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<keyword id="1549446" type="COMPANY" weightage="20" keywordseo="The-Finance-Ministry">The Finance Ministry</keyword> will soon come up with a fresh round of <keyword id="114291" type="PERSON" weightage="20" keywordseo="economic-stimulus">economic stimulus</keyword>, <keyword id="10216112" type="UNKNOWN" weightage="20" keywordseo="economic-affairs-secretary-tarun-bajaj">Economic Affairs Secretary Tarun Bajaj</keyword> said on Tuesday. Addressing the media here, he said that <keyword id="10216113" type="COMPANY" weightage="20" keywordseo="the-department-of-finance">the Department of Finance</keyword> has received suggestions and discussions are on in the ministry regarding the next set of measures amid the pandemic. It will be announced by Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword>, he said. Bajaj's statement comes just over a week after he said that the Centre is open for further measures to boost the economy. Last month, the Finance Minister had also said that the Centre has not closed the option for another stimulus package. In May, the government came up with the much talked-about Rs 20 lakh crore 'Aatmanirbhar Bharat' economic package. Both the rounds of stimulus so far have received more flak than appreciation from the industry and experts, as many are of the opinion that they are inadequate, more so in terms of boosting demand. A recent Moody's report said that that the second round of fiscal stimulus amounts to just 0.2 per cent of the country's real GDP forecast for the financial year 2021 and in total, the two rounds of stimulus bring the government's direct spending on coronavirus-related fiscal support to just around 1.2 per cent of GDP. SEE ALSO: <a href="https://www.businessinsider.in/policy/foreign-policy/news/donald-trump-vs-joe-biden-us-election-result-and-relations-with-india-and-pm-modi/articleshow/79022098.cms">If Joe Biden wins, he’ll be the third US president to deal with Modi — Here’s how that could play out</a> <a href="https://www.businessinsider.in/defense/news/malabar-exercise-kicks-off-today-with-the-quad-countries-reuniting-after-over-a-decade/articleshow/79018677.cms">Malabar Exercise kicks off today with the QUAD countries reuniting after over a decade</a> <a href="https://www.businessinsider.in/careers/news/tcs-infosys-hcl-tech-and-others-to-see-more-freshers-than-lateral-hires-in-the-next-six-months/articleshow/79014794.cms">TCS, Infosys, HCL Tech, and others to see more freshers than lateral hires in the next six months</a>

India plans to announce another round of economic stimulus soon, says Economic Affairs Secretary

The government has appointed Economic Affairs Secretary <keyword id="947916" type="PERSON" weightage="20" keywordseo="Tarun-Bajaj">Tarun Bajaj</keyword> as a director on the <keyword id="4101192" type="COMPANY" weightage="20" keywordseo="central-board-of-reserve-bank-of-india">central board of Reserve Bank of India</keyword> (RBI). <keyword id="6358511" type="DOMAIN" weightage="20" keywordseo="Bajaj">Bajaj</keyword> replaces Atanu Chakraborty, who retired on April 30. "The Central Government has nominated Tarun Bajaj, Secretary, Department of Economic Affairs, Ministry of Finance, Government of India as a Director on the Central Board of Reserve Bank of India vice Atanu Chakraborty," RBI said in a statement on Wednesday. The nomination of Bajaj is effective from May 5 and until further orders, it said. Prior to taking over as Economic Affairs Secretary, Bajaj, a 1988 batch IAS officer, was the Additional Secretary in Prime Minister's Office. Before joining the Prime Minister's Office in 2015, Bajaj was Joint Secretary in Economic Affairs Department, looking after multilateral funding agencies division. He worked as Joint Secretary and Director in the <keyword id="175408" type="COMPANY" weightage="20" keywordseo="department-of-financial-services">Department of Financial Services</keyword>. As a Joint Secretary in the Department of Financial Services for four years, he was looking after the insurance division. DP DRRDRR

Central Government appoints Tarun Bajaj as Director on RBI Central Board

Prime Minister Narendra Modi will chair <keyword id="10217999" type="COMPANY" weightage="20" keywordseo="the-virtual-global-investor-roundtable">the Virtual Global Investor Roundtable</keyword> (VGIR) on Thursday. The VGIR will be organised by <keyword id="10037803" type="COMPANY" weightage="20" keywordseo="the-union-ministry-of-finance">the Union Ministry of Finance</keyword> and the National Investment and Infrastructure Fund. It is a dialogue between leading global institutional investors, Indian business leaders and the highest decision makers from the government of India and financial market regulators. Union Finance Minister Nirmala Sitharaman, Union Minister of State for Finance <keyword id="6364468" type="PERSON" weightage="20" keywordseo="anurag-thakur">Anurag Thakur</keyword>, RBI Governor Shaktikanta Das and other dignitaries will also be present on the occasion. The roundtable will witness participation from 20 of the world's largest pension and sovereign wealth funds with a total assets under management (AUM) of about $6 trillion. These global institutional investors represent key regions including the US, Europe, Canada, Korea, Japan, Middle East, Australia and Singapore. Some of these include funds like Singapore's Temasek Holdings, Canadian Investment Fund, Korean funds, JBIC, Australian Super etc. The event will witness the participation of key decision makers of these funds, i.e., the CEOs and CIOs. Some of these investors would also be engaging for the first time with the government of India. Apart from global investors, the roundtable will also see the participation of several top Indian business leaders. Addressing the media here, Economic Affairs Secretary Tarun Bajaj said that Ratan Tata, <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>, Nandan Nilekani, Deepak Parekh, <keyword id="45051" type="PERSON" weightage="20" keywordseo="Uday-Kotak">Uday Kotak</keyword> and Dilip Sanghvi will be the major Indian business personalities present at the roundtable to provide the Indian perspective on investments and opportunities. The event will focus on discussions around India's economic and investment outlook, structural reforms and the government's vision for the path to a $5 trillion economy. The event will provide an opportunity to leading global investors and Indian business leaders to engage and deliberate with senior policymakers on how to further accelerate the growth of international investments in India. Further, in the next two weeks, the Prime Minister will also meet global investors on a one-to-one basis virtually. The upcoming roundtable and the following meetings are part of the government's push to attract foreign investments and boost the economy. SEE ALSO: <a href="https://www.businessinsider.in/politics/world/news/2020-election-see-insiders-comprehensive-guide-to-the-presidential-and-top-congressional-races/articleshow/78878848.cms" data-type="tilCustomLink">LIVE RESULTS: 2020 presidential and key congressional races</a> <a href="https://www.businessinsider.in/business/news/jack-ma-ant-group-ipo-listing-has-been-suspended-by-the-shanghai-stock-exchange/articleshow/79022502.cms" data-type="tilCustomLink">China suspends Jack Ma’s $34 billion Ant Group listing — citing changes in regulatory environment</a>

