Month: June 2021

Reserve Bank of India – Press Releases

Press Releases

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Government of India (GOI) has announced the sale (re-issue) of three dated securities for a notified amount of ₹26,000 crore as per the following details:

Sr No Security Date of Repayment Notified Amount
(₹ crore)		 GoI specific Notification Auction Date Settlement Date
1 4.26% GS 2023 May 17, 2023 3,000 F.No.4(3)-B(W&M)/2021 dated June 21, 2021 June 25, 2021
(Friday)		 June 28, 2021
(Monday)
2 5.85% GS 2030 Dec 01, 2030 14,000
3 6.76% GS 2061 Feb. 22, 2061 9,000
  Total   26,000      

2. GoI will have the option to retain additional subscription up to ₹6,000 crore against above security/securities.

3. The securities will be sold through Reserve Bank of India Mumbai Office, Fort, Mumbai – 400001. The sale will be subject to the terms and conditions spelt out in the ‘Specific Notification’ mentioned above and the General Notification F.No.4(2)–W&M/2018, dated March 27, 2018.

4. Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on June 25, 2021. The non-competitive bids should be submitted between 10.30 a.m. and 11.00 a.m. and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. The result will be announced on the same day and payment by successful bidders will have to be made on June 28, 2021 (Monday).

5. Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by ‘Primary Dealers’ from 9.00 a.m. up to 9.30 a.m. on June 25, 2021 (Friday) on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

6. The Stocks will be eligible for “When Issued” trading for a period commencing from June 22, 2021 – June 25, 2021.

7. Operational guidelines for Government of India dated securities auction and other details are given in the Annex.

Ajit Prasad
Director   

Press Release: 2021-2022/402

ANNEX

Type of Auction

1. The auction will be a multiple price-based auction i.e. successful bids will get accepted at their respective quoted price for the security.

2. The auction will be yield based for new security and price based for securities which are re-issued.

3. In case of a Floating Rate Bonds (FRB), the auction will be spread-based for new security and price based for securities which are reissued. At the time of placing bids for new FRB, the spread should be quoted in percentage terms.

Minimum Bid Size

4. The Stocks will be issued for a minimum amount of ₹10,000/- (nominal) and in multiples of ₹10,000/- thereafter.

Non-Competitive Segment

5. In all the auctions, Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities.

6. Each bank or Primary Dealer (PD) on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

7. Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price of the successful bids that will emerge in the auction on the basis of the competitive bidding.

Submission of Bids

8. Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

9. Bids in physical form will not be accepted except in extraordinary circumstances.

Business Continuity Plan (BCP)-IT failure

10. Only in the event of system failure, physical bids will be accepted. Such physical bids should be submitted to the Public Debt Office, Mumbai through (email; Phone no: 022-22632527, 022-22701299) in the prescribed form which can be obtained from RBI website (https://www.rbi.org.in/Scripts/BS_ViewForms.aspx) before the auction timing ends.

11. In case of technical difficulties, Core Banking Operations Team should be contacted (email; Phone no: 022-27595666, 022-27595415, 022-27523516).

12. For other auction related difficulties, IDMD auction team can be contacted (email; Phone no: 022-22702431, 022-22705125).

Multiple Bids

13. An investor can submit more than one competitive bid in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

14. However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.

Decision Making Process

15. On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions.

16. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected.

17. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.

Issue of Securities

18. Issue of securities to the successful bidders will be by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate.

Periodicity of Interest Payment

19. Interest on the Government Stock will generally be paid half-yearly other than in case of securities with non-standard maturities. The exact periodicity of coupon payment is invariably mentioned in the specific notification for the issue of security.

Underwriting of the Government Securities

20. The underwriting of the Government Securities under auctions by the ‘Primary Dealers’ will be as per the “Revised Scheme of Underwriting Commitment and Liquidity Support” announced by the Reserve Bank vide circular RBI/2007-08/186 dated November 14, 2007 as amended from time to time.

Eligibility for Repurchase Transactions (Repo)

21. The Stocks will eligible for Repurchase Transactions (Repo) as per the conditions mentioned in Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018 (Reserve Bank) Directions, 2018 as amended from time to time.

Eligibility for ‘When Issued’ Trading

22. The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2018-19/25 dated July 24, 2018 as amended from time to time.

Investment by Non-Residents

23. Investments by Non-Residents are subject to the guidelines on ‘Fully Accessible Route’ for Investment by Non-residents in Government Securities and Investment by Foreign Portfolio Investors (FPI) in Government Securities: Medium Term Framework (MTF).

