Disruptions & Opportunities in the Financial Sector (RBI updates 17th June 2022)

Disruptions & Opportunities in the Financial Sector
(Address by Shri Shaktikanta Das, Governor, Reserve Bank of India – June 17, 2022 – Delivered at the Financial Express Modern BFSI Summit in Mumbai)

It is my pleasure to be here amongst such a distinguished gathering to deliver the inaugural address at the Financial Express Modern BFSI Summit. The theme of my address “Disruptions & Opportunities in the Financial Sector’ will resonate in the current context of technological innovations and fast evolving business models in the financial sector.

2. The impact of Covid-19 pandemic, the recent geo-political crisis and the all-pervasive technological innovations sweeping across economies are challenging the traditional financial intermediation processes. In my address today, I would like to focus more on the banking and the financial services space. I propose to share my thoughts on possible implications of technology on the financial services industry.

The Changing Paradigm of Banking

3. The edifice of growth and development in modern economies is built on the foundation of a vibrant, resilient and well-functioning financial sector. The core functions of the financial sector in an economy, viz. intermediation, asset price discovery, risk transfer and payments are globally undergoing a process of transformation. This is primarily driven by technological advancements. The Indian financial sector has also been a part of this churning and is adopting and propelling these transformations.

4. Over the past few years, the business of banking has witnessed a shift from traditional branch banking to digital banking. This paradigm shift has been possible due to innovations in information technology (IT), growth in mobile and internet connectivity, market-based financial intermediation, and the advent of Fintech. Financial service providers are now devising new products and services and are adopting new business models for reaching out to the target customers.

5. Improvements in technology have also enhanced the cause of financial inclusion and tech-enabled public goods delivery. Direct Benefit Transfer (DBT) through the digital mode is among the best examples of tech-enabled public goods delivery. Digital-mobile-anywhere-anytime banking is becoming the order of the day. The indigenously developed Unified Payments Interface (UPI) and Aadhaar Enabled Payment Service (AePS) have become the backbone of our retail payments system.

6. Alongside these advancements, the Reserve Bank’s regulatory approach has been realigned to support and foster such innovations. The regulatory guidelines for account aggregators and peer-to-peer lending operators are indicative of a proactive regulatory approach. An enabling framework for Regulatory Sandbox has been in place for last three years. The Reserve Bank Innovation Hub (RBIH) has also been set up by the RBI to catalyse innovations in the Fintech sector. We are now moving towards the introduction of a central bank digital currency (CBDC).

Technology as a Disruptor – Opportunities and challenges

7. With the advent of new technologies, we are witnessing a new era of disruption. Given the growing role of technology, data and network effects, there is a feeling among the banks that having an ethos of a technology company, while offering banking services, is the need of the hour. This is an area of opportunity for the banks; but there are associated challenges which need to be mitigated. Greater attention needs to be given to building customers’ trust by (i) offering products and services appropriate and fit for customer’s needs and circumstances; (ii) ensuring robust security controls, reliable and efficient delivery of services, transparency of terms and conditions to customers; and (iii) by handling customer grievances satisfactorily and building necessary awareness among customers. All of these aspects need to be factored in when financial institutions introduce or enhance technology driven products and services.

8. Talking about opportunities, it would be relevant to note that what we have seen until now could be just the tip of the iceberg. The use of artificial intelligence (AI) and machine learning (ML) to determine the creditworthiness of clients for small ticket loans by analyzing data from a wide range of traditional and non-traditional data sources, has the potential to enhance access to credit for marginalized customers. Here also it would be necessary to understand the associated risks and mitigate them suitably through various safeguards and precautions. Risks relating to cyber security, software development, limitations in transaction capacity, privacy of customer data, and data security need to be factored in. The methodology of algorithms underpinning digital financial services has to be clear, transparent, explainable and free from exclusionary biases. The credit scoring models using innovative techniques can be useful but they should be subject to a robust model governance framework. Comprehensive assessment of risks has also to be undertaken while planning to move to cloud with customer sensitive data.

