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Gold Trades Flat On Monday June 28, Experts See Little Movement

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Investment

oi-Sunil Fernandes

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Gold prices on the MCX, international markets and the local jewellers were absolutely flat on Monday June, 28. This was in line with the trend we have seen in the last few days in the precious metal.

Gold for August delivery was little changed at Rs 49,650, marginally up by 0.09%, while gold in the international markets too was flat at $1779.70 an ounce, up 0.105. Spot gold in the Indian markets was also flat.

In Bangalore 22 karats gold was around that Rs 44,120 per 10 grams mark, while in Chennai spot gold for 22 karats was Rs 44,470 per 10 grams. In Mumbai spot gold for 22 karats was Rs 46,170 per 10 grams on Monday.

Gold in the Indian markets follows international prices, which in turn move on bond yields, economic data and comments by the US Fed on interest rates.

Gold Trades Flat On Monday June 28, Experts See Little Movement

Amit Khare, AVP- Research Commodities, Ganganagar Commodities says, ” The Fed has for years (pre-pandemic) used 2% percent as their inflation target. During the pandemic, they altered their mandate to let inflation run hot or above 2% and instead focused on boosting employment in the United States. However, the current PCE index is roughly double the Federal Reserve’s target of 2%. The Bureau of Economic Analysis revealed that U.S. inflation rose sharply in May. It showed that prices are rising at their fastest pace since 2008. The PCE climbed 0.4% in May, which takes the annual PCE inflation rate to 3.9%.

The momentum indicators are turning up, and a base appears to have been forged around $1,773. A move above $1,800 is needed to confirm the bottom. Initial target $1,820 (38.2%) of June ‘s decline and $1,833 (~200-day moving average). U.S. 10-year yield stalled at 1.50%, Another bullish signal is that bitcoin is not seeing a renewed rally after briefly falling below $30,000 and erasing all the year-to-date gains this week.”

According to Sandeep Matta, Founder, TRADEIT Investment Advisor, sideways sideways consolidation is likely to continue until it closing above Rs 47, 500 levels. He says that key level for GOLD AUG Contract is Rs 46,991 and the Buy zone would be above – 46995 for a target of Rs 47150-47329.

“The sell zone below Rs 46,991 for the target of 46775-46613,” he says.

Gold prices have fallen a bit since the US Fed indicated that there could be interest rate hikes in the US as early 2023. In fact, the Fed indicated that there could be two hikes by the end of 2023 as inflation continues to rise.

Story first published: Monday, June 28, 2021, 10:02 [IST]



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After SFB license, Shivalik to raise its first fund of Rs 100 crore, BFSI News, ET BFSI

Banking & Finance

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The co-operative bank turned Small Finance Bank, Shivalik Bank is going to raise funds for the first time as a small finance bank.

The recently turned SFB is looking to raise Rs 100 crore growth capital from institutional investors.

Harsh Mittal, Chief Financial Officer, Shivalik Small Finance Bank

Harsh Mittal, Chief Financial Officer, Shivalik Small Finance Bank in a conversation talks about the fundraising and expansion plans.

Maiden Fundraise

Mittal said, “This is the first raise we are going to raise funds as a small finance bank and there wasn’t a debt in the market that existed for co-operative banks before and this is the first raise the bank is going to do.”

He added, “We are looking to raise Rs 100 crore in this year and hopefully do it in next quarter for which requisite board approvals are in place. Board has given the scope to increase the amount.”

This is growth capital as the bank has already invested heavily in the digital and tech infrastructures in the past. Mittal said, “Most part of this capital will be used as growth capital towards ramping up disbursements and growing business to achieve our stated targets. This year we want to grow the business by 50% and increase the total business size to Rs 3000 crore and by 2024-25 we want to triple the size by Rs 6000 crore.”

Debt-Equity

Mittal explained that the great part is that the balance sheet has a lot of flexibility as we don’t have much debt on our balance sheet. Most of our capital adequacy is in Tier1 equity so this Rs 100 crore we are largely looking at equity raise and there’s a small component which will also be raised from debt.”

He adds, “80:20 split would be a reasonable number and are appointing investment bankers to run the process for us and the names will be finalised by the end of this month or mid-July.”

The bank is looking to onboard an institutional investor base including insurance companies especially the ones who already are in tie-ups and a couple of private equity players who have been investing in the SFB space. The idea is to broaden the investor base as at the moment it is broadly retail, Mittal said.

Credit Disbursement

The bank’s 50% of the book is secured business loans and will continue to focus on that.

