Money & Banking
Banking sector seeks hike in tax exemption limit for savings
New Delhi : India's banking sector on Tuesday sought increasing the tax exemption limit for savings to Rs.2.5 lakhs and allowing it to issue off-shore rupee bonds to finance infrastructure, at a pre-Budget meeting Finance Minister Arun Jaitley had with banks and financial institutions.
 
"Other suggestions include listing of non-life insurance public sector undertakings while retaining majority government control and broad-based FDI (foreign direct investment) in agriculture sector," a finance ministry release here said.
 
The delegation also recommended digitization of land records to compensate farmers quickly, and direct distribution of fertilizer subsidies to farmers through the Direct Benefit Transfer (DBT) scheme so that savings on this account could be used for increasing public capex spending, it added.
 
"Other suggestions included interest rate of small savings schemes be rationalized and fixed at a five year government security yields," the ministry said.
 
Industry representatives who attended the meeting included Reserve Bank of India Deputy Governor Urjit Patel, State Bank of India chairperson Arundhatti Bhatacharya, Bank of Baroda executive director B.B.Joshi, Janaagraha's Bharath Sondur, LIC chairman S.K Roy, IIFCL chairman S.B.Nayar, IDBI Bank chairman Kishore Kharat, Axis Bank chief executive Shikha Sharma, and Citibank chief executive Pramit Jhaveri.
 
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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CPIL's public interest suits must have credibility, says SC
New Delhi  : The Supreme Court on Tuesday asked NGO Centre for Public Interest Litigation (CPIL), that raises may public interest matters before the apex court and Delhi High Court, to create a mechanism that inspires confidence that the suits filed by it were really in public interest centric and not a proxy for others.
 
"We gave PIL, you created Centre for Public Interest Litigation. Now we must move to next stage of credibility. There must be some inbuilt mechanism. A lot of (court's) time goes into it (hearing the PILs). How much hours of court's time goes into it. There must be an inbuilt mechanism," a bench of Chief Justice T.S.Thakur, Justice A.K.Sikri and Justice R. Banumathi told counsel Prashant Bhushan for CPIL.
 
The court said this at the outset of the hearing of the PIL by which CPIL had sought the quashing of the decision permitting Reliance Jio to enter the voice telephony services using 4G spectrum.
 
In an obvious expression of its misgivings on the possibility of commercial dimensions being agitated by CPIL citing public interest, Chief Justice Thakur asked: "Why should we hear PILs filed by CPIL. You are a professional litigant. Can you become a 'centre' for PIL. Can anyone walk into your office and tell you 'I want to file a PIL'."
 
Addressing the apprehensions of the court, Bhushan said the CPIL was founded by well-known jurist of yesteryears V.M.Tarkunde and there was a committee comprising senior counsel Fali Nariman, Anil Divan, Kamini Jaiswal, Shanti Bhushan and himself that scrutinises the PIL before it is filed. 
 
The court had asked Bhushan whether it could have the confidence that the PIL moved by CPIL was not rooted in corporate rivalrym indicating that its impression is that the NGO had no mechanism of ascertain that the information being passed on to it was not coloured by any vested interests.
 
It said that it would like to examine the question whether petitions filed by CPIL go through such a process and it was a serious PIL centring around public interest only.
 
Telling Bhushan that CPIL should have a mechanism by which every PIL before coming to the court should be scrutinised by a group of credible lawyers so that the court may not have any misgivings, Chief Justice Thakur said that the NGO should have a system of ascertain the facts and investigating them before taking them to court.
 
"When you come to us, we take you seriously. But when a commercial competitor comes to us, we might not. This competitor knows this (distinction) and might send a proxy to you with documents and information which you otherwise don't have access to. You have to establish a credible mechanism to justify that a particular case is fit to be agitated," he said.
 
As Bhushan tried to impress upon the court that every PIL moved by the CPIL before coming to the court is scrutinised by lawyers and named counsel Kamini Jaiswal as one of them, Chief Justice Thakur observed that it was he (Bhushan) and Jaiswal sitting in their respective chambers and deciding.
 
At this, Bhushan said: "Ultimately it is the court that applies its mind on the issues raised in the PILs by the NGO."
 
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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Rajan asks staff to ensure RBI not seen as paper tiger
Mumbai : Reserve Bank of India Governor Raghuram Rajan, in a New Year message to all colleagues, asked them to ensure that the central bank is not seen as a paper tiger that is able to act against only the small and weak wrong-doer.
 
"My sense is that we need a continuing conversation about tightening both detection as well as penalties for non-compliance throughout the hierarchy. We cannot be seen as a paper tiger," he wrote.
 
"Not only are we accused of not having the administrative capacity of ferreting out wrongdoing, we do not punish the wrong-doer unless he is small and weak", he said.
 
"This belief feeds on itself. No one wants to go after the rich and well-connected wrong-doer, which means they get away with even more. If we are to have strong sustainable growth, this culture of impunity should stop," he added.
 
Noting that the country is often described as "a weak state", Rajan said that curbing the culture of impunity, however, "does not mean being against riches or business, as some would like to portray, but being against wrong doing".
 
"As the premier and most respected regulator in the country, we should take the lead. We have motivated staff with the highest integrity at every level. Yet there is a sense that we do not enforce compliance," he said.
 
He also wondered whether the RBI was permitting regulated entities to get away with poor practices even though these are noted during inspections.
 
"Should we haul up accountants who do not flag issues they should detect?" Rajan asked.
 
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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COMMENTS

MG Warrier

11 months ago

This year’s New Year Message from RBI Governor to his ‘colleagues’ is a unique document which can form the basis for HR-related reforms in government and organisations across public and private sectors in India.
The RBI Annual Report 2014-15 also had the Rajan touch and did express several concerns which needed support from GOI to enable RBI to perform effectively. Strangely, media (both electronic and print) which usually give broad coverage to RBI’s Annual Reports in the past did not take adequate notice of the report. Of course, the annual report is with GOI and hopefully, appropriate action will be taken on issues flagged therein.

TIHARwale

11 months ago

yes Raghuram Rajan has atleast realised the empire he is presiding has failed in its duties as a watch dog . already we r seeing how failure on RBI inspections has allowed PSB to fudge NPA figures so this itself will tell that RBI inspectors got easily wined and dined by corrupt PSB executive who successfully managed RBI inspection team

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