20 May 2019


Notifications & Circulars

Reserve Bank of India

16.05.2019

Banking

Risk Management System - Appointment of Chief Risk Officer (CRO) for NBFCs

MANU/RMIC/0053/2019

With the increasing role of NBFCs in direct credit intermediation, there is a need for NBFCs to augment risk management practices. While Boards of NBFCs should strive to follow best practices in risk management, it has been decided that NBFCs with asset size of more than Rs.50 billion shall appoint a CRO with clearly specified role and responsibilities. The CRO is required to function independently so as to ensure highest standards of risk management.

2. The NBFCs shall strictly adhere to the following instructions in this regard:

a) The CRO shall be a senior official in the hierarchy of an NBFC and shall possess adequate professional qualification/experience in the area of risk management.

b) The CRO shall be appointed for a fixed tenure with the approval of the Board. The CRO can be transferred/removed from his post before completion of the tenure only with the approval of the Board and such premature transfer/removal shall be reported to the Department of Non-Banking Supervision of the regional office of the Bank under whose jurisdiction the NBFC is registered. In case the NBFC is listed, any change in incumbency of the CRO shall also be reported to the stock exchanges.

c) The Board shall put in place policies to safeguard the independence of the CRO. In this regard, the CRO shall have direct reporting lines to the MD & CEO/Risk Management Committee (RMC) of the Board. In case the CRO reports to the MD & CEO, the RMC/Board shall meet the CRO without the presence of the MD & CEO, at least on a quarterly basis. The CRO shall not have any reporting relationship with the business verticals of the NBFC and shall not be given any business targets. Further, there shall not be any 'dual hatting' i.e. the CRO shall not be given any other responsibility.

d) The CRO shall be involved in the process of identification, measurement and mitigation of risks. All credit products (retail or wholesale) shall be vetted by the CRO from the angle of inherent and control risks. The CRO's role in deciding credit proposals shall be limited to being an advisor.

e) In NBFCs that follow committee approach in credit sanction process for high value proposals, if the CRO is one of the decision makers in the credit sanction process, the CRO shall have voting power and all members who are part of the credit sanction process, shall individually and severally be liable for all the aspects, including risk perspective related to the credit proposal.

3. Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 has been modified accordingly.

Tags : Appointment CRO NBFCs

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Press Information Bureau

16.05.2019

Civil

Website of Lokpal inaugurated

MANU/PIBU/0547/2019

The Website of the Lokpal was inaugurated by the Chairperson, Justice Shri Pinaki Chandra Ghose in presence of all the Members of Lokpal today. The DG, NIC, Smt. Neeta Verma was also present on the occasion. The Website has been developed by NIC and provides the basic information with respect to the working and functioning of the Lokpal. The Website can be accessed at http://lokpal.gov.in.

The Lokpal is the first institution of its kind in independent India, established under the Lokpal and Lokayuktas Act, 2013 to inquire and investigate into allegations of the corruption against public functionaries who fall within the scope and ambit of the above Act.

The Government appointed Justice Shri Pinaki Chandra Ghose, as the first Chairperson of the Lokpal who was administered oath on 23rd March, 2019 by the President of India. The Government has also appointed four Judicial and four non-Judicial Members. The office of Lokpal is temporary functioning from the Hotel Ashok, Chanakyapuri, New Delhi.

The process of notifying the rules and regulations including the format for receiving complaints is being developed. All complaints which were received till 16th April, 2019 have been examined by the Office of Lokpal and disposed accordingly. The Complaints received thereafter are under examination.

Tags : Website Lokpal Inauguration

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Press Information Bureau

16.05.2019

Environment

India sets the tone at COP meetings of Basel, Rotterdam and Stockholm conventions held in Geneva

MANU/PIBU/0546/2019

The joint meetings of three conventions on chemicals and waste that is the fourteenth meeting of the Conference of the Parties (COP) to Basel Convention on the Control of Transboundary Movement of Hazardous Wastes and their Disposal (COP 14) was held along with the ninth meeting of the COP to Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade and the ninth meeting of the COP to Stockholm Convention on Persistent Organic Pollutants. The theme of the meetings this year was "Clean Planet, Healthy People: Sound Management of Chemicals and Waste".

An Indian delegation of Ministry of Environment, Forest and Climate Change, and comprising other ministries such as Agriculture, Chemicals, and Electronics and Information Technology participated in the meeting held in Geneva, Switzerland, from 29 April to 10 May 2019.

