1 August 2022

Notifications & Circulars

Press Information Bureau



India has Taken Lead to raise the issue of Climate Finance at International Forums


At the 15th Conference of Parties (COP15) of the United Nations Framework Convention on Climate Change (UNFCCC) held in Copenhagen in 2009, developed countries committed to jointly mobilize US$100 billion per year by 2020 to address the needs of the developing countries. At COP21 in Paris, with the developed countries having failed to keep their commitment, it was decided to extend the US$100 billion per year goal through to 2025.

India has been taking the lead in raising the issue of climate finance at the UNFCCC and in other multilateral forums. India's efforts have repeatedly exposed exaggerated claims by developed country agencies that this goal is close to being met and have shown that the currently mobilized climate finance is in reality much less. India has also been in the lead in calling for clarity in the definition of climate finance, and in clarifying the importance of scale, scope and speed in the delivery of such finance. India has always maintained that climate finance should be new and additional (with respect to overseas development assistance), predominantly as grants and not loans, as well as balanced between mitigation & adaptation.

Currently, there are several issues with respect to the definition of climate finance and with respect to transparency of the estimates and the progress made. There are sharply varying estimates of the extent to which the mobilization target has been achieved. The fourth Biennial Assessment of the Standing Committee on Finance of the UNFCCC has presented an updated overview and trends in climate finance flows until 2018. The assessment stated that the total public financial support reported by developed country Parties in October 2020 amounted to US$ 45.4 billion in 2017 and US$ 51.8 billion in 2018.

In an unprecedented step, the final decision of COP26 at Glasgow noted with deep regret that this commitment of developed country Parties in the context of meaningful mitigation actions and transparency on implementation has not yet been met.

In the final decisions at COP26, it was agreed that prior to 2025, the Conference of Parties serving as the meeting of the Parties to the Paris Agreement shall set a New Collective Quantified Goal (NCQG) from the floor of US$ 100 billion per year, considering the needs and priorities of the developing countries. The NCQG is to be significantly publicly funded with greater transparency and predictability, and take a balanced approach towards mitigation and adaptation in the light of the needs and priorities of the developing countries.

India's climate actions have so far been largely financed from domestic sources, including government budgetary support as well as a mix of market mechanisms, fiscal instruments and policy interventions. As per India's Third Biennial Update Report (BUR) to the UNFCCC in February 2021, the domestic mobilization of finance fully overshadows the sum total of international funding.

As a Party to the UNFCCC, India periodically submits its National Communications (NCs) and Biennial Update Reports (BURs) to the UNFCCC which includes national Greenhouse Gas (GHG) inventory. As per India's third BUR submitted to the UNFCCC in February 2021, total net GHG emissions for 2016 are 2.5 billion tonnes CO2e. Our per capita emissions are 1.96 tCO2 which is less than one third of the world's per capita GHG emissions and our annual emissions in 2016 are only about 5 percent of the global emissions. India has contributed only around 4 percent of global cumulative emissions from 1850 to 2019, despite being home to around one-sixth of humanity.

Climate change is a global collective action problem to be addressed through multilateralism and nations of the World must adhere to using only their respective fair shares of the global carbon budget. By this criterion, India has used far less than its fair share of the global carbon budget.

The global rate of growth of emissions cannot be compared to India's growth rate. Based on equity and the principle of common but differentiated responsibilities, as enshrined in the UNFCCC and the Paris Agreement, India's emissions can grow as it is a developing country whose leading priorities are sustainable development and poverty eradication. India's peaking year in emissions can occur after global emissions peak and thereafter only start to decline as provided for in the Paris Agreement. It may also be noted that India's emissions increase from a significantly lower base compared to the global average. In any case, it is the contribution to cumulative emissions that is the decisive benchmark of the responsibility of individual countries to temperature increase and not the rate of growth and decline taken in isolation.

