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nirmala sitharaman

Govt Ready To Talk, Address Concerns And Prevent Start-Ups From Moving Abroad: Sitharaman

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The government’s policies have created a favourable environment which has resulted in having more than 100 unicorns in India today. Government will interact with the ones who look forward to move overseas, to help them stay in India

Union Finance Minister Nirmala Sitharaman said that the government is ready to talk with the start-ups and address their issues as much as it can, on 11 October. Government will interact with the ones who look forward to move overseas, to help them stay in India. 

Informing a think-tank, she said that Prime Minister Narendra Modi himself is involved in start-ups initiative. The government’s policies have created a favourable environment which has resulted in having more than 100 unicorns in India today. 

“The Prime Minister himself have been engaged by me with the start-ups to know what they want from India. And we kept addressing the concerns as much as possible. Now as a result of which, we saw new Unicorns reached 100 in number within a year,” Sitharaman said in response to a question. 

Sitharaman was asked about the successful Indian start-ups moving out of the India to which she replied, “I’ve heard this from others as well. Start-ups are moving abroad in countries like Singapore and UAE. Well, if they want to talk to the Government of India, they may. And after hearing it if it’s possible, we’ll certainly attend to them.”

“So, I would think continuous engagement with the startups is what is going to help them to remain and do better within India. But, there temptations to go outside, build a common ground and serve on those courses. Not all of them are possible but equally, we can try,” she further added. 

The finance minister talking about taking special efforts to encourage start-ups in the Northeast by the Indian government said, “I myself have had meetings with chief ministers of those regions about start-ups. Particularly IIT Guwahati, has a lot of interaction with industry and also has potential to address challenges with solutions for the start-ups to come up.” 

“I find this unique in the Northeast, very typical for the Northeast kind of solutions emanating from start-ups which are coming up in that area,” she added.

nirmala sitharaman

FM Urges CCI To Fairly Address Cross-Border Merger Issues

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FM Nirmala Sitharaman while addressing at the virtual inauguration of the CCI office for the Western Region in Mumbai asked CCI to have proactive approach instead of waiting for people to reach them with complaints

Finance minister (FM) Nirmala Sitharaman urged the Competition Commission of India (CCI) to “fairly and squarely” address issues rising due to corporate mergers involving cross-border elements on 6 October.

Minister while addressing at the virtual inauguration of the CCI office for the Western Region in Mumbai also asked CCI to have proactive approach instead of waiting for people to reach them with complaints. 

“Aspiring be a digital economy, it is also very important for us to address the challenges that digitisation brings, we cannot ignore them,” said Sitharaman. 

“Considering the multi-national nature of activities, various companies are looking to have interlocking positions in global value chains. There are holding companies, new acquisitions taking place, there are mergers and such related events happening across the globe, ” she further added.

The finance minister’s delivers her thoughts at a time when a parliamentary panel is in the process of examining the new competition bill. The bill empowers CCI to regulate cross-border mergers and digital companies.  It was presented in the parliament during the Monsoon session.

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India’s Digital Revolution Presents Opportunity For US Investors: FM

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Earlier, The finance minister had promised investors in April that the administration would handle any potential problems, in order to promote foreign investment in the nation.

According to Finance Minister Nirmala Sitharaman, the Indian digital revolution presented investment potential for the United States.

Nirmala Sitharaman said that India’s Open Network for Digital Commerce has revolutionised the industrial and retail industries today at a business conference in New Delhi.

She continued by saying that this provided opportunity for international businesses.

Earlier, The finance minister had promised investors in April that the administration would handle any potential problems, in order to promote foreign investment in the nation. 

In her remarks at a roundtable in San Francisco on “Investing in India’s Digital Revolution,”  the minister recommended ongoing dialogue with investors to better understand and address their issues.

In her speech at the US-India Business Council (USIBC) conference on Wednesday, Finance Minister Nirmala Sitharaman discussed the impact of the rapidly shifting geopolitical landscape worldwide and India’s growing relationship with the United States.

Sitharaman also expressed confidence in the ongoing improvement of relations between the two nations.

nirmala sitharaman 3

No Official Estimate Of Exact Amount Deposited By Indians, Firms In Swiss Banks: FM

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These media reports have also mentioned that these deposits do not indicate the quantum of the alleged black money held by Indians in Switzerland

There is no official estimate of the exact amount of money deposited by Indian citizens and companies in Swiss banks, Union Finance Minister Nirmala Sitharaman said in a written reply to a question in the Lok Sabha on Monday. On questions on money deposited in Swiss banks by Indians, Sitharaman said: “There is no official estimate of amount of money deposited by Indian citizens and companies in Swiss banks”.

