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    December 30, 2011
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    Treasury bill auction schedule announced with proposed weekly allotments and flexibility to adjust timing and amounts.
    Notification of a quarterly auction calendar for Treasury Bill auctions specifying proposed weekly allotments by 91 day, 182 day and 364 day tenors and aggregate issuance totals for the quarter ending March 31, 2012. The Government and Reserve Bank retain flexibility to modify notified amounts and timing in response to cash management needs and market conditions; changes will be communicated by press release. Auctions are subject to the terms of the General Notification No. F2(12)-W&M/97, as amended.
    December 30, 2011
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    Issuance calendar for government dated securities revised, reallocating weekly auctions and expanding borrowing with retail non-competitive access.
    Revision of the Government issuance calendar for January-March 2012 reallocates weekly auctions across specified maturities and increases planned gross market borrowings after consultation with the Reserve Bank. All auctions include the non-competitive bidding scheme, reserving five percent of the notified amount for specified retail investors, and the Government and Reserve Bank retain flexibility to modify amounts, periods, maturities, and instrument types with due notice.
    December 30, 2011
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    External debt growth driven by commercial borrowings raises currency risk and increases short-term debt exposure relative to reserves.
    India's external debt rose to US$ 326.6 billion at end-September 2011, driven mainly by increases in external commercial borrowings, export credits and short-term debt. Short-term debt accounted for 21.9% of total external debt while external commercial borrowings were the largest component, followed by NRI deposits and multilateral debt. The currency mix was dominated by the US dollar, and the rise in commercial borrowings heightens currency risk because rupee depreciation raises rupee-denominated debt service for corporate borrowers. Foreign exchange reserves provided substantial but slightly reduced coverage of total external debt, and the share of concessional debt declined.
    December 27, 2011
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    Fiscal consolidation and adherence to expenditure ceilings to stabilise growth while prioritising agricultural credit and rural investment.
    The Government describes the slowdown as temporary and mandates Ministries to adhere to expenditure ceilings and pursue fiscal consolidation while implementing safeguards against fund misuse. Policy priorities include expanding agricultural credit, direct cash subsidy transfers, incentives for indigenous crop production, promotion of rural agrarian industries to reduce migration, and mechanisms to attract FDI in agriculture with state coordination; priority investment sectors identified are power, civil aviation, health, infrastructure and telecom.
    December 23, 2011
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    Tax enforcement is targeted and based on credible intelligence, with intrusive searches used only when justified by verification.
    Tax enforcement activity under the Income Tax Act is targeted and based on specific credible information and prior verification rather than indiscriminate action. The Department employs information technology tools to select cases unobtrusively and to verify intelligence before intrusive measures; search and seizure and survey operations therefore respond to detected tax evasion and significant undeclared income.
    December 20, 2011
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    Priority sector lending targets require banks to allocate defined credit shares to agriculture and rural borrowers under RBI guidelines.
    Priority sector lending requires domestic scheduled commercial banks to meet overall and agriculture sub-targets measured against ANBC or credit equivalent of off-balance-sheet exposures as of the prior March 31. To improve agricultural credit access, the Government operates an Interest Subvention Scheme with additional incentive for prompt repayment, implemented a debt waiver and relief scheme, dispensed with "no dues" certificates for small agricultural loans in favour of self-declaration, advised waiver of margin/security up to a stated loan threshold, and authorised branch expansion into unbanked rural centres with reporting and ABEP guidance.
    December 20, 2011
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    Cap on lending rates to microfinance institutions limits margins and interest and mandates no penalties or security deposits.
    RBI guidance conditions the grant of priority sector advances status to bank loans to microfinance institutions on meeting asset composition and lending for income generation thresholds and compliance with pricing guidelines; it imposes a lender margin cap and an interest rate ceiling on individual microloans and disallows penalties for delayed payment and security deposits from borrowers.
    December 19, 2011
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    Financial inclusion: accelerate banking coverage and electronic benefit transfers to expand formal credit and social payments.
    The address prescribes strengthening financial infrastructure in Southern States/UTs by accelerating agriculture credit via widespread issuance of Kisan Credit Cards and concessional short term loans, expanding MSE and micro enterprise financing through cluster specific schemes, and promoting education, minority, weaker sections and housing credit. It mandates completion of financial inclusion under Swabhiman, migration of RRBs to core banking and NEFT, expansion of branch and insurance coverage, adoption of mandatory e payment for state transactions, and expedited state review of pending project approvals to reduce asset quality risks.
    December 17, 2011
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    Indigenization of currency production reduces dependence on foreign suppliers and strengthens note security through modernization and procurement reform.
    The speech describes SPMCIL's corporatization with employee transfer arrangements and pension trust operationalization; a multi year modernization and indigenization plan including new bank note paper lines and ink production to reduce dependence on foreign suppliers; and adoption of transparent procurement and competitive processes for security features alongside strengthened enforcement and R&D to combat counterfeit currency.
    December 16, 2011
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    Development cooperation funding to continue, supporting grant assistance and private investment pilots in low-income states.
    DFID will maintain its development cooperation programme in India at the agreed annual funding level for the next four years to support poverty reduction and promote inclusive growth in alignment with national priorities and the Millennium Development Goals, including continued grant assistance for selected Centrally Sponsored Schemes and projects in Bihar, Madhya Pradesh and Odisha.