Tags : Climate Finance International Forums COP15

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Press Information Bureau



Steps by Government to enhance the domestic manufacturing of Solar module


MNRE launches "Renewable Energy Research and Technology Development Programme" to enable indigenous technology development and manufacture for wide spread applications of new and renewable energy

The Government has taken a number of steps to enhance the domestic production of important components such as solar cells, modules and solar inverters, namely:

i. Modified Special Incentive Package Scheme (M-SIPS) Scheme of Ministry of Electronics & Information Technology: The scheme mainly provides subsidy for capital expenditure - 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs. The Scheme was open to receive applications till 31st December, 2018. The Scheme inter-alia covered solar PV cells, solar PV modules, EVA, backsheet and solar glass.

ii. Preference to 'Make in India' in Public Procurement in Renewable Energy Sector: Through implementation of 'Public Procurement (Preference to Make in India) Order', procurement and use of domestically manufactured solar PV modules and domestically manufactured solar inverters has been mandated for Govt. / Govt. entities.

iii. Domestic Content Requirement (DCR): Under some of the current schemes of the Ministry of New & Renewable Energy (MNRE), namely CPSU Scheme Phase-II, PM-KUSUM and Grid-connected Rooftop Solar Programme Phase-II, wherein government subsidy is given, it has been mandated to source solar PV cells and modules from domestic sources.

iv. Imposition of Basic Customs Duty on import of solar PV cells & modules: The Government has imposed Basic Customs Duty (BCD) on import of solar PV cells and modules with effect from 01.04.2022.

v. Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules: MNRE is implementing the Production Linked Incentive Scheme 'National Programme on High Efficiency Solar PV Modules', with an outlay of Rs. 4,500 crore for supporting setting up of integrated manufacturing units of high efficiency solar PV modules by providing Production Linked Incentive (PLI) on sales of such solar PV modules. Letters of Award have been issued to the eligible successful bidders to the extent of funds allocated (i.e. the present scheme outlay of Rs. 4,500 crore). An additional outlay of Rs. 19,500 crore was announced in the Budget 2022-23 on 1st February 2022.

vi. To promote the Indian renewable energy manufacturing ecosystem in India, Indian Renewable Energy Development Agency (IREDA), a CPSE under MNRE, has a loan scheme for setting up manufacturing facilities.

The Ministry of New & Renewable Energy (MNRE) is implementing a scheme "Renewable Energy Research and Technology Development (RE-RTD) Programme" to enable indigenous technology development and manufacture for wide spread applications of new and renewable energy. This scheme covers research and development in the area of solar module manufacturing. Under the scheme, upto 100% financial support to Government / non-profit research organizations and upto 50-70% to Industry, Start-ups, Private Institutes, Entrepreneurs and Manufacturing units, is provided.

Tags : Domestic manufacturing Solar module Steps

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Reserve Bank of India



Restriction on Storage of Actual Card Data [i.e. Card-on-File]


1. Reference is invited to Reserve Bank of India (RBI) circulars DPSS.CO.PD.No.1810/02.14.008/2019-20 dated March 17, 2020 and CO.DPSS.POLC.No.S33/02-14-008/2020-2021 dated March 31, 2021 on "Guidelines on Regulation of Payment Aggregators and Payment Gateways", circular CO.DPSS.POLC.No.S-516/02-14-003/2021-22 dated September 07, 2021 on "Tokenisation - Card Transactions: Permitting Card-on-File Tokenisation (CoFT) Services" and, circulars CO.DPSS.POLC.No.S-1211/02-14-003/2021-22 dated December 23, 2021 and CO.DPSS.POLC.No.S-567/02-14-003/2022-23 dated June 24, 2022 on "Restriction on Storage of Actual Card Data [i.e. Card-on-File (CoF)]".

2. In terms of the above circulars, with effect from October 1, 2022, no entity in the card transaction / payment chain, other than the card issuers and / or card networks, shall store CoF data, and any such data stored previously shall be purged.

