2
In order to address complaints of harassment on account of issue
Issue of IT orders, notices, of notices, summons, orders etc. by certain income-tax authorities:
summons, letters etc • On or after 1st October, 2019 all notices, summons, orders
etc. by the income-tax authorities shall be issued through a
through a centralized centralized computer system and will contain a computer-
system generated unique Document Identification Number.
• Any communication issued without computer-generated unique
Document Identification Number shall be non est in law.
• All old notices to be decided by 1st October 2019 or uploaded
again through the system
• From 1st October, 2019 all notices to be disposed off within three
months from the date of reply.
Measures to Boost Economy
Taxation Measures
3
Relief from enhanced • In order to encourage investment in the capital market, it
surcharge on Long- has been decided to withdraw the enhanced surcharge
term/Short-term Capital levied by Finance (No. 2) Act, 2019 on long/ short term
capital gains arising from transfer of equity shares/units
Gains referred in section 111A and 112 A respectively.
7 Banks to launch • Reduced EMI for housing loans, vehicle and other retail
loans by directly linking Repo rate to interest rates. Working
Repo rate /external
capital loans for industry will also become cheaper
benchmark linked
loan products
8 • To reduce harassment and bring in greater efficiency,
Customer Ease PSBs to ensure mandated return of loan documents within
• This will benefit MSMEs, small traders, Mudra borrowers,
15 days of loanSelf Help Groups, MFI clients etc.
closure.
• Benefit: Borrowers who have mortgaged assets
Measures to Boost Economy
Banks/NBFCs/MSMEs
9 • On line tracking of loan applications by customers of
Customer Ease: Retail, MSME, Housing, Vehicle, working Capital, limit
Online tracking of enhancements ,renewals etc.
loan applications • Would increase transparency, reduce harassment,
and improve turn around time for customers.
13
Use of Bank • NBFCs to be permitted to use the Aadhaar authenticated bank KYC to avoid
KYCs by NBFCs repeated processes.
• Necessary changes shall be made in PMLA rules and Aadhaar
Regulations
• Easier, fast tracked onboarding of customers
14 Co-origination of • To take advantage of liquidity with PSBs and last mile customer
loans by connect of NBFCs, PSBs to fast track collaboration for loans to
PSBs jointly MSMEs, small traders Self Help Groups, MFI clients borrowers in co-
with NBFCs origination mode with NBFCs
Measures to Boost Economy
Banks/NBFCs/MSMEs
15 GST Refund to • All pending GST refund due to MSMEs shall be
MSME within paid within 30 days. In future all GST refunds shall
be paid within 60 days from the date of application
30 days
17
MSME • Amendment to MSME Act to move towards single
definition to be considered
Definition
18 • Decisions on recommendations such as on ease
UK Sinha Committee
of credit, marketing, technology, delayed payments
recommendations
etc. within 30 days
Measures to Boost Economy
Increasing capital flows and energising financial markets
19 • In order to improve access to long term finance, it is
proposed to establish an organisation to provide Credit
Deepening of bond Enhancement for infrastructure and housing projects.
markets in India This would enhance debt flow towards such projects.
• The government would soon take further action on
development of Credit Default Swap markets soon, in
consultation with RBI and SEBI.
• In order to improve domestic market in bonds, Ministry of
Finance will work with RBI to make it more conducive for
investors and bond issuers, as well as facilitate increased
trading for price discovery
• Government has amended the Companies (Share capital
and Debenture rules) 2014 to remove the requirement for
creation of a Debenture Redemption Reserve (DRR) of
outstanding debentures in respect of listed companies,
NBFCs and for HFCs.
Measures to Boost Economy
Increasing capital flows and energising financial markets
20
33TheDepository • The Depository Receipt Scheme 2014 is expected
Access of Indian
Receipts
Companies to the to be operationalised soon by SEBI. This will give
Global Markets
Scheme 2014 Indian companies increased access to foreign
funds through ADR/GDR.
21 • In order to improve market access for the
Use of Aadhaar based domestic retail investors, Aadhaar-based KYC to
KYCs for domestic retail be permitted for opening of Demat account and
investors making investment in mutual funds
• Necessary notification for amendments in
PMLA Rules to be issued
23 To bring offshore 24
Rupee market to domestic stock
exchanges and permit trading of USD -INR
Offshore Rupee market derivatives in GIFT IFSC, Ministry of Finance is
working with RBI to introduce this measure shortly.
Measures to Boost Economy
Infrastructure
24 Delayed Payments • Delayed payments from Government/ CPSEs to be
monitored by Department of Expenditure and
performance reviewed by Cabinet Secretariat
32
• With stakeholders for timely and suitable
Ministry of Finance to interventions for different sectors
continue to engage
Thanks
Opening remarks: Theme 1: Continuing push to Decriminalisation and reduction in harassment
• Reform, simplification, debottlenecking and in general making it easier to do business has been an abiding
priority for this Government. In five years, the jump in India’s EODB ranking speaks for itself. The narrative.
therefore, that the Government is anti business is not just false, it is also misleading
• It might be useful to simply recall, just some of these changes, which we today take for granted or indeed
do not even think about. These are changes which happened in taxation, in labour laws, in respect of
environmental clearances and these are only a few illustrations. Some may be even more mundane for
instance greater acceptance of self certification in place of attestation and so on. These happened, because
of single minded focus of chipping away at anything and everything which could hamper growth of business
and the creation of jobs.
