Notifications & Circulars

Reserve Bank of India

28.03.2024

Banking

Lending and Deposit Rates of Scheduled Commercial Banks-March 2024

MANU/RPRL/0205/2024

Data on lending and deposit rates of scheduled commercial banks (SCBs) (excluding regional rural banks and small finance banks) received during the month of March 2024 are set out in Tables 1 to 7.

Highlights:

Lending Rates:

• The weighted average lending rate (WALR) on fresh rupee loans of SCBs stood at 9.36 per cent in February 2024 (9.43 per cent in January 2024).

• The WALR on outstanding rupee loans of SCBs was at 9.83 per cent in February 2024 (9.85 per cent in January 2024).

• 1-Year median Marginal Cost of Fund based Lending Rate (MCLR) of SCBs remained unchanged at 8.80 per cent in March 2024.

• The share of External Benchmark based Lending Rate (EBLR) linked loans in total outstanding floating rate rupee loans of SCBs was 56.2 per cent at end-December 2023 (53.3 per cent at end-September) while that of MCLR linked loans was 39.4 per cent (41.9 per cent at end-September).

Deposit Rates:

• The weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits of SCBs increased to 6.44 per cent in February 2024 from 6.43 per cent in January.

• The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits of SCBs was at 6.86 per cent in February 2024 (6.84 per cent in January).1

Tags : Lending rates Deposit Rates SCBs

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Press Information Bureau

28.03.2024

Commercial

Expert Committee on developing GIFT IFSC as 'Global Finance and Accounting Hub' submits report to IFSCA

MANU/PIBU/0304/2024

The Expert Committee on developing the Gujarat International Finance Tech-City International Financial Services Centre (GIFT IFSC) as 'Global Finance and Accounting Hub' has submitted its report to Chairperson, International Financial Services Centre Authority, (IFSCA) on 26th March, 2024.

The Expert Committee was constituted pursuant to the notification issued by Ministry of Finance on 18th January, 2024 wherein book-keeping, accounting, taxation and financial crime compliance were notified as 'financial services' under Sec 3(1)(e)(xiv) of IFSCA Act, 2019. The Expert Committee was chaired by the President of the Institute of Chartered Accountants of India (ICAI). The committee comprised of experts from the industry, academia and the Government.

The Expert Committee has recommended a comprehensive regulatory regime for undertaking bookkeeping, accounting, taxation and financial crimes compliance services from IFSC in India. Additionally, the Committee has also made several recommendations for the promotion and development of GIFT IFSC as 'Global Finance and Accounting Hub', including measures for enhancing the skills and competencies of the workforce.

In its report, the Committee has highlighted the potential for GIFT IFSC to become a global hub for book-keeping, accounting, taxation and financial crime compliance services, which would create large employment opportunities for the talented workforce.

Tags : Expert Committee GIFT IFSC Report

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Ministry of Commerce and Industry

27.03.2024

Commercial

Notification of procedure for General Authorisation for Export of Telecommunication items (GAET) under Category 8A5 Part I of SCOMET

MANU/DGFT/0048/2024

In exercise of the powers conferred under Paragraph 1.03 and 2.01 of the Foreign Trade Policy (FTP) 2023 as amended from time to time, the Directorate General of Foreign Trade (DGFT) hereby makes the following amendment to Chapter 10 of Handbook of Procedures (HBP) 2023 with immediate effect:

Para 10.15(1): General Authorization for Export of Telecommunication-related items under SCOMET Category 8A5 Part 1 (GAET)

Export of indigenous/imported SCOMET items (Telecommunication items under SCOMET Category 8A5 Part 1) will be allowed based on a one-time General Authorization (GAET) subject to the following conditions:

1. Policy & Eligibility: SCOMET authorization will not be required, for the export and/or re-export of Telecommunication items (excluding technology and software) under SCOMET Category 8A5 Part 1 (except items listed in Annexure-I) subject to the following conditions:

a. The applicant exporter shall submit an application for getting a one-time license under GAET through the online SCOMET portal and attach the information in the prescribed proforma;

b. The application would be reviewed/examined for the issuance of GAET by the Inter-Ministerial Working Group (IMWG) based on the submitted application and other supporting documents submitted by the applicant exporter in the prescribed proforma including:

i. Detailed description of the items that are intended to be exported under this authorization with relevant technical details/specifications.

