
UAE.
30
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
Amazon Founder Jeff Bezos with Net-worth of $99.6 billion
replaced Microsoft Founder Bill Gates with net-worth of $91.3
billion and ranked- World's Wealthiest Person.
S&.P, Moodys' and FITCH , three Rating Agencies which
dominate the business are- World's Largest Credit Rating
Agencies.
Govt. has scrapped its previous directive to State Oil Companies
to raise the price by Rs.4 every month on- Subsidised
Cooking Gas Cylinders.
An amount of Rs.7577 Crore pumped by Govt. in six Pubiic
Sector Banks-BOI, IDBI, CBI, BOM, Dena Bank and UCO Bank by
way of- Capital Infusion.
To promote Indian Engineering Goods Globally EEPC launched -
E-Catatogue.
Controversial Bansali's Film whose release prospects brightened
with approval of Central Board of Film Certification having five
modifications and Title to be changed from- Padmavati to
Padmavat.
NOVEMBER/OCTOBER 2017
India has pipped Canada to become- World's Eighth Largest
Stock Market by Capitalisation.
Index in which India slipped 21 places and ranked to a Lowly
108- World Economic Forum's Global Gender Index.
Saudi Arabia's First High-Speed Train which will link two Muslim
Holy Places C'Mecca and Medina") and will cover the destination
within two and half hours- Haramain Express.
While German Chancellor Angela Merkel topped the list compiled
by "Forbes", India's Chanda Kochar, MD&CEO of ICICI Bank
ranked 32^^^ - World's 100 Most Powerful Women.
"Fake News", the Term heavily popularized by US President
Donald Trump, has been named - "Word of the Year"-By
Collins Dictionary.
23'"'^ UN Climate Conference of 196 countries heid at Bonn on
which is known as- COP23.
Report according to which, India has been ranked 4^'^ in Asia
Pacific Millionaire List- 2017 Asia Pacific Wealth Report.
Logo which has been launched by FSSAI for Organic Food
Products- Jaivik Bharat.
India has been ranked as the 6^^ Most Vuinerable Country in the
World in terms of facing extreme whether events- Global
Climate Risk Index.
UK will leave the European Union on March 29, 2019 at 11PM
(Local Time)- British Prime Minister Theresa.
A12-year old Indian Girl Sucheta Satish of Indian High schooi at
Dubai by singing in 85 languages broke- Guinness World
Records.
The 163.41 Carat Flawless D Colour Diamond which was
auctioned for record $34 million in Geneva- World's Largest
Diamond.
As per Forbe's List of Asia's 50 Richest Families, Top Famiiy is-
Mukesh Ambani Family of India.
Though Fitch and Standard Si Poor's has maintained "BBB" rating
with a Stable Outlook for India, the only Rating Agency which
has upgraded India's Sovereign Rating after 13 years since
2004- Moody's.
Justice Dalveer Bhandarl has been re-elected as Judge in-
International Court of Justice.
Cruise Missile "Brahmos" successfully fight-tested for the First
Time from the Indian Air Force's Frontline Rghter "Sukhoi-30
MKI"- World's Fastest Supersonic Cruise Missile.
Rating Agency which refused to upgrade India's Sovereign
Rating and retained it at the Lowest Investment Grade with a
Stable Outlook- Standard & Poor's.
Stock Exchange which is the Largest Masala Bond Centre
Globally- London Stock Exchange.
US Geneticists Jeffrey, Michael Rosbash and Michael W Young
have been awarded for shedding light on the biological clock
that governs the sleep-wake cycles of most living things- Noble
Medicine Prize.
India's First IFSC, which has been featured at the 10^ Place in
the Latest 2017 Global Financial Centres Index, London-
Gujarat International Finance Tec-City(GIFT).
Rrst and Largest Exchange of Trading of Electridty and
Renewable Energy Certificates- Indian Energy Exchange Ltd.
(lEX)-
"Oxford Honour" bestowed on Myanmar's De Facto Leader Anug
Sen Suu Kyi, has been withdrawn due to- Plight of Rohingya
Muslims
Rajnish Kumar, who has been MD of NBG which oversees the
functioning of over 95% of SBI's 24, 000-odd branches, has
been appointed as- Chairman of SBI.
Prize, which Jacques Dubochet of Switzerland, Jochim Frank of
Germany and Richard Henderson of Scotland won for developing
cryo-electron microscopy, allowing researchers to see biological
molecules frozen in action- Noble Chemistry Prize.
British Novelist Kazuo Ishiguro won for his literature- Noble
Prize 2017.
The World's Top Call- Centre Nation- Philippines.
According to latest Govt. Notification, for "Jewellery transactions
exceeding Rs.50, 000"- Aadhar not Mandatory.
Nuclear Disarmament group ICAN which won the Prize for its
decade-long campaign to rid the World of the Atomic Bomb-
Noble Peace Prize.
Murder case which Is to be re-opened by the Supreme Court-
Mahatma Gandhi Murder Case.
