Reserve Bank of India – Press Releases
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List of Income Tax Savings Documents Required To Submit For The FY 2021-2022
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Taxes
oi-Vipul Das
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The Ministry of Defence under the Controller of Defence Accounts, Guwahati has released a list of Income Tax Savings Documents that must be submitted for the fiscal year 2021-2022. “For the purpose of assessment and regularization of Income Tax for the Financial Year 2021-22 (Assessment Year 2022-23) all the officers and staff are requested to submit the following documents” the Defence Ministry has said in an Official Memorandum (O.M) on dated 2nd November 2021.
As per Annexure I and IL, proof of savings/documents such as insurance premium receipts, NSC, Infrastructure Bond, PPF Bank Statement, Housing Loan Certificate from bank, rent receipt, copy of House Owner’s Pan Card, etc. should be submitted.
According to the OM, any Officers and Staff claiming exemption of Income Tax under IT Act 1961 under section 197 who have not forwarded the Exemption Certificate for FY 2021-22 from Income Tax Department are advised to do so at the earliest; failing which Total Tax Payable will be deducted at source and tax refund if any should be claimed only from IT Department. The Defence Ministry has also clarified that “In this connection, it is also stated that exemption allowed will be limited to the amount of salary and period of exemption mentioned in the Income Tax Exemption Certificate as received from the Income Tax Department. Any amount exceeding the amount mentioned in the Certificate and any salary drawn prior or after the period mentioned will be liable for a tax deduction.”
The Defence Ministry has said that “Those employees who had produced “Self Declaration” earlier, should also submit Proof of savings/documents along with Annexure I and Annexure-II failing which the “Self Declaration” submitted earlier shall be considered null and void and Tax Deduction at source shall be done accordingly.”
Hence, taxpayers are recommended that the above documents (if relevant) duly completed in all regards should be submitted on or before December 15, 2021, in order for the ODO to authorize the income tax deduction at source for the present fiscal year. The Defence Ministry has further stated in its OM that “In absence of receipt of the aforementioned documents from the official, the Income Tax will be deducted based on the available information at this end and any refund, if admissible, may be claimed only from the Income Tax department.”
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Banks issue 31.67 crore RuPay debit cards to PMJDY account holders, BFSI News, ET BFSI
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Banks have issued 31.67 crore RuPay debit cards with free accident insurance cover to Pradhan Mantri Jan Dhan Yojana (PMJDY) account holders, the Finance Ministry said on Monday.
Bank accounts opened under PMJDY have swelled to 43.76 crore since its launch in August 2014.
“Progressing ahead with a mission to provide universal access to banking facilities for every adult citizen, 31.67 crore #RuPay debit cards with inbuilt accident insurance coverage issued to #PMJanDhan account holders till October 21,” Department of Financial Services under Ministry of Finance said in a tweet.
The Jan Dhan Yojana, which was announced by Prime Minister Narendra Modi in his Independence Day address in 2014, was launched on August 28 in the same year.
In 2018, the government launched PMJDY 2.0 with enhanced features and benefits. Under the new version, the government decided to shift focus from ‘Every Household’ to ‘Every Unbanked Adult’ and free accidental insurance cover on RuPay cards was doubled to Rs 2 lakh for PMJDY accounts opened after August 28, 2018.
“#PMJanDhan accounts have grown multi-fold (from 14.72 crores in Mar’15 to 43.76 crores in Oct’21). An exceptional journey of India’s #FinancialInclusion Program,” another tweet said.
About 55 per cent of the total account holders under PMJDY, a flagship scheme of the government to promote financial inclusion, are women.
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Former SBI chairman Pratip Chadhuri gets bail, Alchemist directors set to move to quash arrest orders, BFSI News, ET BFSI
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The Jodhpur bench of the Rajasthan High Court has granted bail to former SBI chairman Pratip Chaudhuri in the Garh Rajwada case staying the Jaisalmer court’s arrest warrant issued in February 2020. Chaudhuri has been released on Tuesday and will fly to Delhi tommorrow, nine days after he was taken into custody, a person with direct knowledge of the matter said.
