Prohibition on unauthorized public deposits: regulator barred use of NBFC premises by associates and initiated compliance proceedings.
The Reserve Bank found NBFCs had allowed unincorporated associates to accept public deposits through NBFC branches or by using NBFC officials, violating the statutory prohibition on unauthorized deposit taking; it issued public cautions, show cause proceedings under registration provisions, directions to desist from associating NBFC premises or staff with associates, referred matters to state authorities, and required transfer of funds to an escrow for repayment while regulatory proceedings continued.

Advance income-tax payment urged to avoid last-minute congestion; use authorised bank branches or online facilities.
Appeal to taxpayers to remit Income tax dues sufficiently in advance by using authorised bank branches and online payment facilities to avoid congestion at Reserve Bank counters; a list of authorised banks in Mumbai is provided to encourage use of decentralised collection points.

Loan restructuring safeguards: RBI tightened prudential guidelines after Working Group review to curb misuse and strengthen oversight.
Receipt of complaints about irregularities in loan restructuring at public sector banks led a Reserve Bank Working Group to review prudential guidelines and recommend tightening. Taking those recommendations and stakeholder comments into account, the Reserve Bank issued detailed guidelines on restructuring of advances on May 30, 2013 to rationalize existing rules and address misuse.

Unclaimed insurance funds: regulator directs insurers not to appropriate or write back policyholders' unclaimed amounts, reaffirming safeguards.
The regulator reported aggregated unclaimed policyholder monies across life and non-life insurers and noted no government survey of those balances. It formally advised all insurance companies that unclaimed amounts shall not be appropriated or written back in any circumstance, creating a binding non-appropriation compliance obligation to protect policyholder entitlements.

Non-performing assets increase signals asset quality stress and ongoing central bank monitoring with low suit-based recovery rates.
Gross Non-Performing Assets of Public Sector Banks rose through June 2013, linked to broader economic stress and under continuous monitoring by the Reserve Bank of India; suit-filed recoveries increased in amount but yielded low and declining recovery percentages, indicating limited effectiveness of litigation-based recovery as reported in a Ministry of Finance parliamentary reply.

NBFC registration compliance: regulator to scrutinise corporate financials to determine unregistered NBFC activities and require registration where applicable.
A regulator will examine financial statements of companies classified in corporate records as non banking financial companies but not registered with the banking regulator to determine whether their activities meet the statutory criteria for NBFC status and therefore require mandatory registration under the banking statute, with the objective of identifying entities that ought to have registered.

Serious fraud investigations prompt sanctions and regulatory referrals under corporate and criminal statutes following SFIO recommendations.
The Serious Fraud Investigation Office conducted multi-year investigations and, based on its reports, the Government has granted sanctions for prosecutions under corporate and criminal statutes, referred professionals for disciplinary proceedings, and shared reports with relevant regulators and enforcement agencies to enable statutory action under their respective frameworks.

National Skill Certification links monetary incentives to certified assessment, promoting vocational training through public-private delivery.
The government launched the STAR National Skill Certification and Monetary Reward Scheme to incentivise vocational training by conditioning a monetary reward on successful assessment and certification by qualified assessors. Skills are benchmarked to National Occupational Standards and delivered through a public-private architecture using sectoral training partners and quality assurance processes. The reward is administratively disbursed only upon certification, aiming for large-scale, inclusive skilling and rural outreach through linkages with employment programmes.

Low income housing finance project expands lender incentives to serve lower income households while preserving portfolio quality.
A financial intermediary loan was signed between Government of India, National Housing Bank and the World Bank to finance a Low Income Housing Finance Project. NHB will implement a refinancing mechanism-directly or through Qualified Intermediary Institutions-to refinance low income housing loans made by Qualified Primary Lending Institutions, combined with capacity building and project implementation to expand lender participation, loan volumes, borrower coverage, and maintain portfolio quality over a five year period.

Safe harbour rules for transfer pricing prescribe sectoral profit and pricing thresholds and restrict MAP access.
The statement adopts Safe Harbour rules under section 92CB for specified international transactions, prescribing sectoral ceilings and corresponding acceptable operating profit margins, interest rates or guarantee fees that tax authorities will accept as arm's length. The regime is conditional and time limited, excludes transactions with associated enterprises in jurisdictions notified under section 94A or no/low tax territories, requires a prior opt in by prescribed form, bars taxpayers who opt in from invoking Mutual Agreement Procedure, and permits the Transfer Pricing Officer to accept the declared transfer price or determine arm's length price under sections 92C/92CA if the option is invalid.