However, she said certain recent media reports have stated that funds of Indians in Swiss Banks have risen in 2021 as compared to 2020. These media reports have also mentioned that these deposits do not indicate the quantum of the alleged black money held by Indians in Switzerland. The minister said the Swiss authorities had conveyed that the Swiss National Bank (SNB) annual banking statistics should not be used for analysing deposits held in Switzerland by residents of India.

(PTI)

Rbi cfo

Phased Implementation Of Digital Currency Works: RBI official

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The introduction of CBDC was announced in the Union Budget 2022-23, by Finance Minister Nirmala Sitharaman and necessary amendments to the relevant section of the RBI Act, 1934 has been made with the passage of the Finance Bill 2022, Ajay Kumar Choudhary, Executive Director (Fintech), Reserve Bank of India (RBI) said.

The Reserve Bank of India is in the process of implementing the Central Bank Digital Currency (CBDC) in a phased manner for the wholesale and retail segments, an official said on Wednesday. The introduction of CBDC was announced in the Union Budget 2022-23, by Finance Minister Nirmala Sitharaman and necessary amendments to the relevant section of the RBI Act, 1934 has been made with the passage of the Finance Bill 2022, Ajay Kumar Choudhary, Executive Director (Fintech), Reserve Bank of India (RBI) said.

The passage of the bill has enabled the RBI to conduct a pilot and subsequent issuance of CBDC, he said. “RBI is also working on phased implementation of a central bank digital currency (CBDC) in both wholesale and retail segment,” Choudhary said while delivering a keynote address at the ‘PICUP Fintech Conference & Awards’ by FICCI.

CBDC is a digital or virtual currency but it is not comparable to the private virtual currencies or cryptocurrency that have mushroomed over the last decade. Private virtual currencies do not represent any person’s debt or liabilities as there is no issuer. India’s official digital currency is likely to debut by early 2023, which will mirror any of the currently available private company-operated electronic wallets. The CBDC will be a sovereign-backed digital currency.

Touching upon the role of fintechs in the fast evolving digital payments space, the official said that the RBI has fostered innovation and it is keeping a close eye on the benefits and risks associated with innovative products and services offered by fintechs. As fintech adoption picked up in the country, the Reserve Bank issued guidelines regulations for emerging areas such as payment banks in 2014, account aggregator in 2016, pre-paid instruments in 2017, peer-to-peer lending in 2017, invoice discounting 2018 to facilitate the industry in digital and for facilitating onboarding of consumers, individuals as well as KYC documentation, the official said.

He said fintech has already made a mark in the digital payment space with the invention of UPI (Unified Payments Interface) in the country. Citing data, he said so far this year, India’s UPI transaction has seen participation of 323 banks and has recorded 5.9 billion monthly transactions worth over USD 130 billion. The revolution which the QR code brought along and the interoperability features ensured that the banking on the fingertip phase came through, the official said. “I have also observed that most of the younger generation now avoid carrying a physical wallet as everything they need is in their mobile phones. The contribution of fintech in digital payment can also be observed by usage of prepaid payment instruments.

“The fintech companies are also transforming the very definition of banking and finance with their role played in the digital segment, through their innovative credit models using AI, ML tools…they are able to give credit to customers who do not have credit history to get credit,” Choudhary said. The RBI official said the investment in India’s fintech space has gone up significantly.

(PTI)

Rbi cfo

Phased implementation of digital currency for wholesale, retail segments at works: RBI official

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The Reserve Bank of India is in the process of implementing the Central Bank Digital Currency (CBDC) in a phased manner for the wholesale and retail segments, an official said on Wednesday.

The introduction of CBDC was announced in the Union Budget 2022-23, by Finance Minister Nirmala Sitharaman and necessary amendments to the relevant section of the RBI Act, 1934 has been made with the passage of the Finance Bill 2022, Ajay Kumar Choudhary, Executive Director (Fintech), Reserve Bank of India (RBI) said.

The passage of the bill has enabled the RBI to conduct a pilot and subsequent issuance of CBDC, he said.

“RBI is also working on phased implementation of a central bank digital currency (CBDC) in both wholesale and retail segment,” Choudhary said while delivering a keynote address at the ‘PICUP Fintech Conference & Awards’ by FICCI.

