Inquisitive Mind

Reserve Bank of India (RBI) had released its annual report for the financial year 2022-23. In a series of articles, we will go through the highlights of the report. This is the fifth and last article in the series.  Chapter 7 – Public Debt Management The maturity profile of outstanding dated securities was elongated to contain the rollover risk.  RBI in consultation with the central government issued Sovereign Green Bonds (SGrBs) for ₹16,000 crore during 2022-23 (two tranches of ₹8,000 crore each, comprising 5-year and 10-year SGrBs for ₹4,000 crore in each tranche). The proceeds of SGrBs will be deployed in public sector projects, which will help in reducing the carbon intensity of the economy.  Government of India (GoI) notified the framework for SGrBs and this was rated as ‘Medium Green’ with a ‘Good’ Governance’ score by CICERO.  Inputs on Medium-Term Debt Management Strategy (MTDS) for the GoI were provided to Public Debt Management Cell, GoI. The MTDS has been...

Reserve Bank of India (RBI) had released its annual report for the financial year 2022-23. In a series of articles, we will go through the highlights of the report. This is the fourth article in the series.  Chapter 6 – Regulation, Supervision and Financial Stability (Part II) To commemorate 75 years of independence (Azadi Ka Amrit Mahotsav), 75 Digital Banking Units (DBUs) were set up in 75 districts of the country to catalyse the adoption of digital modes of doing banking transactions in the country. As on March 31, 2023, there were 84 DBUs functioning across the country. A pilot project for end-to-end digitalisation of Kisan Credit Card (KCC) lending, conceptualised and developed by Reserve Bank Innovation Hub (RBIH) in consultation with RBI, was operationalised in Madhya Pradesh, Karnataka and Tamil Nadu. The pilot project of lending based on milk pouring data to dairy farmers has also commenced in Gujarat in association with HDFC Bank. All the learnings from the pilots are be...

Reserve Bank of India (RBI) had released its annual report for the financial year 2022-23. In a series of articles, we will go through the highlights of the report. This is the third article in the series.  Chapter 6 – Regulation, Supervision and Financial Stability (Part I) Stressed assets are exposures classified as non-performing assets (NPA) or as special mention accounts (SMA) . Task Force on Development of Secondary Market for Corporate Loans (Chair: Shri T. N. Manoharan) constituted by RBI, had specifically recommended that securitisation of NPAs may be considered as an alternative investment route in stressed assets. Accordingly, it was decided to enable securitisation of NPAs on the lines of securitisation of standard assets. Senior tranche means a tranche which is effectively backed or secured by a first claim on the entire amount of the assets in the underlying securitised pool; mezzanine tranche is sub-ordinated to the senior tranche; and junior tranche (equity tranche...

Reserve Bank of India (RBI) had released its annual report for the financial year 2022-23. In a series of articles, we will go through the highlights of the report. This is the second article in the series.  Chapter 4 – Credit Delivery and Financial Inclusion Centre for Financial Literacy (CFL) project is RBI’s endeavour to bring together non-government organisations (NGOs) and banks to enable innovative and community-led participative approaches to strengthen financial literacy at the grassroot levels. CFL project was piloted in 2017 and based on the experience gained, it is being scaled up across the country in a phased manner. Funding support for the project is provided by Depositor Education Awareness Fund (DEAF), Financial Inclusion Fund (FIF) of National Bank for Agriculture and Rural Development (NABARD) and sponsor banks. One of the milestones of National Strategy for Financial Inclusion (NSFI) is to expand the reach of CFLs at every block in the country by March 2024....

Reserve Bank of India (RBI) had released its annual report for the financial year 2022-23. In a series of articles, we will go through the highlights of the report. This is the first article in the series.  Legal framework for publication of Annual Report by RBI Report of the Central Board of Directors on the working of Reserve Bank of India (RBI) for the year is submitted to the Central Government in terms of Section 53(2) of Reserve Bank of India Act, 1934 (RBI Act, 1934). The letter of transmittal is signed by the RBI Governor and addressed to the Finance Secretary, Ministry of Finance, Government of India. Documents submitted by RBI to the Central Government In pursuance of Section 53(2) of RBI Act, 1934 following documents have been submitted to the Central Government – A copy of the Annual Accounts for the year ended March 31, 2023 certified by RBI’s Auditors and signed by Chief General Manager-in-charge, Deputy Governors and Governor. 2 copies of the Annual Report of the Cen...

Do you hold any assets outside India or have you earned any income in foreign currency? Have you reported such foreign assets and foreign incomes while filing your income tax returns? Who need to report foreign assets and foreign incomes? A resident assessee need to provide the details of foreign asset or income from any source outside India while filing the income tax return (ITR). What are the types of residential status of individuals? An individual may be – Resident and ordinarily resident in India  Resident but not ordinarily resident in India Non-resident in India The residential status of an individual is defined as below – Conditions Resident and ordinarily resident in India Resident but not ordinarily resident in India Non-resident in India He is in India in the previous year for 182 days or more OR He is in India for 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year...