- INCOME TAX RETURN FILING DEADLINE EXTENDED TO AUGUST 31: The Finance Ministry has announced the extension of Income Tax Return (ITR) filing deadline by a month to August 31ST Until last assessment year there was no penalty for delayed filing of ITR. But from Assessment Year 2018-19 there is a penalty of Rs 5,000/- for delayed filing of ITR till December 2018 and thereafter Rs 10,000/- If Total Income is less than Rs.5 lakhs then the penalty is Rs.1,000/- only.
- MULTI YEAR THIRD PARTY INSURANCE FOR VEHICLES: Last week Supreme Court gave a decision to have mandatory multi years third party insurance of two years for cars and five-years for two wheelers. This may lead to inflation adjusted pricing due to which consumers may have to shell out at least 10-12% more for their multi-year third party motor insurance.
- RBI RAISES REPO RATE BY 25 BASIS POINTS: The Reserve bank of India has raised the repo rate by 25 basis points (bps) to 6.5%. The bank lending rates may be hiked because of this in future. This is the second hike by RBI during this financial year. Loan rates have been going up for the past few months as banks are looking to protect their margins. With deposits growing up steadily there is a need for banks to increase the deposit interest rates as well.
- INDIA POST PAYMENTS BANK TO START OPERATIONS SOON WITH 650 BRANCHES: India Post Payments Bank (IPPB) is expected to go live with 650 branches across India with around 17 crore accounts by August 2018. RBI has given its approval to IPPB after testing its entire system. The final approval for the launch is pending before RBI. IPPB is the third entity to receive payments bank permit after Airtel and Paytm.
- PUBLIC SECTOR BANKS PLAN TO LINK PAY WITH PERFORMANCE: Senior Management staff of Public Sector Banks (PSBs) may now have to perform to earn more. In a first of its kind move for PSBs, SBI, Punjab National bank and Bank of Baroda are planning to introduce performance-linked pay. It will have a component of fixed and variable pay. But this will take time to evolve. Performance-linked pay is widely used in private sector to reward the better performers in the organisation.
- RBI INSTRUCTS PAYTM PAYMENTS BANK TO STOP OPENING FRESH ACCOUNTS: The Reserve Bank of India has instructed Paytm Payments Bank (PPB) to stop opening fresh accounts till all the concerns it has raised against the PPB are solved. Firstly RBI has asked PPB to go for a physical verification of Know-Your-Customer (KYC) process instead of e-KYC for adding new customers. RBI is also not in agreement with the close relations between PPB and Paytm’s parent body One97 Communications, which has been giving away cash backs and other promotional offers to PPB account holders.
- ICICI BANK WARNS OF RISK TO REPUTATION IN REPORT TO SEC: ICICI bank has warned its domestic and international shareholders that the bank faces reputation risk and regulatory action. It has highlighted the on-going investigations into the allegations relating to its CEO Ms Chanda Kochar as risk factor. The bank has filed its Annual Report both for Indian and international investors. The balance sheet was filed with the Securities Exchange Commission (SEC) to comply with the listing requirements for bank’s American depository receipts (ADRs).