Stimulus package announced by Government of India to tackle the economic distress caused by corona virus or covid-19. The stimulus package has been named as 'Atmanirbhar Bharath'.
The total package size is about 10% of India's GDP.
Date of announcement: 13 May 2020.
Nair committee report on priority sector advancesPankaj Baid
The committee recommended expanding the definition of priority sectors to include additional activities like off-grid renewable energy and increasing certain lending limits, suggested streamlining bank reporting systems to improve data quality and consistency, and proposed increasing priority sector lending targets for foreign banks to be in line with domestic banks.
Empowering MSMEs - Policies of Financial Regulator - Part - 5Resurgent India
To ensure formal finance to priority sectors such as agriculture and MSME, Priority Sector Lending guidelines have been in place for commercial banks since 1972. Under these guidelines, domestic commercial banks are required to allocate 40 percent of the net bank credit for priority sectors (32 percent norm for foreign banks.
Impact of Liberalization on Rural Banking in IndiaNimit Jain
This presentation analyses the impact of financial liberalization policies adopted by India post 1991 on the Rural Banking Sector. This presentation was originally submitted as a project in Economics in BFIA, Shaheed Sukhdev College of Business Studies, University of Delhi.
Impact of priority sector lending on indian economyshifali garg
The document discusses India's priority sector lending scheme. It was first introduced by the Reserve Bank of India in 1974 to ensure that a certain portion of commercial bank lending goes to important sectors like agriculture, small businesses, and other priority sectors. Currently, 40% of bank lending must go to the priority sector, including 18% to agriculture. The priority sector lending program aims to promote development and reduce poverty through increased employment and incomes in these key sectors of the economy. It has generally had a positive impact, though banks still face some challenges in lending to weaker sections like higher non-performing assets. The future prospects for priority sector lending in India remain strong.
The document summarizes priority sector lending in India. It defines priority sectors as areas of the economy that are prioritized for funding by the government and central bank. Banks are directed to provide loans to these sectors at reduced interest rates to promote their development. The priority sectors include agriculture, small businesses, education and housing. The document outlines the sectors and challenges they face, as well as the role of priority sector lending in addressing issues like unemployment and poverty. It discusses targets for priority sector lending and how the Reserve Bank of India monitors compliance.
A project report on on the working capital management in karnataka state fina...Babasab Patil
The document discusses the working capital management of the Karnataka State Finance Corporation (KSFC). It provides background on KSFC, stating that it was established in 1915 to provide financial assistance to industrial units in Karnataka. The objectives of the study are to understand KSFC's working capital components and patterns over the period from 2001-2002 to 2006-2007. Data is collected from KSFC's annual reports during this period and analyzed using statistical techniques. The document also outlines KSFC's organizational profile, history, achievements and main activities in providing long term lending and other financial services to support industrial development in Karnataka.
Nair committee report on priority sector advancesPankaj Baid
The committee recommended expanding the definition of priority sectors to include additional activities like off-grid renewable energy and increasing certain lending limits, suggested streamlining bank reporting systems to improve data quality and consistency, and proposed increasing priority sector lending targets for foreign banks to be in line with domestic banks.
Empowering MSMEs - Policies of Financial Regulator - Part - 5Resurgent India
To ensure formal finance to priority sectors such as agriculture and MSME, Priority Sector Lending guidelines have been in place for commercial banks since 1972. Under these guidelines, domestic commercial banks are required to allocate 40 percent of the net bank credit for priority sectors (32 percent norm for foreign banks.
Impact of Liberalization on Rural Banking in IndiaNimit Jain
This presentation analyses the impact of financial liberalization policies adopted by India post 1991 on the Rural Banking Sector. This presentation was originally submitted as a project in Economics in BFIA, Shaheed Sukhdev College of Business Studies, University of Delhi.
Impact of priority sector lending on indian economyshifali garg
The document discusses India's priority sector lending scheme. It was first introduced by the Reserve Bank of India in 1974 to ensure that a certain portion of commercial bank lending goes to important sectors like agriculture, small businesses, and other priority sectors. Currently, 40% of bank lending must go to the priority sector, including 18% to agriculture. The priority sector lending program aims to promote development and reduce poverty through increased employment and incomes in these key sectors of the economy. It has generally had a positive impact, though banks still face some challenges in lending to weaker sections like higher non-performing assets. The future prospects for priority sector lending in India remain strong.
The document summarizes priority sector lending in India. It defines priority sectors as areas of the economy that are prioritized for funding by the government and central bank. Banks are directed to provide loans to these sectors at reduced interest rates to promote their development. The priority sectors include agriculture, small businesses, education and housing. The document outlines the sectors and challenges they face, as well as the role of priority sector lending in addressing issues like unemployment and poverty. It discusses targets for priority sector lending and how the Reserve Bank of India monitors compliance.
A project report on on the working capital management in karnataka state fina...Babasab Patil
The document discusses the working capital management of the Karnataka State Finance Corporation (KSFC). It provides background on KSFC, stating that it was established in 1915 to provide financial assistance to industrial units in Karnataka. The objectives of the study are to understand KSFC's working capital components and patterns over the period from 2001-2002 to 2006-2007. Data is collected from KSFC's annual reports during this period and analyzed using statistical techniques. The document also outlines KSFC's organizational profile, history, achievements and main activities in providing long term lending and other financial services to support industrial development in Karnataka.
The document discusses India's priority sector lending scheme, which requires banks to allocate a portion of their lending to important sectors like agriculture, small businesses, and renewable energy. It was first introduced in 1974 to ensure timely credit to priority sectors. Recent reforms broadened the sectors to include medium enterprises and social infrastructure. The expected advantages of the scheme include increased rural industries and living standards, poverty eradication, and infrastructure and GDP growth. Studies found the scheme increased incomes, employment, and achieved goals like poverty reduction and self-employment opportunities. In conclusion, the overall impact is positive as banks now provide credit to boost the rural economy and energy sector.
1) NABARD is India's apex development bank that was established to facilitate credit flow for promoting agriculture and rural development.
2) It provides refinancing to lending institutions, promotes institutional development, and monitors client banks. It also coordinates rural credit activities and offers training/research support.
3) NABARD regulates cooperative banks and regional rural banks. It has subsidiaries like NABCONS, which provides consultancy services, and NABFINS, which provides financial services in agriculture and microfinance.
NABARD is India's apex development bank that focuses on rural development. It provides refinancing support and develops rural infrastructure to promote agriculture and rural development. NABARD also regulates cooperative banks and rural banks. It works to expand financial inclusion through programs like self-help groups and credit cards for farmers. While NABARD has significantly contributed to rural development, it faces challenges in adequately financing some regions and maintaining its link to the central bank.
India prospers if rural areas prosper. Through its credit and development initiatives, NABARD ensures that India's food needs are met season after season and year after year by focusing on rural development. NABARD provides refinancing, direct lending, and development support to promote sustainable agriculture and rural development. It works to strengthen rural financial institutions and ensure access to credit for farmers and rural communities.