While US retained the Top position, India ranked on 8*^
position- Most Valuable Nation Brand 2017.
Prize which US Academic Richard Thaler of the University of
Chicago, received for his contribution to Behavioral Economics -
Noble Prize In Economics 2017.
Scheme under which PERDA has raised the Entry Age Limit from
60 years to 65 years- National Pension System Scheme.
Platform on wt>ich the transactions jumped 85% and aossed 3-
Crore mark- Unified Payment Interface(UPI)Platform.
Charkha which has been launched by KVIC for the first time
after independence for Coarse Khadi Products- Innovated Six
and Eight-Splndle Charkha.
Actor Anupam Kher has been appointed by the Government as-
New Chairman of Film & Television Institute of India .
After the US lifted decades-old trade sanctions on the northern
African country, which for the first time In 20 years begun
receiving foreign currency inflows- Sudan.
Index In which India slips 3 notches to 100 among 119
countries- Global Hunger Index, 2017.
31
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
Payment System which China has established to reduce risks
and improve the efficiency of its foreign exchange transactions-
Yuan-Ruble Payment System,
Sector in which NITl Aayog has started Ranking to make
services better- Hospitals.
An Indian-origin Teenager, Akshay Ruparelia, 19 years of age
has become- UK's Youngest Millionaire(£12 million).
Haryana Giri Kavita who has become First Indian Woman to
sign- World Wrestling Entertainment(WWE).
Toilet constructed across the country under die Swachh Bharat
Mission would now be called- IzzatGhar.
High-Profiie Literary Award which American Author George
Saunders, won for his First Novel "Lincoln in the Bardo"- Man
Booker Prize,2017.
Floating Offshore Wind Farm, which started delivering electricity
to the grid in the north of Scotland- World's First Floating
Offshore Wind Farm.
Nation which reluctantly bid farewell to Its Auto Manufacturing
Industry- Australia.
Country in which 2020 Special Olympics is to be held-Tokyo.
31, year old Conservative Leader Kurz has been invited by
Austria's President to form the Government who has become-
World's Youngest Leader.
Maruti Suzuki India, after dethroning Hyundai Motor India has
become- Largest Passenger Vehicles Exporter from India.
As per new valuation rules issued by Govt., A Company
Secretary Is now recognised as- Registered Valuer.
Company which becomes First Indian Company to cross Rs.6
Lakh Crore Market Cap- Reliance Industries Ltd.
Parliament whose country declared "Independence" while
Spanish Govt. moved to impose direct rule over it-Catalonia.
India jumped up 30 notches into Top 100th Ranking among 190
countries- World Bank's Ease of Doing Business Report 2017.
A Rare 37.30 carat Diamond "Raj Pink" will go for auction on
November 15 in Hong Kong - World's Largest "Fancy
Intense Pink Diamond".
For having consistency in enforcing food safety regulations and
standards across states, FSSAI Is to launch its initiative- One
Nation One Food Law.
Country which is to be Asia's new $1 Trillion Economy-
Indonesia.
Japan's Parliament formally re-elected Shinzo Abe as Prime
Minister- Country's Longest-Serving Prime Minister.
While Reliance and Airtel has Ilnd and Illrd ranking respectively,
the Company which has topped the List of "Most Valuable
Brand" in India- Tata Group.
Asset Class which is growing faster than any other Asset Class In
the World- Bitcoin.
SEPTEMBER 2017
Scheme, which targets putting all households on the Grid by
Dec. 2018 - Pradhan Mantri Sahaj BijII Mar Ghar Yojana-
Saubhagya.
As per latest S&P Global Platts Top 250 Global Energy Company
Rankings, the Company which has got Global Ranking-
Reliance Industries.
Chanda Kochar and Shikha Sharma, Heads of ICICI Bank and
AXIX Bank have been ranked at 5^^ and 21®^ position
respectively in - Fortune Most Powerful Business Women
List.
President Ram Nath Kovind launched "Incredible India 2.0
Campaign" on September 27 which is also celebrated as- World
Tourism Day.
Political Party which got 90% of Corporate Donations in FY
2016- BJP.
Rajiv MaharishI, who has just retired as Union Home Secretary,
has taken over as- new Comptroller and Auditor General of
India.
Anita Karwal, Additional Secretary in HRD of the Govt., has been
appointed as- Chairperson of Central Board of Secondary
Education(CBSE)
Ajay Vipin Nanavati, who mentors Start-Ups/SMEs, has been
appointed as- new Chairman of Syndicate Bank.
Agreement which has been signed by India with Japan allowing
designated airlines of both signatory countries to operate freely-
Open Skies Agreement.
Bank which has bagged the "Best Bank IDRBT Award 2016-17"
among Small Banks for the use of technology for financial
inclusion- Karnataka Bank.
Country which has successfully tested a Hydrogen Bomb which
is a significant escalation of its threats to strike the US- North
Korea.
