The Comptroller and Auditor General of India signed a pact with Uzbekistan's Chamber of Accounts in Tashkent to foster international cooperation.
The agreement, inked by the two supreme audit institutions, aims to enhance collaboration and exchange of expertise in auditing between the two nations, the Comptroller and Auditor General of India (CAG) said.
The Memorandum of Understanding (MoU) establishes a collaboration platform for exchanging knowledge and experience amongst auditing professionals to develop the capacity for conducting audits. The signing of the MoU marks a significant milestone in promoting closer ties and collaboration among the SAIs of India and Uzbekistan,
It underscoring a shared commitment to excellence in auditing practices. Girish Chandra Murmu, the CAG of India, expressed his confidence in the partnership, stating, "Our MoU is important as collaborative efforts and knowledge sharing among SAIs promote the dissemination of best practices and innovative solutions, creating a global network of expertise".
The Union Finance Ministry announced key amendments to foreign exchange (forex) regulations, including mandating government approvals for all investments originating from countries that share land borders with India.
The latest amendments also seek to simplify cross-border share swaps and streamline key definitions, such as “control”.
The updated regulations have aligned the treatment of downstream investments made by overseas citizens of India (OCI)-owned entities with those owned by non-resident Indians (NRIs) on a non-repatriation basis. This is expected to foster greater participation of NRI funds in the Indian market.
Of particular significance is the clarification on government approvals for investments. Previously, such approvals were required only when the Indian company operated in a sector where foreign investment was subject to government review. However, under the new amendments, government clearance will now be necessary for any transfer of shares,
involving countries that share land borders with India, regardless of the sector in question, said Mayank Arora, director of regulatory affairs at Nangia Andersen India. The amended rules have also brought clarity to the position of OCIs.the relaxation available to NRIs where investments made on a non-repatriation basis are not considered FDI has now been extended to OCIs.
In another key change, the definition of “control” has been standardised to ensure consistency across various Acts and laws. The rules now specify that two or more foreign portfolio investors (FPIs), including foreign governments, will be considered part of an investor group if they share more than 50 percent common control.
The Foreign Exchange Management Act (FEMA) now also has a revised definition of a “startup” to align with the latest notification from the Department for Promotion of Industry and Internal Trade (DPIIT). Under the latest DPIIT notification, the turnover threshold for being a startup has been increased from Rs 25 crore to Rs 100 crore.
Further, startups would continue to be recognised as such for a period of up to 10 years from incorporation.
"This alignment of the startup definition with the DPIIT’s broader framework provides clarity on the status of startups for FDI purposes and will make such startups more attractive to foreign investors,” said Arora.
Additionally, a specific provision dealing with the swap of equity shares has been introduced. This allows for share swaps even in cases where government approval is required, whether due to the sector or the geographical origin of the foreign investor. Such swaps will be permitted only after government approval has been obtained.
The definition of equity capital has also been updated to align with the latest Foreign Exchange Management (Overseas Investment) Rules, 2022.
Shri Ashok Kumar Singh, IAS took over the charge of Director General of Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour & Employment, Govt. of India at its Headquarters in New Delhi. Shri Ashok Kumar Singh is an IAS Officer of the 1999 batch of Kerala cadre. Earlier, he worked as a Principal Secretary, Water Resources Department, Govt. of Kerala.
He has got vast experience of governance and management of District and State level organisations.
At the centre level, he has served as the Executive Director of the National Mission for Clean Ganga, as Joint Secretary in the Ministry of Defence, and as Director of the Ministry of Finance in the Govt. of India also.
The Engineering Export Promotion Council of India (EEPC India) and the Indian Stainless Steel Development Association (ISSDA) signed an MoU to promote exports by MSME members. The two organisations will collaborate to identify potential export products and organise trade exhibitions, buyer-seller meets, and economic summits, an EEPC statement said.
The agreement also aims to facilitate the exchange of trade information and encourage international investment through joint ventures and technical collaborations.
The MoU was signed by EEPC India's Executive Director Adhip Mitra and ISSDA's Executive Director Rohit Kumar. ISSDA President Rajamani Krishnamurti and other EEPC India's senior officials were also present.
Director General of the Indian Coast Guard (ICG), Rakesh Pal, passed away in Chennai on Sunday following a cardiac arrest, according to officials. Rakesh Pal, an alumnus of the Indian Naval Academy, joined the Indian Coast Guard in January 1989. Throughout his 34-year career, he rose to become the 25th Director General of the ICG, a position he held since July 2023.
Known for his expertise in Gunnery and Weapons Systems, Pal was the first officer from the ICG to specialise as a gunner, a distinction that set the tone for his storied career. Pal's extensive sea experience saw him command all classes of ICG ships, including ICGS Samarth, ICGS Vijit, and ICGS Sucheta Kriplani, among others.
In recognition of his exceptional service, Rakesh Pal was awarded the Ati Vishisht Seva Medal (AVSM), President Tatrakshak Medal (PTM), and Tatrakshak Medal (TM).