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Assam’s microfinance loan collection efficiency to return to normalcy by the end of financial year

Banking & Finance

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Assam, which has been experiencing stress in collection efficiency in microfinance loan portfolio since September 2019, is likely to come back to “normalcy” by the end of this financial year.

According to Manoj Nambiar, Chairman, Microfinance Institutions Network (MFIN), the relief measures announced by the Assam Chief Minister, Himanta Biswa Sarma, has focused on responsible borrowing, repayment and lending.

The Assam government had, on Friday, announced a special one-time relief to MFI borrowers in the State under three broad categories. It has announced a sum of ₹25,000 for each regular client as an incentive to them to continue maintaining good credit discipline. For those borrowers who are overdue or have turned into NPA (non-performing asset), the State government will pay the amount which is overdue to make them regular with institutions and their credit bureau records. For those categories of customers who are stressed and impacted by the Covid pandemic leading to a loss of livelihood, the State government would pay the lenders to clear the outstanding loan.

Optimistic outlook

“The relief measure announced by the State government will go to the Cabinet and then we expect implementation of measures by early August. We have already started getting calls from borrowers post the press conference by the Chief Minister. We still have three quarters to go and we are hopeful that when we close the financial year 2021-22 ,we will see a different Assam as compared to what it was in FY-21,” Nambiar told media at a virtual press conference on Monday.

Assam had a delinquency rate as low as 0.32 per cent till September 2019 and has been one of the best States on portfolio quality. However, since October 2019, local reaction to multiple lending and non-payment, followed by the Covid-19 lockdown and the moratorium led to uncertainty in the State over expectations on loan waivers.

According to Alok Misra, CEO and Director, MFIN, the measures announced by the government would help provide relief to borrowers in stressed times. “Not only have measures been taken to incentivise the regular clients, but the government has thoughtfully addressed the overdue/NPA clients as well, with the objective of making them regular. The governments focus on maintaining credit discipline is evident through incentivising microfinance clients to maintain good repayment records,” he said.

The microfinance industry in Assam serves over 26 lakh low income women clients with a loan outstanding of around ₹12,500 crore from RBI regulated entities including universal banks, SFBs, NBFC-MFIs and NBFCs. However, the relief announced on Friday has been for a maximum outlay of ₹8,250 crore which has been arrived after applying filters of a maximum of three lenders to a borrower, ₹1.25 lakh exposure of an individual client of JLG methodology and interest rates to the total state loan outstanding of 12,535 as on March 31, 2021.

So around ₹4,000 crore would not strictly fall under the category of microfinance loans and hence would not qualify for relief.

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Reserve Bank of India – Press Releases

Press Releases

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A. Source Security 6.84% GS 2022 7.16% GS 2023 5.09% GS 2022 8.35% GS 2022 7.32% GS 2024
B. Notified Amount (amount in ₹ cr) 2,000 2,000 2,000 2,000 2,000
Destination Security 6.64% GS 2035 6.64% GS 2035 GOI FRB 2033 GOI FRB 2033 GOI FRB 2033
C. i. No. of offers received 15 14 35 31 17
ii. Total amount of Source Security offered (Face value in ₹ cr) 1957.612 4625.000 6430.528 2508.795 5031.129
iii. No of offers accepted 0 6 11 10 5
iv. Total amount of source security accepted (Face value in ₹ cr) 0 2000.000 2000.000 710.000 2000.000
v. Total amount of destination security issued (Face value in ₹ cr) NA 2100.370 2030.912 742.439 2132.533
vi. Cut-off price/yield for destination security NA 99.74/6.6687 99.42/4.9185 99.36/4.9251 99.90/4.8659

Ajit Prasad
Director   

Press Release: 2021-2022/401

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NPS Scheme E-Tier 1 Has Given Over 60% Returns In 1 Year, Details Inside

Personal Finance

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HDFC Pension Fund

In the previous six months, HDFC Pension Fund has returned 21.35 per cent in Scheme E Tier-1 and 21.23 per cent in Scheme E Tier-2. In the previous year, HDFC Pension Fund provided a 63.08 per cent return in Scheme E Tier-1 and a 62.85 per cent return in Scheme E Tier-2. This fund’s 5-year CAGR in Tier-1 and Tier-2 schemes was 15.36 per cent and 15.41 per cent, respectively, over the last five years.