Mittal explains, “One of the differentiating factors for us is that as an SFB 90% of our book is secured either by property or gold collateral. So we are a very secured lender in that sense and only 10% of our book is MFI.”

He adds, “Our focus would be on secured and gold loan business. The gold loan book has doubled in the last year and we plan to increase it further substantially again. Now that lockdowns have eased up we would want to cater to small businesses too.”

Expansion Plans

Shivalik Bank will be opening branches in unbanked regions as per the norm of RBI and is aiming to open 15 branches in FY22.

Mittal said, “This covers us on the regulatory requirement and in addition to regulatory requirement we are also looking at expansion in adjoining states in Delhi & Uttarakhand as we are already present in UP and Madhya Pradesh. On the digital side, we’ve tied up with India Gold for gold-related business and this year we are looking to add more FinTech partnerships which would help us to source customers on the liability side as well.”

Impact of Second Wave

The NPA recognition case in the Supreme Court didn’t allow it to issue recovery notices or proceedings. Mittal explained, “Since that got lifted towards the end of March, April was much better for us as we were able to issue some of the proceedings, and as a result borrower discipline was improved on the secured side.”

There was no major challenge in collection efficiency as due to the secured nature of our book, customers were more amenable discussing how they can improve their position and we don’t have large exposures in any of the currently challenging sectors like hospitality or aviation impacted due to Covid-19. Our book is very granular and the average ticket size is Rs 4 lakhs, said Mittal.

The bank saw restructuring of less than half a percent of its book in FY 20-21 and Gross NPA at 31 March 2021 was 3.9% which is expected to remain largely unchanged in Q1 21-22



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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) 4,11,666.42 3.25 0.01-3.50
     I. Call Money 7,265.63 3.13 1.90-3.40
     II. Triparty Repo 3,06,843.20 3.24 3.23-3.38
     III. Market Repo 95,496.59 3.29 0.01-3.45
     IV. Repo in Corporate Bond 2,061.00 3.50 3.50-3.50
B. Term Segment      
     I. Notice Money** 971.32 3.40 2.75-3.47
     II. Term Money@@ 180.00 – 3.25-3.40
     III. Triparty Repo 300.00 3.25 3.24-3.25
     IV. Market Repo 688.71 3.02 2.00-3.75
     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 Fri, 25/06/2021 3 Mon, 28/06/2021 3,54,255.00 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 Fri, 25/06/2021 3 Mon, 28/06/2021 2.00 4.25
4. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£          
5. Net liquidity injected from today’s operations
[injection (+)/absorption (-)]*		       -3,54,253.00  
II. Outstanding Operations
1. Fixed Rate          
     (i) Repo          
     (ii) Reverse Repo          
     (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          
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$       15,776.80  
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -1,01,940.20  
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -4,56,193.20  
G. Cash Reserves Position of Scheduled Commercial Banks
     (i) Cash balances with RBI as on 25/06/2021 6,22,355.95  
     (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¥ 25/06/2021 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: 2021-2022/434

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A ₹2-lakh crore worth of debt looms over new bad bank

Banking & Finance

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A bad bank in India that’s expected to launch this month may help reduce one of the world’s worst bad-loan piles, but market participants say it’s a long path ahead.

The new institution, which is set to start operations by the end of June, is likely to handle stressed debt worth ₹2 lakh crore ($27 billion) over time, according to a BloombergQuint report. That would be about a quarter of the nation’s non-performing debt load. By housing bad loans of many lenders under one roof, the entity should help speed up decision-making and improve bargaining power when resolving these assets.

 

But for India to overcome its struggles with bad debt and stabilize the financial system of Asia’s third-largest economy, more fundamental problems with insolvency laws introduced in 2016 need to be addressed, investors say. Their confidence in the country’s bankruptcy reforms has been shaken as creditors’ recovery rates fall, delays in closing cases increase, and liquidations exceed resolutions in the insolvency courts.

Market participants will watch whether the bad bank focuses on resolving the assets rather than keeping them like a warehouse, and whether its team includes appropriate industry and turnaround experts.

 

“The proposed bad bank is useful as a one-time clean-up exercise of the bad loans that are pending resolution for years now,” said Raj Kumar Bansal, managing director at Edelweiss Asset Reconstruction Co. “But it’s not a long-term solution in dealing with the stressed assets,” he said, adding that bankruptcy reform is key.

