First Monetary Policy Committee Meeting of the Financial Year 2018-19

The tenth meeting of the Monetary Policy Committee (MPC), constituted under section 45ZB of the amended Reserve Bank of India Act, 1934, was held on April 4 and 5, 2018 at the Reserve Bank of India, Mumbai. Decision: On the basis of an assessment of the current and evolving macroeconomic situation1 at its meeting, the Monetary … Continue reading First Monetary Policy Committee Meeting of the Financial Year 2018-19

RBI’s harsh stance on virtual currencies turns into prohibition

RBI has now issued a circular prohibiting dealing in virtual currencies. This can be accessed here. Reserve Bank has repeatedly through its public notices on December 24, 2013, February 01, 2017 and December 05, 2017, cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. … Continue reading RBI’s harsh stance on virtual currencies turns into prohibition

Amendment to FEMA 20(R) to reflect FDI policy announcements

Earlier in January 2018, the Union Cabinet approved, inter alia, some measures to open up the FDI space and also specifying joint audit for certain cases. To access more details on the announcements, please click here. Now, on March 26, 2018, RBI has issued the amendment to FEMA 20(R) Regulations to give effect to the … Continue reading Amendment to FEMA 20(R) to reflect FDI policy announcements

Relief for MSME Borrowers registered under Goods and Services Tax (GST)

More good news for small businesses! Currently, if a borrower account is classified as an NPA account if the default continues for 90 days and 120 days, in case of banks and NBFCs respectively. It has been represented to us that formalisation of business through registration under GST had adversely impacted the cash flows of … Continue reading Relief for MSME Borrowers registered under Goods and Services Tax (GST)

MSME Criteria to be changed

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved change in the basis of classifying Micro, Small and Medium enterprises from ‘investment in plant & machinery/equipment’ to ‘annual turnover’. Classification on the basis of investment in plant & machinery, although based on self-declaration, was subject to verification entailing transaction costs. Turnover, on … Continue reading MSME Criteria to be changed