Marching ahead with Responsibility and Growth - Keynote Address[Contributions by RBI colleague Shri Mohammed Majidullah, General Manager] delivered by...
CCI directs Trustees’ Association of India, IDBI Trusteeship Services Ltd, Axis Trustee Services and SBI CAP Trustee Company to cease and desist fro...
Personal security frameworks evolved from elite guards into intelligence-led protection systems, while VIP culture can distort their necessity. Personal security evolved from elite guards into structured systems combining physical protection, intelligence, technology and specialised protocols. Prime Ministerial security in India was reorganised after the 1984 assassination of Prime Minister Indira Gandhi by her bodyguards. A commission recommended a single protective agency, leading to the formation of the Special Protection Group in 1985. Statutory parameters introduced in 1988 sought to rationalise and scientifically streamline protection arrangements. Advanced technology, training, intelligence and protocols do not eliminate personal-protection vulnerabilities, and security is characterised as a necessity rather than a status symbol.
Rupee exchange-rate movement reflects foreign-currency deposit inflows, central-bank intervention, oil-price risks and changing market risk appetite. Foreign-exchange liquidity measures, including a special central-bank programme for foreign-currency deposits, generated substantial inflows that supported the rupee. Inflows from foreign-currency deposits, overseas foreign-currency borrowings and external commercial borrowings strengthened market conditions. Rupee appreciation was also supported by foreign equity inflows and risk appetite, but remained vulnerable to higher crude-oil prices, US-Iran tensions, safe-haven demand for the US dollar and possible disruption to oil flows through the Strait of Hormuz.
Trade agreement consultations safeguard farmer, worker, MSME and sectoral sensitivities while phased bilateral tariff negotiations continue. India-US bilateral trade agreement negotiations are being pursued on the stated basis that Indian sensitivities will not be compromised. The agreement's text remains non-public, while the government position identifies farmers, fishers, micro, small and medium enterprises, workers, handloom and handicrafts sectors, and the automobile industry as protected considerations. The arrangement is described as a first tranche, with further engagement contemplated following changes in the United States tariff landscape.
Unauthorised toll collection apps allegedly generated fake receipts, concealed non-FASTag collections, and triggered a money-laundering investigation. Unauthorised digital applications allegedly enabled toll collection from vehicles without FASTag stickers outside the official reporting system. Mobdata and Any were allegedly used to generate unauthorised or fake toll receipts, conceal collections from NHAI, and monitor such collections through dedicated portals. A PMLA investigation followed an FIR alleging fraudulent toll collection, with digital forensic material indicating use of the mechanism across around 100 toll plazas. Searches resulted in seizure of financial and digital records and freezing of bank accounts.
Economic offence investigations: cross-border training strengthens officers' practical skills in investigation, prosecution, procedures, and handling complex financial crimes. Capacity-building training under the Indian Technical and Economic Cooperation programme equipped officers from member countries with practical skills for investigating economic offences. It covered varied forms of financial and economic crime, cross-border impact, challenges in investigation and prosecution, standard operating procedures, and investigative best practices. The specialised law-enforcement engagement aims to strengthen international cooperation and investigative capacity in economic-offence matters.
Unauthorised Aadhaar credential use triggers blacklisting and procurement debarment following alleged post-termination enrolment and update transactions. Alleged unauthorised use of Aadhaar Registrar/EA Code credentials after termination of an operational engagement led the Delhi Construction and Other Workers Welfare Board to blacklist MDS Solution Pvt Ltd. UIDAI communication indicated that Aadhaar-related activity allegedly continued after cancellation through the Board's credentials. The Board lodged a police complaint, barred the firm from its tenders, procurement processes, empanelment and contract awards, and recommended consideration of action under applicable rules and policies.
FCNR(B) deposits strengthen foreign-exchange liquidity and support rupee appreciation alongside foreign portfolio inflows into government securities. Foreign-currency inflows through FCNR(B) deposits, overseas foreign-currency borrowings and external commercial borrowings strengthened foreign-exchange liquidity and supported appreciation of the rupee against the US dollar. Foreign portfolio investment in government securities was linked to the abolition of withholding tax and long-term capital gains tax on such investment. Currency-market conditions were also influenced by foreign institutional equity purchases, global risk appetite, crude-oil prices and geopolitical tensions.