Meanwhile employees and other directors of Alchemist ARC including CEO Alok Dhir have got a stay against any action by the Rajasthan police in the case and will move the High Court to quash the order.
The Jodhpur bench on Tuesday granted stay of order dated and all consequential orders passed by the chief judicial magistrate of Jaisalmer in a hearing of the petition and directors. “The court has also observed that the case is of civil nature and that similar FIR has been quashed by the Supreme Court,” the person cited above said.
Chaudhuri will have to move a separate petition to quash any action against him in the case.
The Indian banking industry was shocked on November 1 after police from Jaisalmer arrested Chaudhuri following a complaint from a defaulter who lost his property during a resolution process. Chaudhuri was SBI chairman between April 7 2011 and September 30 2013.
The case refers to the ‘Garh Rajwada’ hotel project in Jaisalmer, financed by SBI in 2007. Since the project was not completed for three years and a key promoter passed away in April 2010, the account slipped into the non-performing asset (NPA) category in June 2010. Subsequently, the Rs. 25 crore loan was sold to Alchemist Asset Reconstruction Co (ARC) in 2014 of which Chaudhuri became a director on superannuation from the bank.
The promoter Harendra Singh Rathore had launched a protest petition in a Jaisalmer court alleging conflict of interest against Chaudhuri after the intital FIR filed in 2015 was closed after the Rajasthan police said it was a civil matter.
Subsequently, a Jaisalmer court had issued an arrest warrant against Alchemist directors including Chaudhuri and CEO Dhir.
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RBI lifts ban on new biz for Diners Club
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The RBI had barred Diners Club from on-boarding new customers from May 1, through an order dated April 23. The ban followed the card network’s failure to comply with the central bank’s order/norms pertaining to data localisation.
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RBI restricts withdrawals from Yavatmal’s Bapuji Datey Mahila Coop Bank, BFSI News, ET BFSI
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Yavatmal: The Reserve Bank of India (RBI) has imposed various restrictions on Yavatmal-based Babuji Datey Mahila Cooperative Bank Ltd under section 35A read with section 56 of the Banking Regulations Act, 1949. The restrictions came into force from Tuesday, November 9.
The RBI restrictions state that the bank is allowed to let its savings account holders withdraw only Rs5,000 in the next six months. Besides, the bank is restricted from accepting any fresh deposits without the prior permission of RBI.
The directions add that considering the bank’s liquidity position o account holder can withdraw a sum exceeding Rs5,000 of the total balance across all savings bank or current accounts for the next six months. The bank has been in heavy losses and reported NPAs to the extent of over Rs200 crore.
There was heavy rush of concerned depositors at the bank on Tuesday itself. No senior officials or directors were present at the bank, which added to confusion among depositors.
Chief officer Sujata Mahajan later confirmed the RBI action and said there was failure in recovery of loans, which led to the RBI action. “We have expedited recovery proceedings and in next two months we shall recover the defaulted amount, and recoup the current situation,” she said, appealing to depositors not to panic as their money is safe.
Deputy registrar of cooperatives Ramesh Katke said he has limited control over cooperative banks as they are governed by RBI. “Today, I summoned a meeting of the Board of Directors and instructed them to act strictly by the rules, which they agreed to comply with hereafter,” Katke said and urged the public not to panic. Their deposits are safe and the current situation will be overcome within two months, he added.
Bank account holder Akhtar Firdos Mohd Razak had launched an indefinite hunger strike in front of the main branch of the bank from October 25 with his family. He claims to have incurred heavy losses due to faulty service of the bank, which made him a defaulter. He accused bank directors of giving loans to their favourites recklessly, which caused heavy loss to the bank.
The bank said Razak is angry because of recovery proceedings by the bank after he defaulted on his loan.
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Yes Bank plans legal action on police order, BFSI News, ET BFSI
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Yes Bank is understood to be planning legal action against the Gautam Buddh Nagar police order disallowing the private lender from dealing with or exercising rights over shares of DishTV. This is a part of the bank’s attempts to recover loans to the group.