Country which has banned individuals and organisations from
raising funds through "Initial Coin Offerings" Cyrpto currencies-
China.
Bank which has got RBI approval to operate a "Wholly-owned
Subsidiary" In India- DBS Bank.
At the Event of ET Awards Ceremony, Mukesh AmbanI,
Chairman of Reliance Industries has got- Business Leader' of
the Year Award.
Insurer which has become the 4'^'^ Insurer to list on Stock
Exchanges after ICICI Prudential, SBI Life and HDFC Life- PNB
MetLlfe.
RA Sankara Narayanan, who had joined Bank of India as Direct
Recruit Officer, has assumed charge as- MD & CEO of Vljaya
Bank.
While the University of Oxford retains Rrst place, no Indian
University could come even in the 201-250 Band in the- Times
Higher Education World University Rankings 2018.
NITI Aayog has set up a Task Force on Employment and
Exports, which is to be headed by- Rajiv Kurnar, Vice-
Chalrman of NITI Aayog.
India's Largest Urban Co-operative Bank, which has declared a
special dividend of 15% for 2016-17 on its Centenary Year on
September 14, 2017- Saraswat Co-operative Bank.
While Paytm Payments Bank has offered interest on Savings
Fund Accounts @4%, the Payment Bank which is offering the
interest @4.5% to 5.5%- India Post.
Scheme under which 21, 000 people have disclosed black money
worth Rs.4900 Crore- Pradhan Mantri Garib Kalyan Yojana.
Online Service which has been launched by the Govt. for
Importers and exporters to resolve all foreign-related issues-
Contact @ DGFT.
Pakistan Biggest Lender who has agreed to pay $225 Fine for
breach of Anti-Money Laundering Rules In US- HabibBank.
AB Pandey, CEO of Unique Identification Authority pf India has
been appointed as -Interim Chairman of GST Network.
Insurance Company which has topped amongst its peers in
Claims Settlement Ratio with 71% - New India Assurance
Company.
32
 RNANCIAL AWARENESS & GENERAL KNOWLEDGE
Court which has ruled that after amalgamation of a company,
the merged entity Is non-existent and it can not be assessed for
Income tax- Delhi High Court.
Regulatory Authority which has allowed all General Insurers to
sell motor cover policies through Auto Dealers by offering
differential pricing- IRDAI.
UK's Prestigious University which is to saap 800 year old
practice of handwritten exams due to bad handwriting-
Cambridge University.
Microhnance Bank with which Indusind Bank has signed Pact to
explore Merger- Bharat Financial Inclusion Co.
Global Body which slams India for Rohingyas' Deportation Issue-
UN Human Rights Council.
Ceiling which has been approved by the Cabinet to double to
Rs.20 Lakh from existing Rs.lO Lakh for empioyees In private
and public sector- Gratuity Ceiling.
The Finance Ministry has notified the new Rs.lOO Coins along
with Special Rs.5 Coin to mark the- Centenary of AIADMK
Founder MG Ramachandran.
Index in which India moved up to two spots and ranked at 103
of 130 countries on- World Economic Forums' Human
Capital Index 2017.
Enterprises from whom all Government Departments and Public
Sector Units are to ensure to meet 4% Procurement Target-
Enterprises owned by SC/STs.
Scheme under which the customers receive Incentives for
purchase of Hybrid and Electric Vehicles- FAME IndiaScheme.
Train -Project, which has been flagged off by Japanese PM
Shinzo Abe and Indian PM Narendra Modi on current for
Mumbal-Ahemdabad Journey {®320KMPH- Bullet Train
Project.
Bank which has bagged the First Prize under the Rajbhasha Kirti
Puraskar Scheme 2016-17 for implementation of Hindi In daily
activities- Vijaya bank.
Chinese Exchange which would stop all trading from September
30 - Chinese Bitcoin Exchange.
City Place which is the 10^^ Most Expansive Office Location in
the World- Delhi Connaught Place.
India's Biggest Road Transport Tender which has got Supreme
Court's Green Signal- Jawaharlal Nehru Port TrustTender.
MN Sharma who was serving as General Manager has been
appointed as- CMD of United India Insurance Co. Ltd.
Stock Exchange which will conduct Forensic Audits on Shell
Companies identified by SEBI- Bombay Stock Exchange.
Bank with which Amazon ties up to offer Micro-Loans to Sellers-
Bank of Baroda.
Commercial Arm of ISRO's Satellite which will attract Zero GST--
International Satellite Launch Services of Antrix
Corporation.
Indigenous Passenger Aircraft which is to be launched at a
3000-sq-feet Terrace in Mumbai's Borivilli Suburb- India's First
19-Seater Aircraft.
Dam which has been dedicated by PM Narendra Modi on his
67^^ Birthday on 17^^^ September, 2017- Sardar Sarovar Dam
on Narmda River, Gujarat.
Mission for which Bollywood Actor Akshay Kumar has been
appointed as the Brand Ambassador for Uttrakhand State-
Swachh Bharat Mission.