UTI Retirement Solution Fund

The UTI Retirement Solution Fund has returned 21.97 per cent in Scheme E Tier-1 and 23.07 per cent in Scheme E Tier-2. In Scheme E Tier-1, the UTI Retirement Solution Fund under the NPS Scheme generated 64.28 per cent, whereas under Scheme E Tier-2, the UTI scheme provided 65.90 per cent. This fund’s 5-year CAGR in Tier-1 and Tier-2 schemes were 14.04 per cent and 14.35 per cent, respectively, over the last five years.

LIC Pension Fund

LIC Pension Fund

According to the performance chart of individual NPS schemes as of May 31, 2021, the LIC Pension Fund has produced a 23.03 per cent return in Scheme E Tier-1, whereas the NPS scheme has given a solid 22.82 per cent return in Scheme E Tier-2. According to the performance table of individual NPS schemes as of May 31, 2021, LIC Pension Fund has provided a 65.16 per cent return in Scheme E Tier-1, and a solid 65.59 per cent return in Scheme E Tier-2 in the previous year. This fund’s 5-year CAGR in Tier-1 and Tier-2 schemes were 12.78 per cent and 12.76 per cent, respectively, over the last five years.

Kotak Pension Fund

Kotak Pension Fund

In the previous six months, Kotak Pension Fund has delivered 20.79 per cent in Scheme E Tier-1 and 20.50 per cent in Scheme E Tier-2. In the previous fiscal year, Kotak Pension Fund produced 60.98 per cent in Scheme E Tier-1 and 60.11 per cent in Scheme E Tier-2. The fund has achieved an annualised return of 13.96 per cent in Tier-1 and 13.82 per cent in Tier-2 schemes during the previous five years.

ICICI Pension Fund

The ICICI Pension Fund provided a solid 21.44 per cent in Scheme E Tier-1, whereas the NPS Scheme delivered 21.34 per cent in Scheme E Tier-2 in the last 6 months till May 2021. In the year leading up to May 2021, the ICICI Pension Fund returned 65.08 per cent in Scheme E Tier-1, while the NPS Scheme returned 65.02 per cent in Scheme E Tier-2. The fund has produced an annualised return of 13.90 per cent in Tier-1 and 13.99 per cent in Tier-2 scheme during the previous five years.

NPS Scheme E Tier-1 Returns

NPS Scheme E Tier-1 Returns

Below are the latest returns of NPS Scheme E Tier-1 as on 18.06.2021:

Pension Fund 1 year returns 3 year returns 5 year returns
Aditya Birla Sun Life Pension Management Ltd. 50.74% 12.72% NA
HDFC Pension Management Co. Ltd. 56.85% 13.93% 15.40%
ICICI Pru. Pension Fund Mgmt Co. Ltd. 59.18% 13.33% 14.08%
Kotak Mahindra Pension Fund Ltd. 55.35% 13.38% 14.10%
LIC Pension Fund Ltd. 58.72% 12.32% 12.83%
SBI Pension Funds Pvt. Ltd 53.82% 12.25% 13.64%
UTI Retirement Solutions Ltd. 58.43% 12.70% 14.10%
Benchmark Return as on 18/06/2021 58.73% 14.19% 15.25%
Source: NPS Trust

NPS Scheme E Tier-2 Return

NPS Scheme E Tier-2 Return

Here are the latest returns of NPS Scheme E Tier-11 as on 18.06.2021:

Pension Fund 1 year returns 3 year returns 5 year returns
Aditya Birla Sun Life Pension Management Ltd. 50.74% 12.65% NA
HDFC Pension Management Co. Ltd. 56.73% 13.84% 15.43%
ICICI Pru. Pension Fund Mgmt Co. Ltd. 59.19% 13.45% 14.17%
Kotak Mahindra Pension Fund Ltd. 54.64% 13.20% 13.95%
LIC Pension Fund Ltd. 58.78% 12.53% 12.83%
SBI Pension Funds Pvt. Ltd 54.55% 12.36% 13.73%
UTI Retirement Solutions Ltd. 60.05% 13.20% 14.39%
Benchmark Return as on 18/06/2021 58.73% 14.19% 15.25%
Source: NPS Trust



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3 Best Arbitrage Mutual Funds To Start SIP For 1-3 Years