9. In all these digital initiatives, the plan should also factor in those sets of customers who may not be digitally savvy and who may want to engage physically with the bank. It is, therefore, crucial that while driving various tech-enabled initiatives, the existing systems and processes do not see frequent disruptions and non-availability. We have already seen instances of the damage that disruptions in technology systems can bring and the reputation risk they carry for financial entities. A casual approach to handling technology issues even as basic as wrongful deletion of a single system file or inadequate care in patch updating often lead to financial and operational losses.

10. The IT systems and platforms are also exposed to obsolescence and require frequent upgradation. This calls for adequate investment in IT infrastructure by all financial sector entities. This is one of the important focus areas of RBI’s supervision of its regulated entities, especially the Banks and the NBFCs.

11. It has also to be recognised that human resource can turn out to be the weakest link in technology enabled financial services. There is thus a vital need for ongoing training and skill building programmes.

12. At end of the day, the bottomline is how technology improves the financial system in terms of efficiency, effectiveness, resolving bottlenecks in economic functions and provide value addition to the customers.

Collaboration between Finance and Technology Firms

13. Large technology companies (BigTech) which have entered into provision of financial services could potentially be another source of disruption to the financial system. As you would be aware, such companies, whether from e-commerce, social media and search engine platforms, ride hailing and similar businesses have started to offer financial services in a big way on their own or on behalf of others. These companies have an enormous amount of customer data which has helped them to offer tailored financial services to entities and individuals lacking credit history or collateral. Even the banks and other lenders are sometimes utilising platforms provided by fintech companies in their internal processes for credit risk assessment. Such large scale use of new methodologies in credit risk assessment can create systemic concerns like over-leverage, inadequate credit assessment, etc. Authorities and regulators have to strike a fine balance between enabling innovation and preventing systemic risks.

14. The big techs also pose concerns related to competition, data protection, data sharing and operational resilience of critical services in situations where Banks and NBFCs utilise the services of big tech companies. These concerns can also materialise in sectors other than financial services. The provision of financial services through the digital channel, including lending through online platforms and mobile apps, have brought in issues relating to unfair practices, data privacy, documentation, transparency, conduct, breach of licensing conditions, etc. The Reserve Bank will soon issue suitable guidelines and measures to make the digital lending ecosystem safe and sound while enhancing customer protection and encouraging innovation.

What kind of Regulation and Supervision?

15. The need for FinTech regulation emanates from the challenges they pose to the financial system and the new risks they carry. These risks have a bearing on overall financial stability and market integrity.

16. The approach to regulation of FinTech could be by way of Activity Based Regulation wherein similar activities are treated similarly, regardless of the legal status or nature of the entity undertaking the activity. It could also be Entity Based Regulation which requires that regulations are applied to licensed entities or groups that engage in similar and specified activities, such as deposit taking, payment facilitation, lending, and securities underwriting, etc. The approach could also be an Outcome Based Regulation by setting out some basic, common and technology or business model-neutral outcomes that entities must ensure.

17. India has traditionally followed a hybrid form of regulation that combines Activity and Entity Based regulation. As a principle, the RBI has been applying comprehensive regulatory, supervisory and oversight requirements to various segments of financial sector in its domain to create an enabling ecosystem for such activities to grow in an orderly fashion. The underlying theme has always been to maintain financial stability. Going forward, the RBI will continue to finetune its regulatory and supervisory measures keeping in mind the evolving dynamics of the financial sector.

Does Regulation require collaboration with different Regulators?

18. When it comes to technology, it may transcend regulatory or national boundaries. The most relevant example in this case would be the blockchain technology. Different blockchain platforms cannot be limited to a regulator or a nation. Another example can be the case of De-centralised Finance (DeFi) in which financial applications are processed on a blockchain with limited or no involvement of centralised intermediaries. DeFi poses unique challenges to regulators as its anonymity, lack of a centralised governance body, and legal uncertainties can make the traditional approach to regulation ineffective. There is, therefore, a case for a globally coordinated regulatory approach and inter-regulatory co-ordination to enable comprehensive assessment of such activities and mitigation of their risks.