Banking sector reforms in india after 1991Bikram Pradhan
The Narasimhan Committee made several recommendations in 1991 to reform India's banking sector as part of broader economic reforms. These included establishing a tiered banking structure, reducing statutory reserves, achieving an 8% capital adequacy ratio, and abolishing branch licensing. In response, the government lowered statutory reserves, implemented prudential norms, capital adequacy requirements, interest rate deregulation, debt recovery laws, and allowed new private banks to increase competition in the sector.
This presentation provides information on NABARD (National Bank for Agriculture and Rural Development) and SIDBI (Small Industries Development Bank of India). It discusses the establishment of NABARD in 1982 and its mission to extend financial services to 100 million rural poor through self-help groups. It also outlines SIDBI's role since 1989 in providing refinancing and other support to micro, small and medium enterprises. The key functions and services of each institution are described, including refinancing loans, promoting institutional development, and offering schemes and programs to support entrepreneurs and skill development.
INDIAN ECONOMY: CHALLENGES AND EXPECTATIONSNeha Sharma
The Reserve Bank of India has recently released a small dose of liquidity by reducing Cash Reserve Ratio (CRR) by 0.5% for the commercial banks. Government borrowings have swallowed significant resources from the banking sector in recent months. The Liquidity with banking sector is still a major issue.
The document provides information about various schemes and initiatives by the Ministry of Micro, Small and Medium Enterprises (MSME) in India to support MSMEs. It discusses schemes that provide loans, credit guarantees, funding support, skill development programs, and a single-window portal called CHAMPIONS to address MSME grievances and needs. The document also provides details on the objectives, eligibility criteria, nature of assistance for schemes like the Emergency Credit Guarantee Scheme, Subordinate Debt for Stressed MSMEs, and the Public Procurement Policy for MSMEs.
Priority Sector Lending (PSL) is a critical piece of compliance required in the Indian Banking and Finance industry. This presentation (along with the part 1, posted earlier gives a quick overview of the priority sector lending concepts. The regulation for PSL is quite clear and increasingly Banks are mandated by the regulator - RBI to ensure compliance to PSL.
Brought to you by www.sineedge.com
- Jana Small Finance Bank was established in 2017 as a small finance bank after receiving an RBI license. It traces its origins to 1999 when it launched as Sanghamitra Urban Programme, later renamed Janalakshmi.
- It provides various savings accounts, fixed deposits, loans, and current accounts for individuals and businesses. Product offerings include regular savings accounts, savings plus accounts, fixed deposits, individual and group loans, business loans, and premium and regular current accounts.
Priority sector lending refers to preferential lending by banks to sectors like agriculture, micro, small and medium enterprises, housing and education. The Reserve Bank of India mandates that 40% of banks' lending goes to priority sectors. Priority sector targets include 18% of lending to agriculture and related activities, 7.5% to micro enterprises, and 10% to weaker sections. Priority sector lending aims to promote inclusive economic development by increasing access to credit for productive and employment-generating sectors that may otherwise struggle to obtain bank financing.
Originally posted on LinkedIn on 17th May 2020- https://www.linkedin.com/feed/update/urn:li:activity:6667787215978029056/
With the 5th and final tranche announced today, we have a fair idea about the composition of the INR 20 trillion Atma Nirbhar Bharat Economic Package.
To summarize, the package is majorly focused on providing easy loans to businesses to meet their short-term requirement for funds.
INR 11.8 Trillion of the package is aimed at infusing liquidity. Also, credit guarantees up to INR 4 Trillion have been announced to incentivize banks to lend money.
Liquidity Infusion & Credit Guarantee together constitute 75% of the package.
Major part of Direct Benefits worth INR 2.3 Trillion has already been utilized in the PM Garib Kalyan Yojana.
INR 40000 crores for additional MGNREGS spending is the only major step that will help in reviving demand.
Government has done enough on the supply-side measures. However, it needs to be complemented with fast pick-up in demand to ensure the economic recovery is fast. We hope that the Government will take more measures to revive demand in the economy.
Government has also announced much needed reforms in many sectors. The benefits will be seen only in the long-term.
Since, this is the final report we have created a comprehensive report for your perusal. Hope you find it useful.
The document discusses priority sector lending in India. It defines priority sectors as agriculture, small scale industries, and other identified sectors of economic importance. It provides details on categories of lending covered under priority sectors such as short term crop loans, medium and long term agriculture loans, small scale industry loans, and loans to weaker sections. It also outlines priority sector lending targets for domestic and foreign banks in India and monitoring of priority sector lending by the Reserve Bank of India.
INDIAN ECONOMY LOOKING FOR DIRECTION FOR INDIA TO SHINE AGAINNeha Sharma
The Indian economy is in the threshold of a big leap towards India shining once again, but the main stumbling block being a sense of confusion about government policies, scarcity of low cost adequate money for funding further investments and most importantly India Inc. awaiting for specific policy decisions and creative actions in the areas which has been adversely impacted due to lack of policy initiative.
This document discusses strategies for improving access to financial services for agricultural value chains in Africa. It notes that while over 60% of Africa's population lives rurally and engages in agriculture, the agricultural sector lacks large-scale investment and access to financing. The document outlines challenges like risk, lack of infrastructure and weak market structures that impede agricultural financing. It then discusses various innovations and tools for managing risk and financing along commodity value chains, including microfinance, value chain financing, futures markets, warehouse receipts and using movable assets as collateral. The goal is to develop sustainable and holistic solutions that link smallholder farmers to markets and financial services.
The National Housing Bank (NHB) was established in 1988 to promote affordable housing finance in India. It regulates housing finance companies and provides refinancing to enable more lending. NHB's objectives are to develop a sound housing finance system, increase access to affordable housing credit, and support government housing schemes. It carries out these functions through refinancing, financing housing projects, developing housing finance institutions, and implementing training programs.
Bharat Financial Inclusion Limited (BFIL) reported its Q1FY18 earnings. Some key highlights include:
- BFIL's non-AP portfolio grew 14% YoY to INR 9,631 Cr as of June 30, 2017.
- The company reported a loss of INR 37 Cr for Q1FY18.
- BFIL has a market share of 22% among NBFC-MFIs and SFBs and is the second largest MFI in India.
- The company has diversified its funding sources and reduced dependence on top banks. It also has a more balanced state portfolio.
The document provides an overview and analysis of the Union Budget of India for 2015-2016. Some key points:
- The budget continues the government's focus on gradual simplification of tax laws, withdrawing fiscal stimulus, and building rural infrastructure through an incremental approach rather than major reforms.
- There is a greater influence of market economists in the budget compared to the past, which should please financial markets.
- The budget lays out plans to work towards the government's Vision 2022 of comprehensive development across sectors like housing, power, water, education, and healthcare.
- There is a shift towards enabling citizens through skills training and access to services rather than just providing subsidies, as well as moves to accelerate global
The document summarizes the operations of a financial institute, using IDBI Bank as a case study. It discusses the inputs, processes, and outputs of IDBI's operations. The main inputs are deposits from customers including fixed deposits, current deposits, and savings deposits. The processes include activities like check clearance, account management, and advertising. The outputs are loans, financial services, and security of savings instruments provided to customers.