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BNP Paribas Arbitrage Fund

This is a hybrid fund launched by BNP Paribas Mutual Fund. The fund’s expense ratio is 0.31 per cent, which is comparable to the expense ratios charged by most other Arbitrage funds. The fund currently has a -0.04 per cent stock allocation, a 24 per cent debt allocation, and a 76.4 per cent cash allocation. BNP Paribas Arbitrage Fund Direct has a 1-year growth rate of 4.29 per cent. It has returned an average of 6.30 per cent each year since its inception. The financial, metals, healthcare, energy, and technology sectors make up the majority of the fund’s equity holdings. BNP Paribas Overnight Fund – Direct Plan’s top five holdings include UPL Ltd., Tata Steel Ltd., Bharti Airtel Ltd., and Tata Power Co. Ltd.. The fund presently has Rs 757 crore as assets under management (AUM) and a NAV of Rs 13.14 as of June 18, 2021. One can start SIP by Rs 300 and this low-risk fund has an exit load of 0.25% if withdrawn within 1 year.

Nippon India Arbitrage Fund

Nippon India Arbitrage Fund

The fund presently has Rs 11,792 crore in assets under management (AUM) and a NAV of 22.09 as of June 18, 2021. The expense ratio of the fund is 0.34 per cent. The fund now has a 4.8 per cent equity allocation, a 22.9 per cent debt allocation, and a 72.3 per cent cash allocation. The 1-year returns for the Nippon India Arbitrage Fund Direct-Growth are 4.25 per cent. It has had an average yearly return of 7.32 per cent since its inception. The financial, metals, services, healthcare, and energy sectors make up the bulk of the fund’s equity holdings. Reliance Liquidity Fund – Direct Plan, Reserve Bank of India, GOI, Tata Steel Ltd., and Reliance Liquidity Fund – Treasury Plan – Direct Plan are the fund’s top five holdings. One can start SIP by Rs 100 and this low-risk fund has an exit load of 0.25% if withdrawn within 1 year.

Edelweiss Arbitrage Fund

Edelweiss Arbitrage Fund

As of June 18, 2021, the fund has Rs 5,503 crore in assets under management (AUM) and a NAV of 15.94. The fund’s expense ratio is 0.34 per cent. The fund presently has an equity allocation of -0.4 per cent, a debt allocation of 32.2 per cent, and a cash allocation of 68.2 per cent. The 1-year returns for Edelweiss Arbitrage Fund Direct-Growth are 4.27 per cent. It has returned an average of 6.91 per cent per year since its inception. The financial, metals, services, energy, and healthcare sectors make up the majority of the fund’s equity holdings. Reserve Bank of India, Adani Ports and Special Economic Zone Ltd., Bharti Airtel Ltd., Vedanta Ltd., and Reliance Industries Ltd. are the fund’s top five holdings. SIP can be started in this fund with Rs 500 and an exit load will be charged 0.1% if redeemed within 1 year.

Best Arbitrage Mutual Fund Returns

Best Arbitrage Mutual Fund Returns

Funds 1 year returns 3 year returns Value Research Rating
BNP Paribas Arbitrage Fund 4.29% 5.96% 5 star
Nippon India Arbitrage Fund 4.25% 5.98% 5 star
Edelweiss Arbitrage Fund 4.27% 6.03% 5 star
Source: Value Research

Should you invest?

Should you invest?

In the near term, arbitrage mutual funds may be quite turbulent. You can minimize this by investing for at least a year to ensure high returns. Because the returns would be categorised as Long Term Capital Gains, which are tax-free up to a ceiling of Rs. 1 lakh, you will receive higher tax-efficient returns than bank fixed deposits. Arbitrage Funds are not subject to the risks as traditional equity investments have. This is due to the fact that they purchase and sell stocks simultaneously. As a result, there is no possibility of stock price fluctuation impacting returns. As we always analyze the past returns for our readers for their better understanding and determination, Arbitrage Mutual Funds have generated an average 3-year SIP returns of 4.6% and 5-year SIP returns of 5.09%, according to Value Research.

If we compare these returns, then it is much higher than the returns of bank fixed deposits as of now. Finally, we suggest that these funds are appropriate for investors who want to gain exposure to the equity market but are concerned about the risk involved. When there is constant volatility in the market, arbitrage funds are a secure choice for risk-averse investors. Arbitrage funds are a good option if you want to generate moderate returns from an investment that has a reasonable mix of debt and equity in a turbulent market.