Some recent initiatives of the RBI

19. I would now like to focus on certain supervisory steps taken by the RBI recently to deal with the emerging challenges from fintech. In the specific area of cyber security, the RBI has recently conducted Phishing Simulation exercises for select Supervised Entities (SEs) to assess their email security standards and cyber security preparedness. We have also initiated the process of conducting Cyber Reconnaissance exercises this year. This will provide pre-emptive information on the cybersecurity risk vectors of SEs. Besides, Cyber Drills which are conducted periodically are being further enhanced in terms of coverage and periodicity.

20. The increasing use of technology and digital services has led to more incidents of digital frauds and customer dissatisfaction. The recommendations of the RBI Working Group on digital lending in this area are under examination for issuance of guidelines.

21. In the context of customer service, another area which is engaging the attention of the RBI is the harsh recovery methods used by certain lenders, without having adequate checks and controls over their recovery agents. We have received complaints of customers being contacted by recovery agents at odd hours, even past midnight. There are also complaints of recovery agents using foul language. Such kind of actions by recovery agents are unacceptable and pose reputational risk for the financial entities themselves. We have taken serious note of such instances and will not hesitate to take stringent action in cases where regulated entities are involved. Such complaints against unregulated entities will have to be taken up with appropriate law enforcement agencies.

22. We have recently set up of a Committee for Review of Customer Service Standards in the RBI Regulated Entities (REs) which would inter alia review the emerging and evolving needs of the customer service landscape, especially in the context of evolving digital financial products and their distribution, and suggest measures for strengthening the overall consumer protection framework.

Governance and Risk Management

23. I have often spoken about the importance of good corporate governance in banks and financial institutions. A good governance structure will have to be supported by effective risk management and compliance functions. The cost of compliance to rules and regulations should be perceived as an investment, as inadequacy in this regard can prove to be highly costly. Compliance culture should ensure adherence to not only laws, rules and regulations, but also integrity, ethics and codes of conduct.

24. The Global Financial Crisis was preceded by a wave of financial innovations related to securitisation and other innovative financial instruments. These allowed the financial system to grow at a pace that was beyond its capacity to manage, especially from the point of view of the connected risks. Given such past experience, prudence demands that introduction of innovations in the financial system should be done responsibly and in a calibrated manner, taking into account the capacity of financial entities to manage potential risks. It goes without saying that innovations which provide opportunities through high risk taking need to be managed by sound corporate governance and risk management practices within the financial institutions. The senior management and internal control mechanisms in financial institutions should also ensure that their IT systems are robust and transparent, and not open to manipulation that may camouflage the true state of affairs in the organisation.

Conclusion

25. Let me conclude by saying that we are in the midst of a technological revolution in the sphere of financial services. Technology and Innovation per se are neither destructive nor constructive. It is the use cases that present the responsible or irresponsible sides of any particular innovation or technology. Reserve Bank shall continue with its approach where innovations which provide benefits to society are encouraged without compromising the stability of the financial system.

26. The trend of technology driven changes in the financial services sector will continue in the future. Participants and players in this sector will have to strive hard to remain relevant in the ever changing economic environment by continuously improving the quality of their governance; reworking their business strategies and business models; designing products and services with the customer in mind; ensuring operational resilience and risk management; and focussing on more efficient products and services by leveraging on technology. The possibilities are immense only if we are ready to embrace them while meeting the challenges!

Thank you.

Sovereign Gold Bond Scheme 2022-23 : Insurance date & features (Press release dated 16 June 2022)

The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds in tranches as per the calendar specified below:

The Sovereign Gold Bonds (SGBs) will be sold through Scheduled Commercial banks(except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL),Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.The features of the Bond are as under:

Income Tax Department aims to spread tax literacy among children through games, puzzles and comics (MOF updates 12 June 2022)

Moving beyond text based literature, awareness seminars and workshops, the Central Board of Direct Taxes (CBDT) has adopted a novel approach to spread tax literacy through ‘learn by play’ methods.  CBDT has brought out products to introduce concepts related to taxation, often perceived to be complicated, to high school students through board Games, puzzles and comics. 

Kick-starting this initiative, Union Finance Minister Nirmala Sitharaman launched a series of communication and outreach products aimed at spreading financial and tax awareness at the Closing Ceremony of the Azadi Ka Amrit Mahotsav Iconic Week in Panaji, Goa on Saturday evening. She termed the next 25 years as Amrit Kaal, and said youth would play a major role in shaping the new India. Smt. Sitharaman also distributed the first sets of the games to select school students present at the event. 

