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  Starting from February 29, Paytm Payments Bank won't be able to accept new users. If you're not already using Paytm, you can't create a new account after this date. Existing users won't be able to use Paytm wallets, Fastags, or Mobility Cards after this date. This is because the Reserve Bank of India has barred the listed fintech’s payment bank from offering banking services after February. The action against One 97 Communications, the parent company that runs Paytm, is due to “non-compliance and continued material supervisory concerns in the bank,” RBI said. Paytm Payments Bank Ltd (PPBL) is an associate company of PAYTM and has over 100 million KYC customers. It also has 300 million wallet users, 30 million bank account holders and a 17 per cent market share in FASTag by value.While the regulator had earlier banned new customer on-boarding at PPBL, the latest actions prohibit Paytm from undertaking any credit or deposit transaction after 29 February, 2024. The centr

  India's markets regulator is looking at whether local mutual fund schemes investing in small and mid-cap stocks would be able to withstand sharp falls in stock prices or sudden outflows, according to two sources with direct knowledge of the matter. Such funds have seen heavy inflows over the past year, pushing up the prices of small and mid-cap stocks and raising the risks of a steep correction should market conditions suddenly deteriorate. In talks with the Association of Mutual Funds in India (AMFI) this month, the Securities and Exchange Board of India (SEBI) asked for small and mid-cap funds' internal stress tests so it could determine if they would have adequate liquidity to meet any large outflows, the sources said. While SEBI has completed one round of stress test reviews, it wants funds to test for more adverse scenarios, said one of the sources. The sources declined to be identified as discussions with the regulator were confidential.   SEBI and AMFI did not respond

  State-backed insurer Life Insurance Corporation of India (LIC) has received a goods and services tax (GST) notice of Rs 806.3 crore from the Deputy Commissioner of State Tax, Mumbai. In a regulatory filing, the company said that it would file an appeal against the order. The total includes GST worth Rs 365.02 crore, penalty of Rs 404.7 crore and interest of Rs 36.5 crore. According to the filing, the violations include non-reversal of input tax credit (ITC), reversal of ITC availed of from reinsurance, interest on delayed payment made with GSTR-3B, interest on advance received, and less reverse charge mechanism liability disclosed in GSTR-9/3B than shown by suppliers in GSTR-1. "Corporation shall file an appeal before Commissioner (Appeals), Mumbai, against the said order within the prescribed timelines," LIC said, adding that the demand will not have any material impact on any of its financials, operations or other activities. Earlier in October last year, LIC had received

  Goods and services tax (GST) collection in December declined to a three-month low due to economic activities winding down after Diwali but remained elevated at Rs 1.65 trillion. The growth rate year-on-year fell to a three-month low of 10.3 per cent over Rs 1.49 trillion in December 2022-23. GST collection in a particular month is on account of production, sales, and purchases in the previous month.Thus, collection in December pertained to transactions in November, which was marked by holidays after Diwali, slowing receipts. The same trend was visible in other data points such as the core sector, which witnessed a six-month low growth rate of 7.8 per cent in November. GST collection has been Rs 1.65 trillion and above for six months of the nine this financial year. It did not fall below Rs 1.57 trillion in any month.Average monthly gross GST collection -- Rs 1.66 trillion in the first nine months -- represents a 12 per cent rise over the Rs 1.49 trillion recorded in the corresponding

  Central and state governments collected ?1,64,882 crore ( ?1.65 trillion) in goods and services tax (GST) revenue in December, a notch below the average so far this year of ?1.66 trillion per month, but still a 10.3% jump from a year ago. The finance ministry said in a statement that in the April-December period of this fiscal, the gross GST collection grew 12% compared to the year-ago period to ?14.97 trillion. The GST receipts in December are the lowest since October witnessed a peak of ?1.72 trillion, which was this fiscal’s second highest after a record ?1.87 trillion in April. This indicates a moderation after businesses replenished supply chains in the pre-festive months, but receipts could see a further increase closer to the fiscal year end. Barring May and August, GST receipts have remained above ?1.6 trillion this fiscal. After settlement of taxes for interstate sales, the central government collected ?70,501 crore, while the states received ?71,587 crore in December, the m

  The Reserve Bank of India (RBI) will keep its key interest rate unchanged at 6.50% for a fifth consecutive meeting on Dec. 8 as inflation worries ebb, according to a Reuters poll of economists who unanimously expect the central bank's next move to be a cut. Despite inflation falling to a four-month low of 4.87% in October, it is expected to remain above the RBI's 4% medium-term target for at least another two years. That is likely to keep the RBI from changing its hawkish bias anytime soon. All 64 economists in the Nov. 17-30 Reuters poll expected the central bank to hold the repo rate at 6.50% at the conclusion of its Dec. 6-8 meeting. "We expect the Reserve Bank to stay put. We're not expecting a rate cut before Q3 2024," said Dhiraj Nim, economist at ANZ research. "If they are beginning to see inflation aligning with the 4% target... for one or two meetings, it will be sufficient evidence for the RBI to start pivoting."   While the poll medians stil

  The Reserve Bank of India (RBI) on Thursday imposed a monetary penalty of Rs 10,000 each on HDFC Bank and Bank of America, citing a violation of reporting requirements under the Liberalised Remittance Scheme of the Foreign Exchange Management Act (FEMA). RBI fined HDFC Bank, a leading private sector bank, for accepting deposits from non-residents and flouting RBI’s directions under the Liberalised Remittance Scheme of FEMA, 1999. A similar fine of Rs 10,000 has been levied on Bank of America for violating FEMA regulations. "The Reserve Bank of India has imposed a monetary penalty of Rs 10,000 (Rupees ten thousand only) on Bank of America, N.A. in exercise of powers vested in the Reserve Bank under the provisions of Section 11(3) of FEMA, 1999, for violation of the Reserve Bank of India’s instructions on reporting requirements under the Liberalised Remittance Scheme of FEMA 1999," read the circular. The central bank had issued a Show Cause notice to the lenders and, based on