According to legal experts, the bank can seek redressal from the Allahabad HC against the police order. The police have issued a notice under Section 102 of the Criminal Procedure Code, which gives them power to seize property that is allegedly stolen or there is reasonable suspicion. The notice was issued on a case based on a complaint by Subhash Chandra, chairman of Essel Group. The FIR is understood to have been lodged in September 2020.
The private bank, which is the largest shareholder in DishTV with a stake of over 24%, has sought to oust the management. The bank had acquired a stake in the broadcaster after invoking a pledge on shares that were offered by the Essel Group promoter. The pledges were invoked after the promoter defaulted on its loans. The Essel Group, which has come under stress, had managed to extract a standstill agreement from other lenders. Yes Bank has continued to pursue recovery and moved a resolution to sack CEO Jawahar Goel and other independent directors.
However, last Saturday, DishTV informed the stock exchanges that the UP Police have issued a notice to the bank asking it not to deal with DishTV shares or exercise any rights in respect of them.
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The story behind Former Chairman Pratip Chaudhary’s arrest, BFSI News, ET BFSI
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Pratip Chaudhary, former State Bank of India chairman, was arrested last Sunday for a loan scam involving a hotel project in Jaisalmer, Rajasthan, dating back 14 years.
Chaudhary’s bail plea was rejected, and after spending a day in jail, he was admitted to Jawahar Hospital in Jaipur last Wednesday due to restlessness.
The loan scam
In 2007, the state-owned bank had sanctioned a loan of Rs 24 crore to Godawan Group for a constructing a hotel in Jaisalmer. The properties were worth Rs 200 crore. The Group was unable to repay the loan as the project could not be completed and Dilip Singh Rathore, group owner, passed away in April 2010.
The loan was declared a non-performing asset in June 2010.
Chaudhary has been alleged to have “connived” with Alchemist Asset Reconstruction Company, and violated Reserve Bank of India norms to declare the loan an NPA, and sold company property for Rs 25 crore. Chaudhary retired as SBI chairman after a two-year term in September 2013.
Harendra Singh Rathore, son of Dilip Singh and current promoter of Godawan Group, pointed out that Chaudhury joined the board of Alchemist ARC in October 2014.
A complaint was registered with Rajasthan Police in 2015, which was closed after it was stated a “civil matter” between individuals.
However, following a protest petition filed by Harendra Rathore in 2016, which challenged the police action and investigation, Chaudhuri was arrested on last Sunday.
The order was issued on February 12, 2020, but execution was held up by the COVID-19 pandemic.
Chaudhary did not follow proper procedure in the auction of the properties and did it in a hurry, the court order said, adding that the entire process appears to be a “conspiracy”, hatched along with officials of Alchemist, to acquire the properties.
The properties were given away at a much lower price than the reserve price and Chaudhary misused his position, because the project was declared an NPA much before time, the order added.
Latest developments
Alok Dhir of Alchemist ARC, who is the other accused in the case, got transit anticipatory bail on Friday from the Delhi High Court. He will not be arrested till Tuesday.
Chaudhury has been charged under sections 420 (cheating and dishonesty including delivery of property), 409 (criminal breach of trust by public servant, or by banker, merchant, or agent) and 120B (criminal conspiracy) of the Indian Penal Code.
The bank, defending Chaudhary, said in a statement that the sale followed the laid-down process in line with the policy of the bank. SBI said it took various steps for completion of the project as well as recovery of dues but it did not yield the desired results. Hence, the dues were assigned to an ARC in March 2014.
The borrower was put through the Insolvency and Bankruptcy Code process by the ARC, and the asset was acquired by a non-banking financial company in December 2017, the bank had said in the statement.
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A lookback on bank chiefs behind the bars, BFSI News, ET BFSI
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The arrest of Pratip Chaudhary, former chairman of State Bank of India, has shocked the industry, since there was no notice or formal summons in the 14-year-old loan case of a hotel project in Jaisalmer, Rajasthan.
Rajnish Kumar, Chaudhary’s predecessor, had told the ET that the arrest was a “case of high handedness”. As of now, Chaudhary has been admitted to Jawahar Hospital, Jaipur, due to restlessness, and his bail plea had been rejected.