The document summarizes various components of India's economic stimulus packages announced to support businesses, farmers, and workers impacted by COVID-19. It discusses collateral-free loans for MSMEs, equity support for stressed MSMEs, increased liquidity support for NBFCs and DISCOMs, expanded public works programs to employ returning migrant workers, and increased agriculture support through loans and infrastructure development funds. The packages total over Rs. 20 lakh crore and aim to provide liquidity, credit, and job support across key economic sectors battered by the pandemic.
This document summarizes various relief measures and schemes introduced by the Indian government for MSMEs during the COVID-19 pandemic. Key measures include upward revision of MSME definitions, collateral-free automatic loans worth Rs. 3 lakh crores for businesses including MSMEs, subordinate debt of Rs. 20,000 crores for stressed MSMEs, equity infusion of Rs. 50,000 crores through a fund of funds, and extension of EPF support. It also provides overviews of various existing schemes to support MSMEs including the Credit Guarantee Trust Fund, ZED certification, credit-linked capital subsidy, bar code registration reimbursement, and schemes specific to the apparel industry.
The document discusses India's priority sector lending scheme, which requires banks to allocate a portion of their lending to important sectors like agriculture, small businesses, and renewable energy. It was first introduced in 1974 to ensure timely credit to priority sectors. Recent reforms broadened the sectors to include medium enterprises and social infrastructure. The expected advantages of the scheme include increased rural industries and living standards, poverty eradication, and infrastructure and GDP growth. Studies found the scheme increased incomes, employment, and achieved goals like poverty reduction and self-employment opportunities. In conclusion, the overall impact is positive as banks now provide credit to boost the rural economy and energy sector.
1) NABARD is India's apex development bank that was established to facilitate credit flow for promoting agriculture and rural development.
2) It provides refinancing to lending institutions, promotes institutional development, and monitors client banks. It also coordinates rural credit activities and offers training/research support.
3) NABARD regulates cooperative banks and regional rural banks. It has subsidiaries like NABCONS, which provides consultancy services, and NABFINS, which provides financial services in agriculture and microfinance.
NABARD is India's apex development bank that focuses on rural development. It provides refinancing support and develops rural infrastructure to promote agriculture and rural development. NABARD also regulates cooperative banks and rural banks. It works to expand financial inclusion through programs like self-help groups and credit cards for farmers. While NABARD has significantly contributed to rural development, it faces challenges in adequately financing some regions and maintaining its link to the central bank.
India prospers if rural areas prosper. Through its credit and development initiatives, NABARD ensures that India's food needs are met season after season and year after year by focusing on rural development. NABARD provides refinancing, direct lending, and development support to promote sustainable agriculture and rural development. It works to strengthen rural financial institutions and ensure access to credit for farmers and rural communities.
Banking sector reforms in india after 1991Bikram Pradhan
The Narasimhan Committee made several recommendations in 1991 to reform India's banking sector as part of broader economic reforms. These included establishing a tiered banking structure, reducing statutory reserves, achieving an 8% capital adequacy ratio, and abolishing branch licensing. In response, the government lowered statutory reserves, implemented prudential norms, capital adequacy requirements, interest rate deregulation, debt recovery laws, and allowed new private banks to increase competition in the sector.
This presentation provides information on NABARD (National Bank for Agriculture and Rural Development) and SIDBI (Small Industries Development Bank of India). It discusses the establishment of NABARD in 1982 and its mission to extend financial services to 100 million rural poor through self-help groups. It also outlines SIDBI's role since 1989 in providing refinancing and other support to micro, small and medium enterprises. The key functions and services of each institution are described, including refinancing loans, promoting institutional development, and offering schemes and programs to support entrepreneurs and skill development.
INDIAN ECONOMY: CHALLENGES AND EXPECTATIONSNeha Sharma
The Reserve Bank of India has recently released a small dose of liquidity by reducing Cash Reserve Ratio (CRR) by 0.5% for the commercial banks. Government borrowings have swallowed significant resources from the banking sector in recent months. The Liquidity with banking sector is still a major issue.
The document provides information about various schemes and initiatives by the Ministry of Micro, Small and Medium Enterprises (MSME) in India to support MSMEs. It discusses schemes that provide loans, credit guarantees, funding support, skill development programs, and a single-window portal called CHAMPIONS to address MSME grievances and needs. The document also provides details on the objectives, eligibility criteria, nature of assistance for schemes like the Emergency Credit Guarantee Scheme, Subordinate Debt for Stressed MSMEs, and the Public Procurement Policy for MSMEs.
Priority Sector Lending (PSL) is a critical piece of compliance required in the Indian Banking and Finance industry. This presentation (along with the part 1, posted earlier gives a quick overview of the priority sector lending concepts. The regulation for PSL is quite clear and increasingly Banks are mandated by the regulator - RBI to ensure compliance to PSL.
Brought to you by www.sineedge.com
- Jana Small Finance Bank was established in 2017 as a small finance bank after receiving an RBI license. It traces its origins to 1999 when it launched as Sanghamitra Urban Programme, later renamed Janalakshmi.
- It provides various savings accounts, fixed deposits, loans, and current accounts for individuals and businesses. Product offerings include regular savings accounts, savings plus accounts, fixed deposits, individual and group loans, business loans, and premium and regular current accounts.
Priority sector lending refers to preferential lending by banks to sectors like agriculture, micro, small and medium enterprises, housing and education. The Reserve Bank of India mandates that 40% of banks' lending goes to priority sectors. Priority sector targets include 18% of lending to agriculture and related activities, 7.5% to micro enterprises, and 10% to weaker sections. Priority sector lending aims to promote inclusive economic development by increasing access to credit for productive and employment-generating sectors that may otherwise struggle to obtain bank financing.
Originally posted on LinkedIn on 17th May 2020- https://www.linkedin.com/feed/update/urn:li:activity:6667787215978029056/
With the 5th and final tranche announced today, we have a fair idea about the composition of the INR 20 trillion Atma Nirbhar Bharat Economic Package.
To summarize, the package is majorly focused on providing easy loans to businesses to meet their short-term requirement for funds.
INR 11.8 Trillion of the package is aimed at infusing liquidity. Also, credit guarantees up to INR 4 Trillion have been announced to incentivize banks to lend money.
Liquidity Infusion & Credit Guarantee together constitute 75% of the package.
Major part of Direct Benefits worth INR 2.3 Trillion has already been utilized in the PM Garib Kalyan Yojana.
INR 40000 crores for additional MGNREGS spending is the only major step that will help in reviving demand.
Government has done enough on the supply-side measures. However, it needs to be complemented with fast pick-up in demand to ensure the economic recovery is fast. We hope that the Government will take more measures to revive demand in the economy.
Government has also announced much needed reforms in many sectors. The benefits will be seen only in the long-term.
Since, this is the final report we have created a comprehensive report for your perusal. Hope you find it useful.