Ratan Tata, Mukesh Ambani and Uday Kotak to be a part of PM Modi's Virtual Global Investor Roundtable on Thursday

In yet another boost to the Micro, Small and Medium Enterprises (<keyword id="6358354" type="ORGANIZATION" weightage="20" keywordseo="MSME">MSME</keyword>) sector, the government has signed a loan agreement worth $200 million with the <keyword id="6354424" type="ORGANIZATION" weightage="20" keywordseo="World-Bank">World Bank</keyword> (IBRD) for Technology Centre System Programme (TCSP) project. The project aims to improve MSME’s access to better technology and business advisory services as well as improve skill development for workers through financially sustainable technology centres, which would lead a substantial increase in the productivity. 
	 
	“TCSP is for setting-up of 15 new Technology Centres (TCs) and to modernize and upgrade existing 18 TCs at an estimated cost of Rs. 2200 crore (US$ 400 million) including World Bank assistance of US$ 200 million”, said the Ministry of Finance in a statement. 
	 
	It further added that the project has been divided into three levels which include technical assistance to the TCs, making investment to upgrade and develop the existing TCs and lastly providing technical assistance to the MSME Ministry for implementation, monitoring and evaluation of the project. 
	 The agreement was signed by Onno Ruhl, Country Director (India), World Bank and Tarun Bajaj, Joint Secretary, <keyword id="144110" type="ORGANIZATION" weightage="20" keywordseo="Department-of-Economic-Affairs">Department of Economic Affairs</keyword>. The loan has been extended for a period of five years.

India Signs Loan Agreement With World Bank

<keyword id="104359" type="General" weightage="20" keywordseo="Income-tax-return" source="Orion">Income tax return</keyword> forms from next year will have a separate column for making disclosures on gains made from cryptocurrencies and paying taxes, Revenue Secretary Tarun Bajaj said on Wednesday. The government will from April 1 charge a 30 per cent tax plus cess and surcharges, on such transactions in the same manner as it treats winnings from horse races or other speculative transactions. <cmsannotation type="cmsannotation" annotationid="wazirx" comment="wazirx" text="wazirx">wazirx</cmsannotation> In an interview with PTI, Bajaj said gains from cryptocurrencies were always taxable and what the Budget proposed is not a new tax but providing certainty over the issue. "The provision in the Finance Bill is related to taxation of virtual digital assets. It is to bring certainty in taxation of cryptocurrencies. It does not convey anything on its legality which would come out once the Bill (on regulating such assets) is introduced in Parliament," he said. The government is working on legislation to regulate cryptocurrencies, but no draft has yet been released publicly. In the meanwhile, a central bank-backed digital currency will start circulating in the next fiscal to usher in cheaper, more efficient currency management. The 30 per cent plus applicable cesses and surcharge of 15 per cent on income above Rs 50 lakh will have to be paid on income from cryptocurrencies, he said adding the income tax return form from next year will have a separate column to declare gains from crypto. "Next year <keyword id="6374875" type="General" weightage="20" keywordseo="itr" source="Orion">ITR</keyword> form will show a separate column for crypto. Yes, you will have to disclose," he said. The launch of 'Digital Rupee' by <keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword> as well as a 30 per cent tax from April 1 on profits from digital asset transactions, including cryptocurrencies and non-fungible tokens (NFTs) was announced by Finance Minister <keyword id="129243" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> in her budget speech on Tuesday, as the country keeps pace with the global move toward virtual financial instruments. "The Government was very clear that it has to push for a tax on income from crypto assets. So we have brought in maximum rate and levied 30 per cent, with an applicable surcharge. We have also brought in TDS, so we will now track the transactions," Bajaj said. The Budget 2022-23 also proposed a 1 per cent TDS on payments towards virtual currencies beyond Rs 10,000 in a year and taxation of such gifts in the hands of the recipient. The threshold limit for TDS would be Rs 50,000 a year for specified persons, which include individuals/HUFs who are required to get their accounts audited under the I-T Act. The provisions related to 1 per cent TDS will come into effect from July 1, 2022, while the gains will be taxed effective April 1. Also, no deduction in respect of any expenditure or allowance shall be allowed while computing income from transactions in such assets. It has also specified that losses from the transfer of virtual digital assets will not be allowed to be set off against any other income. No deduction has been allowed since cryptocurrencies and virtual digital assets do not have any economic value, except the underlying technology, Bajaj said. The crypto market in India grew 641 per cent in the year through June 2021, according to an October report by industry research firm Chainalysis. "It was always taxable, I am not saying it's not a new tax, I'm bringing certainty in tax. Now if you show crypto in the ITR form, you will have separate head crypto and it will charge you 30 per cent tax," he said, adding that the message behind the Budget announcement is that crypto is taxable. Gains from crypto are chargeable to income tax even at present, Bajaj said, adding the Assessing Officer will assess the ITR based on crypto income that the assessee has shown. "If somebody says it's a long-term capital gains tax (LTCG), he may say no it's not LTCG tax, it is a business income and hence liable to 30 per cent tax," he said. With regard to taxability of cryptocurrency prior to April 1, 2022, Bajaj said, "For transactions before April 1 you will show in some head in your ITR and the Assessing Officer will do an assessment for you". Giving example, he said currently trading in the derivative is not considered as investment or capital gain but is treated as business income. "The Assessing Officer will take a call on what head crypto gains should be charged," the Secretary said. Bajaj said the new currency that RBI will bring will also have the underlying blockchain technology. "So, what we are also saying is that since it doesn't have economic value, we will not allow set-off of losses or carry off loses." Bajaj said currently some people are showing crypto gains as income and paying taxes, but some people are not doing it. With TDS provision introduced, transaction information will reach tax department automatically. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/ether-cardano-and-solana-surge-in-trade-most-altcoins-in-the-green/slidelist/89289934.cms">Ether, Cardano and Solana surge in trade, most altcoins in the green</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tata-motors-maruti-suzuki-tech-mahindra-hdfc-and-other-hot-stocks-on-february-2/slidelist/89287937.cms">Tata Motors, Maruti Suzuki, Tech Mahindra, HDFC and other hot stocks on February 2</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/china-may-not-like-cryptocurrencies-but-is-pushing-blockchain-across-164-cities-companies-and-other-entities/articleshow/89246924.cms">China may not like cryptocurrencies but is pushing blockchain across 164 cities, companies and other entities</a>

