23 November 2020


Notifications & Circulars

Reserve Bank of India

19.11.2020

Banking

Reserve Bank of India imposes monetary penalty on Muthoot Finance Limited

MANU/RPRL/0174/2020

The Reserve Bank of India (RBI) has imposed, by an order dated November 19, 2020, a monetary penalty of Rs.10.00 lakh (Rupees Ten lakh only) on Muthoot Finance Limited, Ernakulam (the company), for non-compliance with directions issued by RBI on maintenance of Loan to Value ratio in gold loans and on obtaining copy of PAN card of the borrower while granting gold loans in excess of Rs. 5.00 lakh, contained in Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016.

This penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934, taking into account the failure of the company 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 company with its customers.

Background

The statutory inspection of Muthoot Finance Limited with reference to its financial position as on March 31, 2018 and March 31, 2019, revealed, inter alia, non-compliance with the abovementioned directions issued by RBI. In furtherance to the same, a notice was issued to the company 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 company's reply to the notice, oral submissions made during the personal hearings and examination of additional submissions made by it, RBI concluded that the aforesaid charges of non-compliance with RBI directions were substantiated and warranted imposition of monetary penalty.

Tags : Penalty Imposition Muthoot Finance

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Reserve Bank of India

19.11.2020

Banking

Reserve Bank of India imposes monetary penalty on Manappuram Finance Limited

MANU/RPRL/0175/2020

The Reserve Bank of India (RBI) has imposed, by an order dated November 19, 2020, a monetary penalty of Rs. 5.00 lakh (Rupees Five lakh only) on Manappuram Finance Limited, Thrissur (the company), for non-compliance with directions issued by RBI on verification of ownership of gold jewellery, contained in Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016. This penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934, taking into account the failure of the company 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 company with its customers.

Background

The statutory inspection of Manappuram Finance Limited with reference to its financial position as on March 31, 2019, revealed, inter alia, non-compliance with the abovementioned directions issued by RBI. In furtherance to the same, a notice was issued to the company 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 company's reply to the notice, oral submissions made during the personal hearings and examination of additional submissions made by it, RBI concluded that the aforesaid charge of non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty.

Tags : Penalty Imposition Manappuram Finance

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Press Information Bureau

19.11.2020

Civil

Government of India and NDB sign agreement for USD 500 Million to provide fast, reliable, safe and comfortable public transport system in the national capital region

MANU/PIBU/3969/2020

The Government of India, the Ministry of Housing and Urban Affairs, National Capital Region Transport Corporation Limited and the New Development Bank(NDB) today signed a loan agreement for lending USD 500 million for the 'Delhi-Ghaziabad-Meerut Regional Rapid Transit System Project' to provide fast, reliable, safe and comfortable public transport system in the National Capital Region (NCR).

The NCR is among the world's largest urban agglomerations and a major economic centre of India. Due to lack of efficient public transport options, the number of private vehicles in NCR has increased. The daily passenger traffic along the Delhi-Ghaziabad-Meerut corridor in NCR is estimated at 0.69 million, of which 63% utilize private vehicles for commuting. Due to traffic congestion, it can take about 3 to 4 hours to travel between Delhi and Meerut in Uttar Pradesh by road during peak hours. Rapid growth in vehicular traffic has made NCR one of the most polluted regions in the world. By 2030, NCR is projected to become the most populous urban agglomeration in the world, which will increase pressure on basic infrastructure such as housing, water supply, electricity and transport.

Fast transit system will support in achieving the goal of sustainable urban development in NCR region including National Capital Territory of Delhi. It will activate processes which will enable sustainable economic and social development with environmental protection, for future generations. The environment friendly and very low emission RRTS will carry many times more people at high speed (average speed 100 kmph) while occupying just 3 m space on land thus reducing congestion on the roads. Overall it will significantly reduce the total emissions from the transport sector in NCR.

The agreement was signed by Shri Baldeo Purushartha, Joint Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India; Shri Janardan Prasad on behalf of the Ministry of Housing and Urban Affairs, Shri Vinay Kumar Singh, Managing Director on behalf of the National Capital Region Transport Corporation Limited and Mr. Xian Zhu, Vice President, Chief Operations Officer on behalf of the NDB.

