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PSU Bankers’ Union Challenges RBI’s Feb 12 Bankruptcy Circular Petition says provision will cause a loss of Rs 1 L cr, threatening viability of banks The biggest union of state-run banks has filed a writ petition in the Delhi High Court challenging the Reserve Bank of India’s (RBI’s) controversial February 12 circular that bankruptcy proceedings will kick in 180 days after a borrower misses a payment without allowing even a day’s extension. The All India Bank Officers’ Confederation (AIBOC), which represents 3 lakh supervisory staff and officers in public-sector banks, said the provision will cause a loss of Rs 1 lakh crore, threatening the viability of banks and consequently the livelihood of its members. AIBOC wants the high court to quash the circular. Members of the AIBOC said the court has issued a notice to the RBI after admitting the petition that was filed recently against the central bank and the government. In its petition, the union has alleged the circular violates

 ICAI opposes move to exclude CAs from carrying out valuation Rule 11UA provides for determining the fair market value of various specified assets under Section 56 of the Income-tax Act, 1961 The Institute of Chartered Accountants of India (ICAI) and four other accounting associations have written to the Central Board of Direct Taxes (CBDT) opposing the latter’s move to amend Section 11 UA of the Income Tax (I-T) Act. The step will pave the way for excluding chartered accountants from carrying out valuation of unquoted shares. Rule 11UA provides for determining the fair market value of various specified assets under Section 56 of the Income-tax Act, 1961. One of its sub-rules provides an option to the assessee to determine the fair market value (FMV) of unquoted shares with the help of a merchant banker or an accountant. The recent amendment has excluded the term ‘accountant’. ICAI believes the paucity of available merchant bankers could jack up costs of determining the FMV o

  Fed hikes rates amid stronger inflation, shifts from crisis-era stance Policymakers projected a slightly faster pace of rate increases in the coming months The Federal Reserve raised interest rates on Wednesday, a move that was widely expected but still marked a milestone in the US central bank's shift from policies used to battle the 2007-2009 financial crisis and recession. In raising its benchmark overnight lending rate a quarter of a percentage point to a range of between 1.75 per cent and 2 percent, the Fed dropped its pledge to keep rates low enough to stimulate the economy "for some time" and signalled it would tolerate above-target inflation at least through 2020. The Fed has raised rates seven times since late 2015 on the back of the economy's continuing expansion and solid job growth, rendering the language of its previous policy statements outdated Inflation is also snapping into line, with fresh projections from policymakers on Wednesday indi

  Visa cuts fee on card transactions, industry says business as usual The company hopes that the rate cut will drive greater digital adoption, both for consumers and merchants The steep cuts in data processing charges by leading card network Visa recently will have little impact in improving card acceptance in India as the economy is mainly cash dependent, said industry executives. Visa cut its fee per transaction by up to 95 per cent for transactions below Rs 2,000 and the company also reduced its charges for higher-value payments to Rs 1.5 from Rs 2.99 per transaction Usually, these charges along with banks’ fee as issuers and merchant acquirers are borne by the merchants. The company hopes that the rate cut will drive greater digital adoption, both for consumers and merchants. Over the last 18 months, debit card has rapidly evolved from being a mere ATM cash withdrawal tool to a powerful digital payment means for Indian consumers across segments. This further reinforces our