Less than one in 10 companies admitted in the insolvency courts is getting resolved while a third are facing liquidation, data compiled by Insolvency and Bankruptcy Board of India show. The recoveries for financiers from the resolved cases have also dropped to 39 per cent of dues as of March from 46 per cent a year earlier. And if the top nine cases by recovery are excluded, lenders received just 24% of dues, according to Macquarie Capital.

Bankruptcy reforms

“India’s bankruptcy reforms started off well but they have slowed currently,” said Nikhil Shah, managing director at Alvarez & Marsal India. “Prolonged delays in resolutions, lengthy court battles, and uncertainty of recoveries post-approval of resolution plans are pushing many potential investors away” from the bankruptcy process, he said.

 

Shah expects the delays in resolutions to worsen further unless the government and judiciary address some of the primary issues, such as increasing the number of judges and investing in digital infrastructure to boost productivity.

Indian Banks’ Association, which is helping with plans for the proposed bad bank, and Insolvency and Bankruptcy Board of India, didn’t immediately respond to emails seeking comment.

For now, Indian banks will be happy to finally kick away some of the stressed loans to the proposed entity. The sector’s bad-loan ratio is set to almost double to 13.5 per cent of total advances by the end of September, India’s central bank said in a report published before the second wave of coronavirus infections hit the country.

“Stressed loans have taken far too much management time across the industry in the past couple of years,” Prashant Kumar, chief executive officer at Yes Bank Ltd., told Bloomberg. “This bad bank will help shift focus from resolving soured loans to improving credit growth.”

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Even gold-obsessed Indians are now pouring billions into crypto

Banking & Finance

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The cryptocurrency aficionados’ mantra that Bitcoin is equivalent to digital gold is winning converts among the world’s biggest holders of the precious metal.

In India, where households own more than 25,000 tonnes of gold, investments in crypto grew from about $200 million to nearly $40 billion in the past year, according to Chainalysis. That is despite outright hostility toward the asset class from the central bank and a proposed trading ban.

Richi Sood, a 32-year-old entrepreneur is one of those who swerved from gold to crypto. Since December, she’s put in just over 1 million rupees ($13,400) – some of it borrowed from her father – into Bitcoin, Dogecoin and Ether.

And she’s been fortunate with her timing. She cashed out part of her position when Bitcoin smashed through $50,000 in February and bought back in after the recent tumble, allowing her to fund the overseas expansion of her education startup Study Mate India.

Also read: Cryptocurrency: Investors can wait till clarity emerges

“I’d rather put my money in crypto than gold,” Sood said. “Crypto is more transparent than gold or property and returns are more in a short period of time.”

She’s part of a growing number of Indians — now totalling more than 15 million — buying and selling digital coins. That is catching up with the 23 million traders of these assets in the U.S. and compares with just 2.3 million in the U.K.

The growth in India is coming from the 18-35 year old cohort, says the co-founder of India’s first cryptocurrency exchange. Latest World Gold Council data indicated Indian adults under age 34 have less appetite for gold than older consumers.

“They find it far easier to invest in crypto than gold because the process is very simple,” said Sandeep Goenka, who co-founded ZebPay and spent years representing the industry in discussions with the government on regulation. “You go online, you can buy crypto, you don’t have to verify it, unlike gold.”

Regulatory issues

One of the biggest barriers preventing wider adoption is the regulatory uncertainty. Last year, the Supreme Court quashed a 2018 rule banning crypto trading by banking entities, resulting in a trading surge.

However, authorities show no signs of embracing cryptocurrencies. The nation’s central bank says it has “major concerns” about the asset class and six months ago, the Indian government proposed a ban on trading in digital coins – though it has been silent on the topic since.

“I am flying blind,” said Sood. “I have a risk-taking appetite, so I’m willing to take a risk of a ban.”

The official hostility though means many bigger individual investors are reluctant to speak openly about their holdings. One banker Bloomberg spoke to who invested more than $1 million into crypto assets said with no clear income tax rules at present, he was concerned about the possibility of retrospective tax raids if he was publicly known to be a big-ticket crypto investor.

He’s already got contingency plans in place to move his trading to an offshore Singapore bank account if a ban was to be introduced.

Increasing investment

To be sure, the value of Indian digital asset holdings remain a sliver of its gold market. Still, the growth is clear, especially in trading — the four biggest crypto exchanges saw daily trading jump to $102 million from $10.6 million a year ago, according to CoinGecko. The country’s $40 billion market significantly trails China’s $161 billion, according to Chainalysis.

For now, the increasing adoption is another sign of Indians’ willingness to take risk within a consumer finance sector that’s plagued with examples of regulatory short falls.