Exemption from prior cabinet approval for disposal of government-acquired immovable property speeds auction-based market-value sales.
Exemption removes the prior requirement for Cabinet approval for disposal or auction of immovable properties acquired by the Central Government, allowing disposals to proceed by auction at market value under the Income Tax Department's standard procedures to expedite processes and generate revenue.

Tax administration reform to establish a commission reviewing tax laws and recommending measures aligned with global best practices.
The Union Cabinet approved a Tax Administration Reform Commission comprising a Chairman, two full time members and four part time members (including private sector representation), with full time members from income tax and central excise and customs backgrounds and a term of eighteen months. The Commission will review application of tax policies and laws against global best practices and recommend measures to remove ambiguity in policy application, establish a stable, non adversarial tax regime, improve administrative efficiency, and expand the tax and taxpayer base.

Basel III capitalisation reshapes bank ownership and licensing choices, prompting debate on holding companies and differentiated licences.
The address evaluates options for India's banking structure, stressing the large additional capital requirements under Basel III-especially for public sector banks-and proposes market based and structural options (stake dilution, differential voting shares, holding companies) to meet needs. It examines consolidation trade offs, large versus small bank roles, licensing regimes including differentiated licensing and investment banking, the NOFHC model, subsidiarisation of foreign bank branches, and FSLRC proposals for a reformed regulatory architecture, inviting wider debate on these policy choices.

Current account deficit control through import compression and enhanced capital inflows to stabilise the currency.
The statement sets out measures to contain the Current Account Deficit (CAD) through import compression-especially gold, silver and non-essential imports-and reduction in oil demand, alongside steps to boost capital inflows by permitting quasi-sovereign bond issuance by public financial institutions, liberalising External Commercial Borrowing guidelines, allowing PSU oil companies additional ECB and trade finance, and liberalising NRE/FCNR deposit schemes, with tariff notifications to be tabled in Parliament and administrative measures to be publicly disclosed.

Infrastructure financing expands state highway upgrades to improve access and resilience, with attached technical assistance for long-term planning.
An additional multilateral loan finances upgrades to 254 km of Bihar state highways, widening sections to two lanes, building and maintaining bridges, strengthening pavement, and incorporating flood resilient designs. The project mandates environmental mitigation including tree replacement and solar use at construction sites, community road safety training with women's participation, a government co financing contribution, a defined completion timeline, and named implementing agencies. An associated technical assistance will prepare a 20 year State Highway Master Plan with an action program, financing plan, and monitoring and evaluation system.

Export infrastructure funding formula allocates ASIDE funds to states and requires state committees to approve export projects.
Allocation under the ASIDE Scheme is formula based on four years' exports and population, with bulk funds released to States/UTs and project vetting/approval delegated to the State Level Export Promotion Committee; a central component funds select Central agency projects. EOUs obtain fiscal incentives but must meet a five year positive Net Foreign Exchange obligation, failing which tax benefits are recoverable and penalties may be imposed. Statutory monitoring under trade, customs and excise laws permits withdrawal of duty exemptions, recoveries and enforcement for non compliance; annexures provide state wise disbursements, pending central projects, and EOU counts.

Appointment of Governor: executive statutory appointment established a three year term with transitional officer on special duty for overlap.
The Government, invoking its powers under Section 8 of the Reserve Bank of India Act, appointed Dr. Raghuram Rajan as Governor of the Reserve Bank for a three year term and designated him as Officer on Special Duty for a limited pre commencement period to provide an operational overlap with the outgoing Governor.

Exchange of information expanded to permit banking data transfer and compelled information gathering under the amended DTAC.
Protocol amending the India-Morocco Double Taxation Avoidance Convention strengthens cross border tax transparency by requiring effective exchange of information, including banking information, and obliges each treaty partner to use its information gathering measures to obtain requested information even if not needed for its own domestic tax purposes.

Customer satisfaction initiatives drive corporate modernization and quality improvements linked to Miniratna status and debt repayment.
SPMCIL convened a workshop to implement customer-orientation measures based on a corporation-wide customer satisfaction survey, focusing on improved delivery, cost-effective quality products, process efficiency and employee engagement. Management linked the initiative to sustained corporate performance post-corporatization, noting attainment of Miniratna Category-I status, full repayment of borrowings, strong performance agreement ratings, and ongoing modernization and indigenization to achieve self-reliance in security-product manufacture.

Direct tax collections rise, driven by corporate and personal income tax increases and higher wealth and securities tax receipts.
Gross direct tax collections increased in the April-July period, driven by rises in corporate tax and personal income tax; net direct tax collections also grew. Securities Transaction Tax receipts and Wealth Tax collections additionally rose, contributing to the overall collection increase.