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Banks Want MPs, Finmin Officials to Help Convince RBI to Relax Norms Lenders seek a longer period — a minimum of 30 days — to start the resolution of a loan Lenders led by the State Bank of India (SBI) have sought New Delhi’s intervention in convincing the banking regulator to relax the recent rules on stressed assets, arguing that the ‘harsh’ norms and zero tolerance of bad loans could affect future credit disbursements. During a two-hour meeting with Rajya Sabha members and senior finance ministry officials, bank chiefs suggested that the Reserve Bank of India (RBI) consider relaxing norms that require lenders to work on a restructuring plan a day after a company skips scheduled payments. Bankers urged they be given a longer period — a minimum of 30 days — to start the resolution of a loan. They have also sought the government’s help to get the RBI to relax the rules regarding 100% consent from all borrowers for restructuring a loan within 180 days. According to the revised R

 FinMin raises questions on interest rate of 8.55% proposed by EPFO Asks why the retirement fund body has not kept a higher surplus The finance ministry has raised questions over the Employees’ Provident Fund Organisation’s (EPFO’s) recent decision to declare an interest rate of 8.55 per cent to around 200 million formal sector workers for 2017-18. In a letter to the labour and employment ministry on March 15, the finance ministry has asked why the EPFO has not kept a higher surplus while declaring the rate at 8.55 per cent. The EPFO has contested the arguments. This is the third consecutive year when the finance ministry has asked the labour ministry to keep a higher surplus while deciding the rate of interest for EPFO subscribers. The finance ministry had pressed for similar arguments in the previous two years to overrule the EPFO’s proposed interest rate for 2015-16 and 2016-17. The EPFO’s Central Board of Trustees (CBT), chaired by Minister of State for Labour and Employm

  Examine possibility of converting GSTN into govt-owned firm: FM to Adhia The move came after there were reports of leakages of data, including those allegedly by Facebook and Cambridge Analytica Ten months into the goods and services tax (GST), the Centre is looking at converting GST Network (GSTN), a company managing the IT infrastructure of the indirect tax system, into a government-owned company to protect the sensitive data of companies. Finance Minister Arun Jaitley has asked Finance Secretary Hasmukh Adhia to “examine the possibility” of converting GSTN into a company in which the government holds a majority stake, which can go up to 100 per cent. The move came after there were reports of leakages of data, including those allegedly by Facebook and Cambridge Analytica. After examination, the proposal may be sent to the GST Council. Currently, the Centre and the states hold 24.5 per cent each in GSTN. The rest is held by banks and financial institutions — LIC Housing Fi

Don't deny pension for want of Aadhaar: EPFO to banks The circular also said people who do not have Aadhaar should be encouraged to get it The Employees’ Provident Fund Organisation (EPFO) has asked banks to not deny monthly pension to people for want of Aadhaar cards or biometric authentication. Instead, they can use other documents such as life certificates. The April 9 circular from the EPFO said people should not be denied their pension if biometric identification — fingerprint or iris scans — fails. An entry mentioning the cause should be made in an exception register. The circular also said people who do not have Aadhaar should be encouraged to get it, and till they do so, a life certificate could be accepted as an alternative. “The register will contain the details of exceptions granted, along with the life certificate, the Aadhaar number or the Aadhaar enrolment number. This can be reviewed and audited periodically by senior management of the bank,” the circular sai

Decoding ITR Form-1 (Sahaj) meant for salaried individuals The Central Board of Direct Taxes (CBDT) has notified the new income tax return forms (ITR) for assessment year (AY) 2018-19. While some amendments have been made in ITR Form -1 (Sahaj), ITR Form-2 has also been rationalised. ITR Form 1 (Sahaj) ITR Form -1 (Sahaj) is a one-page form that can be used by an individual with an income up to Rs50 lakh, with salary being the primary source of income, besides income from one house property and other income like interest from bank deposits. The form was first notified in the last AY 2017-18. While in the previous Sahaj form, only details of income from salary or pension along with income from one house property and other income were to be filled, the current Sahaj form asks for a break-up of income from each source. Income from salary: This head has been divided into five: In the first column, you need to provide the amount of salary received, excluding all allowances, perqui

Clause in Aadhaar Act Badly Drafted, says Supreme Court Section 59 is badly drafted... It is very difficult for us to recognise that fundamental rights can be compromised or waived: CJI Dipak Misra  Should court not accept the deemed valid clause, all pre-Act Aadhaar would become suspect in the eyes of the law The Supreme Court on Tuesday faulted a clause in the Aadhaar Act, which validated all biometric enrolments even before the law was enacted with retrospective effect, as badly drafted and too wide in a prima facie observation. The Act came into effect only in 2016, though the government started enrolling people under its Aadhaar scheme in 2010. Should the court not accept the deemed valid clause, all pre-Act Aadhaar would become suspect in the eyes of the law. Section 59 of the Act deems consent in all pre-2016 cases where biometrics were collected without the backing of any law. “Section 59 is badly drafted,” observed Chief Justice of India Dipak Misra, who is heading a b

Non-banking Cos Using UPI to Get a Payments Council Seat The Payments Council of India, the industry body for payments in the country, is in the process of forming a separate subcommittee for non-banking private players using Unified Payments Interface (UPI) for fund transfer. This comes amid steady growth of UPI-based transactions and mushrooming of private companies on the UPI platform in partnership with banks. In a closed-door meeting on Tuesday, companies such as PhonePe, Paytm, Amazon Pay, Google, WhatsApp, Hike and Truecaller, along with the National Payments Corporation of India (NPCI), discussed issues related to UPI. “The plan is to make private players also part of the decisionmaking processes around UPI which can help these companies manage the regulatory environment better,” said a senior executive of a payment company, who attended the meeting. The main challenge for the subcommittee, the executive said, would be to resolve operational issues which are currently p