    December 16, 2011
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    Universal health coverage recommends integrating insurance schemes with financing, access, workforce and service-norm reforms.
    The Universal Health Insurance Scheme and the Rashtriya Swasthya Bima Yojana provide subsidised insurance coverage for BPL families and selected unorganised sector workers; a High Level Expert Group on Universal Health Coverage recommended reforms on health financing, access to medicines, human resources, service norms, governance, community engagement and social determinants, and the Government approved these recommendations for inclusion in the Twelfth Five Year Plan.
    December 16, 2011
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    Fake currency detection prompts coordinated agency roles and upgraded currency security measures to combat circulation.
    Detection of counterfeit notes by the banking system and by RBI across two reporting periods prompted a multilayered institutional response: CBI as the nodal agency for State coordination, DRI as Lead Intelligence Agency for smuggled counterfeit notes, and a special FICN Co-ordination Group in the Ministry of Home Affairs for intelligence sharing. NIA is empowered to investigate and prosecute such offences and hosts a Terror Funding and Fake Currency Cell. RBI is upgrading security features of high-value notes and strengthening bank detection mechanisms.
    December 16, 2011
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    CRA designation: regulatory selection of NSDL as Central Recordkeeping Agency despite prior SEBI enforcement proceedings.
    Designation of NSDL as Central Recordkeeping Agency for NPS followed a competitive selection process requiring specified minimum tenure, positive net worth, and large-scale account-management experience; NSDL was selected after evaluation. The record notes prior SEBI enforcement actions against NSDL-interim, disgorgement and adjudication orders-which were subsequently stayed, set aside, revisited by a SEBI-appointed Committee and the SEBI Board, and remain the subject of appeals or further consideration.
    December 16, 2011
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    Counterfeit currency coordination: interagency framework designates CBI nodal and NIA empowered to investigate and prosecute.
    RBI reported complaints of counterfeit currency notes dispensed through ATMs which were investigated and disposed. Multiple agencies coordinate FICN response: CBI is the nodal agency for State coordination, DRI is the Lead Intelligence Agency for smuggled FICNs, an MHA FICN Coordination Group facilitates intelligence-sharing, and the NIA is empowered to investigate and prosecute FICN offences with a dedicated Terror Funding and Fake Currency Cell.
    December 16, 2011
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    Non-investment of pension contributions: amounts credited to public account and interest provided pending regulator operationalisation.
    Amounts collected from Government employees under the New Pension System were credited to the Public Account because the interim regulator could not operationalise the institutional architecture to invest those contributions; consequently the contributions were not invested and the Government paid interest at 8% p.a. while the regulator established required arrangements.
    December 16, 2011
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    Vigilance and anti-corruption oversight prompts inquiries and disciplinary action against senior bank officials for alleged malpractices.
    Institutional vigilance and anti-corruption mechanisms govern complaints and investigative action against senior bank officials, with responsibility shared among administrative vigilance divisions, the Central Bureau of Investigation, vigilance units in banks and departments, disciplinary authorities, and the Central Vigilance Commission; RBI and the Cabinet Secretariat also examine board-level complaints. Complaints alleging corrupt credit sanctioning, write-offs, improper takeovers, abuse of position, and disproportionate assets are triaged by CVOs or verified by central agencies, and RBI issues circulars mandating fraud reporting and internal-control strengthening.
    December 16, 2011
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    Loan restructuring guidelines enable conversion and rescheduling of agricultural loans to provide relief and fresh credit to affected farmers.
    Standing guidelines allow banks to restructure agricultural credit after calamities by converting outstanding principal and accrued interest into term loans; rescheduling loans and accrued interest for three-to-ten year periods based on crop failure severity; providing fresh crop and consumption loans; treating restructured loans as current dues; prohibiting compounding of interest on restructured accounts; permitting relaxed security and margin norms; and allowing at least a one-year moratorium during restructuring.
    December 16, 2011
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    Interest subvention scheme for women self help group members proposed to mirror agricultural loan subvention, plus a dedicated development fund.
    The Andhra Pradesh proposal sought an interest subvention scheme for Women Self Help Group members modelled on the central interest subvention for short term crop loans to farmers, which is confined to one year agricultural loans to boost production; the Union Budget also proposed a Women SHG's Development Fund to support women SHGs.
    December 16, 2011
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    Policy portability enables health insurance holders to switch insurers at renewal without losing waiting period credits.
    IRDA guidelines permit health insurance policyholders, at renewal, to move between insurers for a similar product or between plans within the same insurer without losing accrued credits such as waiting period completions and time bound exclusions; a portability portal and data transfer mechanism support implementation and industry consultations informed the measure.
    December 16, 2011
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    Exchange of information updated to international standards enabling broader tax cooperation and assistance in revenue collection.
    The Protocol updates the India-Australia DTAA by revising the Exchange of Information to international standards including bank information and exchange without domestic tax interest, allows information to be shared with other law enforcement agencies with competent authority authorisation, provides mutual assistance in collection of revenue claims enabling recovery of assets or moneys under prescribed procedures, introduces a non discrimination clause for nationals, and rationalises thresholds for service, exploration and equipment permanent establishments to encourage cross border movement of capital and services.

