Page 18 - Finance Ministry

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

PSBs register strong business growth of 11% in H1 FY25, says FinMin

There are currently 12 public sector banks in India, including State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), Indian Overseas Bank (IOB), and UCO Bank, among others

FinMin revokes 8-year-old circular: CPSEs no longer need NITI nod for JVs

The DPE in a notification said it has been done to make the process easy and less time consuming

Industry bodies urge Finance Ministry to ease TDS rate structure

Proposal seeks to lessen compliance burden on taxpayers and avoid litigation

SC rules in favour of DRI authority; clears recovery of Rs 20,000 cr tax

This ruling confirms that DRI officers qualify as "proper officers" under Section 28 of the Customs Act, enabling them to issue show-cause notices

Finance ministry asks PSU banks to meet loan targets for agri-allied sector

The finance ministry has asked public sector banks (PSBs) to meet loan targets for the agri-allied sector during the current financial year. Department of Financial Services Secretary M Nagaraju in a meeting held on Tuesday reviewed the progress of credit disbursement to agri-allied activities like animal husbandry, dairying and fisheries with Public Sector Banks (PSBs), NABARD and State/ UT Level Bankers' Committee. Representatives of state governments/UTs, the Department of Animal Husbandry & Dairying and the Department of Fisheries also participated in the discussions, the finance ministry said on Wednesday. The secretary urged PSBs to take all necessary steps to ensure that respective targets are met during the current financial year and stressed the state governments to facilitate banks in improving the flow of credit to these sectors. Nagaraju underscored the importance of the allied sector in driving agricultural growth and its employment potential in rural areas and ...

Govt urges banks to boost credit flow for allied agri sectors; here's why

The allied activities receive only 10 per cent of the total agricultural credit while they contribute 40 per cent of the agricultural output, said the RBI report

Finance Commission grants released for RLBs in Haryana, Tripura, Mizoram

The Centre has released the first installment of the 15th Finance Commission grants for 2024-25 to rural local bodies in Tripura and Haryana, and a second installment in Mizoram, according to an official statement on Tuesday. The Ministry of Panchayati Raj said in Tripura, untied grants totalling Rs 31.40 crore and tied grants of Rs 47.10 crore have been released for all 1,260 rural local bodies (RLBs), including traditional local bodies, 40 block advisory committees and 587 village committees. Untied grants are utilised by RLBs for location-specific needs, except for salaries and other establishment costs. Tied grants are used for basic services such as sanitation, maintaining Open Defecation Free (ODF) status and the supply of drinking water, rainwater harvesting and water recycling. Haryana has received untied grants amounting to Rs. 194.867 crores. These funds have been disbursed for 18 eligible district panchayats, 139 block panchayats and 5,911 gram panchayats in the state, th

Finmin starts phase 4 of RRB consolidation, number to fall from 43 to 28

In a bid to achieve operational efficiency and cost rationalisation, the Finance Ministry has initiated the fourth round of consolidation for Regional Rural Banks (RRBs) and the number of such banks is likely to come down to 28 from 43 at present. As per the roadmap prepared by the Finance Ministry, 15 RRBs operating in various states would be merged. Among states that will see consolidation of RRBs include Andhra Pradesh, which has the maximum number of RRBs (4), Uttar Pradesh and West Bengal (3 each), and Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan (2 each). In the case of Telangana, the amalgamation of RRBs will be subject to bifurcation of assets and liabilities of Andhra Pradesh Grameena Vikas Bank (APGVB) between APGVB and Telangana Grameena Bank. "Given the rural expansion of RRBs and agro-climatic or geographical ethos and in order to retain the USP of RRBs viz the closeness to communities, it is the felt need to embark on .

Urban demand stress under watch, festivals may boost consumption: FinMin

The inflation rate stood at 4.6 per cent in the first half of FY25, down from 5.5 per cent during the same period last year

FinMin can't treat DRT officers as subordinates, says Supreme Court

A bench of Justices Abhay S Oka and Augustine George Masih was hearing a matter related to lawyers' strikes at DRT Visakhapatnam

Finmin considers proposal to raise posts of Chief General Managers in PSBs

The finance ministry is considering a proposal to raise the posts of Chief General Managers in public sector banks in view of their increasing business and profitability. As per existing government guidelines, there can be one Chief General Manager (CGM) for four General Managers in a public sector bank (PSB). These guidelines were issued in 2019 and since then there has been marked improvement in performance of PSBs despite the pandemic, sources said. Business of PSBs have witnessed significant growth and consequently they booked record profit, sources said, adding the Department of Financial Services under the Finance Ministry is reviewing CGM positions for achieving the next level of growth by PSBs. The decision to relax the guidelines would be taken after thorough examination and considering the need for furthering their business expansion, sources said. The CGM post was created in 2019, after the merger of 10 nationalised banks to four large lenders. CGMs act as an administra

Ministers' group discusses merger of GST compensation cess into taxes

The group of ministers (GoM) on GST compensation cess, under Minister of State for Finance Pankaj Chaudhary, on Wednesday discussed merger of compensation cess into GST. States suggested that during the transition of cess, once it is decided to merge with taxes no new goods should be added to the list of luxury, sin and demerit goods. States were of the view that since the compensation cess ends in March 2026, the only way to restructure it is to merge the levy with the taxes and bring about separate tax rates for the items on which cess is levied currently. "GST compensation cess is coming to an end. A discussion needed to be done on what will be the future of the cess. Every state has given their views. This was the first meeting," Minister of State for Finance Pankaj Chaudhary said. Should it continue as cess or be converted to tax and whether there would be changes in luxury, demerit and sin goods items, Chaudhary said, "Discussion is going on". The next meeting of the GoM on