Section 135 of Companies Act requires firms of a certain size to spend every year at least 2% of average net profits of previous three financial years on stipulated CSR activities. Failure to do so will make a company liable to pay a penalty twice the unspent amount, or ₹1 crore, whichever is less. Even every officer of a company who is in default is also liable to a maximum penalty of ₹2 lakh.
Both these lenders, along with Equitas, announced their intent to seek universal banking licence, which offers more regulatory flexibility in terms of doing business. Equitas is not immediately eligible to seek the licence as its net NPA ratio was higher than 1%. Eligible SFB will be required to furnish a detailed rationale as to why they want such a transition, RBI said.
Ashima Goyal emphasized India's resilience to supply shocks and anchoring of inflation expectations. Bhide expects food inflation to ease in 2024. Both acknowledged inflation risks from geopolitical tensions.
Officials said that although the bulk of the heavy lifting in terms of FDI reforms has been completed, talks are ongoing to see if conditions for these key sectors can be further eased. Any changes will be made after the elections that end on June 1.
In the last monetary policy committee (MPC) review on rates earlier this month, the panel decided to keep the policy rates unchanged, stretching the status quo on the cost of funds to at least 16 months.
India is considering expanding its capital goods promotion scheme to include sectors like pharmaceuticals and textiles. The current scheme primarily supports electrical component and automobile manufacturing, but the government is now considering extending support to other sectors. Plans are also being considered to introduce new-age technologies beyond electric vehicles, batteries, and automobile manufacturing.
Federal Reserve Chair Jerome Powell Tuesday did not provide any guidance on when interest rates may be cut, saying instead that monetary policy needs to be restrictive for a longer period.
India has diversified its trade to protect against regional conflicts and the ongoing Israel-Iran conflict. Commerce Secretary Sunil Barthwal said the government is monitoring West Asian developments and will consider their impact before implementing policy interventions. The ministry is also focusing on tapping new markets to weather recessionary trends and conflicts.
The Department for Promotion of Industry and Internal Trade (DPIIT) will take up for discussions lingering concerns of startups on issues around Angel tax, taxation of Employee Stock Option Plans and bank guarantee commitments in tenders in the upcoming budget to be presented after the general elections.
Iran Saturday night launched a drone missile attack on Israel. This was in response to a suspected Israeli strike on its consulate in Damascus on April 1 in which seven Iranian Revolutionary Guard Corps personnel, including two generals, were killed. New Delhi has called for immediate de-escalation and a return to the path of diplomacy. The development comes as India gears up for general elections from April 19 to June 1. Independent economists said the government will need to remain vigilant.
The government is considering several measures such as a flexible framework for the sale of products manufactured in SEZs in the domestic market, and streamlining approval processes for units.
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