British Pakistan Actor Riz Ahmad has become the Rrst Muslim
Actor as well as Man of Asian Descent to win- EmmyAmrd.
Statements of Companies and Taxpayers getting their accounts
audited, are required to be submitted by November 15 for six
months of the financial year- Income Estimates and Tax
Liabilities.
The Iconic 50 year old Magazine of Music and Ctounterculture
founded by Jann Wenner of California, which Is putting itself up
for sale amid uncertain outlook- Rolling Stone.
The Country's Largest Tractor Company, which unveils
"Driverless Concept" for Tractors- Mahlndra &Mahindra.
Violet Mosse-Brown of UK who was given a letter by Queen
Elizabeth-II in hanour of her lis'-'^ Birthday, passed away at the
age of 117- World's Oldest Person.
As per RBI Notification, Lending Platform, which Is to be treated
on a par with NBFCs- Peer-to-Peer {P2P) Lending Platform.
Bank whose name has been Included In the Second Schedule to
the RBI Act, 1934 and following Inclusion, bank can participate
in the money market- Suryoday Small Finance Bank.
Bank which has been awarded with First Prize among all the
Nationalised Banks under the Rajbhasha Kirti Award Scheme-
Bank of Baroda.
Treaty which has been signed by 50 Countries- UN Nuclear
Ban Treaty.
Country whose Long-term Sovereign Credit Rab'ng has been
downgraded by S&P Global Ratings citing increasing risks from
its rapid building of debt- China.
As per Survey conducted by Brand Finance headquartered In
London, the Bank which has Topped "Both Trust and Popularity
Charts"- State Bank of India.
August 2017
Lok Sabha passed the Indian Institute of Management Bill 2017
thereby declaring the IIMs as- Institutions of National
Importance.
Country which has emerged as the World's Top Largest "Equity
Market" in terms of market capitalization- USA.
Country whose No Prime Minister has ever completed his five-
year term since 1947- Pakistan.
US Equity Private Firm which becomes the Largest Owner of
Office Properties in India- Blackstone.
Mumbai-based Company which is the Largest Owner of Malls-
Phoenix.
To improve the standards of corporate governance of listed
companies, a committee was formed which headed by- Uday
Kotak, MD of Kotak Mahindra Bank.
RBI's new System which will make the bills payment process
seamless as the customers not to log on to Individual websites-
Bharat Bill Payments System.
Vice-chairman of NITI Aayog who has sought to be relieved by
August 2017 so that he may join Columbia University- Arvind
Panagarlya.
To study and identify key data protection Issues and keeping
personal data of citizens secured, GovL has formed a
committee which is to be headed by- BN Srikrishna, Former
Judge of Supreme Court.
As per RBI's recent dictate, banks. In which Statutory Auditors
should be rotated only after six years- Private and Foreign
Banks.
SEBI has constituted a Committee on "Fair Market Conduct"
33
 FINANCIAL AWARENESS a GENERAL KNOWLEDGE
which Is to be headed by- Former Lok Sabha Secretary TK
Vishwanathan.
Country whose Supreme Court has scrapped Parliament's Power
to sack the Judges- Bangladesh Supreme Court.
Attendants whose minimum wages has been hiked by 50% by
the Government- Tetroi Pump Attendants.
Bank which launched an Aadhar-based Integrated Outward
Forex Remittance Solution for both customers and Non-
customers- Kotak Mahindra Bank.
Australia's Largest Lender who has been sued by the
Government's Financial Crime Agency over 53,700 alleged
breaches of money-laundering and terrorism financing laws-
Commonwealth Bank of Australia.
Survey which is comprehensive of ail living languages of India
carried out by a large team- People's Linguistics Survey of
India.
Govt. is set to launch a Second Exchange Traded Fund (ETF)
known as- Bharat-22.
City which is to have India's First Helicopter Taxi Service-
Bengaiuru.
The Centre has appointed Noted Economist Rajiv Kumar as-
Vice-Chairman of NITI Aayog.
Country against which UN Security Council has unanimously
adopted a resolution to impose the most punishing sanctions
due to Its repeated defiance of a ban on testing missiles and
nuclear bombs- North Korea.
SEBI asked Rating Agencies that if a company does not repay
the loan repayment it should be- Downgraded to"Junk".
Country which is the Top Exporter of Buffalo Meat in the World-
India aiong-with Brazil.
Justice Deepak Mishra, Senior-most Judge in the Supreme Court,
after demitting office on August 27 by CJI Khehar will be- Chief
Justice of India.
Proceedings which can be initiated against the Builder if
commercial property not delivered on time- Bankruptcy
Proceedings.
Country's Largest Commodity Exchange which has been allowed
by SEBI to launch Options Trading in Gold- MCX.
Portal for students which has been launched for home-delivery
of books throughout the country - NCERT.
Board which has been constituted by Nllesh VIkamsey, ICAI (CA
Institute) President for fostering a cohesive global strategy on
global accounting and assurance- Digital Accounting and
Assurance Board.
