THE RESERVE BANK OF INDIA (RBI) HAS ANNOUNCED NEW BANK LOCKER REGULATIONS
The Reserve Bank of India (RBI) has announced a new deposit locker, safe custody, and article facility regulations in banks. The updated regulations will take effect on January 1, 2022. It will work with both new and existing safe deposit boxes. After considering numerous advancements in banking and technology, the nature of consumer issues, and feedback received from banks and the Indian Banks’ Association, the RBI has evaluated the deposit locker/safe custody article facility given by the banks. The new regulations:
- In the event of a fire, theft, building collapse, or bank employee fraud, banks’ liability will be restricted to 100 times their yearly rent.
- Banks must include a clause in the locker agreement banning the hirer from keeping anything unlawful or dangerous in the locker.
- Banks must keep a branch-by-branch list of unoccupied lockers as well as a wait-list in their core banking system (CBS) or any other computerized system that complies with the cybersecurity framework.
- The amended instructions also clarify the RBI’s compensation policy and bank liabilities.
- Existing locker owners are not required to pay such term deposits, and the bank cannot force them to do so.
- If a customer’s rent has not been paid for three years in a row, banks will have the discretion to break open any locker in accordance with the proper process.
AIR-CONDITIONING, COOLING SYSTEMS, AND VENTILATION SYSTEMS ARE NOT ELIGIBLE FOR ITC, ACCORDING TO AAR
As this is a blocked credit, the Gujarat Authority of Advance Ruling (AAR) determined that ITC is not acceptable on air-conditioning, cooling systems, or ventilation systems. The applicant, M/s.Wago Private Limited is in the process of establishing a new factory in Vadodara, Gujarat, and is procuring various assets to install and commission them in their factory. As a result, the applicant requested a ruling on the admissibility of the input tax credit on the same under Section 16 and 17 of the CGST Act, 2017. In accordance with Sections 16 and 17 of the CGST Act, 2017, the applicant has requested an advance judgment on the acceptability of GST paid on the aforementioned, including the service of installation and commissioning of the same, as an input tax credit. Members Sanjay Saxena and Arun Richard argued that the “Ventilation system installed in the building cannot be transferred to the market for sale or shifted from one place to another as such to erect at another site.” It can only be relocated after dismantling the aforementioned system, which can no longer be referred to as a “ventilation system.” Because the ‘Ventilation system’ is an immovable property, once installed and commissioned in the building, it is transferred to the building owner. As a result, the ‘Ventilation system supply’ merits to be categorized as work contract supply.\