3. On a review of the issues involved and after detailed discussions thereon with all stakeholders, as also keeping in view that sufficient time has elapsed since the requirements were specified, the following are advised -

a) There shall be no change in the effective date of implementation of the requirements - all entities, except card issuers and card networks, shall purge the CoF data before October 1, 2022.

b) For ease of transition to an alternate system in respect of transactions where cardholders decide to enter the card details manually at the time of undertaking the transaction (commonly referred to as "guest checkout transactions"), the following are being permitted as an interim measure -

i) Other than the card issuer and the card network, the merchant or its Payment Aggregator (PA) involved in settlement of such transactions, can save the CoF data for a maximum period of T+4 days ("T" being the transaction date) or till the settlement date, whichever is earlier. This data shall be used only for settlement of such transactions, and must be purged thereafter.

ii) For handling other post-transaction activities, acquiring banks can continue to store CoF data until January 31, 2023.

4. Appropriate penal action, including imposition of business restrictions, shall be considered by the RBI in case of any non-compliance.

5. This directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

Tags : Restriction Storage Actual Card Data

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Reserve Bank of India



Regulation of Payment Aggregators - Timeline for submission of applications for authorisation - Review


1. Reference is invited to Reserve Bank of India (RBI) circulars DPSS.CO.PD.No.1810/02.14.008/2019-20 dated March 17, 2020 and CO.DPSS.POLC.No.S33/02-14-008/2020-2021 dated March 31, 2021 on "Guidelines on Regulation of Payment Aggregators and Payment Gateways". In terms of these circulars, online non-bank Payment Aggregators (PAs) - existing as on March 17, 2020 - were required to apply to RBI by September 30, 2021i for seeking authorisation under the Payment and Settlement Systems Act, 2007 (PSS Act).

2. It is observed that applications received from some PAs had to be returned as they had not complied with eligibility criteria, including the minimum net worth criterion of ₹ 15 crore by March 31, 2021. This also implied that they have to discontinue their operations within a period of six months from the date of return of application. Though they have the option to apply afresh on meeting the prescribed criteria, ceasing operations may lead to disruption in payment systems. It is also possible that some PAs had not applied to RBI due to non-fulfillment of eligibility criteria.

3. Keeping in view the disruption caused by the COVID-19 pandemic, and to ensure smooth functioning of the payments ecosystem, it has since been decided to allow another window to all such PAs (existing as on March 17, 2020) to apply to RBI. They can apply by September 30, 2022 and shall have a net worth of ₹ 15 crore as on March 31, 2022. They shall be permitted to continue their operations till they receive communication from RBI regarding the fate of their application. The timeline of March 31, 2023 for achieving the net worth of ₹ 25 crore shall, however, remain.

4. All other provisions of the circulars referred to above, shall continue to be applicable.

5. This directive is issued under Section 10(2) read with Section 18 of the PSS Act, 2007 (Act 51 of 2007).

Tags : Regulation Payment Aggregators Timeline

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Reserve Bank of India



RBI imposes monetary penalty on The Moirang Primary Co-operative Bank Ltd., Moirang (Manipur)


The Reserve Bank of India (RBI) has imposed, by an order dated July 28, 2022, a monetary penalty of Rs. 1.00 lakh (Rupees One lakh only) on The Moirang Primary Co-operative Bank Ltd., Moirang (the bank), for non-compliance with Know Your Customer (KYC) directions, 2016 issued by RBI. The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47-A(1)(c) read with Section 46(4) and Section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), taking into account 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 an

y transaction or agreement entered into by the bank with its customers.


A Scrutiny of the bank in the matter of exchange of Specified Bank Notes, revealed, inter alia, non-compliance with above mentioned directions issued by RBI. 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, and examination of additional submissions, RBI concluded that the aforesaid charges of non-compliance with RBI directions warranted imposition of monetary penalty.

Tags : Penalty Imposition Non-compliance

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Securities and Exchange Board of India


Capital Market

Addendum to SEBI Circular on Development of Passive Funds


1. This has reference to SEBI circular No. SEBI/HO/IMD/DOF2/P/CIR/2022/69 dated May 23, 2022 on "Development of passive funds". The provisions of the said circular are applicable with effect from July 01, 2022.