Out of total 225 Firms made it to Forbe's 33''^ annual ranWng of
America's Largest Private Companies, the Topmost Ranked
Company is- Cargill (Dealing in Food and Drinks ).
After sacking Pahlaj Nihaiani, the Centre has appointed Prasoon
Joshi as- Chief of Central Board of Film Certification.
E-commerce Company's Digital Wallet which has launched a
payment option that more directly competes with rival Fllpkart's
Phone Pe and other Paytm- Amazon Pay.
Bank which rolled out two Digital Products-"Bharat QR" platform
for payment settlement and "Bharat Bill Payment System"
integrated bill payment system- Canara Bank.
University which is to be set up in Fursatganj In UP- India's 1®^
Aviation University.
Though India celebrates August 15 as Independence Day, the
state which celebrates August 14 as Independence Day-
Nagaland-NSCN-IM.
■ Guinness World Record Holder Xristol of Israel, who died at the
age of 113 years and who also saw the botfi World Wars-
World's Oldest Man.
• NCLT approves merger of Reliance Communications and Aircel
and after merger New Entity will be called as- Aircom.
• Japan is at the Top in "Real GDP Growth" among all six- G-7
Nations.
• For brave exploits against terrorists in Kashmir, CRPF
Commandants Pramod Kumar and Chetan Cheeta have been
awarded by the Govt.- Kirti Chakra.
• August 10 has been celebrated as- World Bio-Fuel Day.
• According to IMF, Country whose massive debt is on "Dangerous
Trajectory" raising (he risk of a sharp slowdown in growth-
China.
• Award which has been received by an Uruguayan School
Student who exposed a security flaw which hackers could have
used to access sensitive data- $10,000 Google Award.
■ Scheme under which Debt-laden Power Distribution Companies
(Discoms) in States which participated, have saved Rs.l5, OOO
Crore till March this year- UDAY Scheme.
• Regulator which has imposed Largest- Ever Penalty of 5.1 million
pounds on PricewaterhouseCoopers for misconduct over its audit
work-UK Accounting Regulator.
• Export which has been banned by the Govt. In a bid to check
round tripping of die precious metal- Export of Gold
Jewellery above 22-Carat Purity,
• For the Seventh consecutive year, Melbourne has been ranked
as- Most Liveable City Globally.
• Central Govt. for the first Time issued a postal Stamp in
recognition of the Age-old Cultural Symbol of MIthllanchal
featuring- Mithila Paag.
• Norwegian Firm Statoll's Hywind Pilot Park set up- World's
First Floating Wind Farm.
• Out of 5 Indian-origin persons featured in Fortune's "40
under40", the List topped by- 39 Year Old French President
Emmanuel Macron.
• States for whose Soldiers Indian Army reduced the minimum
Height requirement by three centimeters- Himalayan States.
• Udalpur's Kalpit Veeral, First-Ever Student to score 100% in the
Prestigious Joint Entrance Examination-Mains made It to the-
Limca Book of Records.
' British Scientists developed- World's Smallest Surgical
Robot.
■ A 12-year old Indian-origin Boy Rahul DoshI answering all
questions in Television Quiz Competition Crowned as -UK's
"Child Genius".
• Country which has the Longest Railway Network in the World-
China.
• China to launch the Fastest Train with a maximum speed of
400kph- World's Fastest Train.
• Next Version of Android which Google launched- Oreo.
• A New Book Titled as "I do What I do" Is to be launched on
September 5 by- Former RBI Governor Raghuram Rajan.
• For the First Time, New Note, which has been issued by RBI-
Rs.200 Bank Note.
• The Richest Tech Billionaire in the World as per Forbes' List- Bill
Gates of M<crosoft-$84.5 billion.
• Justice Dipak Mishra has been sworn in by the President as-
34
 FINANCIAL AWARENESS & GENERAL KNOWLEDGE
45^^ New Chief Justice of India.
Tirupati Temple, which has deposited 2780 kg of Gold with SBI
under Gold Monetisation Scheme- World's Richestlempie.
July 2017
While the Base Year of old GDP Series is 2011-12, the Base Year
has been fixed as 2017-18 for- New GDP Series.
Bank which has launched the "KBL-image Debit Card" to enable
its Cardholders to personalize the card with the image of his/her
choice- Karnataka Bank.
Mumbai's iconic Railway Station which has been rechristened
with the addition of an honorific "Maharaja" after "Shivaji"-
Chhatrapati Shivaji Terminus.
Senior Advocate and Constitutional Expert who has been
appointed as New Attorney General of India- KKVenugopal.
New Payment Bank which has started operations on June 30
after Airtel, Department of Posts and Paytm- FIND Payment
Bank.
UK's Helpline Number 999 completed 80 years of its existence-
World's Oldest Emergency Number.
Train Tickets can be booked 360 days in advance from abroad
instead of the present 120 days by- Foreign Tourists.