The novel products brought out by the CBDT are as follows : 


Snakes, Ladders and Taxes :  This board game introduces good and bad habits in respect of tax events and financial transactions. The game is simple, intuitive and educational with good habits being rewarded through ladders and bad habits penalized by snakes.

Building India :   This collaborative game introduces the concept of importance of paying taxes through the use of 50 memory cards based on infrastructure and social projects.  The game aims to convey the message that taxation is collaborative in nature and not competitive. 

India Gate – 3D Puzzle :  This game consists of 30 pieces, each containing information about various terms and concepts related to taxation.  The pieces when connected together will build a 3-dimensional structure of India Gate conveying the message that taxes build India. 


Digital Comic Books – Income Tax Department has collaborated with Lot Pot Comics to spread awareness about concepts of income and taxation among children and young adults. The messages are given by the immensely popular cartoon characters of Motu-Patlu, through their bone tickling dialogues. 
 
These products will be initially distributed to schools through the network of Income Tax offices spread across India.  A proposal to distribute these games through bookstores is also being worked out.

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Press Release dated 12 June 2022

Creating wealth through markets

DIPAM to organise Conference on “Creating wealth through markets” as part of Azadi Ka Amrit Mahotsav Celebrations of Ministry of Finance tomorrow


Finance Minister Smt. Nirmala Sitharaman to join the Conference from Bengaluru

Conference is being organised on a mega scale in 75 cities, covering all States and UTs

In celebrations of “Azadi Ka Amrit Mahotsav (AKAM)”, Department of Investment & Public Asset Management (DIPAM) is organinsing a Conference on the theme “Creating Wealth through Market” as an iconic event in 75 cities across the country on tomorrow starting at 04:00 PM. This initiative aims to educate, encourage and empower people in 75 cities across India about investments and creating wealth as well as on the steps taken by the Government for ensuring financial growth of the citizens.

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman will join the conference from Indian Institute of Science (IISc), Bengaluru.

Union Minister of State for Finance Dr Bhagwat Kisanrao Karad will participate in the Conference from Vigyan Bhawan, New Delhi.

The inaugural address will be followed by a session at the local venue in 75 cities with eminent speakers comprising of Financial Experts / Professionals / Bankers / Influencers etc. The event will feature discussions on broad topics such as:

  1. Growth of Indian Capital Markets in the past 75 years.
  2. Women as rising Independent Investors.
  3. Role of Government and other Market Players in improving Market Confidence.
  4. Financial Literacy- a road to financial wellbeing.
  5. Future of Indian capital markets i.e. Amrit Kaal

 “Azadi Ka Amrit Mahotsav” is being celebrated in the country in commemoration of 75 years of independence of India, and the glorious history of its people, culture and achievements. It’s a celebration of our collective achievements as a 75-year-old independent country with a legacy of 5000+ years of ancient history. The celebration rests on five pillars outlined by the Prime Minister i.e. Freedom Struggle, Ideas at 75, Achievements at 75, Actions at 75 and Resolves at 75 as guiding force for moving forward, keeping dreams and duties as inspiration. The Mahotsav will be celebrated as Jan-Utsav in the spirit of Jan-Bhagidari.

True to the pan-India essence of Azadi ka Amrit Mahotsav, DIPAM will conduct the programme in all major Indian languages in 75 cities for better and easier acceptability among the people. Reflecting its extensive reach, the Programme covers all geographical areas of the country from Ladakh to Lakshdweep and Andaman & Nicobar Islands, and no area of the country is left out of its ambit.

For more details, CLICK HERE.

