RBI Prepares Scheme For PMC, Unity Small – Latest news headlines


RBI has prepared a draft plan for PMC Bank’s amalgamation with Unity Small Finance Bank

Reserve Bank of India (RBI) on Monday unveiled a draft scheme for amalgamation of the troubled Punjab and Maharashtra Cooperative Bank (PMC) and Unity Small Finance bank (USFB).

The draft plan proposes USFB taking over the assets and liabilities of PMC Bank including deposits, which would provide a greater degree of protection to depositors.

RBI has sought suggestions or objections, if any, from depositors, members and creditors of PMC Bank as well as of USFB on the scheme by December 10, 2021. After the expiry of the deadline, the central bank will take a final call on the matter.

The plan has been put up on the central bank’s website.

The RBI further said that “USFB is being set up with capital of about Rs 1,100 crore as against a regulatory requirement of Rs 200 crore for setting up of a small finance bank under the guidelines for on-tap licensing of small finance bank in private sector dated December 5, 2019, with provision for further infusion of capital at a future date after amalgamation”.

Maharashtra-based PMC Bank was placed under business restrictions with effect from September 23, 2019, on account of fraud, which led to steep deterioration in the net worth of the bank.

The directions were last extended through a June 25, 2021 directive up to December 31, 2021.

“Given the financial condition of the PMC Bank and in the absence of proposals for capital infusion, the bank was not viable on its own. In that event, the only course of action could have been cancellation of its licence and taking it for liquidation, wherein depositors would have received payment up to the insurance ceiling of Rs 5 lakh,” the RBI said.

Keeping in mind the interest of its depositors, the amalgamation scheme has been unveiled, which would provide them protection, the central bank said.



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Latest News Today – Centre Planning Follow Up Scheme On Urban


Centre is planning a follow up scheme to the existing urban rejuvenation mission

Centre is planning to bring in a follow up scheme to the existing Atal Mission for Rejuvenation and Urban Transformation (AMRUT), as it covers only 60 per cent of the urban population and the Housing and Urban Affairs Ministry wants to extend its coverage to 100 per cent of the areas.

Minister for Housing and Urban Affairs Hardeep Puri in response to a question in Lok Sabha gave this information, saying that the Government is actively considering a follow up scheme for AMRUT which will cover all urban areas.

AMRUT, which was launched in June 2015 by the NDA government, is aimed at providing robust sewage system and tap water connection to each urban household. It also counts septage, storm water drainage management and sewerage treatment as its focus areas.

Mr Puri further informed the lower house during Question Hour that Finance Minister Nirmala Sitharaman in her budget statement had talked about a follow up to the AMRUT scheme.



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Latest News Today – Government Clears Incentive Scheme For Speciality Steel


Union Cabinet has cleared production linked incentive scheme for speciality steel

Government has approved the production linked incentive scheme (PLI) for speciality steel, which will run for five years from 2023-24 to 2027-28 with a budgetary outlay of Rs 6,322 crore.

The decision was taken by the Union Cabinet which met on Thursday.

Official sources said that the scheme is expected to bring in investment of approximately Rs 40,000 crore and lead to capacity addition of 25 million tonnes for speciality steel. 

Speciality steel has been chosen as the target segment because out of the production of 102 million tonnes steel in India in 2020-21, only 18 million tonnes value added steel or speciality steel was produced in the country.

Apart from this out of 6.7 million tonnes of imports in 2020-21, approximately 4 million tonnes of import was of specialty steel alone resulting in foreign exchange outgo of around Rs 30,000 crores. 

It is expected that speciality steel production will reach around 42 million tonnes by the end of 2026-27. This will ensure that around 2.5 lakh crores worth of speciality steel will be produced and consumed in the country which would otherwise have been imported, sources said.  

Similarly, the export of specialty steel will become around 5.5 million tonnes as against the current 1.7 million tonnes of specialty steel getting foreign exchange of Rs 33,000 crore, they further added.



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Latest News Today – State Bank Of India (SBI) General Insurance Scheme


State Bank of India (SBI) General Insurance launched the ‘Arogya Supreme’ health insurance plan on Friday, July 9, specifically designed to ensure that policyholders can avail of full insurance coverage including the 20 basic covers and eight optional covers. The insurance policy provides a wide range of sum insured options up to Rs. 5 crores, where customers can choose from three different options, according to a statement shared by SBI General Insurance today. (Also Read: SBI Launches Kavach Personal Loan Scheme: All You Need To Know )

In this regard, the three options available for customers are Pro, Plus, and Premium based on the sum insured and the coverage features of the plan. The health insurance plan also offers customer-friendly coverages such as recovery benefit, sum insured refill, compassionate visit, as well as a facility to choose the policy tenure ranging from one to three years.