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      Speech of the Hon’ble Finance Minister on the occasion of the Foundation Stone laying of Bank Note Paper Line at SPM, Hoshangabad today I am happy to be here on this occasion in the city of Hoshangabad, which is located on the south bank of holy river Narmada.

      December 17, 2011

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      Press Information Bureau

      Government of India

      Ministry of Finance

      17-December-2011 17:40 IST

      At the outset I would like to congratulate the management and employees of SPM, Hoshangabad on this occasion.

      2. Security Printing and Minting Corporation Of India Limited (SPMCIL) was formed a company after corporatization of nine units (Four mints, two currency printing presses, two security printing presses and one security paper mill). These units were earlier functioning under the Currency & Coinage division of the Department of Economic Affairs, Ministry of Finance. This was based on the report of the Expenditure Reforms Commission followed by study by IFCI. The main goal of corporatization was to foster efficiency by speedy decision making and increasing the pace of modernization to have the state of art security products. The company was incorporated on 13.01.2006 and started functioning w.e.f. 10.02.2006 as wholly owned Corporation of the Government of India.

      3. After Corporatization the Govt. employee were kept on deemed deputation. After the signing of the tripartite agreement called Memorandum of Settlement (MoS) between SPMCIL, Ministry of Finance and the Federation / Unions in the presence of the Chief Labour Commissioner (Central), during Sep, 2008, about 90% employee opted for the Corporation. As on 31.03.2011 there were about 13500 corporation optees and about 1400 Govt. optees. Out of the SPMCIL optees about 11,000 opted for pro-rata pension and the balance about 3000 had opted for combined pension. The Pension Trust, EPF Trust and GPF Trust etc., have been operationalized.

      3. The performance of the corporation in terms of production, turnover, profitability and other financial and physical parameters has improved significantly over the last five years. The company has achieved most of the objectives of Corporatization in a short span of four years. SPMCIL has been granted Mini Ratna category-I status. I am informed that SPMCIL has returned about Rs. 1000 crore of loans of RBI & MoF and by this year end it is likely to be a zero debt company.

      4. I have been told that SPMCIL is making coins and currency not only for India but also for other countries. The expertise developed by the company over the years may be further expanded to develop products for other countries and assume a leadership position in this area.

      5. Transparency is key to innovation and business development. SPMCIL has been actively pursuing transparent business processes particularly in its procurement processes. To take forward the transparency in the organization SPMCIL Board has adopted a procurement manual based on the best practices in the Govt. of India. It is expected that, this will bring transparency, efficiency and equity in procurement of security sensitive items. I will further encourage SPMCIL Board to continue to move forward in bringing further transparent procedures in its business transactions to promote innovation in a technologically oriented organization.

      6. In order to give thrust to modernizations and indigenization, SPMCIL has an investment plan of approx. Rs. 2500 Crore for the five years from 2009-10 to 2013-14. Company has carried out major modernizations of Mints by Introducing state of the art coining presses, coin blank manufacturing lines and finishing & packaging lines. As part of modernization of Currency Printing Presses, one line of Currency Printing machine at Bank Note Press, Dewas is under advanced stage of installation and commissioning. The new Bank Note Paper Line at SPM, Hoshangabad is part of this modernization.

