RBI imposes monetary penalty on State Bank of India
The Reserve Bank of India (RBI) has levied a monetary penalty of Rs. 2 crores on the State Bank of India for violating the provisions of section 10 (1) (b) (ii) of the Banking Regulation Act, 1949, and relevant RBI directions on the payment of remuneration to employees in the form of commission, according to an order dated March 15, 2021. This penalty was levied in accordance with RBI’s powers under section 47 A (1) (c) of the Act, as well as sections 46 (4) I and 51 (1) of the Act.
This action is based on regulatory enforcement concerns and is not supposed to affect any transaction or arrangement between the bank and its customers.
Ministry of Finance has released performance of Emergency Credit Line Guarantee Scheme for MSMEs
According to National Credit Guarantee Trustee Company Limited (NCGTC), the implementing agency for the Emergency Credit Line Guarantee Scheme (ECLGS), as of 28.2.2021, cumulative loan sanction stood at Rs 2.46 lakh crore, with ECLGS guarantees totaling Rs 2.14 lakh crore given to more than 92.27 lakh borrowers.
Around 87 lakh MSME units have received guarantees, accounting for 95 percent of all guarantees given.
Under ECLGS 1.0, all qualifying borrowers have access to a pre-approved loan facility with an ‘opt out’ option. According to NCGTC, the following measures have been taken:
- Borrowers may register their complaints on the website, which are then forwarded to the MLIs responsible for timely resolution.
- An email address for forwarding grievances or complaints has also been developed and distributed, and it is being monitored at NCGTC for resolution on a regular basis.
- Meetings with different stakeholders are held on a regular basis in order to optimise the scheme’s scope.
Clarification on the continuation of the FPIs’ concessional tax rate on some interest income
Section 115AD of the Income-tax Act of 1961 provides provisions for the taxation of FPI income, among other things. The tax will be charged at the concessionary rate of 5% on interest income referred to in section 194LD, according to a proviso to section 115AD(1)(i).
According to news in some parts of the media, the 5% concessional tax rate has been removed. It is hereby clarified that even after the amendment of section 115AD by the Taxation and Other Laws (Relaxation and Amendment of Some Provisions) Act, 2020, the said provisions remains unchanged and for interest income referred to in section 194LD of the Act, the concessional rate of tax of 5% will continue to apply.