ii. End-user certificate (EUC) from all the entities involved in the supply chain (buyer, consignee, end user, and any other intermediary) on the letterhead (duly signed and stamped) is to be submitted before issuance of authorization. Subsequent EUC submissions for entities in the list of countries (as approved) will be subject to post-reporting requirements as mentioned at viii below.

iii. The list of countries where the export is expected to be done under GAET is to be provided by the applicant at the time of submission of the application.

iv. Undertaking on the letterhead of the firm duly signed and stamped by the authorized signatory stating the following:

1. Any on-site inspection will be allowed by the applicant exporter if required by the DGFT or authorized representatives of the Government of India;

2. The applicant exporter declares that the items that are intended to be exported shall not be used for any purpose other than the purpose(s) stated in the EUC and that such use shall not be changed nor the items modified or replicated without the prior consent of the Government of India.;

3. The applicant exporter declares that subsequent to the issuance of export authorization, if the licensee has been notified in writing by DGFT or if they know or has reason to believe that an item may be intended for military end use or has a potential risk of use in or diversion to weapons of mass destruction (WMD) or in delivery of their missile system, the exporter would not be eligible for GAET for export of that/those item(s) and would apply separately to DGFT for a fresh authorization in terms of regular policy.

4. Action will be taken against the exporter under FT (D & R) Act, 1992 for any mis-declaration.

v. Certified/Approved Internal Compliance Programme by the Compliance Manager of the Company.

vi. Authorized Economic Operator (AEO) T2 Certification of CBIC.

vii. In case of re-export of imported items, the following additional documents have to be submitted:

(i) Proof of import of the item(s):

• Documentary proof that the item(s) originally imported, match with intended item(s) of re-export;

• Bill of entry containing details of the items to be re-exported;

• Export License (if applicable) or any other documents showing that export regulation of the country of export does not have any restriction on re-export from India;

• In case of any such restriction, the exporter will provide a letter of explanation detailing the list of countries/entities, to which re-export/return is restricted / regulated;

• Purchase order

viii. After issuance of GAET authorization and before actual export, the applicant exporter must ensure the following:

1. They shall notify the relevant government authorities in the online portal of DGFT, on quarterly basis of such export in the prescribed format [Aayat Niryat Form (ANF)- 10H], along with the End-Use Certificate (EUC) for each export.

2. The EUCs in prescribed proforma [Appendix 10J(i)] are to be filled by all the entities involved in the chain of supply e.g. foreign buyer/consignee / end-user / intermediary (ies) on the letterhead of the respective entity, duly signed in ink and stamped by the authorized signatory of the company. In case of any additional sheet used along with the EUC, the same must be on the letterhead of the company and signed by the same person who signs the EUC.

3. They have an agreement or purchase order, an excerpt of a contract from the entity (buyer/consignee/end-user) receiving the items which state that the export is for a permitted use / an end-use as declared in the EUC before the actual export;

4. The documents submitted by the exporter must include the name, contact number and email ID of the authority signing the EUC before actual export.

5. Additional details, if any sought by DGFT

2. Post Reporting for export / re-export of items under GAET

a. The Indian exporter shall submit post-shipment details of each export/re-export of SCOMET items under the above Categories/sub-categories under GAET for 3 years on quarterly basis (March/June/September/December) by the end of subsequent month of each quarter, in respect of exports made in the previous quarter;

b. In case of re-export of imported items, the additional documents as mentioned in 1.b.vii.(i) have to be submitted at the time of post reporting.

c. Failure to do so may entail imposition of penalty and/or suspension/revocation of GAET.

3. Record Keeping

The exporter will be required to keep records of all the export documents, in manual or electronic form, in terms of Para 10.18 of HBP, for a period of 5 years from the date of GAET issued by DGFT.

4. General Conditions & Exclusions

a. GAET would not be issued in case of items to be used to design, develop, acquire, or manufacture, possess, transport, transfer and/or used for military applications, explosives, chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system;

b. GAET would not be issued for countries or entities covered under UNSC embargo or sanctions list or on assessment of proliferation concerns, or national security and foreign policy considerations, etc.:

c. In case of inclusion of new countries or amendment to the existing list of countries where the export is expected to be done under GAET the applicant exporter will obtain prior permission of DGFT with relevant details;

d. IMWG shall reserve the right to deny the issue of GAET without assigning any reason(s)

Tags : Procedure GAET SCOMET

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Reserve Bank of India

27.03.2024

Banking

Notification regarding investments in Alternative Investment Funds

MANU/RMIC/0039/2024

1. This is with reference to the circular DOR.STR.REC.58/21.04.048/2023-24 dated December 19, 2023 ('Circular') on the captioned subject, in terms of which instructions were issued to address certain regulatory concerns relating to investment by regulated entities (REs) in the AIFs.

