ETV Bharat / business

FinMin working on FRDI bill, says Sitharaman

FM also welcomed the liquidity measures announced by the RBI for retail customers in general and for MSMEs and realty players in particular at the sixth monetary policy review on Thursday.

Sitharaman

Sitharaman

By

Published : Feb 7, 2020, 5:16 PM IST

|

Updated : Feb 7, 2020, 6:24 PM IST

Mumbai: The Finance Ministry is working on them but not sure when it will be tabled in the house, Union minister Nirmala Sitharaman said.

The comments assume importance given the massive five-fold hike in deposit insurance and the recent changes in the insolvency laws that included insolvency solutions for financial institutions.

"We are working on the FRDI Bill; but not sure when it can get through the House," the minister said.

Read more: Corona Effect: Cotton export to China closed; Indian farmers in distress

She also welcomed the liquidity measures announced by the RBI for retail customers in general and for MSMEs and realty players in particular at the sixth monetary policy review on Thursday.

The FRDI Bill seeks to offer a bail-in clause to banks, which many fear will be detrimental to depositors.

The budget has increased by five-folds the deposit insurance to Rs 5 lakh.

IPO will make LIC disinvestment more transparent: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Friday said that the Centre is planning to bring an Initial public offering (IPO) for the disinvestment of the Life Insurance Corporation (LIC) of India.

"At the moment for LIC, we are looking at an IPO. An IPO will bring in retail investors into the picture and also make the issue more transparent for everybody," Sitharaman said at a press conference here.

(Inputs from ANI and PTI)

Mumbai: The Finance Ministry is working on them but not sure when it will be tabled in the house, Union minister Nirmala Sitharaman said.

The comments assume importance given the massive five-fold hike in deposit insurance and the recent changes in the insolvency laws that included insolvency solutions for financial institutions.

"We are working on the FRDI Bill; but not sure when it can get through the House," the minister said.

Read more: Corona Effect: Cotton export to China closed; Indian farmers in distress

She also welcomed the liquidity measures announced by the RBI for retail customers in general and for MSMEs and realty players in particular at the sixth monetary policy review on Thursday.

The FRDI Bill seeks to offer a bail-in clause to banks, which many fear will be detrimental to depositors.

The budget has increased by five-folds the deposit insurance to Rs 5 lakh.

IPO will make LIC disinvestment more transparent: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Friday said that the Centre is planning to bring an Initial public offering (IPO) for the disinvestment of the Life Insurance Corporation (LIC) of India.

"At the moment for LIC, we are looking at an IPO. An IPO will bring in retail investors into the picture and also make the issue more transparent for everybody," Sitharaman said at a press conference here.

(Inputs from ANI and PTI)

ZCZC
PRI COM ECO ESPL
.MUMBAI DCM41
BIZ-ICRA-GST COMPENSATION
GST compensation fund likely to fall short by Rs 25,000 cr in current fiscal: Icra
Mumbai, Feb 7 (PTI) Pegging the unpaid GST compensation to the states at Rs 60,000-70,000 crore for the October 2019-January 2020 period, rating agency Icra has said the GST compensation fund may see a shortfall of Rs 15,000-25,000 crore for 2019-20.
The agency assesses the compensation for the losses related to the goods and services tax (GST), required by all the states for the period from October 2019 to January 2020, at Rs 60,000-70,000 crore, which the Centre would likely disburse in the March quarter.
The Centre by law has to pay the states at 14 per cent annually for the first five years of the GST regime and the government had earlier projected an 18 per cent growth in collections for this year, while the same has been tepid at a little over 5 per cent till January.
In the current financial year, the Centre released nearly Rs 1 lakh crore compensation to the states till September.
According to Jayanta Roy, group head of corporate sector rating at Icra, the GST compensation required by all the states for the October 2019-January 2020 period is at Rs 60,000-70,000 crore, which the Centre is likely to disburse to them in the fourth quarter.
Given the balance of around Rs 17,000 crore available in the GST compensation fund in December 2019, and the compensation cess of around Rs 28,000 crore estimated to be collected in the fourth quarter, this suggests a shortfall of Rs 15,000-25,000 crore in the compensation fund for 2019-20.
Based on the trends in the cess collected and the amount of GST compensation released to the states during 2017-18, 2018-19 and 2019-20 till December 2019, Icra estimates the balance available in the GST compensation fund to be around Rs 17,000 crore. The Centre has pegged cess collection at Rs 98,000 crore in the Revised Estimate of 2019-20, of which Rs 70,500 crore have already been collected till December 2019, based on the data released by the Controller General of Accounts.
This suggests that the Centre expects a further inflow of Rs 27,500 crore as cesses in the fourth quarter ending March.
There was a steady increase in the compensation released to the states to Rs 35,300 crore for the August-September 2019 period, from Rs 17,790 crore for April-May 2019 period and Rs 27,960 crore for the June-July 2019 period. However, GST collection growth has been only 3.4 per cent during April-October 2019, and 7.7 per cent in the November 2019-January 2020 period.
The Budget 2020 has indicated an additional transfer to the GST compensation fund, the balances due out of the collection of the previous years, in two instalments. Thereafter, transfers to the fund would be limited to collection by way of GST compensation cess.
The GST Act prescribes the Centre to release the compensation on a bi-monthly basis. PTI BEN
HRS
02071647
NNNN

Last Updated : Feb 7, 2020, 6:24 PM IST

For All Latest Updates

TAGGED:

FM press conference

Union minister Nirmala Sitharaman

Copyright © 2024 Ushodaya Enterprises Pvt. Ltd., All Rights Reserved.