CBDC is a digital or virtual currency but it is not comparable to the private virtual currencies or cryptocurrency that have mushroomed over the last decade. Private virtual currencies do not represent any person’s debt or liabilities as there is no issuer.

India’s official digital currency is likely to debut by early 2023, which will mirror any of the currently available private company-operated electronic wallets. The CBDC will be a sovereign-backed digital currency.

Touching upon the role of fintechs in the fast evolving digital payments space, the official said that the RBI has fostered innovation and it is keeping a close eye on the benefits and risks associated with innovative products and services offered by fintechs.

As fintech adoption picked up in the country, the Reserve Bank issued guidelines regulations for emerging areas such as payment banks in 2014, account aggregator in 2016, pre-paid instruments in 2017, peer-to-peer lending in 2017, invoice discounting 2018 to facilitate the industry in digital and for facilitating onboarding of consumers, individuals as well as KYC documentation, the official said.

He said fintech has already made a mark in the digital payment space with the invention of UPI (Unified Payments Interface) in the country.

Citing data, he said so far this year, India’s UPI transaction has seen participation of 323 banks and has recorded 5.9 billion monthly transactions worth over USD 130 billion.

The revolution which the QR code brought along and the interoperability features ensured that the banking on the fingertip phase came through, the official said.

“I have also observed that most of the younger generation now avoid carrying a physical wallet as everything they need is in their mobile phones. The contribution of fintech in digital payment can also be observed by usage of prepaid payment instruments.

“The fintech companies are also transforming the very definition of banking and finance with their role played in the digital segment, through their innovative credit models using AI, ML tools…they are able to give credit to customers who do not have credit history to get credit,” Choudhary said.

The RBI official said the investment in India’s fintech space has gone up significantly.

RBI

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Crypto Mining Cost Not To Be Allowed As Deduction Under I-T Act: FinMin

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The minister said while computing the income from transfer of VDA, no deduction in respect of any expenditure (other than the cost of acquisition) or allowance is allowed

Infrastructure cost incurred in the mining of cryptocurrencies or any virtual digital assets will not be allowed as deduction under the income tax act, Minister of State for Finance Pankaj Chaudhary said on Monday.

In a written reply to the Lok Sabha, Chaudhary said the government will come out with a definition of virtual digital assets (VDA) with a view to levy 30 percent tax on income from the transfer of such assets.
 
He said currently cryptocurrencies are unregulated in India.

The 2022-23 Budget has brought in clarity concerning the levy of income tax on crypto assets. From April 1, a 30 percent I-T plus cess and surcharges, will be levied on such transactions in the same manner as it treats winnings from horse races or other speculative transactions.

The minister said while computing the income from transfer of VDA, no deduction in respect of any expenditure (other than the cost of acquisition) or allowance is allowed.

“The (Finance) Bill also proposes to define VDA. If any asset falls within the proposed definition, such virtual asset will be considered as VDA for the purposes of the Act and other provisions of the Act will apply accordingly,” he said.

He further said “infrastructure costs incurred in the mining of VDA (eg crypto assets) will not be treated as cost of acquisition as the same will be in the nature of capital expenditure”, which is not allowable as a deduction under the I-T Act.

Also, loss from the transfer of VDA will not be allowed to be set off against the income arising from the transfer of another VDA.

The Budget 2022-23 also proposed a 1 percent TDS on payments towards virtual currencies beyond Rs 10,000 in a year and taxation of such gifts in the hands of the recipient. The threshold limit for TDS would be Rs 50,000 a year for specified persons, which includes individuals/HUFs who are required to get their accounts audited under the I-T Act.

The provisions related to 1 percent TDS will come into effect from July 1, 2022, while the gains will be taxed effective April 1.

Separately, the government is working on legislation to regulate cryptocurrencies, but no draft has yet been released publicly.

(PTI)

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Sri Lankan Economic Crisis: Finance Minister Basil Rajapaksa Calls On PM Modi

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Finance Minister Rajapaksa noted the deepening of people-to-people relations between both countries, including in the cultural sphere, according to the PMO

Amid the intensifying economic crisis in the entire country, Finance Minister of Sri Lanka, Basil Rajapaksa, who is on an official visit to New Delhi, called on Prime Minister Narendra Modi on Wednesday.  