2. Clause 2(IV)(A) of the aforesaid circular prescribed that in respect of units of ETFs, direct transaction with AMCs shall be facilitated for investors only for transactions above a specified threshold of INR 25 Cr.

3. Subsequently, feedback was received from stakeholders expressing certain challenges with respect to implementation of the above clause. Considering the same, it has been decided that the applicability of clause 2(IV)(A) of the circular shall be November 01, 2022.

4. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, read with the provision of Regulation 77 of SEBI (Mutual Funds) Regulation, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Tags : Addendum Development Passive Funds

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Ministry of Commerce and Industry



DGFT clarifies issues related to Non-Ferrous Metal Import Monitoring System (NFMIMS)


1. Subsequent to the issuance of DGFT Notification No. 61/2015-2020 dated 31.03.2021 amending the import policy of items of copper (Annexure-I to DGFT Notification No. 61/2015-2020) falling in Chapter-74 of ITC (HS) and items of Aluminium (Annexure-III to DGFT Notification No. 61/2015-2020) falling in Chapter-76 of ITC (HS) from Free' to 'Free subject to compulsory registration under Non-Ferrous Metal Import Monitoring System (NFMIMS)', DGFT has received various representations from members of Trade & Industry seeking clarification on NFMIMS.

2. The issues were referred to M/o Mines and based upon the clarification received, responses thereto are given below:

A. Whether imports through air mode are exempted from registration under NFMIMS?

Response: NFMIMS will not be applicable on air-freighted goods as this mode is used for emergency/small volume high value goods required at short notice.

B. Whether multiple consignments against a NFMIMS registration can be imported within the validity period of NFMIMS Registration?

Response: Any number of consignments can be imported by a single NFMIMS registration within the validity of the registration.

C. Whether it is compulsory to provide the proper Quality Control Order (QCO) description in NFMIMS or not?

Response: The information relating to proper QCO description can be treated as optional category in the description filed by importer under NFMIMS.

D. Whether the Custom officers at the border are mandated to check QCO description in NFMIMS certificate while clearing the Bill of Entries or not?

Response: Since the QCO information is optional information therefore, it is not mandatory for the Custom officer to check QCO description under NFMIMS. However, custom officer has to consider the provisions/rules under the other laws of the land at the time of clearing the Bill of Entries.

E. Whether NFMIMS is applicable to shipments under Advance Authorization, DFIA and SEZs?

Response: NFMIMS is applicable to imports through Advance Authorization, DFIA and import to SEZs.

Tags : Clarification Issuance NFMIMS

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Ministry of Commerce and Industry



Relaxation in provision of submission of 'Bill of Export' as an evidence of export obligation discharge for supplies made to SEZ units in case of EPCG Authorization


1. The requirement of submitting 'Bill of Export' for supplies made to SEZ is prescribed under the Foreign Trade Policy. Recently, the requirement of submission of Bill of Export for supplies made to SEZ in case of Advance Authorisation has been relaxed vide Policy Circular No. 39 dated 07.06.2022.

2. The issue has been examined and in terms of Para 2.58 of the FTP 2015-2020 (extended up to 30.09.2022), it has been decided to relax the condition of requirement of submission of 'Bill of Export' in case of exports made to SEZ units under EPCG Authorization, for all such supplies made prior to 01.04.2015.

3. Accordingly, for the purpose of discharge of export obligation under EPCG Authorizations, in case of supplies made to SEZ units prior to 01.04.2015, the exporters can submit corroborative evidence in lieu of 'Bill of Exports' such as:

a. ARE-1 form duly attested by jurisdictional Central Excise authorities of EPCG authorization holder.

b. Evidence of receipt of the supplies by the recipient in the SEZ.

c. Evidence of payment made by the SEZ unit to the EPCG authorization holder.

4. This Policy Circular is issued with the approval of DGFT.

Tags : Relaxation Submission Bill of Export

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