Disclaimer

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in



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Reserve Bank of India – Press Releases

Press Releases

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(Amount in Billions of ₹)
  SCHEDULED COMMERCIAL BANKS (Including RRBs) ALL SCHEDULED BANKS
05-Jun-20 21-MAY-2021* 04-JUN-2021* 05-Jun-20 21-MAY-2021* 04-JUN-2021*
I LIABILITIES TO THE BKG.SYSTEM (A)            
  a) Demand & Time deposits from bks. 249628.49 164248.8 174658.78 254887.19 168730.41 179080.37**
  b) Borrowings from banks 57788.4 53540.7 40077 57829.63 53547.95 40294.94
  c) Other demand & time liabilities 15720.18 20028.07 17997.71 15881.23 20270.22 18240.51
II LIABILITIES TO OTHERS (A)            
  a) Deposits (other than from banks) 13955522.63 15167162.49 15313123.75 14373994 15590565.42 15734994.96
  i) Demand 1475849.38 1695059.08 1730240.3 1511930.62 1734248.91 1770607.39
  ii) Time 12479673.25 13472103.37 13582883.44 12862063.37 13856316.47 13964387.55
  b) Borrowings@ 287268.06 244696.4 242489.77 291491.61 250408.67 247979.14
  c) Other demand & time liabilities 539277.69 570770.73 600722.22 552243.39 582689.98 612607.1
III BORROWINGS FROM R.B.I. (B) 291118.75 90485.86 90017.34 291118.75 90485.86 90017.34
  Against usance bills and / or prom. Notes            
IV CASH 84558.65 91691.76 88237.99 86940.83 93711.1 90168
V BALANCES WITH R.B.I. (B) 445527.02 603344.19 665049.48 458794.71 619801.25 682301.09
VI ASSETS WITH BANKING SYSTEM            
  a) Balances with other banks            
  i) In current accounts 11773 24218.19 16025.63 13981.6 26619.61 18286.75
  ii) In other accounts 153801.09 123040.45 123774.43 189081.63 152156.65 155259.01
  b) Money at call & short notice 20102.78 7849.24 7527.82 46182.31 26048.49 25496.86
  c) Advances to banks (i.e. due from bks.) 24042.62 14363.97 15359.53 25332.71 16584.99 17253.67£
  d) Other assets 50690.75 28076.06 25284.69 57023.04 30940.94 27946.54
VII INVESTMENTS (At book value) 4152696.71 4535535.43 4628275.82 4276845.47 4686227.69 4765388.01
  a) Central & State Govt. securities+ 4151030.61 4534285.39 4626859.48 4268247.62 4679260.25 4758141.58
  b) Other approved securities 1666.1 1250.03 1416.34 8597.86 6967.43 7246.43
VIII BANK CREDIT (Excluding Inter Bank Advance) 10254569.51 10831221.5 10843447.96 10585699.83 11168774.06 11180274.99
  a) Loans, cash credits & Overdrafts$ 10067413.48 10631205.61 10644145.87 10396595.1 10966406.1 10978777.55
  b) Inland Bills purchased 21898.6 28686.21 28912.11 22149.81 28702.47 28927.53
  c) Inland Bills discounted 127693.69 119859.21 119658.21 128749.9 121295.59 121065.61
  d) Foreign Bills purchased 14463.41 17988.77 17405.75 14673.65 18265.77 17641.92
  e) Foreign Bills discounted 23100.32 33481.66 33325.98 23531.37 34104.09 33862.33
NOTE
* Provisional figures incorporated in respect of such banks as have not been able to submit final figures.
(A) Demand and Time Liabilities do not include borrowings of any Scheduled State Co-operative Bank from State Government and any reserve fund deposits maintained with such banks by any co-operative society within the areas of operation of such banks.
** This excludes deposits of Co-operative Banks with Scheduled State Co-operative Banks. These are included under item II (a).
@ Other than from Reserve Bank, National Bank for Agriculture and Rural Development and Export Import Bank of India.
(B) The figures relating to Scheduled Commercial Banks’ Borrowings in India from Reserve Bank and balances with Reserve Bank are those shown in the statement of affairs of the Reserve Bank. Borrowings against usance bills and/ or promissory notes are under Section 17(4)(c) of the Reserve Bank of India Act, 1934. Following a change in the accounting practise for LAF transactions with effect from July 11, 2014, as per the recommendations of Malegam Committee formed to review the Format of Balance Sheet and the Profit and Loss Account of the Bank, the transactions in case of Repo/ Term Repo/MSF are reflected under “Borrowings from RBI”.
£ This excludes advances granted by Scheduled State Co-operative Banks to Co-operative banks. These are included under item VIII (a).
+ Includes Treasury Bills, Treasury Deposits, Treasury Savings Certificates and postal obligations.
$ Includes advances granted by Scheduled Commercial Banks and State Co-operative Banks to Public Food Procurement Agencies (viz. Food Corporation of India, State Government and their agencies under the Food consortium).