The Commodity Exchange which has decided to merge with the
Indian Commodity Exchange, creating the Third-Largest
Commodity Exchange in the country- National Multi-
Commodity Exchange.
Two Countries which have launched "Bond Connect" Scheme
that links China's $9 trillion bond market with overseas
investors- China and Hong Kong.
Standards whose implementation has been deferred by IRDAI
for Insurance Companies till 2020-21- Indian Accounting
Standards.
New Note for which RBI is in the final process of designing and
expected to be in circulation latest by December- Rs.200
Denomination Note.
Task Force which recommends "Scrapping" of National Sample
Survey and replaced with more robust Survey- Panagariya-led
Task Force.
Achal Kumar Joti who had been Chief Secretary of Gujarat when
PM Narendra Modi was CM, has been appointed by the
Government as- New Chief Election Commissioner.
As per clarification of the Finance Ministry, the brands which will
attract 5% CGST- Only Registered Brands.
Portal which the Government launched to help the Independent
Power Producers for optimum utilisation of domestic coal- E-
Bidding Portal.
ED of OBC who has been appointed as MD& CEO of Union
Bank of India- Rajkiran Rat G.
Bank which approved $329 million loan to build access roads to
4000 villages in all 33 districts of Gujarat- China-led Asian
Infrastructure Investment Bank.
Units which have been exempted from IGST on goods imported
by them- Units of Special Economic Zones.
State which is set to become the First State to witness use of
EVMs with Paper Trail in all polling booths during the assembly
elections to be held in December- Gujarat State.
Technology Giant which is to cut 4000 jobs, mostly outside US-
Microsoft.
Pakistan has executed 465 prisoners since lifting a moratorium
on death penalty in 2014 and became- 5^^ Most Prolific
Executor Globally.
Ahemdabad for having co-existence of religions and the
intricately carved haveiis dating back to hundreds of years won-
World Heritage City Tag.
A Newly Constituted Committee under Bank for International
Settlements in which India to join - Global For«gn Exchange
Committee.
Scheme under which the Top Bourse BSE facilitates purchase of
bonds in physical forms instead of In Demat or Electronic Mode-
Sovereign Gold Bond Scheme. ,
President of Tibetan Government In Exile, who has been allowed
by the Central Government to perform the rituals on eve of Dalai
Lama's Birthday- Lobsang Sangay.
Kewai Handa, who has been MD of Pifzer India from 2005 to
2012, has been appointed as- Chairman & Non-official
Director of Union Bank of India.
Technology Giant which has completed testing of UPI Payment
Service and awaiting Nod from RBI to launch Its UPI Payment
Services in the Country- Google.
Japan's Island Okinoshima where women are barvied and male
visitors bathe naked in the sea before visiting its Shrine has
been declared as- UNESCO World Heritage Site.
A Mobile Application which FINMIN has launched to help people
to link their Aadhar with PAN Card- Aaykar Setu.
Report according to which India to become the Largest Milk
Producer by 2026 and also will account for; the Biggest Increase
in wheat production giobally.-Report by UN and OECD.
Kishore Sansi, MD 8i. CEO of Vijaya Bank has been conferred -
Skoch Award,"Personality of the Yearp.
State which has been exempted by the Supreme Court with "500
Metre Cap on Liquor Vends across the National and State
Highways- Arunachal Pradesh and Andemans.
While Chinnai saw the steepest growth decline, city has topped
in the country in the online recruitment- Kolkata.
Subhash Chandra Garg, Economic Affairs Secretary has been
nominated as Director in- RBI Central Board of Directors.
Mukesh Kumar Jain, ED of Punjab & Sindh Bank has been
appointed as -MD&CEO of Oriental Bank of Commerce.
Vikram LImaye who has been relieved by tpie Supreme Court of
his responsibilities at the Committee of Administrators of BCCI
has been selected as- MD&CEO of National Stock Exchange.
Train which the Union Railway Minister Inaugurated at
Safdarganj Railway Station, Delhi-India's'1st Solar-powered
Train.
Indians have been rated at. 39^*^ among Laziest in the World,
who walk barely 4300 -steps a day- Study by Stanford
University Researchers.
Country which has topped In having World's Largest Banks by
Asset Value- China.
Scheme under which the Govt. proposed a Rs.2000 Crore for
Start-Ups to help them access funds- Credit Guarantee
Scheme. ®
Company whose employees dragged it to the National Company
Law Tribunal (NCLT) and became the First Case where
employees have dragged its own company to NCLT- Hindustan
Motors.
Ranking for which Govt. has asked all Institutes of Higher
Learning to participate and the Varsities to be ranked on
cleanliness- Swachta Ranking.
President of the Spanish Soccer Federation and FIFA Vice-
President who has been arrested in fraud investigation relating
to matches- Angel Maria Villar.
Programme under which around l.S Lakh Gram Panchayats will
be connected via optical fibre by mid-2018- National Optical
Fibre Network Programme.