Ministry of Finance Press Release dated 09th June 2022

Various steps taken by Government since 2014 helped keep economy and people afloat in difficult times

Various steps taken by Government since 2014 helped keep economy and people afloat in difficult times: Smt. Nirmala Sitharaman


Government’s targeted approach during Pandemic helped to deliver assistance to citizens: FM

FM inaugurates Department of Economic Affairs Iconic Day celebrations today; launches ‘NETRA Portal and Mobile Application:

Finance Minister launches DEA’s three short films on Externally Aided Projects, financial literacy and lines of credit to other countries by the Government

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman launched the Iconic Day celebrations of the Department of Economic Affairs with Securities and Exchange Board of India (SEBI) under the Azadi Ka Amrit Mahotsav (AKAM) here today. Along with the Union Finance Minister, Shri Ajay Seth, Secretary, D/o Economic Affairs; Dr. Anantha V. Nageswaran, Chief Economic Advisor, Ministry of Finance and Shri S.K. Mohanty, Whole Time Member, SEBI also participated.  The occasion also saw participation from key dignitariesand prominent leaders from the world of finance.

In her address, the Finance Minister said that India’s fundamentals are once again sound because of the many steps taken by the Government since 2014. Major steps taken by the Government, before the COVID-9 pandemic hit us, which include reducing the corporate tax, ensuring that the economy is greatly digitised, bringing in the GST and IBC – all of this heavylifting prepared us for the unprecedented situation of the Pandemic, she said.

Smt. Sitharaman emphasised that when Government looks at targeted approach of providing assistance and takes the input from the ground and does so quickly, in time and in an open fashion, the impact is for all to see. In this context she cited a study on Pradhan Mantri Garib Kalyan Yojana (PMGKY) which brought out that the probability of people cutting down consumption utilities has come down by 75% across the country. The study has also shown that the PMGKY reduced the probability of borrowing money by 67% of all respondents.

Citing another study on the Emergency Credit Liquidity Guarantee Scheme (ECLGS), the Finance Minister stated that as of March 2022 loans sanctioned under this scheme have crossed Rs 3.19 lakh crore and the scope of ECLGS has now been extended till 2023. The study says that this handholding has kept many people afloat during the Pandemic.

The third study highlighted by the Finance Minister was on the Ayushman Bharat scheme wherein the implementation of this scheme has been associated with a 21% decline in out of pocket health expenditure and 8% reduction in the tendency to borrow for emergency health purposes.

The Finance Minister underlined that the Department of Economic Affairs has channelised external aid towards every region of the country, with the support of multiple multilateral institutions. India very smartly raised funds and distributed them not only for infrastructure building but also for livelihood prospects in each region. Smt. Sitharaman also appreciated the DEA’s efforts through the IDEAS project that spans across so many countries and making a difference to livelihood environment, especially for most of Africa and also for the Island countries.

In his address during the AKAM celebrations, Chief Economic Advisor Dr Anantha V. Nageswaran said that the structural reforms of this Government, such as the Goods and Services Tax (GST) and the Insolvency & Bankruptcy Code (IBC) will manifest their advantages and potential in the coming decade, once the current clouds of global political developments and macro monetary policy challenges dissipate. The CEA underlined that for these reasons India is forecasted by the International Monetary Fund (IMF) to cross $5 trillion by 2026-27 and if GDP of the country doubles every 7 years, we will be $20 trillion GDP by 2040 with the per capita income close to $15,000.

Dr Nageswaran stated that India is better-positioned than many other countries in facing the current challenges. He indicated that we face challenges of managing a sustainably high growth rate, moderate inflation, keeping the fiscal under balance and also ensuring that the external value of the rupee remains stable. The CEA stated that the Government is prepared to meet the challenges of balancing these core important considerations.

Smt. Sitharaman launched ‘NETRA (New e-Tracking and Remote Administration)’ Portal and Mobile Application for Indian Development and Economic Assistance Scheme (IDEAS).

NSDL’s outreach initiative ‘Market Ka Eklavya – Express’, a programme specially designed to introduce students to the basics of investing and financial markets was screened during the event.

Market Ka Eklavya – Express’:

Market Ka Eklavya – Express’ lays the foundation of the twin pillars of Financial Independence, namely, Financial Awareness and Financial Discipline in a simple language using relatable examples from everyday life to explain complex concepts. As a part of the AKAM celebrations, NSDL has recently launched the programme in 8 languages to reach 75 cities to commemorate 75 years of independence.