      7. Extensive thrust has been given to indigenization efforts in the production of raw materials for the bank notes. A joint venture company called Bank Note Paper Mill India Ltd. (BNPMIL) for the production of indigenous currency paper has been set up at Mysore with 50:50 equity participation by SPMCIL and Bhartiya Reserve Bank Note Mudran Private Limited (BRBNMPL), a subsidiary of RBI. This paper mill will have capacity to produce 12000 tonnes of currency paper annually. The planned currency paper production of JV Company combined with production at SPM, Hoshangabad will be able to produce about 21,000 MT of paper annually. This will meet about 90% of the currency paper requirements by 2014 end.

      8. The requirement of specific type of inks used in currency printing is likely to be fully made by Bank Note Press, Dewas by upgrading the ink factory. The modernization of ink factory at Bank Note Press, Dewas is under process. Triple Roll Mills have been commissioned and some additional equipment’s are at planning stage. The production is planned to be ramped up by the year end. Various R&D projects have also been taken up simultaneously in the areas of banknote paper mill, currency printing and coins metallurgy.

      9. India is a victim of injection of fake currency in our economy. There are indications that fake currency is being injected from some of our neighboring countries either as a source or as a route. We have made serious attempts to curb the circulation of fake currency by streamlining the enforcement mechanism at the centre as well as State level. The efforts have been to increase the risk factors for carriers of fake currency in India. We have to continue to focus in the enforcement to check the design of anti-national elements.

      10. We have also taken a series of measures to strengthen the security features of Indian currencies. A committee of officials from DEA, RBI, BRBNMPL, SPMCIL and security agencies has been constituted under the Chairmanship of DG/Currency for short listing of the Security features through global competitive bidding. A Separate committee constituted by RBI is finalizing the new design of the next series of the Indian Bank Note. The generalized technical specifications for various broad category of security features have been approved by High Level Committee. The acquisition of security features is being done in the most transparent way.

      Therefore, the efforts of the Govt. is to make security features of Indian currency so strong that it becomes highly difficult to fake. At the same time we are also ensuring that the enforcement mechanism acts as deterrence to those who are involved in the circulation of fake currency. It is expected that this two prong strategy of the Govt. to fight the menace of fake currency in India will yield substantial results in years to come.

      11. The Security Paper Mill (SPM), Hoshangabad commenced production of Currency and Non-Judicial Stamp Papers during 1967. The Mill was established with the process know-how and technology provided by M/s Portals Ltd, United Kingdom. The Mill has four cylinder mould vat made watermark Bank Note (CWBN) paper machines along with finishing end, testing laboratory and facility for making mould covers. SPM, Hoshangabad also has effluent treatment plant. The Mill draws water from river Narmada. I am happy that the Mill is giving adequate attention to environmental issues, which are critical for a sustainable development.

      12. I am informed that for increasing the capacity limited modernization was done during 1982 by providing additional stock preparation machinery. After modernization, the capacity of SPM, Hoshangabad was expected to be 5500 Metric Ton Per Annum (MT) but due to various constraints this capacity could never be achieved. Further, modernization of printing presses required changes in currency notes sheet sizes resulting in lower machine deckle utilization. This combined with necessity to incorporate new security features like windowed thread, fibers and paper taggant also reduced capacity. The present capacity of SPM, Hoshangabad is about 2800 MT. This is a lesson which we have to keep in mind that upgradation and modernization should be carried out by factoring in the various changes which are likely to occur in future. The futuristic planning can ensure that there is no obsolescence and under capacity utilization.

      13. Efforts are being made to order to indigenize the requirement of currency paper as per the recommendations of the Committee on Indigenization, under the chairmanship of Dr. Baldev Raj, Director, Indira Gandhi Centre for Atomic Research. I am told that the procurement of one line costing about Rs. 489 crores (approx) is in process, which will further strengthen our indigenous capacity.

      14. The Order for design, procurement, supply, installation and commissioning of CWBN paper line of 6000 MT has already been placed, at a cost of about Rs. 445 crores. The project is likely to be completed by October, 2013. The completion of the project will reduce our dependence on foreign supplier. This will also reduce the possibility of diversion of papers supplied by foreign supplier to other destinations for the purposes of generating fake currency. We have to take the drive of indigenization to a logical conclusion by becoming self reliant. Our long term goal should be to meet our domestic requirement related to currency and subsequently cater to the demand of the international market. Looking into the technological and scientific temperament of our younger generation, I am sure we can achieve it.

      I again wish good luck to all the employees and staff members on this occasion.

      DSM

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