Income tax return form will have a whole new column just for crypto next year

New Delhi, The <keyword id="2734036" type="PERSON" weightage="20" keywordseo="halwa-ceremony">Halwa ceremony</keyword>, marking the final stage of the Budget making process, was held in North Block on Saturday afternoon in the presence of <keyword id="309842" type="COMPANY" weightage="20" keywordseo="Union-Finance">Union Finance</keyword> and Corporate Affairs Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword>. A customary Halwa ceremony is performed every year before the "lock-in" process of the Budget preparations gets underway. This normally happens around middle of January when the exercise to finalise and print budget details starts in the basement of North Block. This year, as the budget is going paperless, the ceremony got delayed since the need for lock-in is not required. The <keyword id="6360189" type="COMPANY" weightage="20" keywordseo="union-budget">Union Budget</keyword> 2021-22 is to be presented on February 1. The Halwa is prepared in a large utensil in the presence of <keyword id="47209" type="COMPANY" weightage="20" keywordseo="Finance-Ministry">Finance Ministry</keyword> officials, including ministers, and sharing the sweet dish is considered auspicious before starting any good work. Due to the Covid-19 pandemic, there was question mark over the ceremony this year. On the occasion, the Finance Ministry also launched the 'Union Budget Mobile App' for hassle-free access to Budget documents by the MPs and the general public using the simplest form of digital convenience. The app facilitates complete access to 14 Union Budget documents, including the Annual Financial Statement (commonly known as Budget), Demand for Grants (DG), Finance Bill etc. as prescribed by the Constitution. The Budget documents will be available on the app after the completion of the Budget speech by the Finance Minister on February 1. At the Halwa ceremony, Sitharaman was accompanied by Union Minister of State for Finance &amp; Corporate Affairs Anurag Singh Thakur; A.B. Pandey, Finance Secretary &amp; Secretary (Revenue); T.V. Somanathan, Secretary, Expenditure; Tarun Bajaj, Secretary, Economic Affairs; Tuhin Kanta Pandey, Secretary, DIPAM; Debashish Panda, Secretary, Financial Services; K.V. Subramanian, Chief Economic Advisor; Rajat Kumar Mishra, Additional Secretary (Budget) and other officials of the Finance Ministry. Later, Sitharaman reviewed the status of the compilation of the Union Budget 2021-22 and extended her best wishes to the officials concerned. SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/recession-in-india-will-end-latest-by-march-says-a-top-economist/articleshow/80399198.cms">Recession in India will end latest by March, says a top economist</a> <a href="https://www.businessinsider.in/tech/news/amazfit-smartwatch-gts-2-review-feature-rich-but-theres-still-room-for-improvement/articleshow/80398998.cms">Amazfit GTS 2 review – feature-rich, but there’s still room for improvement</a> <a href="https://www.businessinsider.in/tech/apps/news/whatsapp-to-soon-introduce-voice-and-video-calls-for-web-multi-device-support-jiomart-integration-and-more/articleshow/80398791.cms">WhatsApp to soon introduce voice and video calls for Web, multi-device support, JioMart integration and more</a>