35
 FINANCIAL AWARENESS a GENERAL KNOWLEDGE
• State which has retained the Top Position in the list of 21 States
and UTs witti most investment potential- Gujarat.
• Govt. has approved sale of its 51% equity In Hindustan
Petroleum Corporation and the company to take over it is-
ONGC.
• Report according to which India is the Largest Provider of Online
Labour- Oxford Internet Institute of the University of
Oxford Report.
• Bank which has launched a Scheme whereby its existing salaried
customers can avail personal loans at ATMs- ICICI Bank.
• India's 14^^^ President who has been elected on 20^'^- Ram
Nath Kovind.
• All 88 Ministries of the Central Govt. have been asked to have
Hindi Version of every Advertisement that they release- Either
in English or Regional Language.
• State-owned Trading Firm which has been permitted by the
Govt. to begin the auction of gold collected under the Gold
Monetisation Scheme- MMTC.
• Food Delivery Company "Swiggy" has won Top Honour at India's
Biggest and Best Awards for Startups- The Economic Times
Startups Awards 2017.
• CBDT clarified that disclosing overseas bank accounts in Income
Tax Return by NRIs- Not Mandatory.
• Full Scale Floating Wind Farm with Turbines which is being built
off Scotland Coast- World's First Wind Farm;
■ Mumbai-Ahemdabad High Speed Train Project which is to be
inaugurated in September on arrival of Japanese PM- Bullet
Train Project.
• National Song which has been made mandatory by Madras High
Court in schools across Tamil Nadu- Vande Matram.
• Chat Messaging Application which Microsoft launched for Large
Group Communication- First "Made for India" Chat Service
Kaizala.
• Shikha Sharma has been reappointed for next three years as-
MD &CEO of AXIS Bank.
• Arundhati Roy's latest work of fiction which has made it to the
long list of this year's Man Booker Prize after 19 years when his
Novel "God of Small Things" got Booker Prize in 1997- The
Ministry of Utmost Happiness.
All states have been asked by the Centre to allow "Self Attestation"
for Executive-level Jobs and- Scrap Affidavits.
June 2017
New Notes which will be circulated by RBI with pink and green
colours on obverse and reverse - One Rupee Notes.
Largest Lender to State Electricity Boards- Power Finance
Corporation with REC
Scheme under which black money Rs.5000 Crore only declared-
Pradhan Mantri Garib Kalyan Yojana.
Financial Year 2017-18 may be used as -Base Year for Next
GDP Series-
India's Top Luxury Carmaker which launched its long wheelbase
E-Class 220d, a new variant of its luxury sedan E-class-
Mercedes-Benz.
A free Application which has been launched by Global Software
giant Adobe that allows users to turn their mobile or tablet into
scanning tool that automatically recognises text- Adobe Scan.
Haryana Govt. has renamed Haryana Urban Development
Authority (HUDA) as- Haryana Sehkari Vikas Pradhikaran
(HSVP)-
Accord from which US President Donald Trump withdrew his
Nation - Paris Climate Change Accord.
SEBI has set up a Committee to advise It on issues relating to
corporate governance In Indian firms and the committee to be
headed by- Uday Kotak, CMD of Kotak Mahindra Bank.
Annual Global List in which India ranked on 45^^ Rank after
losing 4 spots while Hong Kong topped for second year in row-
Competitiveness.
Government Subsidy for which the Aadhar Card has now been
made Mandatory on- Purchase of kerosene and benefits of
Atai Pension Yojana.
The Elevator which can operate at a record-breaking speed of
1260 metres per minute is to be installed in a skyscraper in
China- World's Fastest Elevator.
Index in which India has surpassed China to secure the top
position among 30 developing countries- 2017 Global Retail
Development Index.
In order to create large scale awareness on key topics, RBI Is
observing from 5^ June- Financial Literacy Week.
Stock Exchange which launched its International Exchange at
GIFT-IFSC, Gandhi Nagar- National Stock Exchange of
India.
ISRO successfully launched its Most Powerful Rocket which can
carry a four-tonne communication satellite- GSVL Mk-III
(Nicked name- Fat Boy).
India's Number One Phone Company which received statutory
approval from CCI for proposed merger with Norway's Telenor-
Bharti Airtel.
Govt. to create one Large State-run NBFC for demands of
Infrastructure Sector by merging- IIFCL and IFCI.
The Global Economy headed for six year high to 3.5% this year
before nudging up to 3.6% in 2018 as per report of-OECD.
Bank which made the Largest Share Sale in the Secondary
Market by raising Rs.15, 000 Crore by selling 52.2 Crore shares
through QIP- SBI.
The Sole Sportsperson from India to feature among the World's
100 Highest paid Athletes in the Forbes List- Indian Cricket
Captain Virat Kohli.
First Sikh Woman to enter British Parliament- Preet KaurGill.
A Pizza almost 2KM long, made in California- World's Longest
Pizza.
Regulator which has taken over the administration of Sahara
India Life Insurance, a first of its kind in the Sector-IRDAI.