Shri Baldeo Purushartha, Joint Secretary, Department of Economic Affairs said "Seamless high speed connectivity will result in balanced economic development across the Region leading to economic benefits to all strata of society and many nodes of development rather than all economic activity happening at one place".

Mr. Xian Zhu, Vice President and Chief Operations Officer, NDB said that "NDB funding will be provided to finance rolling stock for modern design, energy efficient operations and interoperability across corridors. NDB funds will also be utilized for procuring signalling, telecommunication and train control system with advanced features such as automatic train operation, automatic train protection, automatic train supervision and integration with platform screen doors. The Project can serve as a demonstration for developing high capacity rapid urban transit corridors in other urban areas of India."

The total project cost is estimated at USD 3,749 million, which will be financed by the NDB (USD 500 million), Asian Infrastructure Investment Bank (USD 500 million), Asian Development Bank (USD 1,049 million), Japan Fund for Poverty Reduction (USD 3 million), and Government and Other sources (USD 1,707 million). The USD 500 million loan from the NDB has a tenor of 25 years with an 8-year grace period.

Tags : Agreement Public Transport System Signing of

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Press Information Bureau

19.11.2020

Civil

Virtual ceremony for the launch of RuPay card Phase-II in Bhutan

MANU/PIBU/3971/2020

A Virtual Ceremony for the joint launch of RuPay card Phase-II by Prime Minister Shri Narendra Modi and Prime Minister of Bhutan Lyonchhen Dr. Lotay Tshering will be held on 20 November 2020.

The Prime Ministers of India and Bhutan had jointly launched Phase-I of the project during the State Visit of Prime Minister to Bhutan in August 2019. The implementation of Phase-I of RuPay cards in Bhutan has enabled visitors from India to access ATMs and Point of Sale (PoS) terminals across Bhutan. Phase-II will now allow Bhutanese card holders to access RuPay network in India.

India and Bhutan share a special partnership, anchored in mutual understanding and respect, reinforced by a shared cultural heritage and strong people to people links.

Tags : Virtual ceremony Launch RuPay card

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Press Information Bureau

19.11.2020

Civil

Health Ministry approves new category for selection and nomination of candidates from 'Wards of COVID Warriors' under Central Pool MBBS/BDS seats for the academic year 2020-2021

MANU/PIBU/3978/2020

Dr. Harsh Vardhan, Union Minister for Health and Family Welfare today announced the Government's decision to introduce a new category called 'Wards of COVID Warriors' in the guidelines for selection and nomination of candidates against Central Pool MBBS seats for the academic Year 2020-2021.

The Union Health Minister said that this move aims to dignify and honour the noble contribution made by the COVID Warriors in treatment and management of COVID patient. "This will honour the Solemn Sacrifice of all COVID warriors who served with selfless dedication for the cause of duty and humanity", he stated.

Central Pool MBBS seats may be allocated for selection and nominations of the candidates from amongst the wards of "COVID Warriors", who have lost life due to COVID 19; or died accidently on account of COVID 19 related duty.

Reminding everyone that the definition of COVID Warrior has been laid down by Government of India while announcing the insurance package of Rs.50 lakhs for them, the Minister said, "COVID Warriors are all public healthcare providers including community health workers, who may have to be in direct contact and care of COVID-19 patients and who may be at risk of being impacted by this. Private hospital staff and retired/volunteer/ local urban bodies/ contracted/ daily wage/ ad-hoc/ outsourced staff requisitioned by States/ Central hospitals/ autonomous hospitals of Central/ States/UTs, AIIMS and Institutes of National Importance (INIs)/ hospitals of Central Ministries drafted for COVID-19 related responsibilities are all included." He added that the State/UT Government will certify the eligibility for this category.

Five (05) Central Pool MBBS seats have been reserved for this Category for the year 2020-21. The selection of candidates will be made by the Medical Council Committee (MCC) through online application on the basis of rank obtained in the NEET-2020 conducted by National Testing Agency.

Tags : Category Selection Candidates

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Ministry of Finance 

18.11.2020

Customs

Prohibitions on Imports/Exports to North Korea(KP)

MANU/CUST/0071/2020

1.The undersigned is directed to refer to the United Nations Security Council's (UNSC) Resolution relating to the above subject, the latest being 2397 (2017). The UNSC's resolutions have been adopted by Government of India and the above stated resolution has been given force in law by way of DGFT Notification No.52/2015-20 dated 07.03.2018.

