WEEKLY FINANCIAL SNIPPETS- 18/08/2018

  1. SEBI MAY MAKE SUBMISSION OF NET WORTH STATEMENT COMPULSORY FOR RETAIL INVESTORS: On a recommendation by the committee on fair market conduct headed by former Law Secretary Mr. Vishwanathan, Securities and Exchange Board of India (SEBI) may soon ask retail investors to submit a Net-Worth statement to their brokers. The aim is to keep a check on Retail Investors’ trading limits. This is as per a news report by Business Line.

 

  1. INDIRECT TAX BASE INCREASES BY 65% SINCE GST ROLL-OUT: Since the roll-out of GST in July 2017, the Indirect Tax base has expanded by 65% to 1.6 million in a year. Under the previous tax regime it was 7 million. The number of people filing Income Tax (Direct Tax)   has also increased to 67.50 million compared to 40 million in 2013-14, which is a rise of 68%.

 

  1. FINANCE MINISTRY SEEKS A CLEAR DIVIDEND POLICY FROM RBI: The Finance Ministry has asked the Reserve Bank of India to review its dividend and capital conservation rules. The government wants a clear policy on the pay-outs it gets from RBI. These matters were discussed during a meeting between Finance Ministry officials and RBI Deputy Governors.

 

  1. BANKS TO COME OUT OF PCA FRAMEWORK BY THIS YEAR END: Financial Services Secretary Mr. Rajiv Kumar has expressed that the banks would come out of Prompt Corrective Action (PCA) framework by the end of this fiscal. As many as 11 banks are under PCA. Of these, Dena Bank and Allahabad Bank are facing restriction on expansion of business. Noting that Public Sector banks are growth engines, Mr. Kumar said that Banks have made a recovery of Rs 36,551 of bad loans during the first quarter, registering a growth of 49% over the last fiscal.

 

  1. COSMOS BANK’S SERVER HACKED, Rs.94 CRORE SIPHONED OFF IN 2 DAYS: Hackers managed to siphon off over Rs.94 crore through a malware attack on the server of Pune-based Cosmos Bank by cloning thousands of bank’s ATM cards over a period of two days. In two days around 91 crores were withdrawn from various ATMs in 28 countries and another Rs.2.5 crore were taken out in India.

 

  1. RBI LENS ON 200 BAD-LOAN ACCOUNTS: The Reserve bank of India has started examining about 200 bad-loan accounts from as far as 2011 onwards as part of its annual inspection of bank books to rule out any nasty surprises in bankruptcy court or subsequent to debt resolution. These include the accounts of Videocon, Essar Steel, ABG Shipyard, Bhushan Steel etc. RBI is looking at repayment history, classifications, provisions and debt restructuring among other things to ensure that all procedures were correctly followed.

 

  1. 88% OF RURAL HOUSEHOLDS HAVE SAVINGS ACCOUNTS: As per a survey conducted by NABARD, The Financial Inclusion drive has resulted in increasing of bank accounts in rural areas with 88% of rural households having savings accounts. Incidence of Indebtedness (IOI), which is a proportion of households having outstanding debt on the date of the survey, was 52.5% and 42.8% for agricultural and non-agricultural households respectively. Similarly about 26% of agricultural households and 25% of non-agricultural households were found to have been covered under insurance. 20.1% agricultural households and 18.9% of non-agricultural households have subscribed to pension schemes.
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