1 June 2020

Notifications & Circulars

Reserve Bank of India



Reserve Bank of India imposes monetary penalty on Saraswat Co-operative Bank Ltd.


The Reserve Bank of India (RBI) has imposed, by an order dated February 20, 2020, a monetary penalty of Rs.30 lakh (Rupees Thirty lakh only) on Saraswat Co-operative Bank Ltd. (the bank) for non-compliance with directions issued by RBI on 'Income Recognition and Asset Classification (IRAC) norms.'

The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI. This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.


The statutory inspection of the bank with reference to its financial position as on March 31, 2018, conducted by RBI, revealed, inter alia, non-compliance with RBI directions on IRAC norms. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for failure to comply with the directions issued by RBI. After considering the bank's reply to the notice, oral submissions made during the personal hearing and examination of additional submissions, RBI concluded that the aforesaid charge of non-compliance with RBI directions on IRAC norms warranted imposition of monetary penalty.

Tags : Penalty Imposition Non-compliance

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Press Information Bureau



ADB, India sign $177 million loan for state road improvements in Maharashtra


The Asian Development Bank (ADB) and the Government of India today signed a $177 million loan to upgrade 450 kilometers (km) of state highways and major district roads in the state of Maharashtra.

The signatories to the Maharashtra State Road Improvement Project were Shri Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs in the Ministry of Finance who signed for the Government of India, and Mr Kenichi Yokoyama, Country Director of ADB's India Resident Mission who signed for ADB.

After signing the loan agreement, Shri Khare said that the project will improve connectivity between rural areas and urban centers in the state enabling rural communities to better access markets, employment opportunities and services. Improved mobility will expand development and livelihood opportunities outside of the state's major urban centers to second-tier cities and towns thus reducing income disparities.

Mr. Yokoyama said that the project will also strengthen road safety measures by developing a road safety audit framework that will protect vulnerable groups such as the elderly, women, and children, following the international best practice. Giving more details, Mr. Yokoyama said that another feature of the project is to update road maintenance system by encouraging 5-year performance-based maintenance obligations to contractors to sustain asset quality and service levels.

Overall the project will upgrade 2 major district roads and 11 state highways, with combined length of 450 km, to 2-lane standard across seven districts of Maharashtra, and improve connectivity to national highways, interstate roads, seaports, airports, rail hubs, district headquarters, industrial areas, enterprise clusters and agricultural areas.

The project will also focus on training the Maharashtra Public Works Department project staff to build their capacity in climate change adaptation and disaster resilient features in road design, road maintenance planning and road safety.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members-49 from the region.

Tags : Loan road improvements Signing of

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Ministry of Finance 



Special drive for disposal of applications for fixation of Brand Rate of Duty Drawback


1. To mitigate the hardship caused by the Covid-19 pandemic to the trade and industry and other stakeholders, Board vide Instruction No. 03/2020-Customs dated 09.04.2020 had initiated a special refund and drawback disposal drive from 09.04.2020 to 30.04.2020 with the objective of priority processing and disposal of all pending refund and drawback claims so as to provide immediate relief to the business entities and especially MSMEs.

2. Representations have also been received in the Board from exporters about delay in fixation and disbursal of Brand Rate of duty drawback. The reports regarding age wise pendency status of applications for fixation of Brand Rate received from the Zones show that a majority of them are pending beyond the period of six months.

3. Brand Rate of duty drawback can be claimed on the basis of actual incidence of duties under Rules 6 or 7 of Customs and Central Excise Duties Drawback Rules, 2017 (Drawback Rules, 2017). Prior to the Drawback Rules, 2017, claims for Brand Rate of duty drawback were filed in terms of Customs, Central Excise Duties and Service Tax Drawback Rules, 1995. In addition to the Brand Rate fixation, payment of provisional All Industry Rate (AIR) of duty drawback in cases of export under claim for Brand Rate is to be allowed under Rule 7(3) to the claimants. A facility to obtain a provisional Brand Rate is also available under Rule 6(2) and 7(3) on such request being made by the exporter. A gist of the Brand Rate scheme, including the Normal scheme and the Revised Simplified scheme, is annexed for ready reference.

4. With a view to tackle such pending claims for Brand Rate fixation and consequent disbursal of the claim, it has been decided that a special drive should be undertaken by the Customs Zones to dispose off the pendency so that no application received upto 31.05.2020 is pending at the end of the drive on 30.06.2020. Due precaution should be taken to have minimal physical interface with the exporters/representative during the process and required applications, documents, etc. should be obtained electronically to the extent possible.

