Banking Regulation Act doesn’t wholly apply to SBI, other PSBs, regional rural banks: RBI official
NEW DELHI: The law that regulates and supervises banking companies in India does not wholly apply to State Bank of India (SBI), other government-owned lenders and regional rural banks (RRBs), a senior Reserve Bank of India (RBI) official told ET. This follows RBI governor Urjit Patel’s March 14 comment that the regulator didn’t have as much control over state-run banks as it did over private ones in the context of the fraud at Punjab National Bank.
Transitional Credit Under GST: Centre takes exclusive powers to verify claims
Concerned over what it perceives as a tendency among a section of taxpayers to over claim transitional credits in the GST regime, the Centre has arrogated to itself the power to verify these claims, a move that might not go down well with the state governments. Since the launch of the GST, taxpayers have claimed Rs 1.6 Lakh crore transitional credit (for taxes like excise and service tax paid in the pre-GST period), denting the central GST (CGST) payments in cash.
Sebi exempts govt from open offers for six PSBs post capital infusion
Markets regulator Sebi today exempted the central government from making an open offer for the shareholders of Punjab National Bank Canara Bank and four other state-owned lenders following capital infusion. The exemption has been given with regard to Syndicate Bank Vijaya’ Bank, Bank of Baroda and Union Bank of India. Following capital infusion in these listed public sector banks, the government’s respective stakes would raise in them. Under Sebi norms, an entity whose shareholding in a listed company goes beyond a particular threshold, then it has to make an open offer.
Centre amends telecom license norms to increase spectrum cap
The government on Monday amended the Unified Access Service License (UASL) and Cellular Mobile Telephone Service (CMTS) license. This was done to incorporate the Cabinet’s nod for an increase in the number of instalments for payment of spectrum fees to 16 years, as well as for the revision in spectrum cap norms. The Cabinet had on March 7 approved the Department of Telecommunications’ proposal to let operators opt for a one-time increase in instalments (maximum 16) to pay for spectrum acquired in auctions from 2012 to 2016. The amendment is part of the relief measures approved by the Cabinet for the sector which is reeling under a debt of ₹7.87 Lakh crore.
Lenders seek clarity on handling cases already under restructuring
Lenders seeking to comply with the latest rules on recognizing and acting on bad loans have approached the central bank for greater clarity on handling cases already under restructuring, inter-bank coordination and voting on resolution plans. On 12 February, the Reserve Bank of India (RBI) ended several forms of loan recast, including strategic debt restructuring (SDR) and scheme for the sustainable structuring of stressed assets (S4A), and made the resolution process time-bound. It also discontinued the joint lenders’ forum (JLF), an institutional mechanism for approval and implementation of resolution plans.
Sebi may tell exchanges to raise fees for trading in illiquid stocks
The Securities and Exchange Board of India (Sebi) has asked stock exchanges to raise transaction fees for trading in illiquid stocks in their recent discussions, two people aware of the matter said. The regulator feels some of these may be shell companies that could expose small investors to high risks, the people said on condition of anonymity. Typically, any stock with an average daily turnover of less than Rs2 lakh for two previous quarters is termed illiquid. According to Mint research, there were at least 446 such firms in the past two quarters. In the December quarter, BSE listed 222 firms as illiquid.
About the Author