Final stage of Budget 2021-22 commences with Halwa ceremony

New Delhi, Dec. With the union budget-making process getting underway, <keyword id="7706673" type="UNKNOWN" weightage="20" keywordseo="finance-minister-nirmala-sitharaman">Finance Minister Nirmala Sitharaman</keyword> held her first pre-budget consultation with top industrialists on Monday. The meeting assumed importance as it would bring <keyword id="6354887" type="UNKNOWN" weightage="20" keywordseo="Industry">industry</keyword> and government together to identify <keyword id="7848060" type="UNKNOWN" weightage="20" keywordseo="Critical-Areas">critical areas</keyword> of <keyword id="6473198" type="UNKNOWN" weightage="20" keywordseo="reform">reform</keyword> that would pave the way for reinvigorating growth in the economy hit hard by the pandemic this year. The ideas from the industry would go as valuable inputs for government budgetary exercise for FY22. Sources said that the who's who of India Inc., including Uday Kotak from Kotak Mahindra Bank, Biocon's Kiran Majumdar Shaw attended the meeting organised through video conferencing. Along with Finance Minister, Finance Secretary A.B. Pandey, Secretary, DEA, Tarun Bajaj, Chief Economic Advisor K. Subramanian besides other senior officials were also present in the meeting. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-future-retail-power-grid-cipla-delta-corp-yes-bank-adani-power-and-others/articleshow/79713824.cms">Top stocks to watch — Future Retail, Power Grid, Cipla, Delta Corp, Yes Bank, Adani Power and others</a> <a href="https://www.businessinsider.in/stock-market/news/burger-king-india-shares-nearly-doubles-on-listing-debut-pushes-valuation-past-4000-crore/articleshow/79715269.cms">Burger King India shares nearly doubles on listing — debut pushes valuation past ₹4,000 crore</a> <a href="https://www.businessinsider.in/business/startups/news/the-difference-between-doordash-zomato-and-swiggy-is-not-in-what-the-companies-do-its-where-they-do-it/articleshow/79715531.cms">The difference between DoorDash and Indian peers Zomato and Swiggy is not in what the companies do⁠ — it’s where they do it</a>

Finance Minister Nirmala Sitharaman holds the first round of pre-budget talks with top industrialists

<ul><li>The <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (<keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>) has postponed the upcoming meeting of <keyword id="6375120" type="ORGANIZATION" weightage="20" keywordseo="monetary-policy-committee">Monetary Policy Committee</keyword> (MPC).</li><li>The new dates will be announced ‘shortly’, according to the notice issued by India’s apex bank. </li><li>The government is yet to announce its new nominations for the committee with the tenure of the current external members — Ravindra Dholakia, Pami Dua and Chetan Gate — set to expire on September 30. </li></ul>The Reserve Bank of India (RBI) has postponed the meeting of the Monetary Policy Committee (MPC) that was scheduled to take place starting September 29 through to October 1. The new dates will be announced ‘shortly’, according to the <a href="https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR40014EDCE17EA504028927F4652FE40441B.PDF">RBI’s notice.</a> Even though the central bank did not specify why it had to push the meeting forward, it’s likely because the new members of the MPC haven’t been announced yet. The tenure for three of the external members — Ravindra Dholakia, Pami Dua and Chetan Gate — is set to expire on September 30. Government yet to announce MPC’s new faces The MPC consists of 6 members. Three members are from the central bank and the other three are external — nominated by the government. The central government members each hold a term of four years from the date of appointment and are not eligible for re-appointment. The MPC recently replaced Janak Raj, an executive director at the RBI and MPC member who retired in June, with Mridul Saggar. The RBI had earlier approached the government to extend the tenure for these three till 31 March 2021 in view of the coronavirus pandemic. But, the government turned the request down. A panel headed by the Department of Economic Affairs secretary Tarun Bajaj is currently on the lookout for new eligible candidates. The search committee also includes RBI Governor Shaktikanta Das. However, the government is yet to announce the new names for external MPC members. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/sbi-warns-customers-to-beware-of-whatsapp-calls-and-scam-messages/articleshow/78361332.cms">SBI warns customers to beware of WhatsApp calls and scam messages</a> <a href="https://www.businessinsider.in/finance/banks/news/banks-stocks-hdfc-icici-sbi-kotak-mahindra-indusind-react-to-sc-verdict-on-moratorium/articleshow/78358550.cms">Bank stocks gain as Supreme Court defers verdict on loan moratorium case to October 5</a> <a href="https://www.businessinsider.in/tech/apps/news/free-calls-on-google-meets-will-be-limited-to-60-minutes-starting-september-30/articleshow/78360190.cms">Free calls on Google Meets will be limited to 60 minutes starting September 30</a> <a href="https://www.businessinsider.in/finance/banks/news/supreme-court-inclined-to-excuse-moratorium-interest-on-interest-as-it-gives-the-government-another-two-weeks-to-file-detailed-affidavit/articleshow/78033878.cms">Loan moratorium — Supreme Court gives government till Thursday to file affidavit, next hearing scheduled for October 5</a>

RBI postpones Monetary Policy meeting as the hunt for three new MPC members continues