Food Credit Outstanding as on
(₹ in Billions)
Date 05-Jun-20 21-May-21 04-Jun-21
Scheduled Commercial Banks 85682.92 90662.91 89976.07
State Co-operative Banks 30406.26 35818.89 35821

The expression ‘ Banking System ‘ or ‘ Banks ‘ means the banks and any other financial institution referred to in sub-clauses (i) to (vi) of clause (d) of the explanation below Section 42(1) of the Reserve Bank of India Act, 1934.

No. of Scheduled Commercial Banks as on Current Fortnight: June 04, 2021: 133

Ajit Prasad
Director   

Press Release : 2021-2022/400

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Know Where New TDS Rules Will Apply & Where Not From July 2021

Personal Finance

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Taxes

oi-Vipul Das

|

The timeframe for filing income tax returns for the fiscal year 2021 has been extended by the Central Board of Direct Taxes (CBDT). According to the circular, the deadline for reporting Tax Deducted at Source (TDS) for the fourth quarter of the financial year 2020-21 has been revised until June 30. According to the Finance Act of 2021, non-filers of the Income Tax Return (ITR) would be subject to a higher Tax Deducted At Source (TDS) rate starting from next month.

Know Where New TDS Rules Will Apply & Where Not From July 2021

Consequently, from July 1, if a taxpayer has not submitted TDS in the previous two years and the total TDS deducted each year surpasses Rs 50,000, the tax department would impose a higher penalty while submitting the ITR. A new section 206AB was implemented in the recent budget to impose a higher rate of TDS in circumstances where an income tax return was not submitted for the preceding two years and the TDS subtracted in each of those two years surpassed Rs 50,000.

You May Have To Pay Rs 10,000 As Penalty To The Income Tax Department In July, Here’s Why

TDS will be higher than double the rate indicated in the relevant section of the Income Tax Act, or double the rates in effect, or at a rate of 5%. Furthermore, if tax is to be withheld on income earned from salary under section 192, lottery under section 194B, winning horse race under the section 194BB, income earned from PF under the section 192A, trust income under section 194LBC and cash withdrawals under the section 194N, the regulations of section 206AB would not apply.

Know All About New TDS Rules Applicable From July 2021

Furthermore, a higher TDS rate does not apply to NRIs or individuals who do not have a permanent establishment in India. Meanwhile, the Finance Act of 2021 proposed major changes to TDS requirements, including acquisitions of goods and higher TDS rates for ITR non-filers. New TDS rules for purchases of goods, as well as increased TDS rates for non-filers of ITRs, will take effect on July 1, 2021. The tax deduction at source on the payment of a predefined amount or sum for the acquisition of goods is regulated under Section 194Q, which was recently introduced.

From July 1 You May Have To Pay Higher TDS On Your Bank Or Post Office Deposits, Here’s Why

Except in the event of a transaction specified under sub-section (1H) of Section 206C, the guidelines of Section 194P do not apply to a transaction on which tax is deductible under any provision of this Act and tax is collectable under the provisions of Section 206C. Taxpayers must also keep in mind that the timeframe for linking Aadhaar to PAN has been extended to June 30. PAN Card of the responsible taxpayers would be invalid if it is not linked within the stated deadline. Not only this, but they will also face penalties under the ITA for failing to quote the PAN, and double TDS of 20%.

Story first published: Monday, June 21, 2021, 16:14 [IST]



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Bitcoin hits nearly 2-week low in wake of China crackdown, BFSI News, ET BFSI

Personal Finance

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LONDON/TOKYO: Bitcoin tumbled as much as 9% on Monday as recent volatility in the cryptocurrency market showed no signs of dampening down, with market players citing thin liquidity and China’s expanding crackdown on bitcoin mining.

Bitcoin fell as low as $32,288, its lowest in 12 days, and was last down 7.5%. If sustained, the drop would be its biggest in around a month.

