Page 2 - Finance Ministry

PSBs were UPA's ATM for cronies: FM Sitharaman hits out at Rahul Gandhi

Finance Minister Nirmala on Wednesday termed the allegation of Leader of Opposition (LoP) Rahul Gandhi against state-owned banks as an insult to the hardworking employees and to the citizens who benefit from a cleaner, stronger banking system. Gandhi has a penchant for making baseless statements and the fact is that high concentration of corporate credit and indiscriminate lending during UPA tenure had resulted in significant deterioration in the health of public sector banks, she said in a series of posts on X. Banking sector, especially Public Sector Banks (PSBs), have seen a remarkable turnaround under the leadership of Prime Minister Narendra Modi, she said. Earlier in the day, Gandhi after meeting a delegation from the All India Banking Officers Confederation accused the government of using public sector banks, the "lifelines of the masses", as an unlimited source of funds for their "fraudulent friends". "The Modi government has turned these lifelines of the masses into privat

New RBI governor Sanjay Malhotra warned of killing 'golden goose'

As the head of India's central bank, Malhotra inherits the management of an economy beset with the dual challenge of rising prices and slowing growth

FinMin-RBI ties the best in my stint with excellent cooperation: Das

Outgoing Reserve Bank Governor Shaktikanta Das on Tuesday said he gave his best to the institution, and asserted that ties between Mint Road and the finance ministry were "the best" in his six-year stint. Speaking to reporters on the last day of his term, Das said the "perspectives" of the central bank and the finance ministry can be different on many issues and the phenomenon is seen the world over. "...in my tenure, I think we have been able to resolve all such issues through internal discussions," Das, the career bureaucrat-turned-central banker, said. "The relationship between the government, and the finance ministry in particular, and the Reserve Bank of India... I think they have been at their best. We had excellent cooperation, excellent coordination," Das added. Das, who had served as the secretary in the Department of Economic Affairs and also worked closely on demonetisation in 2016, was appointed as the RBI Governor in 2018 following the sudden resignation of Urjit ...

Limited appetite raises questions on insurance FDI growth projections

The pace of FDI utilisation has been slow. Among private-sector non-life insurers, no company has reached the current 74 per cent threshold

Centre may halt Sovereign Gold Bonds issuance from FY26 to reduce govt debt

Scheme said to have outlived its purpose of reducing physical gold imports

Indian insurance firms seek zero-coupon bonds to manage long-term risks

Insurance companies have made a request to the Reserve Bank of India, which has then discussed the matter with the Finance Ministry of the government

Govt invites applications for post of pension fund panel PFRDA chief

The government has begun searching for a successor to Pension Fund Regulatory and Development Authority (PFRDA) chairman Deepak Mohanty whose term is ending in May next year. The PFRDA chairman holds office for five years or till the age of 65 years. The chairman is entitled to a consolidated salary of Rs 5.62 lakh per month without the facility of house and car, the finance ministry said while inviting applications for the post. As per the eligibility criteria mentioned in the public notice issued by the Department of Financial Services, the applicant should have a minimum of two years of residual service as of the last date of submission of applications. Applicants should be a government servant and have worked as Secretary/Additional Secretary in the Government of India or its equivalent level in a State Government for at least three years, it said. A public sector official, and has worked at least at one level immediately below the board level for at least three years or an ..

Business correspondents' body demands higher charges for AePS withdrawals

Faced with a jump in costs and transaction failures, bank agents are demanding an upward revision of per-transaction charges to 1 per cent or Rs 21, whichever is lower

Finance Ministry likely to end windfall tax as oil prices stabilise

In September, the government eliminated the windfall tax on domestically produced crude oil, reducing it to zero per tonne

