Skip to main content

RBI asks banks to share info with information utilities

RBI asks banks to share info with information utilities
The Reserve Bank today asked banks and other financial institutions to share information about assets of creditors with information utilities registered under the insolvency law.
The directive from the apex bank clears the air over sharing of information about creditors as required under the insolvency law as many banks reportedly had reservations in parting with such details.
It also comes at a time when lenders are set to initiate insolvency proceedings against more than 20 borrowers in addition to over 10 cases where proceedings are underway.Information utilities store financial information to help establish defaults and verify claims expeditiously in order to complete transactions under the Insolvency and Bankruptcy Code (IBC) in a time-bound manner.
"All financial creditors regulated by the Reserve Bank of India (RBI) are advised to adhere to the relevant provisions of IBC, 2016 and IBBI (IUs) Regulations, 2017 and immediately put in place appropriate systems and procedures to ensure compliance to the provisions of the Code and Regulations," the central bank said in a letter.
The letter has been addressed to all scheduled commercial, small finance, local area and cooperative banks as well as non-banking financial institutions and all-India financial institutions.
The Insolvency and Bankruptcy Board of India (IBBI) is implementing the Code and last week issued guidelines for technical standards to be followed by information utilities, including for consent framework in sharing details with third parties.As per the IBC provision, "a financial creditor shall submit financial information and information relating to assets in relation to which any security interest has been created, to an information utility in such form and manner as may be specified by regulations", the letter said.
So far, National E-Governance Services Ltd (NeSL) has been registered as an information utility by the IBBIOperational from December last year, the Code provides for a market-determined and time-bound insolvency resolution process. 
The Times of India, New Delhi, 20th December 2017

Comments

Popular posts from this blog

At 18%, GST Rate to be Less Taxing for Most Goods

About 70% of all goods and some consumer durables likely to cost less

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

Firms with sales below Rs.50 crore out of ambit

The tax department has reiterated that the PoEM rules, which require foreign firms to pay taxes in India if the effective control is here, will not apply to companies withaturnover of Rs.50 crore or less inafinancial year. Last month, the tax department had come out with the longawaited Place of Effective Management (PoEM) rules, which require foreign companies in India and Indian firms with overseas subsidiaries to pay local taxes if their businesses are effectively controlled by Indians. Then the rules did not setathreshold above which they were to apply. However, the accompanying press release states that the rules will not apply to companies withaturnover of up to Rs.50 crore inayear. That created confusion whether the threshold will be adhered to. Inacircular to clarify things, the Central Board of Direct Taxes (CBDT) said the provision "shall not apply toacompany havingaturnover or gross receipts of ~50 crore or less inafinancial year".

PoEM rules essentially target shell …