Kolkata High Court Judge, who had been sentenced to six
months prison for contempt by the Supreme Court and who jias
not been seen in public since then, retired from service on 12^^
June- Justice CS Karnan.
lOBI Bank has been the only Public Sector Bank that got "High
H"(85 score out of 100) rating in two successive surveys- Code
Compliance under Banking Codes and Standards Board
of India.-
RBI lists 12 NPA Accounts for- Insolvency Proceedings.
Technology which will be used by 50% of banks by 2020 as per
Infosys report- Blockchain Technology.
Indian Superstars Shah Rukh Khan, Salman Khan and Akshay
Kumar are the Highest Earning Entertainers in the world while
American Sean Combs tops- Forbes' List of Highest-paid
Celebrities 2017.
FIMIN allows carry forward of unavaiied Cenvat Credit by Telcos
Firms under- GST Regime.
Price which will be revised at 6 a.m every day from 16^^ June
on- Petrol and Diesel.
Bank on which RBI invokes Prompt Corrective Action (PGA) in
view of high NPA and negative return on assets- Central Bank
36
 FINANCIAUAWARENESS & GENERAL KNOWLEDGE

of India. Award.
New Scheme which is to be iaunched on 15^*^ August by Govt. State where the Dignitaries visiting will now be offered Books
for women to buy and operate cabs- Pradhan Mantri Gram and not Bouquets as a Token of Love- Uttrakhand.
Parivahan Yojana. Word, which has become the New Last Word in the Oxford
Rankings in which India again missed a spot- Times Higher English Dictionary- Xyzzyva-a Tropical Beetle.
Education World Reputation Rankings 2017. World's First ATM opened on June 27, 1967 at Branch of
Full-fledged commercial launch to be made of its RuPay Credit Barclays Bank, London, celebrated its 50^^ Birthday whose
Cards by- National Payments Corporation of India. Inventor was- Scottish Shepherd-Barron.
RBI's recent move to reduce risk-weights and standard asset Airline in which the Government has given its approval for
provisioning on individual housing loans are credit negative for disinvesting stake In- State-owned AIR India.
the banking sector- Moody's Report. As per Govt. Notification, Individuals having Permanent Account
India's First Smart Industrial Port City is to be set up at- Number (PAN) will have to link it from July 1, 2017 with-
Kandla,Gujarat. Aadhar Number.
20 Indian Companies have featured in -Asia's Top 100 Lists. For the First Time, Note which will be issued by RBI- Note of
Actress Priyanka Chopra has taken the Top Spot on Top Actors Rs.200 Denomination.
Chart - Hollywood Reporters'Inaugural Top Charts. India's Communication Satellite which became third Satellite
India has been ranked 60*^^ in the list of 130 most-innovative iaunched from French Guina- GSA-17.
countries in the World as per -Global Innovation Index.
First Bonds which will be issued under Small Cities Scheme by
three Civic Bodies-Delhi, Pune and Ahemdabad to raise funds
for providing amenities- Municipal Bonds.
Commercial Place in India which has been ranked 9'-'^ Most
Expansive Prime Office Market in the World- Connaught Place
New Delhi.
Scheme under which people can now enrol and subscribe
digitally- Atal Pension Yojana.
Dam whose all the 30 Gates have been closed by the Gujarat
Government for the First Time raising the water level of the
Reservoir- Sardar Sarovar Dam.
Country which eased the visa rules in which Indians can use the
on-line visitor visa facility from July 1, 2017 and can visit the
country more conveniently- Australia.
UN Convention which has been ratified by India and becomes
7lSt Country to ratify- United Nations TIR Convention.
Two Chinese Super Computers have been declared by US and
Germany Researchers "Fastest in the World" - China's
Sunway Taihulight and Tianhe-2.
Country whose King appointed his 31-year old son Mohd. Bin
Salman as Crown Prince from the line of succession- Saudi
Arbia.
No future or ongoing real estate projects can be advertised
without registration with- Real Estate Regulatory Authority.
Bank which has bagged "Nine Skoch Awards" including "Best
Bank in Public Sector"- Vijaya Bank.
Chairman of RBI Overseeing Committee- Pradeep Kumar,
Former MD of SBI.
Company which has been ranked as "Top Employer of US
Talent in IT Sector" over the past five years as per study by
Cambridge Group- Tata Consultancy Services(TCS)
Passports will now be in Hindi and English both - Instead of
English only.
World's 1^^ Turbaned Sikh VVoman Judge appointed as a Judge
in the Supreme Court of British Columbia, Canada- Punjab's
born Palbinder Kaur Shergill.
China's Fastest Bullet Train with a maximum speed of 400
KMPH- Fuxing.
An Incredible 676 Children in UK having Largest Gathering
dressed as Merry Potter to rriark 20 years since publication of
his First Book got- Guinness World Records.
Bhumika Sharma, Dehradun has become the First Indian
Woman to win- Miss World Body Building Championship

37