CA Online

UIDAI Allows Downloading Own Aadhaar Update History Information to help ascertain residency status for past few yrs The Unique Identification Authority of India (UIDAI) has unveiled a feature that allows people to download their own Aadhaar update history, adding to the provision  of self-authentication it had provided earlier.  The update history will help people while applying for services such as passports and visa or for sundry jobs since it can ascertain their residency status for the  past few years.   UIDAI chief executive Ajay Bhushan Pandey said the Aadhaar update history can be downloaded from the authority’s website and used to support assertion of address,  etc. The feature is currently in the Beta phase.  “Providing Aadhaar update history will bring in more trust and further empower people because they can now use their update history to the authorities while applying  for jobs, school admissions, various services or benefits, etc., because in most such cases the

  Businesses not Under GST to Get 180 Days to Pay Back Their Loans In a temporary relief to small businesses not registered under the Goods and Services Tax, the Reserve Bank of India on Wednesday extended loan repayments deadline to  180 days from the due date without being classified as a non-performing asset.  This latest announcement comes after the regulator’s April diktat which had allowed GST registered MSME borrowers with a turnover of up to ?25 crore to delay loan  repayments by 180 days.  “Having regard to the input credit linkages and associated issues, it has now been decided to temporarily allow banks and NBFCs to classify their exposure, as per the  180 day past due criterion, to all MSMEs with aggregate credit facilities up to the above limit (up to ?25 crore), including those not registered under GST,” the RBI  said. The central bank has been facing demands that it remains lenient on the medium and small enterprises as it is the biggest employer and is facing seve

RBI Relaxes Bond-Loss Provisions Again; Move to Protect PSB Margins PSU BANKS can spread April-June MTM losses over the next four quarters   The Reserve Bank of India remains kind to banks, relaxing provisions for bond losses once again.  The RBI has extended the lifeline to state-owned banks, which face a double-whammy of treasury and loan losses.  The central bank has allowed them to spread their mark-to-market losses incurred in the April-June quarter equally over the next four quarters, a move that will help  protect their dwindling profit margins.   “It has been decided to grant banks the option to spread the mark-tomarket losses on investments held in Available for Sale (AFS) and Held for Trading (HFT) portfolio  for the quarter ending June 30, 2018, equally over a period of four quarters, commencing from the quarter ending June 30, 2018,” the RBI said in its bi-monthly policy  statement.  If a bank incurs a loss of ?100 crore in the three months ended June, it can se

RBI increases repo rate by 25 bps to 6.25%; maintains neutral stance The central bank's April policy tone was dovish and it had actually lowered inflation forecasts for the first and second half of 2018-19   The six-member monetary policy committee (MPC) on Wednesday unanimously voted for a rate hike, citing the fear of inflation, partly flared by the recent spike in  crude oil prices. The hike in policy repo rate to 6.25 per cent from 6 per cent was contrary to market expectation that the central bank will hold rates and the  unanimous decision came as a surprise to the markets. The central bank’s April policy tone was dovish and it had actually lowered inflation forecasts for the first and second half of 2018-19. On Wednesday, the inflation  outlook was revised up once again.  With the hike in the June policy, the Reserve Bank of India (RBI) has reversed the rate cutting cycle it had engaged in since January 15, 2015. The last rate hike  happened on January 28, 2014, when

  Retrospective benefits on gratuity not on the cards, says NDA govt The law was amended to bring parity between public and private sector employees (including PSUs) after the gratuity limit was raised for central government on similar  lines The National Democratic Alliance (NDA) government has decided against passing the benefits under the new gratuity law, which doubles the present maximum payout, with  retrospective effect.  This is owing to employers fears of a higher payout. The government received several requests from workers’ representatives belonging to public sector units (PSUs)  and the private sector for doubling the limit for gratuity payout on par with central government employees.  Parliament had passed the Payment of Gratuity (Amendment) Bill, 2018, in March this year, in a bid to raise the gratuity limit to Rs 2 million from the Rs 1 million  earlier.   The law became applicable on March 29, through an official notification.  “On earlier occasions also, the

  Government okays revised guidelines on time-bound closure of sick PSUs The decision was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi here The government on Wednesday approved revised guidelines on time bound closure of sick and loss making central public sector enterprises and disposal of their movable  and immovable assets. The move is expected to reduce delays in implementation of closure plans for loss making PSUs.  The decision was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi here.  The guidelines accord first priority for utilisation of available land parcels of CPSEs under closure for affordable housing as per the relevant guidelines of  Ministry of Housing and Urban Affairs.    As per the new norms, the government has laid down a uniform policy to give workers VRS at 2007 notional pay scale irrespective of the pay scale in which they are  working.  The new norms will replace the guidelines issued

