People can now deposit up to Rs 1.5 lakh annually in their Public Provident Fund (PPF) with the government notifying changes in the popular savings scheme.
The government has issued a notification raising the limit from annual PPF deposit limit from Rs 1 lakh to Rs 1.5 lakh in pursuance of the announcement made by Finance Minister Arun Jaitley.
PPF is a 15-year investment scheme under which an investor enjoys tax exemption at the time of deposit, accrual of interest and withdrawal.
The interest rate on deposit in PPF for 2014-15 fiscal is 8.7 per cent.
Jaitley had increased the PPF investment limit in line with the hike in cumulative tax exemption limit under 80C Income Tax Act from Rs 1 lakh to Rs 1.5 lakh.
He raised the investment limits in tax saving schemes with an aim of encouraging household savings.
Among other things, the government had also proposed to introduced re-introduced Kisan Vikas Patra. He has also proposed higher exemption limit for re-payment of interest on loans of self-occupied houses from Rs 1.5 lakh to Rs 2 lakh.
"To address the concerns of decline in savings rate and improving returns for small savers, I propose to revitalise small savings," Jaitley had said in the Budget speech.
As regards the Public Provident Fund, an individual can invest up to Rs 1.5 lakh, as against Rs 1 lakh presently. PPF is a 15-year investment scheme, which attracts tax exemption.
Government has also proposed to launch National Savings Certificate (NSC) with insurance cover to provide additional benefits for the small saver.
Cheque bouncing: SC settles law on where to file a complaint-Business Standard 21.08.2014
Bounced cheque must only be filed at the place where the bank dishonoured it
The Supreme Court (SC) ruled on Friday that a complaint about a bounced cheque must only be filed at the place where the bank dishonoured it, settling doubts raised by its own earlier conflicting judgments on the jurisdiction of a magistrate.
Some judgments had specified the place where the cheque was issued, others from where the notice of dishonour was sent and still others the place of receipt. Owing to this confusion in law, the matter was referred to a larger bench of the SC.
A three-judge bench headed by T S Thakur unanimously laid down that the place of dishonour is the right place to file a complaint. However, to avoid inconvenience to persons already prosecuting such cases, the new rule is to come into force only with respect to cases in the future. Those in which trials have begun will remain in the same courts.
The judgment was delivered on a large number of appeals, including those moved by Videocon Industries and Kitchen Appliances Ltd, which raised the question of jurisdiction of the magistrate who can try cases under Section 138 of the Negotiable Instruments Act. According to this provision, it is an offence to issue cheques without a sufficient balance in the account, if the payment is made to discharge a debt or liability. If the amount is not paid within two weeks, the payee can file a criminal complaint.
This is the second major ruling in recent months dealing with this Act. There are a little more than four million cheque-bounce cases at courts. In April, another bench issued a series of guidelines, including issuance of summons through e-mails and completion of evidence within three months.
Some judgments had specified the place where the cheque was issued, others from where the notice of dishonour was sent and still others the place of receipt. Owing to this confusion in law, the matter was referred to a larger bench of the SC.
A three-judge bench headed by T S Thakur unanimously laid down that the place of dishonour is the right place to file a complaint. However, to avoid inconvenience to persons already prosecuting such cases, the new rule is to come into force only with respect to cases in the future. Those in which trials have begun will remain in the same courts.
The judgment was delivered on a large number of appeals, including those moved by Videocon Industries and Kitchen Appliances Ltd, which raised the question of jurisdiction of the magistrate who can try cases under Section 138 of the Negotiable Instruments Act. According to this provision, it is an offence to issue cheques without a sufficient balance in the account, if the payment is made to discharge a debt or liability. If the amount is not paid within two weeks, the payee can file a criminal complaint.
This is the second major ruling in recent months dealing with this Act. There are a little more than four million cheque-bounce cases at courts. In April, another bench issued a series of guidelines, including issuance of summons through e-mails and completion of evidence within three months.
FinMin looking at two models for vesting Govt stake in public sector banks -Hindu Bus Line
The Finance Ministry is examining two bank investment holding company models for parking the Government’s shareholding in public sector banks, said GS Sandhu, Financial Services Secretary.
The Finance Ministry is examining two bank investment holding company models for parking the Government’s shareholding in public sector banks, said GS Sandhu, Financial Services Secretary.
“One view is that for all the banks we should have a single holding company. The second view is that we should have a holding company first at the bank level, particularly for banks, such as State Bank of India and Punjab National Bank, which have a large number of subsidiaries,” he said.
So, each of these banks (large banks) will have one holding company and above all these holding companies there would be an apex holding company, Sandhu explained on the sidelines of Indian Banks’ Association’s 67th annual general meeting.
A view needs to be taken about capital requirements — whether capital has to be provided at each level, he added.
“These are some of the issues which are being addressed. So, only after that we will decide on the holding company structure for public sector banks,” he said.
Sandhu observed that there has not been much progress so far on the bank investment holding company model for vesting the Government’s shareholding in public sector banks (PSBs).
“We are at the moment working on raising more capital directly for the banks. Holding company structure is being discussed with the RBI.
“There are some issues which we have to get over. Once those issues are clear, only then we will decide whether we want to have a holding company and how many holding companies. There are two views,” he said.
To provide a level playing field for public sector banks vis-à-vis their private sector counterparts, the RBI’s PJ Nayak Committee on ‘Review of governance of boards of banks in India’ had proposed the transfer of Government holding in PSBs to a Bank Investment Company (BIC).
Wilful defaulters
Wherever borrowers are not repaying loans deliberately, change of management can be done by legal force. That is the provision that the Government is going to incorporate in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, said Sandhu.
Wherever borrowers are not repaying loans deliberately, change of management can be done by legal force. That is the provision that the Government is going to incorporate in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, said Sandhu.
Protection for bankers
On whether the CBI investigations on banks are denting the morale of bankers, he said, “We are advising the banks that any bona fide action which they take will be protected. They should look at the quality aspect (of loan proposals) and the security aspect.
On whether the CBI investigations on banks are denting the morale of bankers, he said, “We are advising the banks that any bona fide action which they take will be protected. They should look at the quality aspect (of loan proposals) and the security aspect.
“We are going to reiterate this soon. Safety and security of their money is important. So, they have to do due diligence and see to it that the money (they lend) comes back to them.”
Pointing out that risk is inherent in banking, Sandhu said a bona fide decision can go wrong. So, for that the banker cannot be penalised. He has to be protected, else no one will take decisions, he pointed out.
PSB chief appointments
On top-level appointments in PSBs, the Secretary said the Finance Ministry is looking at bringing more transparency into the appointments.
On top-level appointments in PSBs, the Secretary said the Finance Ministry is looking at bringing more transparency into the appointments.
“What we are proposing is the PSB chief should be appointed for a total of five years. Initially, for three years and based on assessment for a further period of two years,” he said.
In such a scenario, it would not be necessary for a PSB chief to retire at 60.
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