New Delhi, May 28 () Finance Minister Nirmala Sitharaman on Thursday reviewed the state of the economy at the meeting of the Financial Stability and Development Council (FSDC), in view of disruptions caused by the COVID-19 pandemic. This was the first meeting of the FSDC, which comprises RBI Governor and other financial sector regulators, since the coronavirus outbreak. The 22nd meeting of the FSDC, which was held via video conferencing, assumes a greater significance considering that the economy is expected to contract by 5 per cent by some estimates amid the virus crisis. Various measures to maintain financial stability in the context of COVID-19 have been reviewed, an official said after the meeting. The meeting also took note of the activities undertaken by the FSDC Sub-Committee chaired by RBI Governor Shaktikanta Das and the initiatives taken by the various regulators in the financial sector. The FSDC is the apex body of sectoral regulators, headed by the finance minister. Besides the RBI governor, SEBI chief Ajay Tyagi, IRDAI chairman Subhash Chandra Khuntia, Insolvency and Bankruptcy Board of India (IBBI) chairman M S Sahoo and PFRDAI chairman Supratim Bandyopadhyay were present in the meeting. Economic Affairs Secretary Tarun Bajaj, Revenue Secretary Ajay Bhushan Pandey, Financial Services Secretary Debasish Panda and other top officials of the finance ministry also attended the meeting. This was be the third meeting of the FSDC after the Narendra Modi government returned for the second term in May last year. The RBI last week said the impact of COVID-19 is more severe than anticipated and the GDP growth during the current financial year is likely to remain in the negative territory. It projected some pick-up in growth impulses from the second half (October-March) of 2020-21 onwards. On Tuesday, rating agencies Fitch and Crisil drastically cut India's economic growth forecast for the current fiscal year due to a prolonged lockdown. Fitch forecast 5 per cent contraction in 2020-21, a sharp decline from 0.8 per cent growth projected by the global rating agency in late April. Crisil also predicted the economy to shrink by 5 per cent in the current fiscal. Earlier, it projected a growth of 1.8 per cent. Earlier this month, the government announced about Rs 21 lakh crore stimulus package to help the nation tide over the economic crisis induced by the coronavirus and the lockdown to curb its spread. The mega economic package includes the Reserve Bank's Rs 8.01 lakh crore worth of liquidity measures. Sitharaman had announced this economic package in five tranches, which included a Rs 3.70 lakh crore support for MSMEs, Rs 75,000 crore for NBFCs and Rs 90,000 crore for power distribution companies. Besides, free foodgrains to migrant workers, increased allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), tax relief to certain sections and Rs 15,000 crore allocation to the healthcare sector to deal with the pandemic, were also announced as part of the economic package. DP MKJ

FM chairs FSDC meeting, takes stock of economy amid COVID-19

<ul><li><keyword id="44734" type="ORGANIZATION" weightage="20" keywordseo="Indian-Government">Indian government</keyword>’s plan for borrowing remains unchanged for the rest of the year. </li><li>The Department of Economic Affairs intimated that the target will remain at ₹12 lakh crore. </li><li>The <keyword id="6357307" type="UNKNOWN" weightage="20" keywordseo="Central-Government">central government</keyword> has borrowed ₹7.7 lakh crore so far and has another ₹4.3 lakh crore left in its kitty. </li></ul>India’s Department of Economic Affairs is maintaining the status quo as far as the <keyword id="979884" type="PERSON" weightage="20" keywordseo="borrowing-calendar">borrowing calendar</keyword> is concerned. "We have decided to continue with the same figure of ₹12 trillion for the total year. Which means our borrowing for second would be ₹4.34 lakh crore or 36.1% of the 12 trillion to be borrowed for the whole year," said DEA secretary Tarun Bajaj during the press briefing. Due to the coronavirus pandemic, India saw poor receipts, and government spending had to be stepped up simultaneously. The borrowing target was raised to ₹12 lakh crore in May this year. Even then, there’s money left over — a point that some experts criticise. In the first quarter, the central government issued dated securities worth ₹3.46 lakh crore as compared to ₹2.2 lakh crore in the same time period, the previous year. In the second quarter, its borrowing through dated papers hit ₹3.6 lakh crore. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Time period </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dated securities issued </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY 2020-21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3.46 lakh crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 FY 2020-21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3.6 lakh crore </td></tr></tbody></table> This means the central government has already borrowed around ₹7.7 lakh crore in the first half and has ₹4.3 lakh crore left over for the second half of the fiscal year. Addressing the fiscal deficit The central government’s way and means advances (WMA) limit has also been trimmed down to ₹1.25 lakh crore from ₹2 lakh crore earlier. The bigger concern right now is that across sectors and states the fiscal deficit is going to be larger than expected this year. “It could be over 14% or even 15% of the GDP,” estimated SPJIMR professor Ananth Narayan in conversation with <a href="https://www.pscp.tv/w/1YqGoRQQLnkKv">CNBC TV18.</a> According to him, merely putting a stop to borrowing will not be enough to deal with the increasing burden. More fiscal stimulus and more money coming in will be required to handle the deficit. In the coming months, key factors that will determine the country’s spending include incoming tax receipts, the ‘China’ factor, and how much it may have to shell out for a COVID-19 vaccine as the number of cases continue to rise across the country. Last year, the government had to resort to the 'escape clause' in the Fiscal Responsibility and Budget Management (FRBM) Act for deviating from the fiscal deficit target to 3.8% from the estimate of 3.3% for 2019-20. The 'escape clause' gives the government an out. It is allowed to breach its fiscal deficit target by 0.5% in times of severe stress in the economy, including periods of structural change and those when growth falls sharply. SEE ALSO: <a href="https://www.businessinsider.in/india/news/babri-masjid-demolition-case-cbi-special-court-acquits-all-accused-judge-says-demolition-was-not-pre-planned/articleshow/78401534.cms">Babri Masjid demolition case: CBI Special Court acquits all accused, judge says ‘demolition was not pre-planned’</a> <a href="https://www.businessinsider.in/india/news/rbi-records-its-largest-ever-current-account-surplus-but-thats-not-necessarily-a-good-thing/articleshow/78403696.cms">RBI records its largest-ever current account surplus — but that’s not necessarily a good thing</a> <a href="https://www.businessinsider.in/tech/enterprise/news/airtel-launches-new-cybersecurity-product-with-cisco-radware-vmware-and-forcepoint-for-enterprises-it-took-100-crore-and-over-a-year-to-set-up/articleshow/78403006.cms">Airtel launches new cybersecurity product with CISCO, Radware, VMware, and Forcepoint for enterprises — it took ₹100 crore and over a year to set up</a>

