Bank recovery targets and asset rationalisation drive strengthened PSB capital, governance reforms, and expanded financial inclusion.
Central review requires PSBs to pursue enhanced recoveries, monetise non-core assets to strengthen capital, and rationalise foreign operations. Banks must meet performance milestones including improved risk-weighted asset and cost-to-income ratios, complete timebound fraud detection and action on large stressed accounts, and implement monitoring reforms such as independent stock audits, CIC reviews, invocation of personal guarantees, integrated NPA databases, and an end-to-end OTS platform. EASE and financial inclusion directives require branch modernisation, expanded account and insurance coverage, Bank Mitra deployment, and activation of enrolment centres.

In principle MSME loan approval via contactless portal enables rapid credit access with automated documentless underwriting.
A SIDBI led public sector bank consortium launched a contactless digital portal to provide in principle approval of MSME loans by automatically analysing IT returns, GST, bank statements and corporate filings, eliminating physical document submission for sanction and presenting a real time dashboard of credit, valuation and verification; banks may then disburse approved loans after their internal processes within a short working day period.

Filing deadline extension for income tax returns and audit reports; interest liability for late filing remains applicable.
Due dates for filing Income Tax Returns and statutory audit reports that fell on 30th September 2018 for specified categories of taxpayers have been extended to 15th October 2018. The extension does not affect liability for interest on delayed filing; assessees remain liable to pay interest under the provision governing interest for defaults in furnishing returns.

Tax survey of airline books for alleged falsification and suspicious transactions underway at multiple premises.
Income-tax authorities commenced a survey inspection of Jet Airways' books at four business premises to determine whether accounting falsification, suspicious dealings or other tax-related violations occurred; the operation inspects books of account at two Mumbai locations and two in the national capital.

Loan agreement for workforce development expands certified short term skills training and institutional capacity under concessional financing.
A Loan Agreement was executed to finance the Uttarakhand Workforce Development Project aimed at improving quality and relevance of training at priority ITIs, increasing the number of short term training participants certified under the National Skills Qualification Framework, and supporting policy and institutional development and project management; twenty five ITIs were selected and the financing carries a five year grace period, seventeen year maturity, and a closing date of 30 June 2023.

Exemption on interest for off shore rupee bonds: no tax deducted for interest on specified issuances during the announced window.
Interest payable by an Indian company or a business trust to a non resident in respect of rupee denominated bonds issued outside India during the specified issuance window shall be exempt from tax and consequently no tax shall be deducted under section 194LC on such interest; legislative amendments will be proposed to formalise this change.

Distributed ledger research cooperation enables joint exploration of blockchain applications to improve financial-sector operational efficiency.
The Cabinet approved a Memorandum of Understanding for collaborative research among BRICS development banks to study Distributed Ledger/Block Chain technology for development of the digital economy, aiming to deepen understanding and identify application areas within participating banks' business operations to enhance operational efficiencies.

Public debt management shifts to longer maturities and higher yields, using cash management bills and liquidity absorption measures.
Public debt management in Q1 FY2018-19 featured issuance of dated securities with longer weighted average maturity and higher weighted average yield, use of Cash Management Bills to bridge temporary cash mismatches, and net liquidity absorption by the central bank under LAF. Total government liabilities rose provisionally at end-June with public debt forming the bulk and internal debt the principal component; a notable portion of dated securities had residual maturities below five years. Market yields hardened and yield spreads widened due to global and domestic factors, while central government securities dominated trading volumes.

Voluntary compliance rise leads to substantial growth in e-filed income tax returns and higher uptake of presumptive taxation.
A substantial increase in e filing of Income Tax Returns up to 31 August 2018 reflects strengthened voluntary compliance, with total e filed returns rising from 3.17 crore to 5.42 crore and notable spikes on the extended due date. Growth was pronounced among salaried taxpayers and users of the Presumptive Taxation Scheme. The release attributes the rise to demonetisation effects, enhanced taxpayer persuasion and education, an impending late filing fee, and increased technology use for taxpayer services.

PAN application requirements: father's name optional where mother is sole parent; timelines set for non individuals and representatives to apply.
Proposed amendments to rule 114 and Forms 49A/49AA would make father's name non mandatory where mother is the single parent and require mother's name when father's name is not furnished in such cases; set a deadline (31 May following the relevant financial year) for resident non individuals entering threshold financial transactions and for specified officers/representatives to apply for PAN if not allotted; and empower the Principal DG/DG (Income Tax Systems) to specify the manner of PAN issuance replacing the laminated card requirement.