Electric vehicle adoption can reduce transport import dependence while domestic battery manufacturing increases projected long-term savings. Electric-vehicle adoption across road-transport segments is projected to reduce dependence on imported petrol and diesel, notwithstanding continuing battery imports. Accelerated electrification could reduce vehicle-related import expenditure substantially by 2050 because reduced oil imports are expected to exceed battery-import costs. Domestic cell-manufacturing capacity may further increase savings by combining rapid vehicle electrification with battery localisation.
Women's livelihood credit access will extend beyond self-help groups through standardised loan formalities and coordinated banking support. Women's access to credit for livelihood expansion is to extend beyond Self-Help Groups to individual women members. Loan accessibility concerns include distance from bank branches, repeated visits to complete formalities, and inconsistent banking procedures. Regular State Rural Livelihood Mission meetings, bank participation, training, helplines, process improvements and coordination with bankers are intended to reduce barriers. Loan formalities are to be standardised across banks through a uniform process involving RBI and NABARD.
Industrial development facilitation prioritises infrastructure, services, policy utilisation, and dry-port trade connectivity for businesses and agro-based farmers. Industrial development facilitation extends beyond allocation of industrial plots to infrastructure development, services, and a favourable business environment. Industry-support policies seek to encourage participation by entrepreneurs, promote growth across sectors, and improve investment conditions without distinction between small and large enterprises. Dry-port infrastructure strengthens national and international trade connectivity, supporting import and export expansion for industrial and agro-based businesses.
Regulated fintech infrastructure recognition highlights integrated payment, identity and collections capabilities across embedded financial product delivery. Decentro operates an integrated fintech infrastructure platform combining payment acceptance, identity verification, banking and AI-led collections through a unified integration layer. It holds Payment Aggregator authorisations for online and physical payments, a Payment Service Provider licence through its GIFT City entity, and certification for offline identity-verification workflows. These capabilities support embedded financial products, payment acceptance, lending collections and related financial workflows for enterprise users.
Debenture trusteeship fee fixing constitutes cartelisation by constraining independent pricing and restricting service availability in the market. Collective minimum-fee fixing for debenture trusteeship services prevented trustees from making independent commercial pricing decisions and constituted cartelisation. Prescription of a benchmark fee limited and controlled the supply or market for such services by directing association members and non-members not to serve debenture issuers below that fee. The conduct contravened Section 3(3)(a) and Section 3(3)(b) read with Section 3(1) of the Competition Act, 2002.
Digital textile printing enables flexible industrial production, shorter lead times, reduced screen dependency and sustainability-focused manufacturing for export markets. Digital textile printing is presented as an industrial alternative to conventional screen printing, allowing direct production from digital design files with faster design changes, shorter lead times and flexibility across varying order quantities. Single-pass systems support high-volume production through fixed printing units and continuous fabric movement, while multipass platforms provide flexible production across natural, synthetic and specialised textiles. Digital production is associated with printing closer to demand, eliminating physical screens, reducing unnecessary production, and addressing wastewater reduction, chemical compliance, traceability and responsible manufacturing expectations.
Economic growth and infrastructure investment were presented as supporting exports, skilled employment, connectivity, and long-term development. Economic growth, export expansion and infrastructure investment are presented as interconnected drivers of India's development, global standing and employment opportunities. Infrastructure expenditure, railway expansion and improved transport connectivity are identified as measures intended to facilitate movement, simplify transportation, support trade and exports, and strengthen industrial and commercial activity. These measures are associated with the objective of a developed India by 2047 and enhanced employment, business and growth opportunities.
Co-location and dark fibre settlement addressed allegations of preferential market-data access and speed advantages in trading. SEBI's co-location and dark fibre matters involving NSE concerned allegations that certain stockbrokers obtained unfair preferential speed advantages to access market data and execute trades ahead of other investors. NSE pursued settlement applications covering both matters, and revised settlement terms increased the cumulative amount. Payments made by NSE together completed the agreed settlement amount.
Preferential tariff treatment remains the condition for finalising the bilateral trade agreement and improving Indian export competitiveness. Finalisation of the India-US Bilateral Trade Agreement is contingent on the United States extending preferential tariff treatment to India relative to competing supplier countries. Further negotiations are required following changes in the United States tariff environment. A comparative tariff advantage is intended to improve the price competitiveness of Indian goods in the United States market, particularly against competitors benefiting from lower duties under least-developed-country preferences or trade agreements.