India leaves borrowing calendar unchanged — sticks to its ₹12 lakh crore target for the year

(Eds: Adding details) New Delhi, May 28 () Finance Minister Nirmala Sitharaman on Thursday reviewed the state of the economy at the meeting of the Financial Stability and Development Council (FSDC), in view of disruptions caused by the COVID-19 pandemic. This was the first meeting of the FSDC, the apex body of sectoral regulators headed by the finance minister, since the coronavirus outbreak. The 22nd meeting of the council, held via video conferencing, assumes a greater significance considering that the economy is expected to contract by 5 per cent by some estimates amid the virus crisis. The FSDC, which also comprises RBI Governor and other financial sector regulators, underlined the need to continue with measures to address the liquidity and capital requirements of the financial sector. Among the issues discussed were: the current global and domestic macro-economic situation; financial stability and vulnerabilities; challenges likely to be faced by banks and other financial institutions; regulatory and policy responses; solvency matters of financial firms, etc, according to a finance ministry statement. Besides, market volatility, domestic resource mobilisation and capital flows issues were also discussed by the council, it said. The council noted that the COVID-19 pandemic crisis poses a serious threat to the stability of the global financial system as the ultimate impact of the crisis and the timing of recovery is uncertain at this point of time, it said."While, decisive monetary and fiscal policy actions aimed at containing the fallout from the pandemic have stabilised investor sentiment in the short-run, there is a need to keep a continuous vigil by the government and all regulators on the financial conditions that could expose financial vulnerabilities in the medium and long-term," the ministry said. The statement further said that the efforts of the government and regulators are focused on avoiding a prolonged period of dislocation in financial markets. The RBI last week said the impact of COVID-19 is more severe than anticipated and the GDP growth during the current financial year is likely to remain in the negative territory. It projected some pick-up in growth impulses from the second half (October-March) of 2020-21 onwards. The council also reviewed the action taken by members on the decision taken by the FSDC earlier. The council took note of the initiatives taken by the government and the regulators in the recent months to help revive the economy. The government and the RBI have announced various fiscal and monetary measures to pre-emptively limit the economic damage and would continue to address the liquidity and capital requirements of the financial institutions. Earlier this month, the government announced about Rs 21 lakh crore stimulus package to help the nation tide over the economic crisis induced by the coronavirus and the lockdown to curb its spread. The mega economic package includes the Reserve Bank's Rs 8.01 lakh crore worth of liquidity measures. Sitharaman had announced this economic package in five tranches, which included a Rs 3.70 lakh crore support for MSMEs, Rs 75,000 crore for NBFCs and Rs 90,000 crore for power distribution companies. Besides, free foodgrains to migrant workers, increased allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), tax relief to certain sections and Rs 15,000 crore allocation to the healthcare sector to deal with the pandemic, were also announced as part of the economic package. Besides the RBI governor, SEBI chief Ajay Tyagi, IRDAI chairman Subhash Chandra Khuntia, Insolvency and Bankruptcy Board of India (IBBI) chairman M S Sahoo and PFRDAI chairman Supratim Bandyopadhyay were present in the meeting. Economic Affairs Secretary Tarun Bajaj, Revenue Secretary Ajay Bhushan Pandey, Financial Services Secretary Debasish Panda and other top officials of the finance ministry also attended the meeting. DP MKJ