Authorities in the southwest province of Sichuan on Friday ordered cryptocurrency mining projects to close. The State Council, China’s cabinet, last month vowed to clamp down on bitcoin mining and trading as part of a series of measures to control financial risks.

“Crackdown on Chinese miners might mean that they are offloading coin into a thin market and taking us lower,” said Ben Sebley of London-based crypto firm BCB Group.

Production of bitcoin in China accounts for more than half of global bitcoin production. Sichuan is China’s second-biggest bitcoin mining province, according to data compiled by the University of Cambridge. Some miners shift production there in the rainy summer to take advantage of its rich hydropower resources.

Companies that mine bitcoin typically hold large inventories of the cryptocurrency, with any moves to sell large amounts depressing prices.

Bitcoin has dropped by over a fifth in the last six days, and is down by half from its April peak of just shy of $65,000. Still, it has gained over 10% this year.

Smaller rival ether, the second-biggest cryptocurrency by market capitalisation that tends to move in tandem with bitcoin, dropped as much as 12%, falling below $2,000 for the first time in almost a month. It was last down 10% at $2025.31.



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Global banks in Hong Kong push to get staff back to office, BFSI News, ET BFSI

Banking & Finance

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By Kane Wu and Scott Murdoch

HONG KONG – Global banks are moving faster in Hong Kong to get staff back to office versus in other major centres, given fewer daily COVID-19 cases in the Asian city, and are offering incentives such as onsite vaccinations and days off to encourage inoculation.

Morgan Stanley has more than 70% of its staff back at their desks in the Asian financial hub, while 60%-70% of Credit Suisse employees are in their office，said people who work there. A Citigroup spokesman said 75% of the bank’s staff were in the workplace in Hong Kong.

JPMorgan plans to reach 75% office occupancy in the coming weeks and Bank of America, which until recently had most of its staff working from home, aims to reach full capacity by end-June, their bankers said.

Morgan Stanley, Credit Suisse, JPMorgan and Bank of America declined to comment.

At UBS, up to 60% of its Hong Kong workforce were back in the office, a spokesman told Reuters.

At these levels, occupancy at the Hong Kong offices of many of these banks will be ahead of the rates in New York and London where daily virus cases are still in the hundreds.

Hong Kong has recorded only one daily case on an average in the past week, while 28.5% of its population has received at least one vaccine shot, government data showed.

The banks’ return-to-office push in Hong Kong comes amid the city’s dealmaking boom and hiring frenzy as the Chinese economy recovers from the pandemic.

Returning to the workplace will allow bankers to attend in-person meetings and help secure more deals in a market where mergers and underwriting deals are set to pick up pace.

Most banks are offering two days off for employees who get vaccinated, in line with a government policy, to encourage staff to get inoculated and hasten their return to office.

Some are pushing harder.

Morgan Stanley set up an on-site vaccination operation on June 16 for staff who had not received any shot, according to people who work there. The bank will do it again in three weeks so people can get their second shot, one of the employees said.

Morgan Stanley declined to comment.

Citi will host its first onsite vaccine clinic for local staff on June 22, the spokesman said.

FLEXIBLE POLICY

While banks are looking to bring workers back to office, some are retaining a flexible approach.

An HSBC spokeswoman said the bank’s Hong Kong headquarters was now open for all staff to return but that people could choose between working from office and home.

“I hated working from home,” said a sales banker at HSBC. “I missed being able to chat with my colleagues all the time for leads and gossips. It was not fun at all at home.”

Standard Chartered said two-thirds of its bankers were back in office but that it too remains flexible. Hong Kong is its single largest market.

The bankers Reuters spoke to declined to be named as they were not authorised to speak to the media.

Goldman Sachs is also encouraging all staff members to get vaccinated in the Hong Kong office, a spokesman said.

“Since we reopened the office to all staff on June 7, the number of employees coming to the office every day is at pre-COVID levels, or higher if you consider that travel is way down,” he said.