“I think over time everyone is going to adopt it in every country,“ said Keneth Alvares, 22, an independent digital marketer who has invested more than $1,300 in crypto so far. “Right now the whole thing is scary with regulation but it doesn’t worry me because I’m not planning to remove anything for now.”

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Britain bans Binance Markets in latest cryptocurrency crackdown, BFSI News, ET BFSI

Personal Finance

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Bengaluru | London: Binance Markets Ltd., one of the world’s largest cryptocurrency exchanges, cannot conduct any regulated activity in the UK, Britain’s financial regulator said, and issued a warning to consumers about the platform, which is coming under growing scrutiny globally.

In a notice dated June 25, the Financial Conduct Authority (FCA) said Binance Markets, Binance’s only regulated UK entity, “must not, without the prior written consent of the FCA, carry out any regulated activities…with immediate effect”.

It also issued a warning to consumers about Binance Markets and the wider Binance group.

Binance in a statement said that Binance Markets, which it acquired in 2020, was not yet using its regulatory permissions, and that the FCA’s move would not impact services offered on its website. “We take a collaborative approach in working with regulators and we take our compliance obligations very seriously, a spokesperson said. “We are actively keeping abreast of changing policies, rules and laws in this new space.”

Binance announced in June last year that it had bought an FCA-regulated entity and would use it to offer cryptocurrency trading services using pounds and euros.

Authorisation

While trading of cryptocurrencies is not directly regulated in Britain, offering services such as trading in cryptocurrency derivatives does require authorisation.

The FCA has told Binance that by June 30 it must display a notice stating “BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK” on its website and social media channels. It must also secure and preserve all records relating to UK consumers and inform the FCA this has been done by July 2.

The regulator did not explain why it had taken these measures.

British citizens will still be able to access Binance’s services in other jurisdictions.

The FCA is stepping up its oversight of cryptocurrency trading, which has soared in popularity in Britain along with other countries around the globe. Since January, it has required all firms offering cryptocurrency-related services to register and show they comply with anti-money laundering rules. However, earlier this month, it said that just five firms had registered, and that the majority were not yet compliant.

Japan’s regulator said on June 25 that Binance was operating in the country illegally, a notice posted on Japan’s Financial Services Agency website showed.

Last month, Bloomberg reported that officials from the US Justice Department and Internal Revenue Service who probe money laundering and tax offences had sought information from individuals with insight into Binance’s business.

In April, Germany’s financial regulator BaFin said the exchange risked being fined for offering digital tokens without an investor prospectus.



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Bitcoin becoming the new gold as Indians pour billions into crypto, BFSI News, ET BFSI

Personal Finance

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The cryptocurrency aficionados’ mantra that Bitcoin is equivalent to digital gold is winning converts among the world’s biggest holders of the precious metal.

In India, where households own more than 25,000 tonnes of gold, investments in crypto grew from about $200 million to nearly $40 billion in the past year, according to Chainalysis. That’s despite outright hostility toward the asset class from the central bank and a proposed trading ban.

Richi Sood, a 32-year-old entrepreneur is one of those who swerved from gold to crypto. Since December, she’s put in just over 1 million rupees ($13,400) – some of it borrowed from her father – into Bitcoin, Dogecoin and Ether.

And she’s been fortunate with her timing. She cashed out part of her position when Bitcoin smashed through $50,000 in February and bought back in after the recent tumble, allowing her to fund the overseas expansion of her education startup Study Mate India.

“I’d rather put my money in crypto than gold,” Sood said. “Crypto is more transparent than gold or property and returns are more in a short period of time.”

She’s part of a growing number of Indians — now totalling more than 15 million — buying and selling digital coins. That’s catching up with the 23 million traders of these assets in the U.S. and compares with just 2.3 million in the U.K.

The growth in India is coming from the 18-35 year old cohort, says the co-founder of India’s first cryptocurrency exchange. Latest World Gold Council data indicated Indian adults under age 34 have less appetite for gold than older consumers.

“They find it far easier to invest in crypto than gold because the process is very simple,” said Sandeep Goenka, who co-founded ZebPay and spent years representing the industry in discussions with the government on regulation. “You go online, you can buy crypto, you don’t have to verify it, unlike gold.”
One of the biggest barriers preventing wider adoption is the regulatory uncertainty. Last year, the Supreme Court quashed a 2018 rule banning crypto trading by banking entities, resulting in a trading surge.

However, authorities show no signs of embracing cryptocurrencies. The nation’s central bank says it has “major concerns” about the asset class and six months ago the Indian government proposed a ban on trading in digital coins – though it has been silent on the topic since.