MSME secured lending equity capital, subject to regulatory approval, supports expansion without management-control change in operations. Business Nextgen Finance Private Limited, a non-deposit taking non-banking financial company registered with the Reserve Bank of India, has raised Rs 215 crore in equity capital to expand secured credit for micro, small and medium enterprises. The transaction received prior Reserve Bank of India approval. The capital base will support secured lending scale-up, geographic expansion, technology investment and wider access to formal credit in underserved markets. The investment does not involve a change in management or day-to-day control.
Money-laundering probes into narcotics trafficking rely on predicate police and narcotics cases and examine cross-border linkages. Money-laundering investigation under the Prevention of Money Laundering Act involves coordinated searches in connection with multiple narcotics-trafficking matters. The investigation is founded on police and Narcotics Control Bureau FIRs and linked chargesheets concerning separate drug-trafficking allegations, including alleged trafficking in methamphetamine, marijuana and MDMA with suspected cross-border linkages.
Conversational AI account management enables businesses to access payment information, settlement support, refunds, and payment links through WhatsApp. RAY is a conversational AI account manager on WhatsApp that enables businesses to access payment information, support, and operational actions through messages or voice notes. It can provide payment summaries, analyse payment activity, monitor settlement status, generate payment links, and issue refunds. The AI assistant is designed to proactively identify payment-health issues, flag settlement events, recommend actions, and use merchant-specific context to support payment management without dashboard navigation.
Following is the text of the Valedictory address of Shri S.S. Palanimanickam, Minister of State for Finance delivered at the 26th Annual Conference of Chief Commissioners and Directors General of Income Tax, here today:
"It is my pleasure to give the valedictory address before this distinguished gathering of the senior officers of the Income Tax department. I entered this office as Minister of State of Finance- Revenue, in 2004 and since then, there has been an exponential growth in its revenues - from Rs.1.05 lakh crore in March 2004 to Rs. 3.78 lakh crore in March, 2010. This is a result not only of economic buoyancy, but also a stellar example of the positive effect of tax payer friendly initiatives undertaken by CBDT. The Hon'ble Finance Minister has already congratulated the excellent performance of the department and its officers, but I too have to laud the efforts of the officers and employees of this department for its outstanding achievement.
At the outset, I would like to thank the Hon'ble Finance Minister for his active participation in various initiatives of the department. He inaugurated the Advance Training Complex at NADT, Nagpur on 8th May, 2010 to augment training and international programmes. He also launched the e-tutorial on TDS prepared by the IRS probationers. He chaired the second meeting of the Central Direct Tax Advisory Committee (CDTAC) on 18th May, 2010. The Hon'ble Finance Minister dedicated to the Nation the Centralized Processing Centre set up in Bengaluru on 29th May 2010. In his key note address yesterday, the Finance Minister emphasized the need to tone up the tax administration by adopting IT initiatives and improving professional competence and responsiveness of the officers. He also suggested accepting the PPP mode to improve the services delivery standards. I am hopeful that these suggestions have been given due consideration by this august group, and comprehensive proposals will be submitted in due course to take these suggestions to the next higher level. It is our good fortune to have such a senior and experienced Minister to guide us in our task of building an efficient tax administration.
The Annual Conference of Chief Commissioners and Directors General provide an opportunity to the officers to take stock of Department's achievements and review the work in progress. I would like to commend the Department on some of its achievements in the last year. The innovative project of the Income Tax Department Integrated Taxpayer Data Management System (ITDMS) was awarded PM's Award of Excellence for the year 2008-09. This is a comprehensive tool to develop focused intelligence and detect tax evasion in a non-intrusive manner. To this end, it is laudable that the Income Tax Service Centre has obtained IS 15700:2005 certification from the Bureau of Indian Standards. I am glad that the Department has not only brought out a compilation of Best Practices and Orders in the form of a book titled "Let Us Share", but have kept it updated by bringing out its 3rd Volume. The drafting of the new Direct Taxes Code is a major policy initiative of the department, which will go a long way in ushering in a more transparent and simplified direct tax administration, and would be in tune with the new demands and challenges that the growing forces of globalization throw up.
While I am happy at the progress made by CBDT in the various fronts, more needs to be done. There is a need to attain higher levels of professionalism and motivation amongst the officers of CBDT and to improve service delivery standards to the tax payers. In my valedictory address in the last year's conference, I had flagged certain important issues. I am glad that certain clauses of transfer policy which were perceived to be causing hardship to the officers have been amended. However, I feel that this is only the beginning of the process. More issues need to be addressed to improve the morale and the satisfaction level of the officers and staff. It is important to satisfy the professional aspirations of officers in a timely manner through efficient cadre management, cadre planning, and imparting the right skills. In this context, I would like to draw your attention to the Hon'ble FM's keynote address yesterday wherein he had laid emphasis on taking up cadre restructuring proposal which has been delayed. I hope this is taken up in right earnestness by the Board.