The Finance Minister also released a short film ‘Sahyog se Samriddhi’ on Externally Aided Projects during the Iconic Week celebrations of Azadi Ka Amrit Mahotsav. The film showcased the role of Externally Aided Projects in India’s development trajectory since 1947, with a special emphasis on India’s engagement with multilateral and bilateral agencies in last 8 years.

‘Sahyog se Samriddhi’:

Smt. Sitharaman also inaugurated a film on the lines of credit called “IDEAS – India Partnering in Global Growth”. This film showcased India’s recognition as a trusted development partner for the developing economies. The Indian Development and Economic Assistance Scheme (IDEAS) has played a key role in the socio-economic development in the partner countries. The film features key marquee projects financed by Exim Bank of India under the GoI Lines of Credit  in Africa, Asia, Latin America, Oceania, and the CIS region.

“IDEAS – India Partnering in Global Growth”:

During the morning session, engaging discussions on ‘Emergence of women investors in securities market’ and ‘Growth of Indian retail investors’ during the symposium on ‘Jaagruk Niveshak: Samridha Bharat ki Neev’ organised by SEBI in collaboration with Department of Economic Affairs took place. The idea of an enlightened investor empowered to make informed financial choices was central to the discussions. The symposium also explore the exciting possibilities presented by the encouraging trend of increasing participation of women in financial markets.

Watch live streaming:

Ministry of Finance Press Release Id :-1832085, 08th March 2022

RBI hikes Repo Rate by 50 basis points (Press release 08th June 2022)

RBI hikes Repo Rate by 50 basis points


Retains GDP growth forecast at 7.2%, Inflation projected at 6.7% during FY 2022-23

Credit Cards, beginning with RuPay card can be linked with UPI

e-Mandate transaction limit increased to Rs 15,000

Upper limit on housing loans by Cooperative banks hiked by more than 100%

Key Policy Rates

  • The Monetary Policy Committee of Reserve Bank of India, which met from 6-8 June 2022, has unanimously decided to hike the Repo Rate by 50 basis points to 4.90 %
  • Consequently, Standing Deposit Facility Rate stands adjusted to 4.65% and Marginal Standing Facility rate and Bank Rate to 5.15%
  • The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.
  • Inflation

Assuming normal monsoon in 2022 and average crude oil price of $105 per barrel in Indian basket, inflation is projected at 6.7% in 2022-23

Q1 – 7.5%

Q2 – 7.4%

Q3 – 6.2%

Q4 – 5.8%

  • Growth forecast

The MPC has observed that the global economy continues to grapple with multi-decadal high inflation and slowing growth, persisting geopolitical tensions and sanctions, elevated prices of crude oil and other commodities and lingering COVID-19 related supply chain bottlenecks.

  • Economic indicators for April –May indicate a broadening of the recovery in economic activity in India. Urban demand is recovering and rural demand is gradually improving. Merchandise exports posted robust double-digit growth for the fifteenth month in a row during May while non-oil non-gold imports continued to expand at a healthy pace, pointing to recovery of domestic demand.
  • Real GDP growth for 2022-23 is estimated at 7.2%

Q1 – 16.2%

Q2 – 6.2%

Q3 – 4.1%

Q4 – 4.0%

  • According to NSO provisional estimates released on May 31, India’s GDP growth in 2021-22 is estimated at 8.7%, higher than pre-pandemic level.

Measures to benefit Cooperative Banks

  1. Taking into account the increase in housing prices since the limits were last revised and considering the customer needs, it has been decided to increase the existing limits on individual housing loans by cooperative banks. Accordingly, the limits for Tier I /Tier II UCBs shall stand revised from ₹30 lakh/ ₹70 lakh to ₹60 lakh/ ₹140 lakh, respectively. As regards RCBs, the limits shall increase from ₹20 lakh to ₹50 lakh for RCBs with assessed
  2. net worth less than ₹100 crore; and from ₹30 lakh to ₹75 lakh for other RCBs.
  3. Urban cooperative banks can now extend doorstep banking services to customers Will enable these banks to better meet the needs of their customers, especially senior citizens and differently abled persons-
  • Rural cooperative banks can now extend finance to commercial real estate (loans to residential housing projects) within existing aggregate housing finance limit of 5% of total assets
  • Enhancement of limit on e-mandate transactions

To further augment customer convenience  and facilitate recurring payments like subscriptions, insurance premia and education fees of larger value, limit per transcation for e-mandate based recurring payments increased from ₹5,000 to ₹ 15,000

  • Enhancing scope of UPI payment system. 