According to the Prime Minister’s Office (PMO), Rajapaksa briefed Modi on initiatives being taken by both countries to increase bilateral economic cooperation and conveyed his thanks for the support extended by India for the Sri Lankan economy.

PM Modi also spoke about the central role that Sri Lanka occupies in India’s ‘Neighbourhood First’ policy and its S.A.G.A.R (Security and Growth for all in the Region) doctrine. He reiterated that India would continue to stand with the friendly people of Sri Lanka. 

Finance Minister Rajapaksa noted the deepening of people-to-people relations between both countries, including in the cultural sphere, according to the PMO. 

Meanwhile, Modi pointed to the potential for increasing tourist flows, including through the joint promotion of Buddhist and Ramayan tourism circuits.  

nirmala sitharaman

Maintain Constant Vigil On Financial Sector: FM Sitharaman

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The Financial Stability and Development Council (FSDC) meeting attended by various financial sector regulators comes against the backdrop of rising tension between Russia and the US over Ukraine

The high-level FSDC headed by Finance Minister Nirmala Sitharaman on Tuesday deliberated on the challenges emanating from global and domestic developments and asked the regulators to maintain a constant vigil on the financial sector.

The Financial Stability and Development Council (FSDC) meeting attended by various financial sector regulators, including RBI Governor Shaktikanta Das, comes against the backdrop of rising tension between Russia and the US over Ukraine.

The Council also discussed measures required for further development of the financial sector and to achieve inclusive economic growth with macroeconomic stability.

“The Council deliberated on the various mandates of the FSDC and major macro-financial challenges arising in view of global and domestic developments.

“The Council noted that the government and all regulators need to maintain a constant vigil on the financial conditions and functioning of important financial institutions, especially considering that it could expose financial vulnerabilities in the medium and long-term,” the finance ministry said in a statement.

The Council discussed measures required for further development of the financial sector and to achieve inclusive economic growth with macroeconomic stability, it said.

The 25th FSDC meeting discussed operational issues relating to currency management and also took note of the activities undertaken by the FSDC Sub-Committee chaired by the RBI Governor and the action taken by members on the past decisions of FSDC.

The meeting was also attended by Minister of State for Finance Bhagwat Kishanrao Karad, Finance Secretary T V Somanathan, Economic Affairs Secretary Ajay Seth, Revenue Secretary Tarun Bajaj, Financial Services Secretary Sanjay Malhotra, and Securities and Exchange Board of India chairman Ajay Tyagi among others.

This was the first meeting of the high-level panel after the presentation of Budget 2022-23. The previous meeting was held on September 3 last year.

The FSDC has been set up by the government in consultation with financial market regulators, to strengthen and institutionalize the mechanism for maintaining financial stability, enhance inter-regulatory coordination and promote financial sector development.

Without prejudice to the autonomy of regulators, the Council monitors macro-prudential supervision of the economy, including functioning of large financial conglomerates, and addresses inter-regulatory coordination and financial sector development issues. It also focuses on financial literacy and financial inclusion.


(PTI)

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Ukraine Crisis, Crude Prices Pose Challenge To Financial Stability: FM

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Trade has not been impacted because of the geopolitical tensions but the government is keeping a close watch on the same, Sitharaman said

Finance Minister Nirmala Sitharaman on Tuesday said the Russia-Ukraine crisis and the ensuing jump in global crude prices are a challenge to financial stability in India.

The two issues were discussed at the meeting of Financial Stability Development Council (FSDC), which comprises all the financial sector regulators, Sitharaman told reporters here.

“It is difficult to say how it (crude prices) will go. Even today, in the FSDC, when we were looking at the challenges which are posed for the financial stability, crude was one of the things. International worrisome situations where we actually voiced that we want a diplomatic solution for the situation that is developing in Ukraine… all these are headwinds, Sitharaman, who is on a two-day visit to the financial capital, said.

She said the brent has touched over USD 96 per barrel on Tuesday and added that the country is keeping a watch on the same. The finance minister said the oil marketing companies will take a call on the retail prices.

Trade has not been impacted because of the geopolitical tensions but the government is keeping a close watch on the same, Sitharaman said adding that we are careful that the exporters should not suffer.

Parrying questions on the exact timeline for the LIC IPO, she said there is a buzz and interest in the market after the life insurance behemoth filed its papers with Sebi for the over Rs 60,000 crore issue, and the government will be going ahead with it.

She also said that the government is looking into the lapses that happened at the NSE.

(PTI)

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