1. NPA RESOLUTION NOT TO LIQUIDATE THE COMPOANY BUT TO HELP SAVE THEM: Finance Minister Mr. Arun Jaitly has said that the new insolvency law has significantly reversed the defaulting debtor-creditor relationship. He has assured the stressed firms that the key objective of NPA resolution is not to liquidate their business but to save them. The main objective is not to liquidate their assets but to save their businesses and make sure that these valuable assets are preserved.
2. INCOME TAX DEPARTMENT PLANS TO PURSUE PROPERTY HOLDERS WHO HAVE NEVER FILED INCOME TAX RETURNS:The Income tax Department has said that the government has collected vast data from various sources on the investments in property by people who have never filed tax returns. This information will be verified to ascertain the source of income used by these people for purchase of the properties and to see if these are being held by benami owners. The exercise is part of government’s crackdown on black money.
3. MUTUAL FUNDS PIP FOREIGN INSTITUTIONAL INVESTORS: As per August 17th data Mutual Funds (MFs) have surpassed Foreign Investment Investors (FIIs) in net investments in Indian Stocks. MFs have accelerated their investments in stocks since April this year on a surge in subscriptions in equity schemes.
4. NPA RESOLUTION= RBI CHIEF CALLS FOR RECAPITALISATION OF BANKS AT THE EARLIEST: Reserve Bank of India Chairman Sri Urjit Patel has called for recapitalisation of state run Banks to help them resolve the NPA issue in a time bound manner. State run Banks gross NPA has reached 9.6% of the total loans disbursed and stressed advances ratio at 12% as of March 2017,which is very much alarming.
5. CABINET APPROVES PLANS TO MERGE STATE RUN BANKS:India’s federal cabinet has given an in-principle approval for the consolidation of state-run banks by merging some of the PSU The cabinet has decided to set up a commission and the commission will submit a report within 12 weeks.
6. Rs 200 NOTES NOTIFIED, LIKELY TO BE RELEASED SOON: Rs 200 notes could make their debut in to Indian economy in the last week of August as the government has notified the new currency note. Experts say that the Rs 200 notes will significantly ease transactions.
7. SBI CHIEF SAYS MERGER OF BANKS CAN REDUCE BANKS’ NEED FOR GOVERNMENT CAPITAL: State Bank of India Chairperson Ms Arundhati Bhattacharya has called for more consolidation of state run PSU banks as this could reduce their dependence on government for capital. According to Ms Bhattacharya, the merger of state run banks should open up more capital generation avenues, both internally and from the market.
8. PSBs TO GET FIRST TRANCHE OF FUNDS FROM THE GOVERNMENT BY SEPTEMBER END: State run banks are likely to get the first tranche of government funds for recapitalisation by the end of September 2017. The government has earlier announced that the funds will be released in three tranches before March 2018.