Now, credit cards too can be linked with UPI platform, beginning with RuPay cards.  This will provide additional convenience to users and enhance scope of digital payments.  UPI has become the most inclusive mode of payment in India. Currently, over 26 crore unique users and 5 crore merchants are onboarded on the UPI platform.

  • The Monetary Policy Committee, besides the Governor Shri Shaktikanta Das comprised Dr. Shashanka Bhide, Dr. Ashima Goyal, Prof. Jayanth R. Varma, Dr. Rajiv Ranjan and  Dr. Michael Debabrata Patra

The next meeting of the MPC is scheduled during August 2-4, 2022

RBI Governor’s Detailed statement can be seen here

The next meeting of the MPC is scheduled during August 2-4, 2022

RBI Governor’s Detailed statement can be seen here

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Single Nodal Agency (SNA) Dashboard (Ministry of Finance)

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman to launch of Single Nodal Agency (SNA) Dashboard during the Iconic Week Celebrations of Azadi Ka Amrit Mahotsav celebrations of Ministry of Finance


Smt. Sitharaman will also launch Training Modules of Department of Expenditure

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman to launch of Single Nodal Agency (SNA) Dashboard during the Iconic Week Celebrations of Azadi Ka Amrit Mahotsav celebrations of Ministry of Finance, in New Delhi, tomorrow.

The Ministry of Finance & Ministry of Corporate Affairs’ Iconic Week celebrations from 6th June to 12th June 2022 were launched by the Prime Minister, Shri Narendra Modi here today morning.

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman will be the Chief Guest and Finance Secretary, Dr. T.V. Somanathan, and the Controller General of Accounts, Smt. Sonali Singh will grace the occasion along with other dignitaries.

The event will be telecast live through NIC’s Webcast platform (https://webcast.gov.in/finmin/cga) and on the YouTube channel of Ministry of Finance (https://youtu.be/VT9p-1Hhhno).

The SNA Dashboard forms part of a major public financial management reform that was initiated in 2021 with regards to the manner in which funds for Centrally Sponsored Schemes (CSS) are released, disbursed and monitored. This revised procedure, now referred to as the SNA model, requires each State to identify and designate a SNA for every scheme.All funds for that State in a particular scheme will be credited in this bank account, and all expenses will be made by all other Implementing Agencies involved from this account.

The SNA model, therefore, ensures that allocation of funds to States for the CSS are made in a timely manner and after meeting various stipulations. Effective implementation of this Model has brought about greater efficiency in CSS fund utilization, tracking of funds, pragmatic and just-in-time release of funds to the States; ultimately all contributing to better Cash Management of the Government.

In order to give the stakeholders of SNA model the necessary feedback and monitoring tools in the operation of the schemes, Public Financial Management System (PFMS) has developed the SNA Dashboard. The Dashboard depicts releases made to different States by Ministries, further releases made by State Treasuries to the SNA accounts, expenditure reported by the agencies, interest paid by banks to SNA accounts etc. in intelligible, informative and visually appealing graphics.

The programme will also have presentations on ‘Best Practices in Cash Management through SNA and Treasury Single Account (TSA)’. The presentations will be made by Joint Controller General of Accounts, State Government of Odisha and Canara Bank showcasing their experiences on the subject.

The Union Finance Minister will also launch Training Modules of the Department of Expenditure. With the aim to facilitate and build the capacity of the officials, two central training institutes namely Institute of Government Accounts and Finance (INGAF) and Arun Jaitley National Institute of Financial Management (AJNIFM) have developed the courses to be published on the iGOT Karmayogi portal, DoPT. INGAF has developed the training programme on FR SR- III (Leave Rules) to increase knowledge of learners towards various conditions of leave, process to apply and avail leaves due and admissible and their approval, describe special kinds of leaves etc. The course curated by AJNIFM caters to procurement of variety of goods and services, including execution of works. This would help officers posted in Integrated Finance Divisions (IFDs) of various Ministries/Departments in examining the proposals in light of GFRs and other instructions before concurrence is given by Financial Advisors. Learners shall be put to test in each module so that they can check themselves and may go back to the particular portion of the module for re-emphasizing the learning.