The document discusses priority sector lending in India. It defines priority sectors as agriculture, small scale industries, and other identified sectors of economic importance. It provides details on categories of lending covered under priority sectors such as short term crop loans, medium and long term agriculture loans, small scale industry loans, and loans to weaker sections. It also outlines priority sector lending targets for domestic and foreign banks in India and monitoring of priority sector lending by the Reserve Bank of India.
INDIAN ECONOMY LOOKING FOR DIRECTION FOR INDIA TO SHINE AGAINNeha Sharma
The Indian economy is in the threshold of a big leap towards India shining once again, but the main stumbling block being a sense of confusion about government policies, scarcity of low cost adequate money for funding further investments and most importantly India Inc. awaiting for specific policy decisions and creative actions in the areas which has been adversely impacted due to lack of policy initiative.
This document discusses strategies for improving access to financial services for agricultural value chains in Africa. It notes that while over 60% of Africa's population lives rurally and engages in agriculture, the agricultural sector lacks large-scale investment and access to financing. The document outlines challenges like risk, lack of infrastructure and weak market structures that impede agricultural financing. It then discusses various innovations and tools for managing risk and financing along commodity value chains, including microfinance, value chain financing, futures markets, warehouse receipts and using movable assets as collateral. The goal is to develop sustainable and holistic solutions that link smallholder farmers to markets and financial services.
The National Housing Bank (NHB) was established in 1988 to promote affordable housing finance in India. It regulates housing finance companies and provides refinancing to enable more lending. NHB's objectives are to develop a sound housing finance system, increase access to affordable housing credit, and support government housing schemes. It carries out these functions through refinancing, financing housing projects, developing housing finance institutions, and implementing training programs.
Bharat Financial Inclusion Limited (BFIL) reported its Q1FY18 earnings. Some key highlights include:
- BFIL's non-AP portfolio grew 14% YoY to INR 9,631 Cr as of June 30, 2017.
- The company reported a loss of INR 37 Cr for Q1FY18.
- BFIL has a market share of 22% among NBFC-MFIs and SFBs and is the second largest MFI in India.
- The company has diversified its funding sources and reduced dependence on top banks. It also has a more balanced state portfolio.
The document provides an overview and analysis of the Union Budget of India for 2015-2016. Some key points:
- The budget continues the government's focus on gradual simplification of tax laws, withdrawing fiscal stimulus, and building rural infrastructure through an incremental approach rather than major reforms.
- There is a greater influence of market economists in the budget compared to the past, which should please financial markets.
- The budget lays out plans to work towards the government's Vision 2022 of comprehensive development across sectors like housing, power, water, education, and healthcare.
- There is a shift towards enabling citizens through skills training and access to services rather than just providing subsidies, as well as moves to accelerate global
The document summarizes the operations of a financial institute, using IDBI Bank as a case study. It discusses the inputs, processes, and outputs of IDBI's operations. The main inputs are deposits from customers including fixed deposits, current deposits, and savings deposits. The processes include activities like check clearance, account management, and advertising. The outputs are loans, financial services, and security of savings instruments provided to customers.
The document summarizes various components of India's economic stimulus packages announced to support businesses, farmers, and workers impacted by COVID-19. It discusses collateral-free loans for MSMEs, equity support for stressed MSMEs, increased liquidity support for NBFCs and DISCOMs, expanded public works programs to employ returning migrant workers, and increased agriculture support through loans and infrastructure development funds. The packages total over Rs. 20 lakh crore and aim to provide liquidity, credit, and job support across key economic sectors battered by the pandemic.
This document summarizes various relief measures and schemes introduced by the Indian government for MSMEs during the COVID-19 pandemic. Key measures include upward revision of MSME definitions, collateral-free automatic loans worth Rs. 3 lakh crores for businesses including MSMEs, subordinate debt of Rs. 20,000 crores for stressed MSMEs, equity infusion of Rs. 50,000 crores through a fund of funds, and extension of EPF support. It also provides overviews of various existing schemes to support MSMEs including the Credit Guarantee Trust Fund, ZED certification, credit-linked capital subsidy, bar code registration reimbursement, and schemes specific to the apparel industry.
The document discusses various funding options available to MSMEs, including under the COVID-19 stimulus package. It provides details on the Emergency Credit Line Guarantee Scheme (ECLGS), including the purpose, eligibility criteria, nature of accounts covered, and tenor of credit. Under ECLGS, MSME borrower accounts with combined outstanding loans across all lenders of up to Rs. 25 crore as of February 29, 2020 are eligible for collateral-free loans of up to 20% of their credit outstanding. A one-year moratorium is provided on principal repayment.
The Indian government announced a Rs. 20 lakh crore fiscal stimulus package, amounting to 10% of India's GDP, to help revive the economy impacted by the COVID-19 pandemic. The package includes collateral-free loans for MSMEs, equity support, reduced TDS/TCS rates, and a liquidity window for power distribution companies. The goal is to boost manufacturing, achieve self-reliance, and address challenges like improving infrastructure and innovation to make India a globally competitive manufacturing hub while avoiding isolationist policies. The vision of self-reliance has evolved since early attempts in the 1950s that deprived India of modern technology due to strict import controls.
The borrower account would be eligible under the scheme if:
1) The account was classified as SMA-1 as on 29th February 2020 i.e. the number of days past due was between 31-60 days.
2) The account was not classified as NPA or SMA-2 as on 29th February 2020. Since the number of days past due was less than 90 days as on 29th Feb 2020, the account would be classified as SMA-1 and hence eligible.
3) The borrower meets all other eligibility criteria like loan outstanding, turnover limit etc.
So in this case, since the number of days past due was less than 90, the account would be classified as S
Decoding government of india 20 lakh crore covid packageJitho Monachan
The document provides a summary of the economic stimulus package announced by the Government of India totaling Rs. 20 lakh crore. It was unveiled over 5 days by Finance Minister Nirmala Sitharaman and included measures across multiple sectors. Key highlights included Rs. 3 lakh crore in collateral-free loans for MSMEs, Rs. 50,000 crore equity infusion for MSMEs, wage support and credit facilities for farmers and migrant workers, and reforms in coal, defence, space and other sectors to boost investment.
Micro, Small and Medium Enterprises (MSMEs) play a major role in economic development, particularly in emerging countries.
MSMEs :
Contributes to the economic growth,
Enormous potential for growth
Potential for employment and income generation
for vast masses of the country.
Government pronouncements about “Make in India” are fundamentally based on these convictions.
There is heightened attention by the international community on MSME sector.
This is primarily because of the critical importance of job creation in the recovery cycle following the recent financial crisis, and the MSME’s potentials in that respect.
In Indian economy, MSME sector contribute :
45 % of the manufacturing output.
40 % of the exports.
There are 467.56 lakh enterprises in the MSME sector.
Provide the largest share of the employment after agriculture. Employment opportunities to 10.62 crore people across the country.
The document summarizes key highlights from the 2019-20 Union Budget of India. Some highlights include:
- Projected GDP growth of 7% for fiscal year 2019-20 with fiscal deficit at 3.3% of GDP.
- Focus on rural development through initiatives like Har Ghar Jal for rural water and expanding rural road infrastructure.
- No changes to personal income tax rates but some changes to surcharges on the super rich.
