Loan restructuring for agricultural borrowers permits conversion to term loans with moratorium and relaxed security norms.
RBI guidelines allow conversion of outstanding principal and accrued interest on crop and agricultural term loans into term loans with tenor based on crop damage frequency/intensity; converted/rescheduled agri-loans are to be treated as current dues, interest on restructured loans is not to be compounded, and at least a one-year moratorium must be provided. The measures include relaxed security and margin norms and fresh crop and consumption loans for affected farmers, and accounts restructured due to natural calamities retain their asset classification so that a once-restructured standard asset is not treated as a second restructuring.

Show Cause Notices under FEMA issued to a cricket board and officials over alleged foreign exchange contraventions, prompting inquiry.
Enforcement Directorate investigations led the adjudicating authority to issue Show Cause Notices under the Foreign Exchange Management Act to the Board of Control for Cricket in India and certain officials for alleged contraventions; eleven notices were issued in 2011 and one in 2012, with contested sums specified, and a former official's passport was revoked under the Passport Act, 1967.

Kisan Credit Card issuance urged to expand agricultural credit access after revised targeting and reporting of sectoral credit flows.
The Government sets annual agricultural credit flow targets and reports targets and achievements for 2010-11 through 2012-13, noting provisional and interim positions. The Kisan Credit Card (KCC) Scheme, revised in May 2012, is identified as an innovative credit delivery mechanism and banks have been advised to issue KCCs to all eligible farmers to meet production credit requirements.

Eligible borrower status for SIDBI permits ECB access for on lending to MSMEs under specified conditions.
SIDBI is permitted as an eligible borrower to access ECB for on lending to the MSME sector subject to specified conditions. Non resident entities may credit enhance INR bond issues and bond maturity requirements have been shortened; foreign portfolio investors may invest in these bonds within the corporate bond envelope. National housing institutions and housing finance companies are eligible borrowers for low cost housing financing. Refinancing of buyer's credit for infrastructure capital goods is placed under the automatic route with an increased maturity, and a refinancing scheme for infrastructure and manufacturing firms has an increased ECB conversion limit and now includes qualifying SPVs.

Exchange of tax information expands cross border transparency, enabling detection and recovery of undisclosed offshore assets.
The Government expanded international exchange mechanisms and domestic enforcement to uncover and deter unaccounted wealth: renegotiated and concluded DTAA/TIEA instruments and a multilateral convention to secure bank and asset information; created and strengthened investigative units including a Directorate of Criminal Investigation and overseas tax units; and enacted measures such as General Anti Avoidance Rules, compulsory reporting of foreign assets, extended reopening of assessments and tax collection at source to increase detection, assessment and recovery of undisclosed income.

Government securities auction: uniform-price sale with reserved non-competitive allotment and specified electronic bidding and settlement timelines.
The notice prescribes price-based re-issuance of specified Government stocks through uniform-price auctions conducted by the Reserve Bank on the announced auction date, setting notified nominal amounts and execution via the Negotiated Dealing System. Up to 5% of each notified amount is reserved under the Non-Competitive Bidding Facility for eligible individuals and institutions; separate electronic bid windows are prescribed for non-competitive and competitive bids. The release fixes the dates for announcement of auction results and for payment by successful bidders and confirms eligibility of the stocks for when-issued trading under existing central bank guidelines.

Authorization of Tax Return Preparers to prepare and file individual and HUF returns following government-certified training and unique ID.
The government will train and certify a new batch of graduates as Tax Return Preparers, issuing a certificate and a Unique Identification Number that authorizes them as self-employed TRPs; training costs are borne by the department but certification does not confer government employment. Certified TRPs may prepare and file individual and HUF income tax returns, prepare and file quarterly TDS statements, register as e-Return Intermediaries, and receive a tiered remuneration subject to a per-return cap. Application, fee payment, eligibility criteria, and detailed remuneration rules are available on the TRP website.

Foreign currency conversion rates for customs: prescribed exchange rates govern import and export valuation going forward.
The Central Board of Excise and Customs prescribes foreign currency conversion rates for customs valuation of imports and exports, specifying separate rupee-equivalent rates for each listed currency (and a separate schedule for currency quoted per one hundred units), effective from the stated date, and superseding the prior notification while preserving prior actions.

Rajiv Gandhi Equity Savings Scheme expansion proposed to permit mutual fund equity schemes, subject to departmental examination.
The Finance Minister welcomes SEBI measures to promote household investment in mutual funds and other financial instruments, encourages savings in financial instruments rather than gold, and notes stakeholder support. Additional suggestions are under Government and SEBI examination with a further Board meeting planned. SEBI recommends expanding the Rajiv Gandhi Equity Savings Scheme to permit mutual fund equity schemes holding allowed RGESS securities as underlying, and the Department of Economic Affairs has been asked to examine that recommendation for an early decision.

Government securities auction using uniform price method, with non competitive allocation reserved and electronic NDS bidding required.
Announcement of re issue auctions of four Government stocks to be conducted by the Reserve Bank of India, Mumbai Office, using the uniform price method on August 17, 2012. Up to 5% of each notified amount is reserved under the Scheme for Non Competitive Bidding Facility. Competitive and non competitive bids must be submitted electronically on the Negotiated Dealing System (NDS) within prescribed time windows; results announced on the auction date and payment by successful bidders on August 21, 2012. Stocks are eligible for "When Issued" trading per RBI guidelines.