In Basel Convention, two important issues were discussed and decided, i.e. technical guidelines on e-waste and inclusion of plastic waste in the PIC procedure. The draft technical guidelines stipulated the conditions when used electrical and electronic equipment destined for direct reuse, repair, refurbishment or failure analysis should be considered as non-waste. India had major reservations regarding these provisions as in the name of re-use, repair, refurbishment and failure analysis there was a possibility of dumping from the developed world to the developing countries including India in view of the growing consumption of electronic equipment and waste across the world. The Indian delegation strongly objected the proposed decision on these guidelines during plenary and did not allow it to be passed by the conference of the parties (COP).

Many rounds of multilateral and bilateral negotiations happened under the aegis of the Convention Secretariat in order to address India's concerns which were supported by a large number of other developing countries. On the final day of the COP, a modified decision was adopted in which all the concerns raised by India were incorporated.

These were: dumping of e-waste in developing countries; recognition that the interim guideline has issues and further work is required specially on the provision on distinguishing waste from non-waste; the guidelines were adopted on an interim basis only; the tenure of the expert working group was extended to address the concerns raised by India; and the usage of interim guidelines to be done only on a pilot basis.

Due to the strong intervention by the Indian delegation, it was possible to defend the country's interest against the potential dumping of e-waste by developed countries and thereby opened a window for further negotiations and corrections in the interim technical guidelines on e-waste.

Under the Basel Convention, another major achievement of COP 14 was the decision to amend the convention to include unsorted, mixed and contaminated plastic waste under PIC (Prior Informed Consent) procedure and improve the regulation of its transboundary movement. This is a significant step taken towards addressing plastic pollution which has become a major environmental concern across the globe.

Further, Basel Convention has also adopted partnership on plastic which was welcomed by the Indian delegation. These steps will help prevent the illegal dumping of plastic wastes in developing countries. India has already imposed a complete prohibition of import of solid plastic waste into the country. India has also made an international commitment to phase-out single-use plastic. India fully supported this exercise and one of the members of the Indian delegation was co-chair in the contact group which negotiated this agreement for amendment in the annexes of Basel Convention to bring plastic waste under PIC procedure.

Under the Stockholm Convention the COP decided to list "Dicofol" in Annex A without any exemption. The "PFOA" was also listed with some exemptions in the Annex A of the Stockholm Convention. Under the Rotterdam Convention, two new chemicals (Phorate and HBCD) were added in the list for mandatory PIC procedure in international trade.

Tags : COP meetings Geneva Convention

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Reserve Bank of India

15.05.2019

Banking

RBI publishes 'Payment and Settlement Systems in India: Vision 2019 - 2021'

MANU/RPRL/0093/2019

The Reserve Bank of India has today placed on its website the "Payment and Settlement Systems in India: Vision 2019 - 2021". The Payment Systems Vision 2021 with its core theme of 'Empowering Exceptional (E)payment Experience' aims at empowering every Indian with access to a bouquet of e-payment options that is safe, secure, convenient, quick and affordable.

The Payment Systems Vision 2021 has been formalised based on inputs from various stakeholders and guidance of the Board for Payment and Settlement Systems (BPSS). It envisages to achieve a 'highly digital' and 'cash-lite' society through the goal posts of Competition, Cost effectiveness, Convenience and Confidence (4Cs).

With concerted efforts and involvement of all stake holders, the Payment Systems Vision 2021, with its 36 specific action points and 12 specific outcomes, aspires to (a) enhance Customer experience, including robust grievance redressal; (b) empower payment System Operators and Service Providers; (c) enable the payments Eco-system and Infrastructure; (d) put in place Forward-looking Regulations; and (e) undertake Risk-focused Supervision. The 'no-compromise' approach towards safety and security of payment systems remains a hallmark of the Vision.

The payment systems landscape will continue to change with further innovation and entry of more players which is expected to ensure optimal cost to the customers and freer access to multiple payment system options.

The Reserve Bank of India will implement the approach outlined in this Vision during the period 2019 - 2021. The previous Vision document covered the period 2016-2018.

Tags : Settlement Systems Vision Publishing of

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Ministry of Commerce and Industry

15.05.2019

Commercial

Non-requirement of submission of Hard Copy of application at RAs for issue of Advance Authorisation and EPCG Authorisation

MANU/DGFT/0077/2019

Attention is invited to Para 4.02(ii) of HBP 2015-20 which explicitly states that "Applicant shall upload documents as prescribed in ANF 4A, if any, at the time of online filing of application. No physical copy of application is required to be submitted to Regional Authority." However it has been observed that almost every RA asks for the hard copy of the application and Advance Authorisation/EPCG is processed on receipt of hard copy only. Main reason was that facility to upload documents in the online ECOM application was not available.