As the Department's contribution to the Central exchequer grows, its manpower, resources and infrastructure also have to grow in tandem. The Department has to create quality infrastructure for its officers and staff as well as for the use of assessees. It is not always efficient and timely to control this process centrally. The field formations need to be given greater financial powers and autonomy in order to impart greater momentum to the process of infrastructure building. I urge the department to actively work on a proposal to enhance delegation of financial powers to its field formations. To ensure better coordination of expenditure on human and material resources, the department should consider setting up a dedicated Directorate of Finance. There is an urgent need to tone up the Vigilance Machinery of the department. It is imperative that the department fixes a time frame to decide vigilance related cases. Such a time frame should be practical taking into consideration the various nuances of the case. The corrupt should be punished, but the department's reaction should be prompt. You have to realize that keeping officers in the Agreed list also deprives the department of officers to man sensitive charges. It is therefore in the interest of the department and the officers that vigilance matters are resolved within a fixed time frame.
I would also like to bring to your attention the delay in compiling the monthly revenue figures within the first week of the following month. I would like to be apprised of the bottlenecks, if any in timely collection of the revenue collection figures. I am positive that problems, if any, can be sorted out in this regard.
While tax collection is the core responsibility of the Department, it is important to remember that there is more to modern tax administration than mere revenue collection. The administration needs to be transparent, simple, and efficient. The officers and staff need to go beyond their traditional role of tax collector, and should acquire a more holistic approach where efficiency of services to tax payers, transparency and fair play are given their due importance. At the same time, they also need to focus on devising tools to prevent tax evasion, rather than to unearth evasion that has already taken place. All this requires a focused approach to qualitative improvement of the human resources through regular training and interaction with the senior officers. In this regard, I am happy to note that zonal/regional level conferences have been started, as a precursor to such an annual conference. This will certainly aid in identifying issues which are peculiar, sensitive and relevant for that region and which can be tackled more effectively by such interaction. A connected issue that the department needs to dwell upon is how to improve and update the knowledge base of its most important stakeholders i.e. Auditors, Chartered Accountants etc. An approach of partnership in this area can pay rich dividends.
The Board is very fortunate to be led at this time by a Finance Minister who is willing to give utmost freedom to the Department in augmenting its resources and improving its infrastructure. This is the right time to capitalize on this opportunity because the pressures of revenue collection, meeting the revenue target and budget preparations start building up only from December onwards. Therefore, the Board should use this lean period to work on proposals for creation of infrastructure, cadre restructuring, capacity building etc.
The Department's efficiency has to be bench marked by the satisfaction level of the users. A major source of dissatisfaction of income tax assesses is with respect to refund of taxes. The time taken to grant refunds is very high when compared to international standards. The department should set up a task force to revamp the system of tax refunds so as to progressively reduce the time taken for refunds from the present period of more than four months, to a maximum of sixty days. Similarly, I have received feedback that the taxpayers are facing difficulties in getting credit of the TDS paid by them. There is a need to review and revamp the existing TDS administration in order to iron out these irritants. It is important that taxpayers receive uniform treatment of their cases in any part of the country. In order to ensure uniformity of approach and transparency in its functioning, the department should put in place a mechanism to disseminate information on all such important orders, judgments to all field formations.
I note that several of these issues have been deliberated during the Conference and I hope that concrete suggestions and action plans have been drawn up for follow-up action.
In the year ahead, we have a tough task before us. We have to achieve a budget collection target of Rs.4.30 lakh crore. The FM in his speech yesterday had implied and hoped that the direct tax collection will exceed its Budget Estimates. However, I shall be direct and urge all of you to take all necessary steps for not only realizing, but exceeding the B.E. Exceeding our collection targets will be a form of thanksgiving to the FM for the benevolence and encouragement shown towards this Department. "
Tax administration reform urged to modernize systems and expedite refunds while improving cadre management and service delivery.
The address calls for strengthening tax administration by modernizing IT systems, expanding training and infrastructure, pursuing cadre restructuring and delegation of financial powers to field formations, and instituting a Directorate of Finance; it urges timely resolution of vigilance cases, prompt monthly revenue reporting, and operational reforms to expedite refunds and overhaul TDS administration to ensure uniform, taxpayer-friendly service.
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