“I am flying blind,” said Sood. “I have a risk-taking appetite, so I’m willing to take a risk of a ban.”

The official hostility though means many bigger individual investors are reluctant to speak openly about their holdings. One banker Bloomberg spoke to who invested more than $1 million into crypto assets said with no clear income tax rules at present he was concerned about the possibility of retrospective tax raids if he was publicly known to be a big-ticket crypto investor.

He’s already got contingency plans in place to move his trading to an offshore Singapore bank account if a ban was to be introduced.

To be sure, the value of Indian digital asset holdings remain a sliver of its gold market. Still, the growth is clear, especially in trading — the four biggest crypto exchanges saw daily trading jump to $102 million from $10.6 million a year ago, according to CoinGecko. The country’s $40 billion market significantly trails China’s $161 billion, according to Chainalysis.

For now, the increasing adoption is another sign of Indians’ willingness to take risk within a consumer finance sector that’s plagued with examples of regulatory short falls.

“I think over time everyone is going to adopt it in every country,“ said Keneth Alvares, 22, an independent digital marketer who has invested more than $1,300 in crypto so far. “Right now the whole thing is scary with regulation but it doesn’t worry me because I’m not planning to remove anything for now.”



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Mexican billionaire Salinas says his banking business may embrace Bitcoin, BFSI News, ET BFSI

Personal Finance

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MEXICO CITY: Mexican billionaire Ricardo Salinas Pliego said on Sunday his banking business may begin using bitcoin, becoming the country’s first bank to start accepting the cryptocurrency.

Salinas, who is ranked as Mexico’s third richest man with a family fortune estimated at $15.8 billion by Forbes, is the owner of the large Banco Azteca banking business.

Salinas last year said he had about 10% of his liquid portfolio invested in bitcoin. On Sunday, he said all investors should study cryptocurrency and their future.

“Sure, I recommend the use of #Bitcoin, and me and my bank are working to be the first bank in Mexico to accept #Bitcoin,” Salinas said in a tweet.

Bitcoin rallied around 7.5% on Sunday to trade at around $34,500.

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EPF Interest Shall Not Be Taxable Even If Employee Contributes Upto Rs. 5 Lakh/p.a In This Case

Personal Finance

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Personal Finance

oi-Roshni Agarwal

|

In respect of the social security scheme contribution, considering the Budget announcements made this year, there are several facets that need to be known by an EPF or employee provident fund subscriber:

1. The Budget 2021 said that if the person’s contribution to the EPF and PPF in a fiscal year exceeded Rs. 2.5 lakh, then the interest on the contributed sum shall be taxable in respect of the excess amount.

2. In a case if the employee is not making any contribution to the EPF account then there shall be no tax in respect on interest earned fromsuch provident fund accounts even if the contribution is up to Rs. 5 lakh in a fiscal year.

3. There is another factor or aspect to the EPF that may not be known to many i.e. there has been rolled out direct benefit pension scheme in public sector banks as well as insurance companies. Likewise for those employees who form the part of the Direct benefit pension scheme, employers are not required to make contribution to their employee’s EPF account. Nonetheless, for such members can equal contribution has to be made towards the employee’s pension fund.

This Employee Category Is An Exception To Finance Act 2021 Rule On EPF

EPF Interest Shall Not Be Taxable Even If Employee Contributes Upto Rs. 5 Lakh/p.a In This Case

Taxability of EPF Interest In case when the employer makes no contribution

So for those of you who are beneficiaries of DBPS and for whom employers’ are not making contribution to the employees account then for them the new ruling as per the Finance Act 2021 ,which states that interest accrued on contribution of more than Rs. 2.5 lakh in a year to the EPF shall be taxable from FY22, will not be applicable.

But herein interest accrued on contributions of over Rs. 5 lakh per year shall be taxable. Here in what is important that still the rules in respect of timing and manner for computation of such taxable interest have not been made known.

GoodReturns.in

Story first published: Monday, June 28, 2021, 8:30 [IST]



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Reserve Bank of India – Tenders

Tenders

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e-Tender no: RBI/Chennai/Estate/351/20-21/ET/517

A reference is invited to the captioned tender, which was floated on February 08, 2021 under the “Tenders” link of RBI website (www.rbi.org.in) and MSTC portal (www.mstcecommerce.com).

2. This is to inform that the captioned tender stands cancelled, and a fresh tender will be called at a later date. 

The Regional Director
Reserve Bank of India
Chennai

Date: 26/06/2021

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