Exchange of information expanded to enable offshore asset reporting and investigative use, strengthening anti black money enforcement.
Measures establish a Directorate of Criminal Investigation within the tax board to trace illicit financial flows and use expanded treaty based exchange of information and a multilateral convention to investigate offshore accounts. A five pronged strategy combines enhanced legislation (including renegotiated DTAAs and TIEAs), specialised institutions and overseas units, strengthened operational systems and staffing, targeted training, and active multilateral engagement. Recent finance legislation introduces General Anti Avoidance Rules, compulsory foreign asset reporting, extended reopening of assessments for overseas assets, tax collection at source in specified transactions, and taxation of unexplained monies to deter offshore concealment.

Interest Subvention Scheme expands subsidised short term crop credit and adds timely repayment incentives for farmers.
The Agricultural Debt Waiver and Debt Relief Scheme, 2008 cleared blocked credit by providing funds via Government transfers to RBI and NABARD, while the Interest Subvention Scheme subsidises one year short term crop loans and offers additional subvention for timely repayment, extended to small and marginal farmers post harvest against Negotiable Warehouse Receipts; continuation of the scheme was announced and NSSO 2005 data showed substantial farmer indebtedness without evidence of an unexpected rise.

Priority Sector Lending guidelines broaden eligible credit categories and set phased parity for large foreign banks.
Revisions to Priority Sector Lending retain the overall sector target and add eligible categories: specified loans to Micro and Small Enterprises, housing within prescribed cost limits, food and agro processing, education and vocational loans within set limits, housing for economically weaker sections subject to per unit cost caps, assistance to distressed farmers and limited overdrafts in no frills accounts. The guidelines include loans for off grid renewable energy for households, state sponsored organisations for scheduled castes and tribes, and bank on lending to primary agricultural cooperative societies for agricultural and allied activities. Large foreign banks are phased into parity with domestic banks; smaller foreign banks face an overall target without sub targets.

Women self help group development: support through skill training and grant aid for rural marketing outlets.
NABARD provides capacity building through the Micro Enterprise Development Program (MEDP) for skill upgradation and micro enterprise promotion among matured women SHGs, and offers grant assistance for establishing Rural Mart marketing outlets at district and sub district levels to help SHGs, producers groups and federations market farm, non farm and artisanal products and to cover initial retailing risks.

Unclaimed funds policy: insurers must not appropriate sums; inoperative bank deposits transfer to depositor education fund after ten years.
Insurers are required by regulatory advice not to appropriate unclaimed insurance sums; banking law amendment proposes a Depositor Education and Awareness Fund to take over inoperative deposit accounts unclaimed or unoperated for a prolonged period; and provident fund inoperative accounts may only be used for settlement of members' accounts, not for other government use.

Basel III capital standards: phased implementation to avoid growth disruption, with required capital varying by economic and bank-specific factors.
Implementation of Basel III capital standards in India will follow a sufficiently long transition period to avoid unintended consequences on growth and lending. The additional capital required from banks will depend on factors including economic growth, growth in Risk Weighted Assets, banks' profitability and retained earnings, levels of non-performing assets, and capital market conditions.

Industrial production slowdown requires targeted focus on critical sectors and removal of supply bottlenecks to boost output.
Quick IIP estimates for June 2012 indicate a disappointing slowdown led by manufacturing contraction; the Finance Minister urged focus on critical sectors, removal of supply side bottlenecks and investment in demand creating industries to revive production. Manufacturing weakness-including sharp falls in capital goods and declines in consumer non durables-was contrasted with positive growth in electricity, textiles, basic goods, consumer goods and mining, alongside greater coal availability and sustained consumer spending.

Investment tracking system for large projects mandates monitoring of public and private sector projects by NMCC and DFS.
Government establishes an Investment Tracking System to periodically monitor implementation of large investment projects and identify and address systemic issues. The National Manufacturing Competitiveness Council is tasked with tracking Public Sector Undertaking projects meeting the prescribed investment threshold, while the Department of Financial Services is charged with monitoring private sector projects meeting the same threshold, creating a bifurcated administrative monitoring framework by project ownership.

Grant assistance for SHG promotion expands support channels and enables women self help group mobilization and credit linkage.
NABARD provides targeted grant assistance to various agencies for promoting Self Help Groups, with differentiated per SHG grant rates and additional funding for training, capacity building, skill upgradation and exposure visits. A promotion and financing scheme for Women Self Help Groups operates in selected backward and LWE affected districts through anchor NGOs to facilitate credit linkage, provide handholding support for livelihoods and assist with loan repayment, while noting substantial coverage of SC/ST and other backward clients but no separate SC/ST scheme.

Loan restructuring for textile sector permits moratorium and conversion of working capital into term loans under existing guidelines.
Banks were advised to set up a dedicated window to consider case-by-case restructuring proposals from eligible textile borrowers; the central bank stated no special regulatory dispensation was needed and allowed, under existing guidelines, a two-year moratorium on term loans and conversion of working capital into term loans with three- to five-year repayment tenors. Restructuring must follow prudential norms on income recognition, asset classification and provisioning, imposes no financial burden on the Government, and has no prescribed timeline.