Citizens' Issues
14 killed as train hits vehicle in Jharkhand
At least 14 people met a horrific death in Jharkhand when a train rammed into their multi-utility vehicle that got stuck on a railway track at an unmanned crossing, police said on Tuesday.
 
The accident took place around 9.30 p.m. on Monday when an extended family was returning from the Rajrappa temple. The dead included five women and four children.
 
According to the police, the vehicle's tyres got trapped on the tracks near Bhurkunda railway station in Ramgarh district.
 
Even before its occupants could deboard, the speeding Howrah-Bhopal train hit their vehicle and dragged it for more than 100 metres. The mangled remains of the vehicle got stuck to the engine.
 
The incident took place near Bhurkunda railway station, around 70 km from Ranchi. All the victims died instantly.
 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Herald case: Sonia, Rahul asked to appear on December 19
A court here on Tuesday asked Congress chief Sonia Gandhi, vice president Rahul Gandhi and others to appear on December 19 in connection with a complaint filed by BJP leader Subramanian Swamy in the National Herald newspaper case.
 
Metropolitan Magistrate Lovleen also granted them exemption from personal appearance on Tuesday.
 
The Delhi High Court on Monday dismissed the plea of the Gandhis to quash the summons issued to them by a trial court on Swamy's complaint regarding the acquisition of National Herald and asked them to appear before trial court on Tuesday.
 
On June 26 last year, the trial court issued summons to the Congress leaders on Swamy's complaint about "cheating" in the acquisition of Associated Journals Ltd. (AJL) by Young India Ltd. (YIL) - "a firm in which Sonia and Rahul Gandhi each own a 38 percent stake".
 
Appearing for the Gandhis, senior advocate Abhishek Manu Singhvi told the court that both were willing to appear but the Delhi High Court order was received late.
 
He moved an application to seek exemption from appearance for the Gandhis for the day.
 
Senior advocate Ramesh Gupta, counsel for another accused Sam Pitroda, a former chairman of National Innovation Council, while seeking exemption from appearance for his client, told the court that Pitroda lived in the US and needed time to reach India.
 
Congress treasurer Moti Lal Vora, Gandhis' family friend Suman Dubey and another party leader Oscar Fernandes were also granted exemption.
 
Complainant Swamy opposed their plea for exemption.
 
During a previous hearing in the case, the trial court had said that the YIL appeared to have been "created as a sham or a cloak to convert public money to personal use" or a special purpose vehicle to acquire control over AJL assets worth Rs.2,000 crore.
 
Swamy alleged that the AJL received an interest-free loan of Rs.90.25 crore from the Congress and the party transferred the debt to YIL for Rs.50 lakh.
 
At that time, AJL with Vora as its chairman allegedly said it could not repay the loan and agreed to transfer the company and its assets to YIL.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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FDI in white label ATMs: Foreign NBFCs have reasons to cheer
With DIPP clarifying on 100% FDI under automatic route in white label ATMs, foreign-owned or controlled NBFCs can offer these services without approvals 
 
In order to expand the reach of ATMs to smaller centres, the Reserve Bank of India (RBI) had given its nod to non-bank entities in June 2012 to install White Label ATMs (WLAs). While seeking RBI authorisation, foreign owned or controlled company (FOCC) non-banking financial company (NBFC) were required to obtain necessary approvals from the competent authority. However, the Department of Industrial Policy and Promotion (DIPP) vide its press note no. 11 dated 1 October 2015 permitted 100% foreign direct investment (FDI) under automatic route in White Label ATM (WLA) operations. 
 
In order to take advantage of this, the object clause of Memorandum of Association (MOA) shall specify that the company can undertake WLAs activity:
 
WLAO shall have a minimum net worth of Rs100 crore as per the latest financial year’s audited balance sheet and the same shall be maintained at all times.
 
Scenario prior to the press note:
  1. In case of any FDI in the applicant entity, necessary approval from the competent authority as required was required to be submitted while seeking authorization.
Scenario post press note: 
  1. Sub-para 6.2.18.8.3 is inserted after para 6.2.18.8 permitting NBFCs under automatic route to undertake WLAO up to 100%;
  2. If the entity is engaged in any other activity, then such entities will have to comply with the minimum capitalisation norms for foreign investments as applicable.
The RBI authorisation for setting up WLA operations is valid for a period of one year. The application made by the applicant shall specify the scheme adopted by the entity and the number of WLAs sought to be installed.
 
 
Some general points:
WLAO shall not transfer/ assign the authorisation without prior approval of RBI;
Switchover from one scheme to another is not permissible;
A certificate indicating adherence to the targets and ratios needs to be submitted  by WLAO to the RBI within a time frame of one month of completion of one year;
Deposits shall not be accepted at the WLAs by the WLAO, their operations is limited to withdrawal of cash;
Transaction effected by the customer at WLAs shall be considered while permitting five/ three free transactions per month for using other bank ATMs.
 
 
*SLA means Service Level Agreement
**After 5 free transactions available per month to a customer for using any other bank’s ATM for withdrawal of cash, fees will start getting debited from the customer’s account for any further usage.
 
Limit on number of free transactions: RBI vide its notification dated 14 August 2014 restricted the number of mandatory free ATM transactions for savings bank account customers at other banks’ ATMs from five to three transactions per month (inclusive of both financial and non-financial transactions) for transactions done at the ATMs located in the six metro centres, Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad. In case the customer withdraws cash or undertake any non-financial transaction viz. balance enquiry, and change in PIN. From WLAs, then the same shall be considered while calculating the limit of free transactions.
 
Timeline for regulatory approval: As per the RBI timelines, the time period required for authorising the company to set-up the WLA is 120 days. However, section 7(4) of the PSS Act, 2007 states that RBI shall endeavour to dispose of applications for authorisation within six months from the date of filing. 
 
Classification of centres: The classification of centres based on population prescribed under Census of India 2011 is as follows:
 
Let us hope that the decision will ease and expedite foreign investment inflows in the activity and thus give a fillip to the government's effort to promote financial inclusion in the country, including the Pradhan Mantri Jan Dhan Yojana as reported in media
 
(Niddhi Parmar works as Deputy Manager in Corporate Law Services Group at Vinod Kothari & Co)
 

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