MCA quizzes auditors who quit assignments; explanations sought in 15 cases The Securities and Exchange Board of India is also quizzing auditors who had resigned from listed companies The corporate affairs ministry (MCA) has sought details from some auditor companies, which resigned their assignment after the companies concerned had reportedly  refused to give them adequate information.  Officials said explanations had been sought from auditors in 15-odd cases. Rules, they said, were being worked on regarding eligibility to audit big companies. These rules will be part of the proposed National Financial Reporting Authority (NFRA), as many smaller auditing firms are reportedly replacing the bigger ones that  had refused to audit some companies.  That apart, ministry officials said some of the auditors were citing ‘personal reasons’ for quitting, while others had not given adequate reasons.  The Securities and Exchange Board of India is also quizzing auditors who had resigned from

  World Bank forecasts 7.3 per cent growth for India in FY2018-2019 It said that growth in South Asia is projected to strengthen to 6.9 per cent in 2018 and to 7.1 per cent in 2019, mainly as factors holding back growth in India fade The World Bank has forecast a growth rate of 7.3 per cent for India this year and 7.5 per cent for the next two years, making it the fastest growing country among  major emerging economies.  A top World Bank official said India's economy is robust, resilient and has potential to deliver sustained growth.  Growth in India is projected to advance 7.3 per cent in Fiscal Year (FY) 2018/19 (April 1, 2018-March 31, 2019) and 7.5 per cent in FY 2019/20, reflecting robust  private consumption and strengthening investment, the bank said in its June 2018 edition of the Global Economic Prospect report. The report, released yesterday, is the global lender's flagship publication on the state of the world economy.  It said that growth in South Asia i

  RBI relaxes NPA classification norms for MSMEs under GST For non-GST registered MSMEs, NPA norms would revert to 90 days from January 1, 2019 In a major relief to MSMEs, the Reserve Bank on Wednesday eased NPA classification norms for such units facing input credit linkages and associated issues under the  Goods and Services Tax.  "In continuation of support and relief to MSMEs, NPA recognition for GST and non-GST MSMEs is now at 180 days for dues up to December 31, 2018," Financial Services  Secretary Rajiv Kumar said.  Now 180-day NPA norms are applicable for all micro, small and medium enterprises dues between September 1, 2017 and December 31, 2018 if the account was standard on  August 31, 2017, he said, adding this dispensation covers both registered as well as unregistered MSMEs.   With regard to GST registered MSMEs, 180-day NPA norms will be brought back to 90 days only in a phased manner, starting January 1, 2019.  For non-GST registered MSMEs, NPA nor

RBI monetary policy review: States may need to get their loans rated If the state development loans (SDL) are rated, the margin requirement would be set at 1 per cent lower than other SDLs for the same maturity buckets In its June monetary policy, the Reserve Bank of India (RBI) reduced the margin requirement for government securities (Gsecs) and state development loans (SDL)  mortgaged by banks to access liquidity from the central bank.  The central bank said the margin requirement for government bonds would be in the range of 0.5 per cent to 4 per cent, depending on residual maturity. For SDLs, the  margin requirement would be 2.5 per cent to 6 per cent. The rule was to have a margin requirement of 4 per cent for Gsecs and 6 per cent for SDLs. Furthermore, if the SDL is rated, the margin requirement would be set at 1  per cent lower than other SDLs for the same maturity buckets. The segmentation would help differentiate the market risk across securities, the RBI said.  Th

Even one homebuyer can now drag errant builder to NCLT: Govt ordinance The Ordinance says the voting percentage be reduced to a minimum 66% from 75% earlier Even one homebuyer can drag an errant builder into the National Company Law Tribunal (NCLT), says the government after an Ordinance promulgated on Wednesday empowered  homebuyers to do so. The Ordinance to amend the Insolvency and Bankruptcy Code (IBC), approved by President Ram Nath Kovind two weeks after it was approved by the Cabinet, puts homebuyers  on a par with financial creditors. Homebuyers now will be part of the committee of creditors (CoC) in bankruptcy proceedings.  Corporate Affairs Secretary Injeti Srinivas said, “Even if one homebuyer moves the NCLT, the company can go in for insolvency. That is the intention of bringing them  into the creditors fold." However, it would be up to CoC to give homebuyers the status of secured or unsecured creditors, he said. Most provisions of the Ordinance will be prosp