2. Vide the above said Notification dated 07.03.2019, the import and export policy of DGFT has been further amended outlining the prohibitions on imports from North Korea and exports to North Korea in para 2.17 of the Foreign Trade Policy 2015-20. DGFT has also issued Trade Notice No.16/2020 dated 16th May 2019 to further clarify item descriptions and corresponding HS codes relevant to the said notification dated 07.03.2018.

3. It is noticed that several consignments have been interdicted by RMS in this regard. Upon scrutiny of these instances of imports/exports, it has been found that these are due to inadvertent data entry mistakes at the time of filing the Bills of Entry and Shipping Bills. However, despite instructions from the RMS to amend such data entry errors, Customs field formations have been clearing such import/export consignments without the requisite amendments. It may be appreciated that, once OOC/LEO is given without amendments, the data gets published by Directorate General of Commercial Intelligence and Statistics (DGCIS) leading to avoidable misinformation of violations of import/export prohibitions in this regard.

4. All Customs field formations are directed to ensure strict compliance of the legal prohibitions in force in regard to imports/exports from/to North Korea, and in case of bonafide errors in data entry, the Customs clearance (OOC/LEO) are to be allowed only after amending the data entry to delete the incorrect reference to North Korea and mention the correct Country of import/export (other than North Korea).

5. Suitable amendments in the RMS would also be made promptly.

Tags : Imports North Korea

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Reserve Bank of India

17.11.2020

Banking

Maintenance of Escrow Account with a Scheduled Commercial Bank

MANU/RMIC/0157/2020

1. A reference is invited to the instructions issued by Reserve Bank of India vide (a) DPSS.CO.PD.No.1164/02.14.006/2017-18 dated October 11, 2017 (updated as on February 28, 2020) on 'Issuance and Operation of Prepaid Payment Instruments (PPIs)'; and (b) DPSS.CO.PD.No.1810/02.14.008/2019-20 dated March 17, 2020 on 'Regulation of Payment Aggregators (PAs) and Payment Gateways (PGs)'.

2. An authorised PPI Issuer or a PA is required to maintain an escrow account with a scheduled commercial bank on an ongoing basis. With a view to diversify risk and address business continuity concerns, it has been decided to allow one additional escrow account in a different scheduled commercial bank. The relevant instructions are being modified as per Annex 1 and 2 to this circular.

3. These directions are issued under Secti

on 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007.

Tags : Maintenance Escrow Account Scheduled Commercial Bank

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Ministry of Finance 

17.11.2020

Commercial

Order of moratorium in respect of the Lakshmi Vilas Bank Limited

MANU/FNSV/0051/2020

1. In exercise of the powers conferred by sub-section (2) of section 45 of the Banking Regulation Act, 1949 (10 of 1949), the Central Government, after considering an application made by the Reserve Bank of India under sub-section (1) of that section, hereby makes this Order of moratorium in respect of the Lakshmi Vilas Bank Limited, Karur, Tamil Nadu for the period with effect from 18:00 hrs on the 17th day of November, 2020 up to and inclusive of 16th day of December, 2020 and hereby stays the commencement or continuance of all actions and proceedings against that banking company during the period of moratorium, subject to the condition that such stay shall not in any manner prejudice the exercise by the Central Government of its powers under clause (b) of sub-section (4) of section 35 of the said Act or the exercise by the Reserve Bank of India of its powers under section 38 of the said Act.