- Increased investment planned for infrastructure, transportation, education, and other sectors to promote growth.
- Measures to promote affordable housing, digital payments, and ease of business.
India budget Highlights D N Sharma & Associates FY14-15edeepaksharma
The document summarizes key aspects of the Indian budget for 2014-15. It notes that India's economic growth has declined in recent years due to global and domestic factors. The budget aims to boost growth through measures such as reducing the fiscal deficit, controlling inflation, strengthening the banking sector, promoting infrastructure development and renewable energy, and supporting rural development and small/medium enterprises. It also outlines plans to improve health, education, housing, social welfare programs, tourism, and national security.
The Union Budget for 2013-14 aimed to boost growth while resisting populist measures ahead of elections. It increased taxes on the wealthy through surcharges but provided some tax relief to lower income groups. Infrastructure spending was increased and policies introduced to encourage investment in manufacturing and agriculture. Fiscal deficit targets were maintained.
The Union Budget for 2013-14 aimed to boost growth while resisting populist measures. It increased taxes on luxuries like SUVs, imported cars and motorcycles. Income tax rates remained unchanged, but a tax credit of Rs. 2,000 was provided for incomes below Rs. 5 lakh. Higher allocation was provided for infrastructure, agriculture, rural development, health, education and social sectors. The fiscal deficit target was set at 4.8% of GDP.
The Union Budget for 2012-13 aimed to boost growth, private investment, and address supply bottlenecks, malnutrition and governance. Key points include GDP growth projected at 7.6%, central subsidies to be reduced, more investment in infrastructure, rural development and health, income tax exemption limit raised, and the fiscal deficit targeted to decline.
The document summarizes the key points from the Indian government's budget for 2013-2014. It outlines economic challenges like slowing growth and high deficits. It details spending increases for health, education, rural development, and agriculture. It proposes measures to boost investment, infrastructure, industry, and the financial sector. It outlines tax proposals including personal income tax cuts and changes to customs, excise, and service taxes.
Decoding the 20 lakh crore stimulus packageabhishekc1234
Covid-19 pandemic has been deadly all over the globe and has made its mark on India too. In order to fight it head on, our Prime Minister made a huge announcement of Aatmanirbhar package Abhiyan (ABA) on 12 may 2020 of ₹20 Lakh Crore. This research study has been written by me where I decode the package in detail; discuss its usefulness and its impact on the nation.
The document summarizes India's 20 lakh crore economic stimulus package announced by Prime Minister Modi on May 12, 2020 in response to the economic impacts of the COVID-19 pandemic. The key points are:
- The 20 lakh crore (INR 20 trillion or 10% of GDP) package aims to boost the economy, promote local manufacturing, and make India self-reliant.
- It includes monetary measures by the RBI worth 8 lakh crores and earlier fiscal measures totaling 1.92 lakh crores.
- The remaining amount is spread across 5 tranches providing support to MSMEs, migrants, agriculture, reforms, and state governments.
- However,
The document summarizes India's 20 lakh crore economic stimulus package announced by Prime Minister Modi on May 12, 2020. It provides details on the objectives of making India self-reliant and boosting the economy through five pillars. The breakdown shows most of the stimulus came from RBI measures like liquidity injections rather than new government spending, which accounts for only around 1.5 lakh crore of the total. While the funds have been used efficiently so far, the conclusion argues that additional government expenditure could have been higher given the scale of the pandemic's economic impact in India.
The document provides an overview of SKS Microfinance, including its business model, valuation process, and regulatory environment. SKS pioneered the joint liability group lending model and grew rapidly before facing difficulties in 2010. It valued itself using a branch-level valuation model that projected earnings and growth rates. Key recommendations from the Malegam Committee established regulations for the microfinance sector, including categorizing qualified NBFCs as NBFC-MFIs and capping interest rates.
The BJP Government is on the verge of completing a year and has now stabilised. Major economic initiatives and actions are emerging for a high growth oriented economy.
2022 Calendar produced by Indian Institute of Technology, Kharagpur.
Recovery of the foundations of Indian knowledge systems
* Recognition of the secret of the Vedas
* Reinterpretation of the Indus Valley Civilization
* Rebuttal to the Aryan Invasion Myth
A joint production of Centre of Excellence for Indian Knowledge Systems & Nehru Museum of Science & Technology, Indian Institute of Technology Kharagpur.
Advisory on Zoom video meeting platform by Ministry of Home Affairs (MHA) of ...Dilip Sankarreddy
This document provides guidelines for securely configuring Zoom meetings for private individuals. It recommends enabling settings like passwords, waiting rooms, and screen sharing restrictions for the host only. It explains how to configure these security settings on the Zoom website, mobile app, and within meetings. The goal is to prevent unauthorized access, malicious actions by participants, and denial of service attacks by limiting access through passwords. It also recommends not using personal meeting IDs and instead generating random IDs for each new meeting to improve security.
A manual on homemade masks against corona virus covid 19Dilip Sankarreddy
Prepare homemade masks to prevent the spread of corona virus. Though they are not as effective as N95 or FPP2 or surgical masks, they are better than nothing. They are also cost-effective and hence helpful for low-income groups. Involve in 'Masks for All' campaign.
-- Dilip Sankarreddy
This document is issued by the Office of the Principal Scientific Advisor to the Government of India on March 30, 2020.
#Masks4All #MasksForAll
Lok Satta - comment on proposed Section 17A in Prevention of Corruption ActDilip Sankarreddy
The document summarizes and critiques a proposed amendment to the Prevention of Corruption Act that would require investigative agencies to obtain approval from the Lokpal or Lokayukta before investigating any allegations of corruption against public servants.
The key points made are:
1) The amendment would require prior approval for investigating any recommendations or decisions made by public servants, paralyzing anti-corruption efforts given the millions of public servants.
2) Obtaining such approval would involve lengthy procedures outlined in the Lokpal Act, delaying investigations significantly.
3) Rather than facilitating anti-corruption work, this change would overwhelm and weaken the Lokpal/Lokayukta while diluting their role and preventing
Schedule of Indian General Election 2014 and of State AssembliesDilip Sankarreddy
Schedule of
1) General Election 2014 to Lok Sabha and
2) Election for State Legislative Assemblies of Andhra Pradesh, Odisha and Sikkim
Released by Election Commission of India on March 5, 2014
LSP amendments to AP Reorganization Bill 2013 - Jan10, 2014Dilip Sankarreddy
Document detailing the list of amendments proposed by the Lok Satta Party to the Andhra Pradesh Reorganisation Bill, 2013
This proposal is famous as "JP formula for AP state reorganization"
Date: Jan 10, 2014
LSP amendmens to AP Reorganization Bill 2013
Lok Satta and FDR Recommendation on Prevention of Corruption (Amendment) Bill...Dilip Sankarreddy
Presentation by Dr Jayaprakash Narayan (currently sitting MLA of Andhra Pradesh; former Member of National Advisory Council to the Govt of India, and 2nd Administrative Reforms Commission of India)’s views on behalf of Lok Satta & Foundation for Democratic Reforms (FDR) on the “The Prevention of Corruption (Amendment) Bill, 2013” in a tabular format.