FM chairs FSDC meeting, takes stock of economy amid COVID-19 crisis

<ul><li>Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> introduced two schemes today to boost consumer spending in the Indian economy — the <keyword id="10092993" type="UNKNOWN" weightage="20" keywordseo="LTC-cash-voucher-scheme">LTC Cash Voucher Scheme</keyword> and the <keyword id="10092992" type="UNKNOWN" weightage="20" keywordseo="special-festival-advance-scheme">Special Festival Advance Scheme</keyword>. </li><li>The LTC Cash Voucher Scheme divides the LTC fare component into three flat-rate slabs.</li><li>The new scheme will let employees use their fare allowance to purchase goods with 12% GST or more.</li></ul>Finance Minister Nirmala Sitharaman is introducing new proposals to ‘stimulate demand in the economy’. According to her, the government’s previous policies addressed the needs of the poor. This time, the proposals are divided into two categories — consumer spending and capital expenditure. “Supply constraints have somewhat eased, but consumer demand still needs to be given a bit of a boost,” she said. Within consumer spending, there are two components — Leave Travel Consession (LTC) Cash Voucher Scheme and the Special Festival Advance Scheme. The Special Festival Advance Scheme was a part and parcel of government employees pay package up until the 6th Pay Commission. It’s introduction this year is a one-time come back to boost spending. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td colspan="2" style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Impact of LTC Cash Voucher scheme: </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cost to central government </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5,675 core </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cost to PSBs and PSUs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,900 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Expected demand infusion by central government employees </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹19,000 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Expected demand infusion by state government employees </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹9,000 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total expected addition consumer demand generation </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹28,000 </td></tr></tbody></table> "Our estimates are on the conservative side. We expect actual spend to be higher," said Economic Affairs Secretary Tarun Bajaj. LTC Cash Voucher Scheme The new LTC Cash Voucher Scheme divides the LTC fare component into three flat-rate slabs depending on the class on entitlement. Any fare payment will continue to be tax free. According to Sitharaman, savings have increased due to lockdown especially. “We would like to incentivise them to contribute to the revival of demand for the benefit of the less fortunate,” said Sitharaman. Employees can use their LTC money to buy goods and services worth three times the fare and one time leave encashment before 31 March 2021. However, the money must be spent on goods with GST of 12% or more from a registered vendor through digital mode — no cash transactions. Employees will be required to produce GST invoices. Special Festival Advance Scheme The revival of the Special Festival Advance Scheme will not be limited by rank or post, but be available to all central government employees. The amount has also been bumped up to ₹10,000 per person as compared to ₹4,500 in its last iteration. It will be distributed as a Rupay prepaid card and be available until 31 March 2021. Employees will be able to pay back the loan in 10 instalments. SEE ALSO: <a href="https://www.businessinsider.in/science/space/news/china-launches-earth-observation-satellite-amid-border-tensions-with-india/articleshow/78613147.cms">China launches Earth observation satellite amid border tensions with India</a> <a href="https://www.businessinsider.in/india/news/massive-power-cut-reported-across-mumbai-discom-points-finger-at-tatas/articleshow/78613787.cms">Massive power cut across Mumbai due to grid failure —electricity restored in certain areas</a> <a href="https://www.businessinsider.in/policy/economy/news/sitharaman-offers-states-12000-crore-interest-free-for-the-next-50-years-if-they-can-spend-it-on-capital-projects-by-march-2021/articleshow/78616741.cms">Sitharaman offers states ₹12,000 crore interest-free for the next 50 years if they can spend it on capital projects by March 2021</a>

Finance Minister introduces LTC Cash Voucher Scheme and Special Festival Advance Scheme makes a one-time comeback