Tax compliance: demonetisation-triggered deposit identification led to greater formalisation and increased tax filings and collections.
Demonetisation aimed to promote tax compliance and the formalisation of the economy by removing cash anonymity; deposits revealed previously untraceable holdings, prompting inquiries and tax assessments/penalties. Post demonetisation indicators include notable increases in income tax returns and new filers, higher advance tax payments, growth in income tax collections, and a significant rise in GST registrations, which are presented as evidence of enhanced formalisation and revenue mobilisation.

Infrastructure financing expands state highway upgrades using hybrid annuity contracts and seven-year performance maintenance commitments.
A multilateral loan finances upgrading about 419 kilometers of state highways in Karnataka, including reconstruction and strengthening of culverts and bridges, paved shoulders, and road safety audits. The project uses hybrid annuity contracts with a seven-year performance-based maintenance period to increase private participation and ensure asset quality, and it includes institutional capacity strengthening of the implementing public works department.

Fund utilization urged with mandatory documentation and timely sanction to improve program efficiency and reporting by stakeholders.
The review directs improved implementation and fund utilization under MPLADS by remedying delays in sanctioning, completion and accounting of works through timely submission of mandatory documents, prompt responses to references, enhanced portal reporting and transparency measures, and by requiring immediate use of the PFMS Expenditure, Advance and Transfer (EAT) Module together with training of all functionaries to ensure compliance and expedite further releases.

Development loan enables irrigation expansion and efficiency in Madhya Pradesh through pressurized systems and design build operate innovation.
ADB and the Government of India executed a development loan to expand and modernize irrigation in Madhya Pradesh by financing large pressurized and automated irrigation networks, pumping stations, buried distribution pipelines, farmer adoption of micro irrigation and high value crops, and a modernization feasibility study for an existing irrigation system, while promoting institutional innovation through a design build operate contracting approach to improve water productivity and climate resilience.

Demonetisation currency return: near-complete deposit and processing of withdrawn notes with increased printing and counterfeit shifts.
Reserve Bank reports near-complete return and processing of demonetised specified bank notes (SBNs): receipts were verified, counted and processed through high-speed currency verification and processing systems (CVPS), then shredded; a small residual portion did not return to the banking system. Unusual deposits faced income-tax scrutiny. The exercise increased printing and processing expenditure and altered counterfeit detection patterns across denominations, while denomination management included issuing replacement notes for some withdrawn denominations.

Disaster relief measures: financial sector review of banks' and insurers' operational steps to expedite customer assistance and claims.
A central delegation will assess coordinated relief measures by banks and insurers after extensive flood damage, focusing on re opening affected branches and ATMs, exchange of soiled currency, extension of loan repayment periods, expedited insurance claim processing through special camp offices, deployment of additional surveyors, relaxed documentary requirements, and the establishment of facilitation centres and nodal officers to publicise and deliver relief.

Energy efficiency financing expands commercial access for EESL through loan and IBRD guarantee enabling scaled deployment.
The Government of India and the World Bank provided a loan to EESL and an IBRD guarantee to expand EESL's access to commercial financing and leverage additional private capital for large scale procurement and market creation measures-mass deployment of LED lighting, efficient fans and street lighting, development of business models for efficient appliances, and institutional capacity strengthening-using annuity retrofit arrangements and increased ESCO participation to recover investments from energy savings.

Electricity distribution reform promotes governance and financial restructuring to improve DISCOM performance, operational efficiency and consumer access.
The program supports governance reforms through Annual Performance MoUs, a Performance Management System and employee incentives; advances financial restructuring by transferring DISCOM liabilities to the State and enforcing revenue discipline while reducing procurement costs; and improves operations via feeder-level energy audits, increased IT use, consumer engagement and transparency to strengthen DISCOM performance and fiscal sustainability.

Extension of Income Tax Return due date for Kerala taxpayers after flood disruption, allowing additional time to file returns.
The due date for furnishing Income Tax Returns for all assessees in Kerala who were liable to file by 31st August, 2018 is extended to 15th September, 2018 as time-limited filing relief in view of severe flood-related disruption; this follows an earlier administrative extension that had moved certain categories' due date from 31st July, 2018 to 31st August, 2018.

Electronic issuance of tax deduction certificates under Section 197 and Section 206C(9) to streamline withholding compliance.
Proposal to amend the Income-tax Rules to replace the existing Form No.13 and related provisions with an electronic process for applications and issuance of certificates under Section 197 and Section 206C(9), aiming to minimise human interface and reduce compliance burden; a Draft Notification effecting these changes has been published for stakeholder consultation.