2. The Central Government hereby also directs that during the period of moratorium, the Lakshmi Vilas Bank Limited (the said banking company) shall not, without the permission in writing of the Reserve Bank of India,-

(a) make, in the aggregate, payment to a depositor of a sum exceeding twenty-five thousand rupees lying to his credit, in any savings, current or any other deposit account, by whatever name called:

Provided that if a depositor maintains more than one account in the same capacity and in the same right, the total amount payable from all the accounts together shall not exceed the limit indicated above:

Provided further that wherever such depositor is having dues payable to the bank in any manner, either as a borrower or surety, the amount payable to such depositor shall be made after adjusting the relevant borrowal accounts;

(b) make, in the aggregate, payment to any creditor exceeding a sum of twenty-five thousand rupees if not otherwise provided in this order, so however that this shall not affect-

(i) making of payment of amounts towards any drafts or pay orders issued by the Lakshmi Vilas Bank Limited and remaining unpaid on the date on which the order of moratorium comes into force;

(ii) paying the proceeds of the bills received for collection on or before the 17th day of November, 2020;

(iii) making payment towards existing liabilities for call money or inter-bank borrowings including letters of credit, which are falling due during the period of moratorium; and

(iv) trades effected prior to the date of moratorium for which settlement is yet to take place;

(c) grant any loans or advances or make investments in any credit instruments.

3. Without prejudice to the conditions stipulated in sub-paragraph (a) of paragraph 2, in relation to payment to any depositor of the Lakshmi Vilas Bank Limited, the Reserve Bank may by a general or special order, permit the said banking company to allow payment to its depositors an amount in excess of twenty-five thousand rupees to meet unforeseen expenses, as under:

(i) in connection with the medical treatment of the depositor or any person actually dependent on him;

(ii) towards the cost of higher education of the depositor or any person actually dependent on him for education in India or outside India;

(iii) to pay obligatory expenses in connection with marriage or other ceremonies of the depositor or his children or of any other person actually dependent upon him;

(iv) in connection with any other unavoidable emergency:

Provided that the amount so allowed to be paid out of the balance lying to the credit of the depositor-

(a) shall be reckoned towards the payment due to him under any scheme of reconstruction or amalgamation as may be sanctioned by any competent authority in relation to the said banking company and subject to such conditions as may be provided under such scheme about appropriation of any payment made to a depositor of the said banking company before or on the coming into force of the scheme; and

(b) shall not exceed the sum of five lakh rupees or the actual balance lying to the credit of the account of such depositor, whichever is less.

4. The Central Government hereby further directs that the Lakshmi Vilas Bank Limited may, during the period of the moratorium imposed on it, make the following further payments, namely, the amounts for repaying loans or advances granted against Government securities or other securities, to the Lakshmi Vilas Bank Limited by the Reserve Bank of India or the State Bank of India or by any other bank and remaining unpaid on the date on which this Order comes into force.

5. The Central Government hereby also directs that during the period of moratorium, the Lakshmi Vilas Bank Limited shall be permitted to operate its accounts with the Reserve Bank of India or with any other bank for the purpose of making the payments aforesaid, provided that nothing in this Order shall be deemed to require the Reserve Bank of India or any other bank aforesaid to satisfy itself that the conditions imposed by this Order are being observed before any amounts are released in favour of the Lakshmi Vilas Bank Limited.

6. The Central Government hereby also directs that the Lakshmi Vilas Bank Limited may release or deliver goods or securities which have been pledged, hypothecated or mortgaged or otherwise charged to it against any loan, cash credit or overdraft:

(i) in any case in which full payment towards all the amounts due from the borrower or borrowers, as the case may be, has been received by it, unconditionally; and

(ii) in any other case, to such an extent as may be necessary or possible, without reducing the proportions of the margins on the said goods or securities below the stipulated proportions or the proportions which were maintained before this Order came into force, whichever may be higher.

Tags : Moratorium Lakshmi Vilas bank Proceedings

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Ministry of Information and Broadcasting

16.11.2020

Civil

Compliance of the FDI policy of the Government of India with regard to the entities involved in uploading/streaming of news and current affairs through digital media

MANU/INBR/0008/2020

1. Attention is invited to the decision of the Central Government, communicated vide Press Note No. 4 of 2019 dated 18th September, 2019 permitting 26% FDI under Government approval route for entities engaged in Uploading/Streaming of News and Current Affairs through Digital Media. A clarification on the subject was subsequently issued on 16.10.2020 (Copies enclosed).

2. Action to be taken by the eligible entities to comply with the above decision of the Central Government, has been laid down in the Public Notice No. No. 0-14011/11/2019-MUC-I dated 16th November, 2020, a copy of which is enclosed.

3. It is requested that necessary action may be taken for due compliance.

Tags : Compliance FDI policy Digital media

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