1. Establishment of Financial Services Institutions Bureau in place of Banks Board Bureau
Tags: Economy/Finance
The Cabinet Appointments Committee (ACC) has passed a government resolution to establish the Financial Services Institutions Bureau (FSIB) in place of the Banks Board Bureau (BBB).
The new framework was proposed by the Department of Financial Services, Ministry of Finance.
The Delhi High Court had nullified the BBB's power to select directors of public sector undertakings, general insurance companies and the government had already implemented the decision by cancelling all appointments of then serving directors chosen by the BBB.
Financial Services Institutions Bureau
The Bureau of Financial Services Institutions will select the heads of public sector banks and insurance companies.
The FSIB will have a clear mandate to issue guidelines and select general managers and directors of state-run non-life insurance companies, general insurers and financial institutions.
FSIB will be the single body to make recommendations for appointment of whole time directors and non-executive chairman in public sector banks, India Private Limited Company and financial institutions.
The Department of Financial Services will make necessary amendments in the first Nationalised Banks (Management and Miscellaneous Provisions) Scheme 1970/1980 (Revised).
Chairman of FSIB- ACC has approved the appointment of Bhanu Pratap Sharma as the initial chairman of FSIB for two years. He is also the former president of BBB.
Banks Board Bureau (BBB)
The Banks Board Bureau (BBB) was formed in the year 2014 based on the recommendations of PJ Nayak to address the challenges faced by the banking sector of the country.
The BBB functions as an autonomous recommender body.
The Banks Board Bureau was a public authority as defined in the Right to Information Act, 2005.
Besides recommending personnel for public sector banks, the bureau was also entrusted with the task of recommending personnel for appointment as directors in state-owned insurance companies.
It was also entrusted with the task of liaising with the Board of Directors of all PSBs to devise suitable strategies for their growth and development.
2. GST (Goods and Services Tax) Day
Tags: Economy/Finance Important Days
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To commemorate the anniversary of the implementation of the historic tax reform of the Goods and Services Tax, 1 July is observed as GST (Goods and Services Tax) Day.
Important facts
The first GST Day was celebrated on 1st July 2018 to mark the first anniversary of the new indirect tax regime i.e. Goods and Services Tax (GST).
GST was implemented on the intervening night of 30 June and 1 July 2017 in a function held in the Central Hall of Parliament.
On 29 March 2017, the Goods and Services Tax Act was passed in the Parliament and the Act came into force on 1 July 2017.
GST was enacted as the 101st Constitutional Amendment Act, 2016.
What is GST?
GST is an indirect tax which has been implemented with the aim of making India a unified common market.
It is a single tax levied on the supply of goods and services from the producer to the consumer.
Under GST, on the one hand indirect taxes like Central Excise Duty, Additional Excise Duty, Service Tax, Countervailing Duty are included at the Central level.
On the other hand, state-levied value addition tax, entertainment tax, octroi and entry tax, luxury tax, etc. are also included.
It was introduced with the slogan 'One Nation One Tax'.
Tax Structure under GST
Central GST (CGST) to cover excise duty, service tax etc.
State GST (SGST) to cover VAT, luxury tax etc.
Integrated GST (IGST) to cover inter-state trade.
IGST itself is not a tax but a tax system to coordinate state and union taxes.
It has a 4-tier tax structure of 5%, 12%, 18% and 28% for all goods and services under the slab.
3. PM Modi launches 'Raising and Accelerating MSME Performance' scheme
Tags: Economy/Finance Government Schemes
Prime Minister Narendra Modi launched the 'Raising and Accelerating MSME Performance' (RAMP) scheme under the Entrepreneur India Program at Vigyan Bhawan, New Delhi.
RAMP Scheme
The scheme was announced by the Finance Minister in the Union Budget 2022-23.
Recommendations for RAMP Scheme KV Kamath Committee, UK Sinha Committee and the Prime Minister's Economic Advisory Council (PMEAC).
It is a World Bank assisted central sector scheme under which the Ministry of Micro, Small and Medium Enterprises (MoMSME) is providing necessary support to address the challenges related to COVID-19.
The total financial outlay for the RAMP scheme is Rs 6,062.45 crore ($808 million).
The World Bank will provide a loan of Rs 3750 crore ($500 million) for this program and the remaining Rs 2312.45 crore ($308 million) is being funded by the central government.
Program Objective
The objective of the scheme is to improve access to credit and markets, as well as strengthen institutions and governance in the state and at the Centre.
It will also look at improving Centre and State partnerships as well as resolving issues related to delayed payments.
MSME capacity will also be increased through this program and MSME coverage will also be increased in the states and union territories.
The scheme will promote skill development, capacity building, technology up-gradation, quality enhancement, outreach, digitization, marketing promotion etc.
Plan implementation and monitoring
Strategic Investment Plans (SIPs) will be prepared for the implementation of RAMP and all the States and Union Territories of the country will be invited to provide inputs.
An outreach plan will be made to mobilise and identify MSMEs through SIPs.