<ul><li>India’s upcoming <keyword id="6358021" type="ORGANIZATION" weightage="20" keywordseo="budget">budget</keyword> may set out a framework for setting up a <keyword id="6605010" type="UNKNOWN" weightage="20" keywordseo="bad-bank">bad bank</keyword> to handle the expected influx of bad loans post-pandemic.</li><li>According to the <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (<keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword>), gross non-performing assets (NPAs) could balloon to 14.8% by September under the worst-case scenario.</li><li>A bad bank would allow regular banks to sell their bad loans and focus on bringing in new business.</li></ul>India’s government owned banks like State Bank of India, Punjab National Bank and Bank of Baroda have a huge amount of bad loans. Anywhere from 16.2% to 17.6% of all the money that these public sector banks have lent are unlikely to return or are under stress. This may only get worse and which is why the proposal for a bad bank⁠, which will absorb all these sour loans, is back on the table ahead of the Union <keyword id="8420431" type="UNKNOWN" weightage="20" keywordseo="budget-2021">Budget 2021</keyword> scheduled on February 1. Even the RBI Governor Shaktikanta Das recently <a href="https://indianexpress.com/article/business/economy/shaktikanta-das-rbi-bad-loan-npas-banking-sector-7149385/">indicated </a>that the central bank is open to the idea of creating a bad bank. “If there’s a proposal to set up a bad bank, the RBI will look at it. We have regulatory guidelines for asset reconstruction companies,” Das said speaking at an event on January 16. <cmsannotation type="cmsannotation" annotationid="What is a bad bank?" comment="subhead" text="What is a bad bank?">What is a bad bank? </cmsannotation> If a bad bank is set up in the upcoming budget, it will have the power to purchase bad loans from banks at the market price. It acts as an aggregator of all the stressed assets in the banking system. This will allow the banks to clear their balance sheets and improve their fundraising capabilities. While the bad bank focuses on the resolution of bad loans, regular banks will be able to focus on bringing in new business. The Finance Ministry has <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/bad-banks-plan-back-on-table-to-tackle-npas/articleshow/80143468.cms?from=mdr">reportedly</a> reached out to stakeholders for inputs on the likely framework. <div type="image" title="Indian banks" msid="80343116" hostid="261"></div> <cmsannotation type="cmsannotation" annotationid="RBI itself is fearing that the amount of loans that may go bad is likely to rise" comment="subhead" text="RBI itself is fearing that the amount of loans that may go bad is likely to rise">RBI itself is fearing that the amount of loans that may go bad is likely to rise</cmsannotation> Indian banks are on the cusp of a fresh cycle of bad loans, and a setting up of a bad bank may be on the docket for Nirmala Sitharma’s ‘never-seen-before’ 2021 Budget. The Reserve Bank of India (RBI) has <a href="https://www.businessinsider.in/finance/banks/news/rbi-estimates-bad-loans-could-be-as-high-as-14-8-september-2021-in-the-worst-case-scenario/articleshow/80225314.cms">projected </a>that bad loans may hit 14.8% by September under the worst-case scenario — nearly double from the current 8.5%. <div type="image" title="RBI projected GNPA" msid="80343148" hostid="261"></div> The government is mulling the proposal of creating a bad bank to avoid excessive dependence on capital infusion. Thanks to the series of <a href="https://www.businessinsider.in/policy/economy/news/rbi-is-using-lessons-from-2008-financial-crisis-to-handle-the-covid-19-lockdown-effect-on-the-economy/articleshow/75039749.cms">measures</a> announced by the government as part of its ₹20 lakh crore stimulus package, and liquidity measures from the RBI through the pandemic, the banking system is flooded with excess liquidity right now. However, that may no longer be the case as the business environment gets tougher, while the demand for credit continues to stagnate, and bad loans continue to increase. <div type="image" title="RBI growth projections for key economies" msid="80343215" hostid="261"></div> This has implications for the banking sector as its balance sheet is linked with corporate and household sector vulnerabilities "We are looking at various options, including the option you mentioned [of a bad bank], and it is still in the works... The RBI has been asking us, and we ourselves also feel that we need to recapitalise. We have recapitalised to a large extent and this year too, we have kept some money for recapitalisation so that commitment is there," the Department of Economic Affairs (DEA) Secretary Tarun Bajaj <a href="https://www.business-standard.com/article/economy-policy/govt-exploring-setting-up-bad-bank-all-other-options-dea-secretary-120121801397_1.html">told</a> the Confederation of Indian Industries (CII) in December. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank group </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Liquidity coverage ratio as of 30 September 2020 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Public sector banks </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">181.83% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Private sector banks </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">148.35% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Foreign banks </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">201.32% </td></tr></tbody></table>Source: RBI Financial Stability Report <cmsannotation type="cmsannotation" annotationid="One bad bank or many" comment="subhead" text="One bad bank or many">One bad bank or many </cmsannotation> While the privatisation of banks — or at least the reduction of government stake in public banks — is currently on the cards as well, <a href="https://www.financialexpress.com/opinion/bad-bank-should-india-have-one/1980470/">experts believe</a> that an Indian bad bank should be spearheaded by the government until there’s a change in the status quo. Meanwhile, the industry body CII, has recommended that the government create multiple bad banks by allowing Alternate Investment Funds (AIFs) to buy bad loans. "Hitherto the NPAs have largely been sold to asset Reconstruction Companies (ARCs) only and mostly not for cash consideration which means that the sale price was not a ‘true sale’ since ARCs could pay through 'security receipts',” explained the Pre-Budget Memorandum 2021-22. Security receipts are an instrument where the payment is made only upon recovery of some money — a sort of participatory note. According to the RBI, outstanding security receipts currently stand at around ₹1.46 lakh crore and recovery is a mere 10-12%. Without recovery, there isn’t any cash going back to the banks. "The need of the hour is to increase avenues for ‘cash realisation’ against sale of loans and to increase avenues for capital to compete for such loans to maximize realisation for banks,” said the apex industry body. It proposes allowing AIFs and foreign portfolio investors (FPIs) to purchase bad loans and make the market more competitive with the asset reconstruction companies (ARCs). <cmsannotation type="cmsannotation" annotationid="Bad loans during COVID-19 and its aftermath" comment="subhead" text="Bad loans during COVID-19 and its aftermath">Bad loans during COVID-19 and its aftermath</cmsannotation> The stock market may have recovered but the true impact of COVID-19 on businesses is yet to emerge. For now, the onslaught of non-performing assets (NPAs) has been kept at bay due to the RBI’s <a href="https://www.businessinsider.in/personal-finance/news/interest-payments-on-home-loans-car-loans-and-others-extended-by-another-three-months-by-rbi/articleshow/75884387.cms">loan moratorium</a>, which was in place till 31 August 2020. The Supreme Court further put a stay in place to hear petitions requesting the extension of moratorium, compound interest accrued, possible restructuring and other matters with respect to issue. The apex court is <a href="https://www.businessinsider.in/finance/banks/news/supreme-court-reserves-judgement-on-loan-moratorium-case/articleshow/79777686.cms">yet to announce its verdict</a>. <div type="image" title="Quarterly slippage ratio" msid="80343230" hostid="261"></div> The timing seems right for the Finance Ministry to consider the creation of a ‘bad bank’ with the Indian banking system gearing up to deal with a spike in bad loans and assess the true extent of stressed assets post the pandemic. Sitharaman has a tall order to fill when it comes to banking reforms during this year’s budget with privatisation of banks and creating demand for credit also on the docket. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/indian-government-budget-dilemma-curb-the-sale-of-cigarettes-or-let-the-over-12-billion-tobacco-industry-provide-the-much-needed-cash/articleshow/80340422.cms">Indian government’s budget dilemma – curb the sale of cigarettes or let the over $12 billion tobacco industry provide the much needed cash</a>

You Searched For "economic affairs secretary tarun bajaj" and got 13 results

India plans to announce another round of economic stimulus soon, says Economic Affairs Secretary

IANS

Central Government appoints Tarun Bajaj as Director on RBI Central Board

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Ratan Tata, Mukesh Ambani and Uday Kotak to be a part of PM Modi's Virtual Global Investor Roundtable on Thursday

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India Signs Loan Agreement With World Bank

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Income tax return form will have a whole new column just for crypto next year

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Final stage of Budget 2021-22 commences with Halwa ceremony

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Finance Minister Nirmala Sitharaman holds the first round of pre-budget talks with top industrialists

IANS

RBI postpones Monetary Policy meeting as the hunt for three new MPC members continues

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FM chairs FSDC meeting, takes stock of economy amid COVID-19

PTI

India leaves borrowing calendar unchanged — sticks to its ₹12 lakh crore target for the year

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FM chairs FSDC meeting, takes stock of economy amid COVID-19 crisis

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Finance Minister introduces LTC Cash Voucher Scheme and Special Festival Advance Scheme makes a one-time comeback

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What is a bad bank and why are some people pushing for it ahead of Budget 2021?

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