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Press Release Id :-1831645 dated 06 June 2022

MCA Clarification : Micro Finance/Micro Credit as an Object in the Object Clause of MOA of Section 8 companies registered under the CA 2013 (MCA Circular dated 30 May 2022)

MCA issued General Circular on 30 May 2022 giving Clarification on Micro Finance/Micro Credit as an Object in the Object Clause of MOA of Section 8 companies registered under the CA 2013 :

Refer MCA Circular

Ministry of Finance (MoF) & Ministry of Corporate Affairs (MCA) kick off Iconic Week celebrations with Curtain Raiser Press Conference

Ministry of Finance and Ministry of Corporate Affairs today held a Curtain Raiser press conference of their ‘Iconic Week’ celebrations as part of the ‘Azadi Ka Amrit Mahotsav’ (AKAM) during the week of 6th to 11th June, 2022.



Prime Minister Shri Narendra Modi had inaugurated the “Azadi Ka Amrit Mahotsav” (AKAM) on 12th March 2021, marking a 75-week countdown to the 75th Anniversary of India’s Independence on 15th August, 2022. The AKAM celebrations will continue for a year, thereafter, till 15th August, 2023.

As part of celebration of 75th anniversary of India’s 75th year of Independence, a ‘Thank You’ (Shukriya) song was released which celebrates the unsung heroes of the battle against COVID-19 Pandemic and those who kept the financial system running during the most challenging times.



An e-booklet was also presented to provide a snapshot of the events unfolding during the week in which the two Ministries – Corporate Affairs and Finance, will not only showcase their achievements, new initiatives, but also traverse through an interesting journey of their growth and evolution over the years. CLICK HERE to acesss the schedule of events.

Prime Minister Shri Narendra Modi will grace the inaugural function on the 6th of June 2022 in Vigyan Bhavan, New Delhi. The 6th June ceremony would be celebrated live simultaneously in 75 cities across India keeping up with the spirit of 75years of India’s Independence.

During the Iconic week of Azadi ka Amrit Mahotsav, Ministry of Corporate Affairs and each Department of Ministry of Finance will showcase their rich history and legacy as well as readiness to face the challenges ahead. For example, a documentary will be released on the Development of Securities Market in India on the third day, i.e. 8th June 2022; and on the last day, 11th June 2022, the National Customs and GST Museum, ‘Dharohar’, which showcases an array of seized goods, antiques, and customs heritage will be dedicated to the nation.

Some other notable events during the Iconic Week celebrations of the Ministry of Finance & Ministry of Corporate Affairs include the International Conference on data analytics in public procurement that will deliberate on the best international practices in the field of public procurement and way forward to harness modern tech to bring more value for money in public procurement. Some major initiatives in public expenditure management and taxation, both direct and indirect will also be showcased.

The kick off celebrations of Iconic Week of Ministry of Finance & Ministry of Corporate Affairs was presided over by Finance Secretary & Secretary Expenditure, Dr T.V. Somanathan. Among attendees were Shri Tuhin Kanta Pandey, Secretary, DIPAM; Shri Ajay Seth, Secretary, Economic Affairs; Shri Rajesh Verma, Secretary, Ministry of Corporate Affairs; Shri Ali Raza Rizvi, Secretary, DPE; Shri Sanjay Malhotra, Secretary, DFS; Shri Vivek Johri, Chairperson, CBIC and Smt. Sangeeta Singh, Chairperson (addl. Charge), CBDT, besides other senior officers of the Ministry of Finance & Corporate Affairs.

E-booklet for Ministry of Finance and Ministry of Corporate Affairs for Iconic Week celebrations of Azadi Ka Amrit Mahotsav:

Watch Press conference on PIB_India:

Refer Press release dated 30 May 2022

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1829415&RegID=3&LID=1