Skip to main content

Govt to continue talks with RBI on easing non-performing asset norms

By
Govt to continue talks with RBI on easing non-performing asset norms
Officials said the Prime Minister's Office and Finance Minister Arun Jaitley had been apprised of the matter

A day after Reserve Bank of India (RBI) Deputy Governor N S Vishwanathan ruled out easing new norms for non-performing asset (NPA) resolution, the government doubled down on its stance that a strict application of these norms could send too many cases to the National Company Law Tribunal (NCLT) and clog the insolvency pipeline. Business Standard has learnt from senior government sources that the finance ministry will initiate a fresh round of communication with the RBI once Governor Urjit Patel returns to India.
Patel, along with Deputy Governor Viral Acharya, is in Washington, DC for the World Bank-International Monetary Fund Spring meeting, which is slated to end on April 22.
Officials also said the Prime Minister’s Office and Finance Minister Arun Jaitley had been apprised of the matter. A source said after Principal Economic Advisor Sanjeev Sanyal wrote to the RBI on the drawbacks of the new NPA norms, officials in the departments of economic affairs and financial services of the finance ministry also communicated to the RBI, seeking a relaxation.
“What the government has asked for is a well-defined process to deal with an NPA for the 180 days which lead up to the NCLT. The joint lending forums have gone. But we have asked the RBI whether any alternative can be set up for banks to take care of the smaller cases, thus negating the need to approach the NLCT always,” the official said. “The one-day default norm is being seen as harsh, and may specifically be detrimental for small and medium businesses,” the person said.
On Wednesday, Vishwanathan raised concerns over the large number of borrowers failing on the one-day default norm, and asked lenders to take this as a warning indicator warranting action.
Amid rising bad loans, which have crossed 10 per cent of the amount lent, the Reserve Bank had on February 12 released a revised framework on bad loan resolution, under which banks will have to disclose default even if interest repayment is overdue by just one day and have a resolution plan in place in 180 days. If it fails to find a resolution within this stipulated time, the defaulting company will have to be referred to insolvency courts.
On April 10, Patel told parliamentarians the new NPA norms would not be eased.

Business Standard, New Delhi, 20th April 2018
---------------

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more