Jayaprakash Narayan (Lok Satta and FDR) has been invited to present views before the ‘Parliamentary Committee on Personnel, Public Grievances, Law and Justice for examination of the Prevention of Corruption (Amendment) Bill, 2013’. Dr Jayaprakash Narayan will present his views on 16 Jan, 2014 in New Delhi.
Andhra Pradesh revenue sharing towards state reorganizationDilip Sankarreddy
The presentation contains the revenue sharing data for Andhra Pradesh State across various regions of the state for the financial year 2012-2013.
Analyzing the data for financial year 2012-13, Lok Satta Party found that the Coastal Andhra will have a surplus of Rs.684 crore, Rayalaseema a deficit of Rs.7,005 crore, Telangana excluding Hyderabad a deficit of Rs.8,407 crore and Hyderabad a surplus of Rs.12,854 crore if their divisible and on-divisible receipts and expenditure are taken into account.
LSP identified this grave problem of deficit for Rayalaseema region and is demanding that this deficit issue be addressed before the Center goes ahead with its decision to bifurcate the State.
Submission to President for reconsideration of bifurcation of state by Chief ...Dilip Sankarreddy
Kiran Kumar Reddy, Chief Minister of Andhra Pradesh, has submitted this document to the President of India and others requesting the reconsideration of bifurcation of Andhra Pradesh state. The document is prepared on 18th November, 2013.
Article on Lok Satta Party's stand on Andhra Pradesh state bifurcation issueDilip Sankarreddy
My article on Lok Satta Party's stand on Andhra Pradesh state bifurcation issue. The article has been published in the editorial of the Andhra Jyothy paper, a leading Telugu news daily, on October 31, 2013
This document outlines Dilip Sankarreddy's campaign to win the Malkajgiri assembly constituency seat in Andhra Pradesh as the Lok Satta Party candidate in the 2014 elections. It provides background on the constituency and reasons why Lok Satta Party can win, including that Malkajgiri has historically been favorable to LSP. It introduces Dilip Sankarreddy and his qualifications for office. It asks for donations and volunteers to help Dilip Sankarreddy run a focused campaign to win the election.
Causes Supporting Charity for Elderly PeopleSERUDS INDIA
Around 52% of the elder populations in India are living in poverty and poor health problems. In this technological world, they became very backward without having any knowledge about technology. So they’re dependent on working hard for their daily earnings, they’re physically very weak. Thus charity organizations are made to help and raise them and also to give them hope to live.
Donate Us:
https://serudsindia.org/supporting-charity-for-elderly-people-india/
#oldagehome, #donateforeldersinkurnool, #donateforelders, #donationforelders, #donateforoldpeople, #donationforoldpeople, #sponsorforelders, #sponsorforoldpeople, #donationforcharity, #charity, #seruds, #kurnool, #donateforoldagehome, #oldagehomedonation
Presentation by Rebecca Sachs and Joshua Varcie, analysts in CBO’s Health Analysis Division, at the 13th Annual Conference of the American Society of Health Economists.
FT author
Amanda Chu
US Energy Reporter
PREMIUM
June 20 2024
Good morning and welcome back to Energy Source, coming to you from New York, where the city swelters in its first heatwave of the season.
Nearly 80 million people were under alerts in the US north-east and midwest yesterday as temperatures in some municipalities reached record highs in a test to the country’s rickety power grid.
In other news, the Financial Times has a new Big Read this morning on Russia’s grip on nuclear power. Despite sanctions on its economy, the Kremlin continues to be an unrivalled exporter of nuclear power plants, building more than half of all reactors under construction globally. Read how Moscow is using these projects to wield global influence.
Today’s Energy Source dives into the latest Statistical Review of World Energy, the industry’s annual stocktake of global energy consumption. The report was published for more than 70 years by BP before it was passed over to the Energy Institute last year. The oil major remains a contributor.
Data Drill looks at a new analysis from the World Bank showing gas flaring is at a four-year high.
Thanks for reading,
Amanda
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New report offers sobering view of the energy transition
Every year the Statistical Review of World Energy offers a behemoth of data on the state of the global energy market. This year’s findings highlight the world’s insatiable demand for energy and the need to speed up the pace of decarbonisation.
Here are our four main takeaways from this year’s report:
Fossil fuel consumption — and emissions — are at record highs
Countries burnt record amounts of oil and coal last year, sending global fossil fuel consumption and emissions to all-time highs, the Energy Institute reported. Oil demand grew 2.6 per cent, surpassing 100mn barrels per day for the first time.
Meanwhile, the share of fossil fuels in the energy mix declined slightly by half a percentage point, but still made up more than 81 per cent of consumption.
The Power of Community Newsletters: A Case Study from Wolverton and Greenleys...Scribe
YOU WILL DISCOVER:
The engaging history and evolution of Wolverton and Greenleys Town Council's newsletter
Strategies for producing a successful community newsletter and generating income through advertising
The decision-making process behind moving newsletter design from in-house to outsourcing and its impacts
Dive into the success story of Wolverton and Greenleys Town Council's newsletter in this insightful webinar. Hear from Mandy Shipp and Jemma English about the newsletter's journey from its inception to becoming a vital part of their community's communication, including its history, production process, and revenue generation through advertising. Discover the reasons behind outsourcing its design and the benefits this brought. Ideal for anyone involved in community engagement or interested in starting their own newsletter.
How To Cultivate Community Affinity Throughout The Generosity JourneyAggregage
This session will dive into how to create rich generosity experiences that foster long-lasting relationships. You’ll walk away with actionable insights to redefine how you engage with your supporters — emphasizing trust, engagement, and community!
2. • Call for आत्मनिर्भर र्ारत अनर्याि or Self-Reliant India Movement
• Five pillars of Atmanirbhar Bharat – Economy, Infrastructure,
System, Vibrant Demography and Demand
• Special economic and comprehensive package of Rs 20 lakh
crores - equivalent to 10% of India’s GDP
• Package to cater to various sections including cottage industry,
MSMEs, labourers, middle class, industries, among others.
• Bold reforms across sectors will drive the country's push towards
self-reliance
• It is time to become vocal for our local products and make them
global.
Prime Minister’s Vision
3. Pradhan Mantri Garib Kalyan Package (1)
Rs. 1.70 Lakh Crore relief package under Pradhan Mantri Garib Kalyan
Yojana for the poor to help them fight the battle against Corona Virus:
• Insurance cover of Rs 50 Lakh per health worker
• 80 crore poor people given benefit of 5 kg wheat or rice per person
for next 3 months
• 1 kg pulses for each household for free every month for the next 3
months
• 20 crore women Jan Dhan account holders get Rs 500 per month
for next 3 months
• Gas cylinders, free of cost, provided to 8 crore poor families for the
next 3 months
• Increase in MNREGA wage to Rs 202 a day from Rs 182 to benefit
13.62 crore families
• Ex-gratia of Rs 1,000 to 3 crore poor senior citizen, poor widows
and poor Divyang
4. Pradhan Mantri Garib Kalyan Package (2)
• Front-loaded Rs 2,000 paid to farmers under existing PM-KISAN to
benefit 8.7 crore farmers
• Building and Construction Workers Welfare Fund allowed to be
used to provide relief to workers
• 24% of monthly wages to be credited into their PF accounts for
next three months for wage-earners below Rs 15,000 p.m. in
businesses having less than 100 workers
• Five crore workers registered under Employee Provident Fund EPF
to get non-refundable advance of 75% of the amount or three
months of the wages, whichever is lower, from their accounts
• Limit of collateral free lending to be increased from Rs 10 to Rs 20
lakhs for Women Self Help Groups supporting 6.85 crore
households.