• Hon’ble Prime Minister had been unambiguous. “We respect wealth creators.” “We will make India a
better place to do business”
• For Government it has been about direction and speed to make sure that business grow to scale with speed
• Changes made by Government in recent months have been consistent in their approach - reducing
harassment and ensuring that an oversight or a minor infringement does not get treated as crime. This has
been evident in the move towards faceless processing and assessment of matters relating to income tax
including IT Returns, changes in the Companies Act which promote ease as well as increase responsibility on
companies.
• We will take forward this spirit, with a few more changes on the Company Law side and on the taxation
side. I am confident that these will set at rest the apprehensions and the angst. You said this to us and we
have heard you and hereby responding.
Theme 2: Encouraging Enterprise and Investment
• In addition to the reduction in harassment thereby making life a little easier in respect of compliance under
various laws, it is equally important to actively address some of the other constraints which have perhaps
been holding back investment and enterprise. I have received a number of representations and requests in
this regard and I think it is appropriate that we use this forum to inform you how we are sorting out these
issues.
• Both of these have to do with taxation and perhaps more than the amount of revenue involved, the
mindshare taken up by these has been huge. Once again, it is time to put these to rest, conclusively. We
want to build businesses for tomorrow and those which others will seek to emulate.
Theme 3 : Banking and credit is central to most economic activity
• Concerns have been expressed whether our banks are robust enough to support the kind of credit growth
which India needs. We need to break though the negativity, the noise and the clutter which has seeped into
the discourse about the health of our banks. We are taking measures to simplify processes and make them
transparent.
• Equally, customers and borrowers look forward to better service as well as hassle free transactions with
banks.
• For those of you who may have taken loans, there is anxiety that you should get benefits of rate cuts
announced by the RBI, quickly and seamlessly.
• There are those who want to settle loans which they could not pay back in time earlier.
• On the other hand bankers have consistently, represented to me that bonafide decisions taken by bankers
need to be supported.
• Government has taken a few decisions in this regard which I hope will meet this multiple objectives.
Theme 4: NBFCs and MSMEs
• Availability of credit involves banks. It also involves NBFCs and HFCs. In the last few months there has been a sense of
crises which appeared to be engulfing this sector. RBI took a number of steps to ease liquidity. You would also recall the
announcements I had made during the Budget Speech on supporting NBFCs and HFCs.
• Since then we have made considerable progress and liquidity for well established NBFCs and HFCs is far more comfortable
today, than it was about a year ago.
• The details of the Partial Guarantee Scheme and NHB’s LIFt scheme have been announced.
• Yesterday itself, NHB has approved the first four proposals from small and mid sized HFCs under LIFt and is already
evaluating another half a dozen new proposals. Banks, on their part are in the midst of obtaining ratings of asset pools
offered to them by NBFCs and are looking to close deals very quickly.
• Banks and NBFCs are simultaneously partnering through co-origination making it easier to reach more customers
especially those in dispersed locations. Co-origination is particularly helpful for MSME borrowers.
• MSMEs in fact have been a priority for us beyond just the partnerships with banks. In November last year the Prime
Minister made a series of announcements including an interest subvention, online loan approvals, mandatory
procurement, technology centres etc. Subsequently, RBI also announced a loan restructuring scheme. Today, we want to
go further. We will focus on getting money to MSMEs faster from GST and Government buyers as well as taking up the
various recommendations of the U K Sinha Committee
• MSMES will also benefit from our thrust on infrastructure and unlocking of payments held up due to arbitration
Theme 5 : Capital Flows and Financial Markets
• New business, capacity expansion and additional infrastructure will need equity and
will need debt. Each new factory and each new project in infrastructure has a multiplier
effect in terms of jobs, economic activity, new value chains and indeed a small eco
system which gets built around it.
• Functioning, well regulated markets make possible access to equity and debt by giving
confidence to new providers of capital and making it easier for demand to match supply.
• Between Government, RBI and SEBI, a number of steps have been taken to expand the
marketplace in terms of number of players, size, depth and better rules of the game
which are certain and applied without discrimination. In all this there is also an element
of enhancing the ability of Indian corporates to tap overseas funding opportunities
• As markets evolve constantly, so must regulation and procedures. Through a series of
measures we hope to send out a strong signal that not only are our markets well
functioning and our companies well placed to access them as well as overseas markets,
but also, an equally strong signal that if you are still choosing to sit out, you are missing
out a great opportunity.
Theme 6: Automotive Sector
• You could say that our attention has been on the big picture for the economy, on banking and shadow
banking, on MSMEs, on financial markets and we are ignoring the picture on the ground and as some of you
may want to say, it is not pretty.
• From the general to the specific, please remember that I have been talking to stakeholders in various
sectors. These conversations have been in Delhi which some of you have reported on. They have also been
in India’s cities and towns. Yesterday, itself I was in Mysore getting first hand feedback.
• I thought to pick up one sector to illustrate to you that we are conscious of the problems and have solutions.
The contribution of the automotive sector to manufacturing in India has been enormous. We have a world
class industrial base in automotives and if there are issues which are impeding its growth, it is time to take
them head on.
Closing remark
• This is only a start. We will continue to engage with other sectors and keep calibrating our response as our
stakeholder consultation progresses. To be sure, our overall growth story continues to be not just intact but
also rather strong.
• In an age when trade tensions are increasing, global trade is down, threats of currency wars are being
made, our growth continues to be the envy of many. We are alive to challenges and will continue to
respond to them in real time basis, not in a knee jerk manner but in a well thought through and carefully
nuanced manner.
Measures to Boost Economy
22 This requires boosting capital flows both from
Boosting capital flows domestic and foreign sources, into the corporate
and energising financial sector. Simplifying regulations will also provide
markets additional avenues for channelising domestic
savings into investments.