Page 4 - Finance Minister

Finance ministry amends compounding rules for offences under Fema

The Finance Ministry on Thursday modified the compounding rules for offences under the Foreign Exchange Management Act (FEMA) by raising the monetary limits for adjudications by RBI officials and allowing online payments. As per the Foreign Exchange (Compounding Proceedings) Rules, 2024, the fees for filing compounding application has been doubled to Rs 10,000 plus GST, from Rs 5,000 earlier. The notification further said that Assistant General Manager rank officials of the RBI can decide on compounding application of up to Rs 60 lakh, up from Rs 10 lakh earlier. Similarly, the monetary limits for Deputy GM and General Manager rank officers have been raised to Rs 2.5 crore and Rs 5 crore respectively. Chief General Manager in the RBI will be authorised to decide on compounding cases of above Rs 5 crore. In a statement, the Finance Ministry said the Foreign Exchange (Compounding Proceedings) Rules, 2024, will replace the Rules issued in 2000. In pursuance of the Union Budget 2024-

5 non-BJP-ruled states' ministers to meet in Kerala for FC discussion

Ministers from five non-BJP-ruled states will meet here on Thursday to discuss key issues related to the 16th Finance Commission, as, according to them, the country grapples with economic federalism challenges. The meeting, hosted by Kerala, comes at a critical time when states face significant developmental and financial hurdles, according to a statement issued by the office of Kerala Finance Minister K N Balagopal here on Wednesday. The main objective is to present these challenges to the 16th Finance Commission, chaired by Dr A Arvind Panagariya, and explore potential solutions, it said. Kerala Chief Minister Pinarayi Vijayan will inaugurate the high-level conclave to be attended by top dignitaries, including Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, Karnataka Revenue Minister Krishna Byre Gowda, Punjab Finance Minister Harpal Singh Cheema and Tamil Nadu Finance Minister Thangam Thennarasu. Other notable participants include Leader of Oppositi

Women directors in active companies grew three-fold in last 10 yrs: FM

The presence of women directors in active corporate companies has increased over three-fold in the last 10 years, while in Tamil Nadu it has jumped over four-fold, Union Minister Nirmala Sitharaman said on Wednesday. Prime Minister Narendra Modi-led government has been encouraging women's participation across sectors and this has been visible in the funds allocated to schemes allotted for women empowerment in the Budget, she said at an event here. Women are also rising on the corporate ladder and in the startup and financial technology space, about 18 per cent of 111 unicorns (valued at USD 1 billion) are led by women in India, she said. The Union Finance and Corporate Affairs Minister was speaking at a conference on Women Rising - The Unseen Barriers in Power, Politics and Otherwise, organised by the FICCI-FLO Chennai Chapter. On the number of women directors in active companies, she said, "At the all India level, there are 8.83 lakh women directors associated with active companie

FM Sitharaman meets road, telecom ministries to review budgeted capex plans

This was the first, in a series of meetings by the FM, to take stock of the progress being made by ministries with significant capital outlays in the coming days, the press statement added

FM Nirmala Sitharaman approves 'Navratna' status for four CPSEs

The Department of Public Enterprises (DPE) in its statement said that Rail Ministry India CPSE had an annual turnover of Rs 2,622 crore and a net profit of Rs 246 crore for FY 2023-24

India, Singapore commit to boost cooperation in emerging, futuristic areas

India and Singapore on Monday pledged to further enhance co-operation in the emerging and futuristic areas. The Indian delegation led by Finance Minister Nirmala Sitharaman deliberated upon six pillars identified under India-Singapore Ministerial Roundtable (ISMR). Deputy Prime Minister Gan Kim Yong led the delegation of Singapore during the second ISMR. "During the meeting, the leaders emphasised on ways of further enhancing co-operation between India and Singapore in emerging and futuristic areas. Both sides deliberated upon six pillars identified under ISMR, which include Digitalisation, Skill Development, Sustainability, Healthcare & Medicine, and Advanced Manufacturing and Connectivity," the finance ministry said in post on X. The leaders also discussed plans for commemorating the 60th Anniversary of diplomatic relations between India and Singapore, alongside regional and global cooperation, including ASEAN & G20 developments, it said. The leaders noted that the ...

FM Nirmala Sitharaman seeks RBI help to clear RRB dues with states

The finance minister also directed RRBs to become more customer-friendly and use their local connections to further improve performance

To ban or regulate? Govt's cryptocurrency paper likely by October 2024

In October 2023, G20 finance ministers and central bank governors adopted the roadmap on crypto assets proposed in the synthesis paper, calling for its swift and coordinated implementation

FM Sitharaman urges regional rural banks to reduce high attrition rates

RRBs were established regionally and are oriented towards rural areas, with capital contributed by the Government of India, state governments, and sponsored banks under the RRB Act, 1976

Use simpler language in tax notices, don't instil fear: FM tells officials

Finance Minister Nirmala Sitharaman on Wednesday asked tax officers to use simple language in income tax communications so that notices do not instil fear in the minds of taxpayers. Advising the income tax officers not to take "disproportionate" action and use enforcement measures only, as the last resort, Sitharaman said tax officers should use "power judiciously". "Taxpayers must not be subject to unnecessary harassment," she said, adding that tax authorities should mention the reason for sending tax notice and present their side of the story in a "crystal clear" way. "It would be better if the tax-related communication is simpler in language, becomes devoid of technical words and is not convoluted so that an average taxpayer understands what he/she needs to do or what the notice is about," Sitharaman said at the 165th Income Tax Day celebration here. Stating that tax authorities are not for instilling fear in the minds of people, Sitharaman said the department should collect wha