• District Mineral Fund (DMF) to be used for supplementing and
augmenting facilities of medical testing, screening etc..
5. Other Measures - 1
• On the request of the Government of India, RBI raised
the Ways and Means advance limits of States by 60%
and enhanced the Overdraft duration limits.
• Issued all the pending income-tax refunds up to ₹5
lakh, immediately benefiting around 14 lakh taxpayers
• Implemented “Special Refund and Drawback Disposal
Drive” for all pending refund and drawback claims
• Both the above measures amount to ₹18,000 crore of
refund.
• Sanctioned Rs 15,000 crores for Emergency Health
Response Package
6. Other Measures – 2
• Provided Relaxation in Statutory and Compliance matters,
such as –
• Extending last date for Income Tax Returns to June 30,
2020
• Extending filing GST returns to end of June 2020
• 24*7 custom clearance till 30th June, 2020
• Relaxation for 3 months for debit cardholders to withdraw
cash free from any ATMs, etc
• Allowing payment before 15 May, 2020 for Motor
Vehicle and Health Insurance Policies
• Mandatory Board meetings extended by 60 days till 30
September
• Allowing Extraordinary General Meetings through Video
Conference with e-voting/simplified voting facility
7. Measures taken by Reserve Bank of India
• Reduction of Cash Reserve Ratio (CRR) has resulted in
liquidity enhancement of ₹1,37,000 crores
• Targeted Long Term Repo Operations (TLTROs) of
₹1,00,050 crore for fresh deployment in investment grade
corporate bonds, commercial paper, and non-convertible
debentures.
• TLTRO of Rs.50,000 crore for investing them in investment
grade bonds, commercial paper, and non-convertible
debentures of NBFCs, and MFIs.
• Increased the banks’ limit for borrowing overnight under the
marginal standing facility (MSF), allowing the banking system
to avail an additional ₹1,37,000 crore of liquidity at the
reduced MSF rate.
8. • Announced special refinance facilities to NABARD, SIDBI and
the NHB for a total amount of ₹50,000 crore at the policy repo rate
• Announced the opening of a special liquidity facility (SLF) of
₹50,000 crore for mutual funds to alleviate intensified liquidity
pressures.
• Moratorium of three months on payment of instalments and
payment of Interest on Working Capital Facilities in respect of all
Term Loans
• Easing of Working Capital Financing by reducing margins
• For loans by NBFCs to commercial real estate sector, additional
time of one year has been given for extension of the date for
commencement for commercial operations (DCCO)
Measures taken by Reserve Bank of India
9. Businesses including MSMEs
1. Rs 3 lakh crores Collateral free Automatic Loans
for Business, incl MSME
2. Rs 20,000 crore Subordinate Debt for MSMEs
3. Rs 50,000 cr equity infusion through MSME Fund
of Funds
4. New definition of MSMEs
5. Global tender to be disallowed upto Rs 200 crores
6. Other interventions for MSMEs
7. Rs 2500 crores EPF support for Businesses and
Workers for 3 more months
8. EPF contribution reduced for Business & Workers
for 3 months- Rs 6750 crores
9. Rs 30,000 crores Liquidity Facility for
NBFC/HCs/MFIs
10. Rs 45,000 cr Partial Credit Guarantee Scheme 2.0
for NBFC
11. Rs 90,000 cr Liquidity Injection for DISCOMs
12. Relief to contractors
13. Extension of Registration and Completion Date of
Real Estate Projects under RERA
14. Rs 50,000 cr liquidity through TDS/TCS reductions
15. Other Direct tax Measures
16. Other Direct Tax Measures
10. • Businesses/MSMEs have been badly hit due to COVID19 need additional
funding to meet operational liabilities built up, buy raw material and restart
business
• Decision: Emergency Credit Line to Businesses/MSMEs from Banks
and NBFCs up to 20% of entire outstanding credit as on 29.2.2020
• Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore
turnover eligible
• Loans to have 4 year tenor with moratorium of 12 months on
Principal repayment
• Interest to be capped
• 100% credit guarantee cover to Banks and NBFCs on principal and
interest
• Scheme can be availed till 31st Oct 2020
• No guarantee fee, no fresh collateral
• 45 lakh units can resume business activity and safeguard jobs.
Rs 3 lakh crores Collateral-free Automatic
Loans for Businesses, including MSMEs
11. • Stressed MSMEs need equity support
• GoI will facilitate provision of Rs. 20,000 cr as subordinate debt
• Two lakh MSMEs are likely to benefit
• Functioning MSMEs which are NPA or are stressed will be
eligible
• Govt. will provide a support of Rs. 4,000 Cr. to CGTMSE
• CGTMSE will provide partial Credit Guarantee support to
Banks
• Promoters of the MSME will be given debt by banks, which will
then be infused by promoter as equity in the Unit.
Rs 20,000 crores Subordinate Debt
for Stressed MSMEs
12. Rs 50,000 cr. Equity infusion for
MSMEs through Fund of Funds
• MSMEs face severe shortage of Equity.
• Fund of Funds with Corpus of Rs 10,000 crores will be set up.
• Will provide equity funding for MSMEs with growth
potential and viability.
• FoF will be operated through a Mother Fund and few
daughter funds
• Fund structure will help leverage Rs 50,000 cr of funds at
daughter funds level
• Will help to expand MSME size as well as capacity.
• Will encourage MSMEs to get listed on main board of Stock
Exchanges.
13. • Low threshold in MSME definition have created a fear
among MSMEs of graduating out of the benefits and hence
killing the urge to grow.
• There has been a long-pending demand for revisions.
Announcement:
• Definition of MSMEs will be revised
• Investment limit will be revised upwards
• Additional criteria of turnover also being introduced.
• Distinction between manufacturing and service sector to be
eliminated.
• Necessary amendments to law will be brought about.
New Definition of MSMEs
14. Existing MSME Classification
Criteria : Investment in Plant & Machinery or Equipment
Classification Micro Small Medium
Mfg. Enterprises Investment<Rs. 25 lac Investment<Rs. 5 cr. Investment <Rs. 10 cr.
Services
Enterprise
Investment<Rs. 10 lac Investment< Rs. 2 cr. Investment<Rs. 5 cr.
Revised MSME Classification
Composite Criteria : Investment And Annual Turnover
Classification Micro Small Medium
Manufacturing
& Services
Investment< Rs. 1 cr.
and
Turnover < Rs.5 cr.