”Arogya Supreme health policy is loaded with a refill feature, that enables the policyholder to refill full sum insured if the existing sum insured under the policy is exhausted under any treatment, which is a great relief for the customer,” said PC Kandpal, MD and CEO, SBI General Insurance Company.

”In today’s scenario, health insurance has become a necessity and not an option. Arogya Supreme, a comprehensive health insurance plan, with reinstatement feature and a wide range of sum insured, will enable customers to choose the premium and tenure that suits their needs,” he added.

Last month, the country’s largest lender launched a collateral-free Kavach personal loan scheme for the families affected by the COVID-19 pandemic. The loan scheme has the lowest rate of interest and is especially aimed at families struggling financially due to the pandemic, according to SBI.



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Latest News Today – Sovereign Gold Bonds (SGB) Scheme: Government Sets Issue


Sovereign Gold Bonds: The issue price is set at ₹ 4,807 per unit in the fourth tranche

Sovereign Gold Bond 2021-22 Scheme: The fourth tranche of the government-run sovereign gold bond scheme 2021-22 opens for subscription on Monday, July 12, 2021. According to the schedule set for the gold bond scheme 2021-22 by the Reserve Bank of India (RBI), the fourth tranche window will be open for investors between July 12 – July 16 – for a period of five days. Resident individuals, Hindu Undivided Families trusts, universities, and charitable institutions can invest in the interest-paying gold bonds. (Also Read: What Are Sovereign Gold Bonds? Here’s All You Need To Know )

According to the RBI, an issue price of Rs 4,807 per unit, equivalent to the value of one gram of gold, is applicable for the second installment of the gold bond scheme 2021-22. The date of issuance for the fourth tranche is set as July 20, 2021. The issue price decided for each tranche is calculated using a simple average of the prices given by Mumbai-based India Bullion and Jewellers Association (IBJA), an industry body.

Gold bonds – linked to the market price of the yellow metal, have become a popular option to purchase gold in a non-physical form. Amid the COVID-19 crisis, the gold bond scheme provides a suitable solution for subscribers to invest in digital gold, as it also offers additional returns on investment. After the current series, the gold bond scheme will be available for subscription with two more tranches.

Sovereign Gold Bonds 2021-22 Series IV: July 12-July 16; What You Need To Know

Should You Buy? Here’s what experts say-

“ The price for the third tranche of SGB is fixed at Rs 4,807/gm. The investment in non-physical gold, via digital or paper gold, is picking up pace. The high interest is on account of the recent firmness in the prices of gold in the past few weeks. 

Sovereign Gold Bond is a better alternative to physical gold as there is no risk of theft, storage charge, and to top it up it comes with an interest-bearing coupon,” said Mr. Nish Bhatt, Founder and CEO, Millwood Kane International – an investment consulting firm. 

Discount For Online Subscribers

For those subscribers who are investing in the gold bonds scheme online, in which the payment is made through any of the digital modes, a discount of ₹ 50 per unit is applicable, according to the RBI. For the online subscribers, the issue price is set at ₹ 4,757 per gram of gold in the fourth tranche of sovereign gold bonds 2021-22 scheme.
 

How To Invest

The sovereign gold bonds are sold through the designated post offices, recognised stock exchanges – Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), and the Stock Holding Corporation of India Limited. Gold bonds are held in the RBI books or in a demat form. 



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Latest News Today – Supreme Court On Class 12 Marking Scheme


The Supreme Court found no reason to interfere with the CBSE and ICSE schemes for Class 12 exams.

Highlights

  • The top court rejected a plea that sought physical examination initially
  • “There is no reason to interfere with the CBSE and ICSE schemes,” it said
  • It also agreed with CBSE to hold compartment exam between Aug 15-Sep 15

New Delhi:

The Supreme Court today approved of the scheme proposed by the CBSE and CISCE to calculate the marks for students of Class 12 this year since their regular exams have been cancelled due to Covid.

Rejecting a plea by some parents and students who had sought an option of physical examination initially, a vacation bench of Justices AM Khanwilkar and Dinesh Maheshwari called the education boards’ proposals “fair and reasonable”.

Up to 1,152 students filed a joint petition seeking direction to the CBSE for cancellation of Class 12 private, compartment examinations. They also demanded parity with regular students.

The Central Board of Secondary Education (CBSE) and the Council for the Indian School Certificate Examinations (CISCE) had responded today in the Supreme Court of India to concerns raised by some students and parents on their evaluation schemes.

The court, which dealt with all the major objections of the interveners — Uttar Pradesh Parents’ Association, and second compartment and private students — said the scheme propounded cannot be doubted on the mere apprehension of manipulation of marks by schools to favour their own students.

“There is no reason to interfere with the CBSE and ICSE schemes,” the court said rejecting a plea for cancelling the compartment exams for Class 12.