FinMin proposes to raise insurance FDI to 100%, composite licence provision

The finance ministry has proposed to amend various provisions of the Insurance Act, 1938, including raising foreign direct investment (FDI) in insurance sector to 100 per cent, reduction in paid-up capital, and provision for composite licence. The Department of Financial Services (DFS) has sought public comments on the proposed amendments by December 10. As per the proposal, the FDI limit in Indian insurance companies will be raised from 74 per cent to 100 per cent. This is the second public consultation that the DFS has sought on the proposed amendments to the Insurance Act 1938, the Life Insurance Corporation Act 1956, and Insurance Regulatory and Development Authority Act, 1999. The finance ministry in December 2022 invited comments on the proposed amendments to the Insurance Act, 1938, and the Insurance Regulatory Development Act, 1999. According to an office memorandum dated November 26, 2024, it is proposed to amend certain provisions of insurance laws to ensure accessibilit

Life insurance stocks fall; HDFC Life, SBI Life, Max Financial dip up to 7%

According to the latest data, HDFC Life distributes 65 per cent of its insurance policies through banking channels, followed by SBI Life (60 per cent), Max Life (52 per cent), and ICICI Prudential

Finance ministry weighs removing windfall tax amid falling crude prices

The federal finance ministry will evaluate scrapping windfall tax on domestic crude oil output, Tarun Kapoor, adviser to the Indian prime minister, said last month

BCFI to push for SRO status; explores solo, strategic partnership options

BCs have of late been sounding off to the Ministry of Finance, warning that the channel is becoming increasingly unviable

Fake currency notes of Rs 500 & Rs 2,000 surge threefold in 3 years: FinMin

Finance Ministry data shows a fourfold rise in fake Rs 500 notes since 2018 and Rs 2,000 counterfeits tripled since 2021

FinMin issues advisory to banks to promote transparency in transfer policy

The Finance Ministry on Tuesday issued a host of suggestions with regard to 'Transfer Policy' of public sector banks with an aim to promote greater transparency. According to an advisory issued to heads of public sector banks (PSBs), the Department of Financial Services asked lenders to incorporate advices suitably in their respective 'Transfer Policy' with the approval of their boards and take immediate action for its implementation and compliance from 2025-26. "PSBs are also advised to send a copy of the policy, so modified, to this Department, at the earliest," the communication said. The transfer policy has been reviewed with an aim to promote greater transparency and ensure formulation of a uniform and non-discretionary policy, it said. Some of the changes advised include banks to automate the transfer process and to develop an online process for the same with facilities of giving location preference options to its employees, it said. "Women employees be transferred as far as

Bumper kharif harvest likely to lower food inflation: FinMin report

Consumer price inflation rose to 6.2% in October, primarily driven by inflation in a few vegetables, oil, and fats

800+ IRS officers opted for voluntary retirement in the last decade: FinMin

Around 383 Income Tax officers and 470 Customs & Indirect Taxes officers opted for voluntary retirement between 2014 and 2024

Karnataka CM seeks to meet FM Sitharaman to discuss Nabard loan 'reduction'

Karnataka Chief Minister Siddaramaiah on Wednesday said he has sought an appointment with Union Finance Minister Nirmala Sitharaman to discuss the "reduction" in loan amount to the state this year, from the National Bank for Agriculture and Rural Development (NABARD). The Chief Minister will be travelling to the national capital tonight. "There is a launch of Nandini products in Delhi, so I'm going. I have also sought appointment with Union Finance Minister Nirmala Sitharaman, because NABARD loan to the state this year has been reduced. Last year, Rs 5,600 crore was given, this year it is Rs 2,340 crore. It has been reduced by 58 per cent," Siddaramaiah said. Speaking to reporters here, he noted that the NABARD comes under the Finance Ministry. "I will make a request to her." Asked if he will be meeting the Congress high command during the visit, the CM said: "I will have to return (to state) by tomorrow evening. If I get time, I will meet." Siddaramaiah is scheduled to launch Nan

Finance Ministry sets minimum annual dividend payout norms for NBFC CPSEs

The guidelines mandate minimum annual dividend payout at 30% of PAT or 4% of net worth, whichever is higher

PSBs set to launch MSME credit model this month, reveals document

Initially, nine PSBs such as Bank of Baroda, Canara Bank, Bank of Maharashtra and others will allow loans only up to Rs 25 lakh. Bank of India will offer loans up to Rs 1 crore