Over the years, many top bank officials have been arrested, some of which have been proven to be guilty. Here’s a lookback:
1.Sushil Muhnot and Ravindra Marathe, Bank of Maharashtra
Sushil Muhnot, former chairman of Bank of Maharashtra, along with six persons, including Ravindra Marathe, who was the managing director and chief executive officer of the bank at the time, had been arrested in 2018 for allegedly misusing powers while extending loans to the fraud-accused DS Kulkarni group in violation of norms. Muhnot, in 2016, was abruptly removed as the chairman as he allegedly occupied two houses.
2. Rana Kapoor, YES Bank
Rana Kapoor, founder of YES Bank and former CEO, was arrested last year in March over allegations of money laundering to the tune of Rs 4,300 crore. In the latest development, Kapoor has moved Bombay High Court challenging a special court’s order from August that had remanded him to police custody for a week.
3. Waryam Singh and Joy Thomas, PMC Bank
Waryam Singh, former chairman of Punjab and Maharashtra Cooperative Bank, was arrested by the Economic Offences Wing of Mumbai Police last year, in connection with the alleged bank scam to the tune of Rs 4,355 crore. Joy Thomas, former managing director, was also held for his connection to the bank scam.
4. Sudhir Kumar Jain, Syndicate Bank
Sudhir Kumar Jain, former chairman and managing director of Syndicate Bank, was arrested in 2014 for an alleged bribery case of Rs 50 lakh. In 2018, Jain was dismissed from service.
5. Yogesh Aggarwal, IDBI Bank
Yogesh Aggarwal, former chairman and managing director of IDBI Bank, had been arrested in 2017 for having shown “undue favours” to the now-defunct Kingfisher Airlines, owned by Vijay Mallya.
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How green is the green finance promise of global banks?, BFSI News, ET BFSI
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Most global banks have signed Gfanz (the Glasgow Financial Alliance for Net Zero) at COP26 UN Climate Change Conference pledging to report annually on the carbon emissions linked to the projects they lend to.
Major signatories to the initiative, which aims to provide trillions of dollars in green finance, include Citi, Morgan Stanley and Bank of America. However, earlier efforts to promote green financing have not met with a serious response.
Principles of responsible banking
In 2019, the UN General Assembly exuberantly launched its principles of responsible banking (PRBs) where signatory banks agreed to work with their clients to encourage sustainable practices and to align their business strategy to the UN sustainable development goals and the Paris climate agreement.
Also, many of the biggest banks have not signed the PRBs, even though the principles have been the gold standard until now for committing to decarbonising lending.
Of the top ten banks (by market capitalisation), only Citi, Commercial Bank of China (ICBC), Bank of China and Agricultural Bank of China are signatories to PRBs. JPMorgan Chase, Bank of America, China Construction Bank, Wells Fargo, Morgan Stanley and China Merchants Bank are not on the list.
This is despite it being a limited commitment. Signatories have four years to comply with the principles, and signatories are not penalised or even named and shamed for failing to live up to the principles.
How banks fare
Among the major signatories to PRBs, Citi was the third-biggest fossil fuel lender in 2016-19 after the Paris Agreement and reached second place in 2020.
MUFG and ICBC, who are also signatories to the PRBs, both grew their fossil-fuel lending over the period. MUFG is also a Gfanz member, though neither ICBC nor any of the other Chinese banks are part of the new initiative.
Meanwhile, Wells Fargo and JP Morgan, which were not signatories to PRBs, reduced their total fossil fuels lending each year from 2018 to 2020, by 57% and 23% respectively.
Signatories to the PRBs are also supposed to carry out environmental-impact assessments and to measure the greenhouse gas emissions of projects. They are also supposed to ensure that loans go to projects that are carbon neutral. However, very little of this is happening on the ground at present.
While there is a need for a scheme that makes PRBs compulsory and binding, Gfanz does not tick the boxes. Under it, annual reporting requirements on carbon emissions are not mandatory either.
Experts say instead of forbidding lending to non-green projects now, loan books need to be treated as a portfolio of projects in different hues of green, with a defined trajectory towards greener – but it needs to be mandatory for signatories.
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