4.1 During this drive, the following guidelines may be kept in view while disposing off the claims:

(a) All applications that are complete in all respects for fixation of final Brand Rate, for which verification has been completed or held as not to be required, should be disposed off;

(b) Exporter's request for provisional Brand Rate should also be considered and disposed. For this purpose, any claim pending for provisional AIR under Rule 7 of Drawback Rules, 2017 should also invariably be processed;

(c) Cases where no application for provisional Brand Rate has been filed, an option may be offered to the applicant to apply for provisional Brand Rate, and the same may be considered as per the Rules;

(d) For exporters who have filed application under the Normal scheme but who fall under the select five categories of exporters eligible for Revised Simplified scheme may be offered an option to change their application from the Normal scheme to the Revised Simplified scheme so as to make them eligible for the simplified procedure and allow quick release of provisional Brand Rate;

(e) All cases where provisional Brand Rate is allowed should be finalised within another two months i.e. by 31.08.2020;

(f) Applications where the verification was completed or Brand Rate letter issued by Central Excise authorities even after 01.07.2017 (when the Brand Rate work was transferred to Customs formations) but the drawback disbursal is pending, such verification report or Brand Rate fixed may be accepted by the Customs authorities and also be considered for disbursal of Brand Rate unless there are specific reasons necessitating further verification, etc.;

(g) Rules 6(1)(b) and 7(2) of Drawback Rules, 2017 provide that the Principal Commissioner/Commissioner of Customs will determine the amount or rate of drawback in respect of export goods after making such inquiry as they deem fit. In order to expedite the fixation of Brand Rate with minimal contact with the trade, in case of applications that are pending verification, the Principal Commissioner/Commissioner may assess the need to conduct the inquiry keeping in mind factors such as exporter's antecedents, past export performance, nature of product, the rate claimed vis-à-vis rate for similar product allowed in past claims, the degree of variation in these rates, AIR applicable to similar export goods, etc. Principal Commissioner/Commissioner may accordingly examine the pending claims and consider expeditious grant of provisional Brand Rate on merit. However, all aspects relating to the claim must be examined fully while giving the final Brand Rate.

4.3 Field formations are also requested to ensure that the data uploaded in the DDM portal (DPM-Cus-13 and DPM Cus-13A) relating to Brand Rate is properly validated and updated for perusal of the Board.

Tags : Special drive Disposal Applications

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Reserve Bank of India



Cessation of 7.75% Savings (Taxable) Bonds, 2018


1. Government of India has vide Notification F.No.4(28)-(W&M)/2017 dated May 27, 2020 announced that the 7.75 percent Savings (Taxable) Bonds, 2018 shall cease for subscription with effect from the close of business on Thursday, the 28th of May, 2020.

2. All the Receiving Offices are advised to take note and communicate the same to their branches/dealing officers. Only such applications where funds have been realised by your branches by May 28, 2020 may be processed and the same shall be reported to CAS Nagpur within permissible limit of T+3 days (no later than June 1, 2020).

Tags : Subscription Cessation Bonds

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Securities and Exchange Board of India


Capital Market

Implementation of Circular on 'Margin obligations to be given by way of Pledge / Re-pledge in the Depository System' - Extension


1. SEBI, vide circular no. SEBI/HO/MIRSD/DOP/CIR/P/2020/28 dated February 25, 2020, specified guidelines with regard to Margin obligations to be given by way of Pledge/Re-pledge in the Depository System. The provisions of this circular were to come into effect from June 01, 2020.

2. In view of the situation arising due to Covid-19 pandemic, lockdown imposed by the Government, representations received from the Depositories and the Clearing Corporations and that the changes to the systems and software development still under progress, it has been decided to extend the implementation date of the aforesaid circular to August 01, 2020. Accordingly, in terms of paragraph 12 of the circular, the trading member (TM) / clearing member (CM) shall be required to close all existing demat accounts tagged as 'Client Margin / Collateral' by August 31, 2020.

3. However, the provision as specified in paragraph 4 of the aforesaid circular regarding holding of Power of Attorney by TM / CM not to be considered as equivalent to the collection of margin by TM / CM in respect of securities held in the demat account of the client, shall be applicable from June 01, 2020.

4. Further, with regard to paragraph 4 of annexure A regarding confirmation from the client / pledgor through OTP on mobile number / registered e-mail id or other verifiable mechanism, it is clarified that such confirmation shall be required only once from the client / pledgor at the time of initial creation of pledge in favour of TM / CM and subsequent repledging by TM / CM shall not require any further confirmation from the client / pledgor. Paragraph 4 of Annexure A of the aforesaid SEBI circular stands modified accordingly.

5. Stock Exchanges, Clearing Corporations and Depositories are directed to bring the provisions of this circular to the notice of their members / participants and also disseminate the same on their websites.

6. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.

Tags : Implementation Circular Depository System

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Ministry of Labour and Employment


Labour and Industrial

Central Government hereby declares the services engaged in the coal industry to be a public utility service for the purposes of Industrial Disputes Act, 1947


Whereas the Central Government is satisfied that public interest so requires that the services engaged in the coal industry, which is covered under item 4 of the First Schedule to the Industrial Disputes Act, 1947 (14 of 1947), to be a public utility service for the purpose of the said Act;

And whereas the Central Government has lastly declared the said industry to be public utility service for the purposes of the said Act for a period of six months from the 27th November, 2019 vide notification of the Government of India in the Ministry of Labour and Employment number S.O. 4276 (E), dated 27th November, 2019;

And whereas the Central Government is of the opinion that public interest requires the extension of the public utility service status to the said industry for a further period of six months;

Now, therefore, in exercise of the powers conferred by the proviso to sub-clause (vi) of clause (n) of section 2 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government hereby declares the services engaged in the coal industry to be a public utility service for the purposes of the said Act for a period of six months with effect from the 27th May, 2020.

Tags : Coal industry Public utility service Declaration

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