The National MSME Council, which will be chaired by the Minister of MSME and comprising representatives from other ministries as well as a Secretariat, will monitor and evaluate the scheme.
4. GST collections up 56% to ₹1.44 lakh crore in June
Tags: Economy/Finance
Goods and Services Tax (GST) revenue rose to ₹1.44 lakh crore in June, a 56 per cent increase over the same month last year.
The GST collection in June last year was Rs 92,800 crore.
Revenue from imports of goods grew 55%, while imports of domestic transactions and services were up 56% in June.
The GST revenue in the month of May was around ₹ 1.41 lakh crore.
This is the fifth time the monthly GST collection crossed the 1.40 lakh crore rupees mark since the inception of GST.
The average monthly gross GST collection for the first quarter of 2022-23 stands at ₹1.51 lakh crore as against ₹1.10 lakh crore in the corresponding quarter last year, showing a growth of 37%.
Several States record over 50% growth
Tamil Nadu registered a growth of 83% in June GST collection, followed by Uttarakhand (82%), Haryana (77%), Karnataka (73%), Maharashtra (63%), West Bengal (58%), Rajasthan (56 %), followed by Punjab (51%) and Gujarat (50%).
Reason for increase in GST collection
economic recovery, anti-evasion activities, especially action against fake billers have contributed to the enhanced GST.
What is GST?
It is a value-added tax levied on most goods and services sold for domestic consumption.
It is an indirect tax that has replaced many indirect taxes in India such as excise duty, VAT, services tax, etc.
GST is levied at four rates 5%, 12%, 18% and 28%.
The Goods and Services Tax Act was passed in the Parliament on 29 March 2017 and came into force on 1 July 2017.
5. The government imposed a tax of Rs 6 per litre on the export of petrol and aviation turbine fuel
Tags: Economy/Finance
The Union Government has imposed a tax of 6 rupees per litre on exports of petrol and Aviation Turbine Fuel and 13 rupees per litre on exports of diesel.
To curb the import of gold, the import duty on gold has been increased from 10.75 percent to 15 percent.
A cess of Rs 23,250 per tonne (by way of special additional excise duty) or windfall tax has been imposed on crude oil.
A cess of Rs 23,250 per tonne (by way of special additional excise duty) or windfall tax has been imposed on crude oil.
Petroleum duty changes
The domestic crude producers sell crude to domestic refineries at international parity prices.
So, domestic crude producers are making windfall gains.
Keeping this in mind, a cess of Rs 23,250 per tonne has been imposed on crude oil.
Import of crude will not be subject to this cess.
Refiners export these products at globally prevailing prices, which are very high.
As exports are becoming highly profitable, it has been observed that some refiners are drying their pumps in the domestic market.
Therefore, a cess of Rs 6 per litre on petrol and Rs 13 per litre on diesel has been levied on their exports.
Gold import duty changes
There has been a sudden jump in gold imports.
In May, a total of 107 tonnes of gold was imported.
The rise in gold imports is putting pressure on the current account deficit.
To curb the import of gold, the customs duty has been increased to 15% from the existing 10.75%.
Earlier, the basic customs duty on gold was 7.5 per cent, which will now be 12.5 per cent.
Along with the Agriculture Infrastructure Development Cess (AIDC) of 2.5 per cent, the effective customs duty on gold will go up to 15 per cent.
6. Equitas Small Finance Bank launched exclusive savings account for kids
Tags: Economy/Finance
Equitas Small Finance Bank has launched a special savings account named 'ENJOI' with an aim to introduce "young children" to the financial world.
It was launched on June 19 on the occasion of Father's Day.
ENJOI will allow 0-18 year olds to open savings accounts under the supervision of their parents.
Minors aged 10 years and above will also get the option of a personal debit card.
Financial or another, ENJOI account holders will have access to exclusive deals from ed-tech and online learning providers, focusing on the theme of education and literacy.
About Equitas Small Finance Bank
Establishment- 2016
Headquarters- Chennai, Tamil Nadu
MD & CEO- Vasudevan Pathani Narasimhan
Tagline- It's Fun Banking
7. Government amends guidelines for PLI Scheme for Telecom and Networking Products
Tags: Economy/Finance
The Guidelines for Production Linked Incentive (PLI) Scheme for Telecom and Networking Products have been revised to introduce design based manufacturing with additional incentive rates.
The PLI scheme has been amended to facilitate design-based manufacturing with an additional incentive rate of 1% over and above the existing incentive rates.
Additional 11 telecommunications and networking products have been added to the eligible products list.
Telecom PLI Scheme is extended by one year.
In order to promote design-based manufacturing, the Department of Telecommunications (DoT) is inviting applications from design-based manufacturers as well as others to avail incentives under the PLI scheme for five years starting 1st April 2022.
Objective of the amendment
The Union Cabinet has approved a proposal to invite applications for 5G spectrum auction.
