The Things You Should Know

The Financial Resolution and Deposit Insurance Bill 2017 was introduced in Lok Sabha in August 2017 during the Monsoon Session of the Parliament. However the bill was then referred to the Joint Parliamentary Committee (JPC) for review.  The committee was looking into the bill that aimed to provide a resolution to deal with bankruptcies in banks, insurance companies, and other financial intermediaries through a 'Resolution Corporation' and a 'Corporation Insurance Fund'. The JPC was supposed to submit its report in the Winter Session of the Parliament. However now the committee scrutinising the bill will submit its report in the upcoming Budget Session. Aim: To provide for the resolution of certain categories of financial service providers in distress; the deposit insurance to consumers of certain categories of financial services; designation of systemically important financial institutions; and establishment of a Resolution Corporation for protection of consu...

The government has done it again. Yesterday on 27th Dec,2017 the government has announced rate cut for various small saving schemes except saving deposits and 5-year senior citizen saving scheme.  A reduction of interest rates in small saving schemes is a big loss for those with large balance in these saving schemes, specially PPF. Because PPF is the most attractive  saving    scheme as it gets tax benefit (on amount as well as interest) under section 80C of Income Tax Act. The government on Wednesday cut the interest rate on small savings schemes, including Public Provident Fund (PPF), Sukanya Samriddhi Yojna, National Savings Certificate (NSC) and Kisan Vikas Patra, by 20 basis points for the January-March quarter, a move that will prompt banks to lower deposit rates.  This is the third time the government has cut the rates since April 2016. The new rates will be applicable for January-March quarter.  Since April 2016, interest rates of all small...

On 21st December,2017 the CBI special court delivered judgment on 2G scam case.  The court acquitted former telecom minister and DMK leader A Raja, his party colleague and Rajya Sabha MP Kanimozhi and 16 others of corruption and money laundering charges in the 2G spectrum allocation case, which shook the nation in 2011 and was widely seen as key to the then ruling United Progressive Alliance's defeat in 2014 general election. The special court said that CBI filed a "well choreographed charge sheet" containing incorrect facts which miserably failed to prove charges against the accused in 2G spectrum case. Special Judge O.P. Saini said:  "I have no hesitation in holding that the the prosecution has failed to prove the charges beyond reasonable doubt. So all are acquitted."  Background & Timeline: May 2007: DMK leader A Raja appointed as Telecom Minister. Aug 2007: Process of allotment of 2G Spectrum along with UAS (Unified Access Service) Li...