2. With a view to ensuring uniformity in implementation among the REs, and to address the concerns flagged in various representations received from stakeholders, it is advised as under:

(i) Downstream investments referred to in paragraph 2 (i) of the Circular shall exclude investments in equity shares of the debtor company of the RE, but shall include all other investments, including investment in hybrid instruments.

(ii) Provisioning in terms of paragraph 2(iii) of the Circular shall be required only to the extent of investment by the RE in the AIF scheme which is further invested by the AIF in the debtor company, and not on the entire investment of the RE in the AIF scheme.

(iii) Paragraph 3 of the Circular shall only be applicable in cases where the AIF does not have any downstream investment in a debtor company of the RE. If the RE has investment in subordinated units of an AIF scheme, which also has downstream exposure to the debtor company, then the RE shall be required to comply with paragraph 2 of the Circular.

(iv) Further with regard to paragraph 3 of the Circular:

• proposed deduction from capital shall take place equally from both Tier-1 and Tier-2 capital.

• reference to investment in subordinated units of AIF Scheme includes all forms of subordinated exposures, including investment in the nature of sponsor units.

(v) Investments by REs in AIFs through intermediaries such as fund of funds or mutual funds are not included in the scope of the Circular.

3. The above instructions have been issued in exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949 read with Section 56 of the Act ibid; Chapter IIIB of the Reserve Bank of India Act, 1934 and Sections 30A, 32 and 33 of the National Housing Bank Act, 1987.

Tags : Investments AIFs Instructions

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Ministry of Communications

27.03.2024

Media and Communication

Extension of Registration Period for Unregistered Entities Providing Machine-to-Machine (M2M) Services and/or WPAN/WLAN Connectivity for M2M Services

MANU/MCOM/0019/2024

1. Consequent upon the issue of instructions for registration of unregistered entities providing Machine-to-Machine (M2M) Services and/or WPAN/WLAN Connectivity for M2M Services latest by 31st March '24 vide letter referred above, various requests were received from different industry associations (COAI, CII, and FICCI) for extending the said timeline. DoT has taken a considerate view of the same and accordingly, approval of the competent authority is hereby conveyed for extending the timeline for registration of unregistered entities providing M2M Services and/or WPAN/WLAN Connectivity for M2M Services upto June 30, 2024.

2. Further, in this regard, Authorized Telecom Licensees are requested to ensure the following:

i. Dissemination of Registration Information: It is strongly recommended that all entities utilizing telecommunication resources for M2M connectivity/services be actively informed of the mandatory registration requirement with the Department of Telecommunications (DoT) through the Saral Sanchar portal (https://saralsanchar.gov.in) latest by June 30, 2024. Failure to comply by this date may result in the disconnection or withdrawal of their allocated telecommunication resources.

ii. Provision of Telecom Resources: Authorized telecom licensees are once again reminded that they are strictly prohibited from providing any new telecom resources for M2M services/connectivity (including M2M SIMs) to unregistered entities. Verification and recording of the DoT Registration Number is mandatory for access to telecom resources for M2M services/connectivity.

3. This communication is issued with the approval of Member-T, DCC, DoT HQ.

Tags : Extension Registration Period Unregistered

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Ministry of Finance

26.03.2024

Direct Taxation

Central Government notifies National Mission for Clean Ganga for the purposes of clause (46) of section 10 of the Income-tax Act, 1961

MANU/CBDT/0023/2024

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, 'National Mission for Clean Ganga', New Delhi (PAN AABAN3769K), an Authority constituted under the River Ganga (Rejuvenation, Protection and Management) Authority Order, 2016, in respect of the following specified income arising to that Authority, namely:

(a) Grants-in-Aid received from Government of India; and

(b) Interest earned on bank deposits.

2. This notification shall be effective subject to the conditions that National Mission for Clean Ganga, New Delhi-

(a) shall not engage in any commercial activity;

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

3. This notification shall be deemed to have been applied for assessment years 2021-2022, 2022-2023 and 2023-2024 relevant for the financial years 2020-2021, 2021-2022 and 2022-2023 respectively.

Tags : National Mission Clean Ganga Authority

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