Focus on deposits, strengthen cybersecurity: FM Sitharaman to banks

The FM also met top officials of regional rural banks in a separate meeting, where banks were asked to expedite one state-one RRB initiative

FinMin must identify high risk taxpayers in GST composition scheme: CAG

The Comptroller and Auditor General (CAG) has asked the Finance Ministry to identify high risk taxpayers in the GST composition scheme on a periodical basis and verify from other sources, including third parties, their declared value of sales to check tax evasion. Based on an analysis of 8.66 lakh composition taxpayers under the central jurisdiction between 2019-20 to 2021-22 fiscals, the Comptroller and Auditor General (CAG) found that a significant number of GST taxpayers have a high risk of crossing the turnover threshold for composition levy scheme (CLS). These high risk taxpayers were identified by audit from the data contained in GST returns viz. GSTR-4A, GSTR-7 along with third party data sources such as IT returns, 'Vahan' database etc. The GST composition scheme is available to taxpayers whose aggregate turnover, in the preceding financial year, has not exceeded Rs 1.5 crore. For taxpayers in special category states, this limit is Rs 75 lakh. The CAG said two major risk ar

FM to discuss bad loans taken over by NARCL with PSBs, RRBs on Monday

Sitharaman had last chaired a meeting with heads of PSBs in December 2023

Urgent need to address $4 trn financing gap to accelerate SDG progress: FM

Finance Minister Nirmala Sitharaman on Saturday said that inadequate access to developmental finance is hindering developing economies from achieving Sustainable Development Goals (SDGs) and underscored the urgent need to address this USD 4 trillion annual financing gap. Addressing the third Voice of Global South Summit virtually, Sitharaman said that recent reports reveal that the implementation of many SDGs in developing economies is stagnating, with some indicators even regressing. The SDG financing gap is estimated to be USD 4 trillion annually for developing countries, she said. Observing that the global South is affected by global uncertainties, she said one in four developing countries will be poorer by the end of this year than they were before the pandemic as per a recent World Bank report. "Growth thus remains insufficient to drive progress in development and poverty reduction. To accelerate progress on SDGs, there is an urgent need to address the USD 4 trillion financing

Open to exploring more ways to increase collaboration with IMF: FM

India is open to exploring more ways to increase its collaboration with the International Monetary Fund (IMF), Finance Minister Nirmala Sitharaman said during a meeting with IMF's First Deputy Managing Director Gita Gopinath on Saturday. During the meeting, Gopinath congratulated the Finance Minister on policy continuity in the fiscal consolidation path being followed by the Government of India. "FM Smt. @nsitharaman stated that India deeply values its relationship and continuous engagement with IMF; and looking ahead, the Government of India is open to exploring more ways to increase India's collaboration with the IMF," the finance ministry said in a post on X. Besides acknowledging the vibrancy of the Indian economy, Gopinath appreciated the strength of India's relationship with IMF - valuable to both India, IMF, and to the world at large.

Foreign exchange rules amended: Cross-border share swaps eased by govt

Now, transfer of all shares in firms having FDI with countries sharing land borders, would require prior government approval

Wish I could bring down taxes to nil, says FM Nirmala Sitharaman

But there are challenges to overcome and the country needs money for that, says the finance minister

Centre sets up team to implement internship scheme announced in Budget

The Union Ministry of Corporate Affairs is holding discussions with corporate HR leaders in Delhi and Mumbai to finalise the contours of the scheme

Banks should bring in innovative products to mobilise deposits: Sitharaman

Finance Minister Nirmala Sitharaman on Saturday asked banks to come up with innovative and attractive schemes to mobilise deposits. Addressing the media after the board meeting of the Reserve Bank of India, she said that deposits and lending are the two wheels of a cart and "deposit is moving slowly." The banks, she stressed, need to focus on core banking business which is mobilising deposits and lending to those who need funds. In order to overcome the mismatch between deposits and lending, Sitharaman asked banks to come up with "innovative and attractive" deposit schemes to mobilise funds from the people. RBI Governor Shaktikanta Das said that interest rates are deregulated and often banks raise deposit rates to attract funds. "Banks are free to decide on interest rates", Das added. RBI Governor Shaktikanta Das while unveiling the bi-monthly monetary policy earlier in the week, also had expressed concern of deposit-lending mismatch in the banking sector. He had said that banks

Govt tables banking laws bill in LS, seeks to raise nominees per a/c to 4

The government is scheduled to introduce the Banking Laws (Amendment) Bill, 2024 which seeks to increase the option for nominees per bank account to four, from existing one, among others. Another proposed change relates to redefining 'substantial interest' for directorships, which could increase to Rs 2 crore instead of the current limit of Rs 5 lakh, which was fixed almost six decades ago. As per the revised list of business of Lok Sabha, Finance Minister Nirmala Sitharaman is scheduled to introduce the Banking Laws (Amendment) Bill, 2024 later in the day. Besides, sources said there are some changes with respect to cooperative banks. In addition, the Bill also seeks to give greater freedom to banks in deciding the remuneration to be paid to statutory auditors. The Bill also seeks to redefine the reporting dates for banks for regulatory compliance to the 15th and last day of every month instead of the second and fourth Fridays. The Bill, which was approved by the Union Cabinet l