Food regulator FSSAI has launched a project to assess microplastic contamination in food products and develop methods for its detection. The Food Safety and Standards Authority of India (FSSAI) has launched an innovative project to tackle the growing concern of microplastic contamination in food, recognising microplastic pollution as an emerging threat,
that requires immediate attention.
According to an official statement, the project -- Micro-and Nano-Plastics as Emerging Food Contaminants: Establishing Validated Methodologies and Understanding the Prevalence in Different Food Matrices -- was started in March this year.
The aim is to develop and validate analytical methods for detecting micro and nano-plastics in various food products, as well as assess their prevalence and exposure levels in India.
The primary objectives of the project include developing standard protocols for micro/nano-plastic analysis, conducting intra- and inter-laboratory comparisons.
Raksha Mantri Shri Rajnath Singh released a commemorative coin to mark the birth centenary of former five-time Chief Minister of Tamil Nadu Kalaignar M Karunanidhi in Chennai. Shri Rajnath Singh described Kalaignar Karunanidhi as a leader whose role in national governance and advocacy for democratic principles have left an indelible mark on Indian democracy.
Kalaignar Karunanidhi was a fierce advocate for the rights of women and marginalised communities, pioneering reforms that promoted gender equality and empowered women. His government enacted legislation providing 33 percent reservation for women in local bodies, and he was instrumental in forming Women Self Help Groups.
As Finance Minister Nirmala Sitharaman holds a review meeting with heads of Public Sector Banks and Regional Rural Banks, the State Bank of India (SBI) in its latest report noted that the belief that the deposit growth in the banking sector is flagging just a statistical myth. The report highlighted that in FY23, the banking sector,
Particularly All Scheduled Commercial Banks (ASCBs), registered the highest absolute growth in both deposits and credit since 1951-52. Deposits grew by an impressive Rs 15.7 lakh crore, while credit expanded by Rs 17.8 lakh crore, pushing the incremental Credit-Deposit (CD) Ratio to a staggering 113 percent.
The momentum continued into FY24, with deposits rising by Rs 24.3 lakh crore and credit by Rs 27.5 lakh crore.
Despite the narrative suggesting a slowdown in deposit growth, the data tells us otherwise. Since FY22, incremental deposit growth has outpaced incremental credit growth, with deposits increasing by Rs 61 trillion compared to Rs 59 trillion in credit.
The report noted that the key issue at play here is not the quantum of deposits but the pricing. Historical trends have shown periods where credit and deposit growth diverge for 2 to 4 years.
The myth of a flagging deposit growth appears as just a statistical myth with credit growth outpacing deposit growth being tom-tommed as a deceleration in deposit growth" said report.
The end of the divergence cycle could be June 2025 -October 2025" the report noted.
The report stated that the CASA deposits fell to 41.0 percent in FY24 from 43.5 percent in FY23, largely due to a decline in SB (Savings Bank) deposits. This decline, while somewhat aligned with pre-pandemic levels of 42 percent, reflects a shift in how SB deposits are being used.
The share of term deposits in total deposits has increased to 59.0 percent in FY24 from 56.5 percent in FY23, while the share of CASA deposits has continued to decline.
In conclusion, while the myth of declining deposit growth may persist, the reality is more nuanced. Deposit growth remains strong, with term deposits taking a larger share of the pie as interest rates rise.
The Reserve Bank of India issued a framework for recognition of self-regulatory organisations in the financial markets space to help strengthen compliance culture and provide a consultative platform for policy making.
The proposed self-regulatory organisations (SROs) can play a vital role in developing industry standards and best practices and ensuring that members adhere.
The self-regulation shall complement India's legislative and regulatory framework, it added.
SROs will have to meet a set of overarching objectives for betterment of the sector they represent and address critical industry concerns. They will also establish minimum benchmarks and conventions for professional market conduct.
The SROs will expected to ally with the RBI in ensuring better compliance with regulatory guidelines and detection of early warning signals, among other things. The central bank may revoke the recognition to an SRO, if it deems the functioning of the body to be detrimental to public interest or if the SRO is found to be conducting activities that are not in Follow objective
The ministry has moved a note for the approval of the Expenditure Finance Committee (EFC) to extend the Interest Equalisation scheme by five years, which is available for small businesses and products falling under 401 tariff codes, till August 31. The total outlay of the scheme is capped at Rs 750 crore.
Separately, it has also sought that duty remission benefits granted to exporters, under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme are extended beyond September.
The extension of the schemes is crucial as muted global demand, geopolitical challenges and a drop in crude, commodities and metal prices dragged India’s goods export growth,
to an eight-month low in July, with outbound shipments contracting 1.47% to $33.98 billion.
However, if exports grow at a faster pace, the ministry expects to use the residual outlay of around Rs 800 crore of a third scheme which is the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for apparel, garments, and made-ups.
However, the incentives could be reduced in case no extra allocation is given. The current RoDTEP rates range from 0.3- 4.3%.
Budget FY25 gave Rs 16,500 crore for the scheme.
The government has announced the continuation of the RoSCTL up to March 31, 2026, for apparel, garments, and made-ups.
The other textiles products which are not covered under RoSCTL are eligible to avail the benefits, if any, under RoDTEP along with other products.