Investment< Rs. 10 cr.
and
Turnover < Rs.50 cr.
Investment< Rs. 20 cr.
and
Turnover < Rs.100 cr.
Existing and Revised Definition of MSMEs
15. • Indian MSMEs and other companies have often faced
unfair competition from foreign companies.
• Therefore, Global tenders will be disallowed in
Government procurement tenders upto Rs 200 crores
• Necessary amendments of General Financial Rules will
be effected.
• This will be a step towards Self-Reliant India (आत्मनिर्भर
र्ारत) and support Make in India
• This will also help MSMEs to increase their business.
Global tenders to be disallowed
upto Rs 200 crores
16. • MSMEs currently face problems of marketing and liquidity due to
COVID.
• e-market linkage for MSMEs to be promoted to act as a replacement
for trade fairs and exhibitions.
• Fintech will be used to enhance transaction based lending using the
data generated by the e-marketplace.
• Government has been continuously monitoring settlement of dues to
MSME vendors from Government and Central Public Sector
Undertakings.
• MSME receivables from Gov and CPSEs to be released in 45 days
Other interventions for MSMEs
17. • Businesses continue to face financial stress as they get back to work.
• Under Pradhan Mantri Garib Kalyan Package (PMGKP), payment of
12% of employer and 12% employee contributions was made into
EPF accounts of eligible establishments.
• This was provided earlier for salary months of March, April and May
2020
• This support will be extended by another 3 months to salary
months of June, July and August 2020
• This will provide liquidity relief of Rs 2500 cr to 3.67 lakh
establishments and for 72.22 lakh employees.
Rs. 2500 crore EPF Support for Business &
Workers for 3 more months
18. EPF contribution reduced for Business &
Workers for 3 months- Rs 6750 crores
Liquidity Support
• Businesses need support to ramp up production over the next quarter.
• It is necessary to provide more take home salary to employees and also to give relief to
employers in payment of Provident Fund dues,
• Therefore, statutory PF contribution of both employer and employee will be reduced
to 10% each from existing 12% each for all establishments covered by EPFO for
next 3 months.
• CPSEs and State PSUs will however continue to contribute 12% as employer
contribution.
• This scheme will be applicable for workers who are not eligible for 24% EPF
support under PM Garib Kalyan Package and its extension.
• This will provide relief to about 6.5 lakh establishments covered under EPFO and about
4.3 crore such employees.
• This will provide liquidity of Rs 6750 Crore to employers and employees over 3
months.
19. • NBFCs/HFCs/MFIs are finding it difficult to raise money in
debt markets.
• Government will launch a Rs 30,000 crore Special
Liquidity Scheme
• Under this scheme investment will be made in both primary
and secondary market transactions in investment grade
debt paper of NBFCs/HFCs/MFIs
• Will supplement RBI/Government measures to augment
liquidity
• Securities will be fully guaranteed by GoI
• This will provide liquidity support for NBFCs/HFC/MFIs
and mutual funds and create confidence in the market.
Rs 30,000 crore Special Liquidity
Scheme for NBFCs/HFCs/MFIs
20. • NBFCs, HFCs and MFIs with low credit rating require
liquidity to do fresh lending to MSMEs and individuals
• Existing PCGS scheme to be extended to cover
borrowings such as primary issuance of Bonds/ CPs
(liability side of balance sheets) of such entities
• First 20% of loss will be borne by the Guarantor ie.,
Government of India.
• AA paper and below including unrated paper eligible
for investment (esp. relevant for many MFIs)
• This scheme will result in liquidity of Rs 45,000 crores
Rs 45,000 crore Partial Credit
Guarantee Scheme 2.0 for NBFCs
21. Rs. 90,000 Cr. Liquidity Injection for
DISCOMs
• Revenues of Power Distribution Companies (DISCOMs) have plummeted.
• Unprecedented cash flow problem accentuated by demand reduction
• DISCOM payables to Power Generation and Transmission Companies is
currently ~ Rs 94,000 cr
• PFC/REC to infuse liquidity of Rs 90,000 cr to DISCOMs against
receivables
• Loans to be given against State guarantees for exclusive purpose of
discharging liabilities of Discoms to Gencos.
• Linkage to specific activities/reforms: Digital payments facility by
Discoms for consumers, liquidation of outstanding dues of State
Governments, Plan to reduce financial and operational losses.
• Central Public Sector Generation Companies shall give rebate to Discoms
which shall be passed on to the final consumers (industries)
22. Relief to Contractors
• Extension of up to 6 months (without costs to
contractor) to be provided by all Central Agencies
(like Railways, Ministry of Road Transport &
Highways, Central Public Works Dept, etc)
• Covers construction/ works and goods and
services contracts
• Covers obligations like completion of work,
intermediate milestones etc. and extension of
Concession period in PPP contracts
• Government agencies to partially release bank
guarantees, to the extent contracts are partially
completed, to ease cash flows
23. Extension of Registration and Completion
Date of Real Estate Projects under RERA
• Adverse impact due to COVID and projects stand the risk of
defaulting on RERA timelines. Time lines need to be extended.
• Ministry of Housing and Urban Affairs will advise States/UTs and
their Regulatory Authorities to the following effect:
• Treat COVID-19 as an event of ‘Force Majeure’under RERA.
• Extend the registration and completion date suo-moto by 6 months for
all registered projects expiring on or after 25th March, 2020 without
individual applications.
• Regulatory Authorities may extend this for another period of upto 3
months, if needed
• Issue fresh ‘Project Registration Certificates’ automatically with
revised timelines.
• Extend timelines for various statuary compliances under RERA
concurrently.
• These measures will de-stress real estate developers and ensure
completion of projects so that homebuyers are able to get delivery of
their booked houses with new timelines.
24. Rs 50,000 crores liquidity through TDS/TCS
rate reduction
• In order to provide more funds at the disposal of the
taxpayers, the rates of Tax Deduction at Source (TDS) for
non-salaried specified payments made to residents and rates
of Tax Collection at Source (TCS) for the specified receipts
shall be reduced by 25% of the existing rates.
• Payment for contract, professional fees, interest, rent,
dividend, commission, brokerage, etc. shall be eligible for
this reduced rate of TDS.
• This reduction shall be applicable for the remaining part of
the FY 2020-21 i.e. from tomorrow to 31st March, 2021.
• This measure will release Liquidity of Rs. 50,000 crore.
25. Other Direct Tax Measures
• All pending refunds to charitable trusts and non-
corporate businesses & professions including
proprietorship, partnership, LLP and Co-operatives
shall be issued immediately.
• Due date of all income-tax return for FY 2019-20
will be extended from 31st July, 2020 & 31st
October, 2020 to 30th November, 2020 and Tax
audit from 30th September, 2020 to 31st
October,2020.
26. Other Direct Tax Measures
• Date of assessments getting barred on 30th
September,2020 extended to 31st
December,2020 and those getting barred on
31st March,2021 will be extended to 30th
September,2021.
• Period of Vivad se Vishwas Scheme for
making payment without additional amount
will be extended to 31st December,2020.