With an aim to create a strong ecosystem for 5G, the Union Budget 2022-23 proposes to introduce a scheme for design-based manufacturing as part of the existing PLI scheme.
Guidelines for PLI Scheme for Telecom and Networking products have been revised to introduce design based manufacturing with additional incentive rates.
Production Linked Incentives (PLI) Scheme
The Department of Telecommunications(DoT) had notified the Production Linked Incentive (PLI) Scheme on 24th February 2021.
Its initial financial outlay was of ₹ 12,195 Crores.
As on October 14, 2021, a total of 31 companies including 8 domestic and 7 global companies including 16 MSMEs and 15 non-MSMEs were approved under the scheme.
Objective of PLI Scheme
To undertake design based manufacturing as part of the existing PLI scheme, to create a strong ecosystem for 5G.
After consultation with stakeholders, the guidelines of PLI Scheme for Telecom and Networking products have been amended to introduce design based manufacturing with additional incentive rates.
8. Net Direct Tax collections for the Financial Year 2022-23 grown at over 45%
Tags: Economy/Finance
Net direct tax collection till mid-June of this fiscal grew by 45 per cent to over Rs 3.39 lakh crore.
The net direct tax collection of over ₹3.39 lakh crore includes Corporation Tax at over Rs 1.70 lakh crore and Personal Income Tax, including Security Transaction Tax, at over Rs 1.67 lakh crore.
Advance tax collection in the first quarter of the current fiscal stood at Rs 1.01 lakh crore as against Rs 75,783 crore in the corresponding period of the previous fiscal, showing a growth of over 33 per cent.
This comprises corporation tax at ₹78,842 crore and Personal Income Tax at ₹22,175 crore.
What Is a Direct Tax?
Direct tax is a tax that is paid by an individual or company directly to the implementing entity.
An individual taxpayer pays direct taxes to the government for various purposes.
The Central Board of Direct Taxes deals with matters relating to the levy and collection of direct taxes.
A taxpayer pays direct taxes to the government for various purposes, including real wealth tax, personal wealth tax, income tax, gift tax, capital gains tax, etc.
9. Anand Mahindra, Venu Srinivasan nominated to join RBI board
Tags: Economy/Finance Person in news
The central government has nominated three industrialists – Anand Gopal Mahindra, Venu Srinivasan, and Pankaj Ramanbhai Patel and an educationist (Ravindra H. Dholakia) as part-time non-official directors on the central board of the Reserve Bank of India.
Anand Gopal Mahindra is chairman of Mahindra Group.
Venu Srinivasan is chairman of TVS Motor Company Ltd.
Pankaj Ramanbhai Patel is chairman of Zydus Lifesciences.
Ravindra H. Dholakia is a retired professor of IIM, Ahmedabad. He is a former member of the Monetary Policy Committee.
The appointment of new part-time non-official directors is for a period of four years with effect from June 14 or until further orders, whichever is earlier.
After the above appointments, the Central Board of RBI now has 15 members, in which five official members and 10 non-official members.
The tenure of non-official part-time directors is four years.
Central board of the Reserve Bank of India
The central government appoints the Board in accordance with the RBI Act, 1934.
The total strength of the board is 21, consisting of governors and a maximum of four deputy governors.
The Board is required to meet at least six times a year and at least once in every quarter.
The board usually meets at least once in Delhi when the finance minister addresses the entire board after presenting the budget for the coming year.
Apart from Delhi and Mumbai, the board usually meets in various state capitals.
The governor takes the advice of the board, but ultimately his decision is unanimous.
Deputy governors and government nominees may attend any or all meetings of the Central Board, but are not entitled to vote.
About Reserve Bank of India
Established on April 1, 1935 as per the provisions of the Reserve Bank of India Act, 1934.
The central office of the Reserve Bank was initially established in Calcutta but was permanently shifted to Mumbai in 1937.
In the Central Office the Governor sits and policies are formulated.
The affairs of the Reserve Bank are handled by a central board of directors.
10. India's coal imports may drop by 11% to 186 MT in FY23
Tags: Economy/Finance
India's coal import is likely to decline by 11.4% to 186 million tonnes (MT) in the current financial year.
India imported 210 MT of coal in 2021-22.
According to the Coal Ministry, in the current financial year, the company is expected to import 186 MT of coal of which 130 MT is non-coking coal and 56 MT is coking coal.
Non-coking coal is aboundently used as thermal coal for power generation.
India imported 215 MT of coal in FY'21 and 249 MT of coal in FY'20.
India will import 172 MT of coal in 2024-25, 173 MT in 2027-28 and 170 MT in 2029-30.
Coal India last week floated its first tender for import of 2.416 million tonnes of coal and also floated two international competitive bidding e-tenders for 3 million tonnes.
Coal India Limited (CIL)
It is an Indian government’s owned coal mining and refining corporation.
It is owned by the Ministry of Coal, Government of India.
It was established in November 1975
Headquartered - Kolkata, West Bengal
Coal India is the largest producer of coal in the world.
It contributes around 82% to the total coal production in India.