It also accepted the CBSE’s plan to hold the compartment exams between August 15 and September 15.

In an affidavit filed before the court, CBSE had said a panel would be set up to deal with disputes on the computation of results. It also said an online facility for registration would be made available for optional exams for those not satisfied with the assessment policy and that the marks scored in these will be treated as final.

The court had earlier said that both the CBSE and CISCE schemes must be uniform and must give students an option for physical exam before the declaration of Class 12 results by assessment.

The results of the main exams conducted by both the boards will be declared by July 31.



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Latest News Today – Centre Enhances Scope of Emergency Credit Scheme


Covid pandemic: Government has extended scope of emergency credit scheme

The Centre has enhanced the scope of the emergency credit line guarantee scheme (now termed ECLGS 4.0) owing to disruptions caused by the second wave of the Corona virus pandemic, where 100 per cent guarantee cover will be given for loans up to Rs two crores to hospitals and nursing homes for setting up oxygen plants. The interest rate has been capped at 7.5 per cent.

According to the decision announced by the Finance Ministry, borrowers who are eligible for restructuring as per RBI’s May 5, 2021 guidelines, and who had availed loans under the initial ECLGS, for a period of four years, will now be able to avail loans for a tenure of five years.

While earlier as per conditions of the four year loan period, repayment of interest could be done only during the first 12 months with repayment of principal and interest amount in 36 months thereafter, now under the conditions of the five year loan period, repayment of interest can be done for the first 24 months, while repayment of principal and interest can be done in 36 months period thereafter.

The Government has also decided to remove the current ceiling of Rs 500 crore of loan outstanding for eligibility under ECLGS 3.0. This would be subject to maximum additional ECLGS assistance to each borrower being limited to 40 per cent or Rs 200 crore, whichever is lower;

The validity of ECGLS has been extended up to September 30, 2021 or till guarantees for an amount of Rs three lakh are issued. Also disbursement under the scheme has been permitted up to December 31, 2021.

The ECLGS was announced as part of the Atma Nirbhar Bharat Package (ANBP) by the Centre a year back, to provide fully guaranteed and collateral free additional credit to micro small and medium enterprises (MSMEs) and individual loans for business purposes to the extent of 20 per cent of their credit outstanding as on February 29,2020.

The modifications in ECLGS would enhance the utility and impact of the scheme by providing additional support to MSMEs, safeguarding livelihoods and helping in seamless resumption of business activity. These changes will further facilitate flow of institutional credit at reasonable terms, a statement issued by the Finance Ministry said.



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Latest News Today – Amnesty Scheme For Small Taxpayers, Black Fungus Drug


GST Council Meeting 2021: IGST is exempted on free COVID-related essentials till August 31

The goods and services tax (GST) Council meeting was held today after a gap of almost eight months, amid the ranging second wave of the COVID-19 pandemic in the country. While addressing a press conference after the Council meeting concluded, Ms Sitharaman announced that the integrated goods and services tax (IGST) is exempted on free COVID-related essential items till August 31, 2021. (Also Read: Decision On Tax Cuts On Covid Vaccines By June 8, Says Government )

The Finance Minister announced that a group of ministers will deliberate on the tax rates of COVID vaccines, medicines, and other such essential supplies on June 8, 2021. Some of the major takeaways from the 43rd GST Council meeting – the first GST meet in the current financial year 2021-22, are as follows:
 

  • Due to the surge in the number of Black Fungus cases across the country, the duty on import of the medicine- Amphotericin B, used to cure Black Fungus, is exempted. 
  • The Amnesty Scheme was announced to reduce late fee returns. Under this scheme, small taxpayers can file pending returns. The late fee for non-furnishing Form GSTR-3B for the tax periods between July 2017 – April 2021 is reduced 
  • In order to reduce the burden of late fee on smaller taxpayers, the upper cap of late fee is now rationalized to align the late fee with tax liability or turnover of the taxpayers
  • The annual return filing for the financial year 2020-21 is simplified, to ease the compliance requirement in furnishing reconciliation statements in Form GSTR-9C. Taxpayers will be able to self-certify the reconciliation statement, instead of getting it certified by chartered accountants. 

Finance Minister Nirmala Sitharaman chaired the 43rd GST Council meet today through a video conference and representatives including seniors officials and finance ministers of states and union territories attended the meeting. 