2. To remove the time lag between online application and receipt of hard copy in the DGFT Regional Authority (RA), NIC has now created an 'upload document' facility in the Advance Authorisation & EPCG ECOM modules.

3. Therefore with effect from 20th May 2019, all exporters filing online AA & EPCG applications will, in addition, need to upload supporting documents also as prescribed in ANF/FTP/HBP. With the use of this facility, exporters will not be required to submit hard copy of the AA/EPCG application and its related documents to the DGFT RA.

4. RAs would examine/process such ECOM applications based on the information & documents filed online by the exporter and issue AA/EPCG within the laid down timelines of 3 working days.

5. In cases where the basic prescribed documents have not been uploaded online by the exporter or in exceptional cases where additional document/information is needed for further clarity or decision making, RA may issue an online deficiency letter. Exporter can log in the Online ECOM module and view the deficiency raised online. Although the exporter can submit the reply in writing at the RA counter/post but for a quick response from the RA, it is desirable that exporter also submits the deficiency reply by email to the official email id of the concerned RA [with RA File no. in the subject line] along with necessary scanned documents as attachments.

6. Exporters may note that, after issue of Advance Authorisation under Para 4.07 of the Hand Book of Procedures, 2015-20 (Self declared Authorisations where SION does not exist) it is now the responsibility of the applicants to send two (2) sets of complete application [along with the PDF copy of AA, Appendix 4E, production/consumption data etc. and other related documents which will help in fixation of ad-hoc norms] directly to the FTDO of the concerned Norms Committee (NC) in the a/o DGFT, Udyog Bhawan, New Delhi-110011 for ratification/fixation of the norms. Details of Norms Committee(s) along with products groups dealt by each Norms Committee are laid down in Para 4.06 (i) of Hand Book of Procedures, 2015-20. In case, the application details are not made available by the exporter applicant to the concerned NC on time, the process of fixation of ad-hoc norms will get delayed. Non-availability of application with supporting documents beyond a reasonable period of say 2 months will lead to rejection of the case by the Norms Committee.

Tags : Submission Hard Copy Non-requirement Advance Authorisation

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Press Information Bureau

14.05.2019

Civil

Central Government extends ban on LTTE for five years

MANU/PIBU/0545/2019

The Central Government has extended the ban on the Liberation Tigers of Tamil Eelam (LTTE) for another five years under sub-sections (1) and (3) of section 3 of the Unlawful Activities (Prevention) Act, 1967 (37 of 1967) with immediate effect. The notification in this regard was issued here today. The notification states that the LTTE's continued violent and disruptive activities are prejudicial to the integrity and sovereignty of India; and it continues to adopt a strong anti-India posture as also continues to pose a grave threat to the security of Indian nationals.

Tags : LTTE Ban Extension

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Press Information Bureau

14.05.2019

Goods and Services Tax

Examination for confirmation of enrolment of GST Practitioners to be conducted by NACIN

MANU/PIBU/0544/2019

The National Academy of Customs, Indirect Taxes and Narcotics (NACIN) has been authorized vide Notification No. 24/2018-Central Tax dated 28.5.2018, to conduct an examination for confirmation of enrollment of Goods and Services Tax Practitioners (GSTPs) in terms of the sub-rule (3) of Rule 83 of the Central Goods and Services Tax Rules, 2017.

The GSTPs enrolled on the GST Network under sub-rule (2) of Rule 83 and covered by clause (b) of sub-rule (1) of Rule 83, i.e. those Meeting the eligibility criteria of having enrolled as Sales Tax Practitioners or Tax Return Preparer under the existing law for a period not less than five years, are required to pass the said examination before 31.12.2019 in terms of Notification no. 03/2019-Central Tax dated 29.01.2019. Two such examinations for such GSTPs have already been conducted on 31.10.2018 and 17.12.2018.

In terms of Rule 83A(3) of CGST Rules, 2017, the examination shall be conducted twice in a year by NACIN. The next two examinations in year 2019, for GSTPs falling under STPEL/TRPEL categories, shall be conducted on 14.06.2019 and 12.12.2019 (from 1100 hrs to 1330 hrs) at designated examination centers, all across India. Such candidates are hereby informed that the examination scheduled to be held on 12.12.2019 will be their last chance to appear and pass the said examination, failing which they shall not be given another opportunity/chance.

Tags : Examination Enrollment GST Practitioners

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