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Reserve Bank of India – Press Releases

Press Releases

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(Amount in ₹ crore, Rate in Per cent)
  Volume
(One Leg)		 Weighted
Average Rate 		Range
A. Overnight Segment (I+II+III+IV) 0.00 – –
     I. Call Money 0.00 – –
     II. Triparty Repo 0.00 – –
     III. Market Repo 0.00 – –
     IV. Repo in Corporate Bond 0.00 – –
B. Term Segment      
     I. Notice Money** 0.00 – –
     II. Term Money@@ 0.00 – –
     III. Triparty Repo 0.00 – –
     IV. Market Repo 0.00 – –
     V. Repo in Corporate Bond 0.00 – –
  Auction Date Tenor (Days) Maturity Date Amount Current Rate /
Cut off Rate
C. Liquidity Adjustment Facility (LAF) & Marginal Standing Facility (MSF)
I. Today’s Operations
1. Fixed Rate          
     (i) Repo          
     (ii) Reverse Repo Sun, 20/06/2021 1 Mon, 21/06/2021 2,438.00 3.35
     (iii) Special Reverse Repo~          
     (iv) Special Reverse Repoψ          
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo          
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo – – – – –
3. MSF Sun, 20/06/2021 1 Mon, 21/06/2021 104.00 4.25
4. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£          
5. Net liquidity injected from today’s operations
[injection (+)/absorption (-)]*		       -2,334.00  
II. Outstanding Operations
1. Fixed Rate          
     (i) Repo          
     (ii) Reverse Repo Sat, 19/06/2021 2 Mon, 21/06/2021 44,220.00 3.35
  Fri, 18/06/2021 3 Mon, 21/06/2021 3,04,546.00 3.35
     (iii) Special Reverse Repo~ Fri, 18/06/2021 14 Fri, 02/07/2021 960.00 3.75
     (iv) Special Reverse Repoψ Fri, 18/06/2021 14 Fri, 02/07/2021 40.00 3.75
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo Fri, 18/06/2021 14 Fri, 02/07/2021 2,00,009.00 3.50
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo          
3. MSF Sat, 19/06/2021 2 Mon, 21/06/2021 2.00 4.25
  Fri, 18/06/2021 3 Mon, 21/06/2021 59.00 4.25
4. Long-Term Repo Operations# Mon, 17/02/2020 1095 Thu, 16/02/2023 499.00 5.15
  Mon, 02/03/2020 1094 Wed, 01/03/2023 253.00 5.15
  Mon, 09/03/2020 1093 Tue, 07/03/2023 484.00 5.15
  Wed, 18/03/2020 1094 Fri, 17/03/2023 294.00 5.15
5. Targeted Long Term Repo Operations^ Fri, 27/03/2020 1092 Fri, 24/03/2023 12,236.00 4.40
  Fri, 03/04/2020 1095 Mon, 03/04/2023 16,925.00 4.40
  Thu, 09/04/2020 1093 Fri, 07/04/2023 18,042.00 4.40
  Fri, 17/04/2020 1091 Thu, 13/04/2023 20,399.00 4.40
6. Targeted Long Term Repo Operations 2.0^ Thu, 23/04/2020 1093 Fri, 21/04/2023 7,950.00 4.40
7. On Tap Targeted Long Term Repo Operations€ Mon, 22/03/2021 1095 Thu, 21/03/2024 5,000.00 4.00
  Mon, 14/06/2021 1096 Fri, 14/06/2024 320.00 4.00
8. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£ Mon, 17/05/2021 1095 Thu, 16/05/2024 400.00 4.00
  Tue, 15/06/2021 1095 Fri, 14/06/2024 490.00 4.00
D. Standing Liquidity Facility (SLF) Availed from RBI$       5,578.00  
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -4,60,844.00  
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -4,63,178.00  
G. Cash Reserves Position of Scheduled Commercial Banks
     (i) Cash balances with RBI as on 20/06/2021 6,15,466.50  
     (ii) Average daily cash reserve requirement for the fortnight ending 02/07/2021 6,19,074.00  
H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ 18/06/2021 0.00  
I. Net durable liquidity [surplus (+)/deficit (-)] as on 04/06/2021 8,57,660.00  
@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
– Not Applicable / No Transaction.
** Relates to uncollateralized transactions of 2 to 14 days tenor.
@@ Relates to uncollateralized transactions of 15 days to one year tenor.
$ Includes refinance facilities extended by RBI.
& As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo.
# As per the Press Release No. 2020-2021/287 dated September 04, 2020.
^ As per the Press Release No. 2020-2021/605 dated November 06, 2020.
€ As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020 and Press Release No. 2020-2021/1057 dated February 05, 2021.
¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
£ As per the Press Release No. 2021-2022/181 dated May 07, 2021.
~ As per the Press Release No. 2021-2022/177 dated May 07, 2021.
ψ As per the Press Release No. 2021-2022/323 dated June 04, 2021.
Ajit Prasad
Director   
Press Release: 2021-2022/399

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