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Latest News Today – Cabinet Approves Rs 4,500 Crore PLI Scheme To Boost


The incentive will be disbursed for five years post commissioning solar PV manufacturing plants

The Union Cabinet on Wednesday approved a Rs 4,500 crore production-linked incentive (PLI) scheme to boost domestic manufacturing capacity of solar PV modules. The PLI scheme is aimed at adding 10,000 MW manufacturing capacity of integrated solar PV modules entailing direct investment of Rs 17,200 crore. The PLI scheme is likely to create direct employment of around 30,000 and indirect employment of 1.2 lakh, according to the government. The Cabinet, headed by Prime Minister Narendra Modi, has approved the Ministry of New & Renewable Energy’s proposal for the implementation of the PLI scheme ”National Programme on High-Efficiency Solar PV (Photo Voltic) Modules” for achieving manufacturing capacity of Giga Watt (GW) scale in high-efficiency solar PV modules with an outlay of Rs 4,500 crore, an official statement said. 

Solar energy capacity addition presently depends largely upon imported solar PV cells and modules as the domestic manufacturing industry has limited operational capacities of solar PV cells and modules, it added. The National Programme on High-Efficiency Solar PV Modules will reduce import dependence in a strategic sector like electricity, the statement said adding it will also support the Aatmanirbhar Bharat initiative. Solar PV manufacturers will be selected through a transparent competitive bidding process.

The PLI will be disbursed for five years post commissioning of solar PV manufacturing plants, on sales of high-efficiency solar PV modules. Manufacturers will be rewarded for higher efficiencies of solar PV modules and also for sourcing their material from the domestic market. Thus, the PLI amount will increase with increased module efficiency and increased local value addition.

The government said the scheme is aimed at additional 10,000 MW capacity of integrated solar PV manufacturing plants. This PLI scheme will see a direct investment of around Rs 17,200 crore in solar PV manufacturing projects and demand of Rs 17,500 crore over five years for “Balance of Materials”, the statement said. It will also help generate direct employment of about 30,000 and indirect employment for about 1,20,000 persons.

Besides, the scheme will also help in import substitution of around Rs 17,500 crore every year, and will give impetus to R&D to achieve higher efficiency in solar PV modules, the government said. 



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Latest News Today – Government Approves Rs 10,900 Crore PLI Scheme For Food


The incentive under the scheme would be paid for six years ending 2026-27.

The government on Wednesday approved a production-linked incentive (PLI) scheme for the food processing sector, entailing an outlay of Rs 10,900 crore. The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the scheme which will help create 2.5 lakh jobs by 2026-27, boost exports and facilitate expansion of food processing capacity to generate processed food output worth Rs 33,494 crore. The incentive under the scheme would be paid for six years ending 2026-27. “The PLI for the food processing sector with Rs 10,900 crore-incentive has been approved. The decision is a fitting tribute to our farmers,” Food Minister Piyush Goyal said while briefing the media about the cabinet decisions.

The effort is to take the country’s food processing to a next level amid the rising global demand for Indian ready-to-eat foods, organic products, processed fruits and vegetables, marine products and mozzarella cheese, he said. The government said the objectives of the scheme are to support food manufacturing entities with stipulated minimum sales and that are willing to make minimum stipulated investment for expansion of processing capacity and branding abroad to incentivise emergence of strong Indian brands.

Information and Broadcasting Minister Prakash Javadekar, who was also present at the briefing, said that the government in the Budget had announced a PLI scheme for 12-13 sectors. Already, PLI has been announced for six sectors. “Today, PLI for the food processing industries has been approved,” he added. According to the government, the first component under the scheme relates to incentivising manufacturing of four major food product segments: ready-to-cook/ready-to-eat foods, processed fruits and vegetables, marine products and mozzarella cheese.

Innovative and organic products of small-to-medium enterprise (SMEs), including eggs, poultry meat, egg products in these segments, are also covered under the first component. The second component relates to support for branding and marketing abroad to incentivise emergence of strong Indian brands.
Highlighting key features of the scheme, Food Processing Industries Secretary Pushpa Subrahmanyam said, “The government will issue an expression of interest (EoI) by the end of April.”

The requirement for the respondents is to commit to a minimum sales and minimum level of investment to each segment and if they achieve both, then for the incremental sales, a percentage of that amount will be given as subsidy the following year, she said. The selected applicant will be required to undertake investment in plant and machinery in the first two years i.e. in 2021-22 and 2022-23. Investment made in 2020-21 fiscal also to be counted for meeting the mandated investment, the government said in a separate statement. The conditions of stipulated minimum sales and mandated investment will not be applicable for entities selected for making innovative/organic products, it said.

The scheme aims to support creation of global food manufacturing champions, strengthen select Indian brand of food products for global visibility and wider acceptance in the international markets besides increasing employment opportunities of off-farm jobs as well as ensuring remunerative prices of farm produce and higher income to farmers.

On implementation of the scheme, the government said it will be rolled out across the country and will be implemented through a project management agency (PMA). The scheme is “fund-limited” as the cost will be restricted to the approved amount. The maximum incentive payable to each beneficiary shall be fixed in advance at the time of approval of that beneficiary. The scheme would be monitored at the Centre by the Empowered Group of Secretaries, the statement added. 



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