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Reserve Money (M0) Of India As On 31st March, 2017 / 2016 / 2015 / 2014

Reserve money – also known as central bank money, base money or high powered money – plays a crucial role in the determination of monetary aggregates. Reserve money has two major components – currency in circulation and reserves.


Currency in circulation comprises currency with the public and cash in hand with banks. The public’s demand for currency is determined by a number of factors such as real income, price level, the opportunity cost of holding currency (i.e., the interest rate on interest-bearing assets) and the availability of alternative instruments of transactions, e.g., credit/debit cards, ATMs, cheque payments.

The demand for reserves by banks depends on the requirements for the maintenance of CRR and to meet payment obligations. The Reserve Bank is the banker to the banks and is the sole supplier of liquidity (or reserves) to these banks. A part of the reserves is supplied while performing central banking functions other than monetary policy operations and constitute the autonomous drivers of liquidity. (Source: RBI)


COMPARATIVE STATEMENT ON RESERVE MONEY Y-O-Y       (INR in billion)

[GST] Number Of HSN Digits Required On Tax Invoice - Notified

Taxation Laws (Country: India)

Central Board of Excise and Customs, in its Notification No. 12/2017 – Central Tax dated the 28th June, 2017, has notified the requirement under under the Central Goods and Services Tax Rules, 2017 to mention the number of digits of Harmonised System of Nomenclature (HSN) Codes in a tax invoice issued by a registered person.

In pursuance of the first proviso to rule 46 of the Central Goods and Services Tax Rules, 2017, the Central Board of Excise and Customs, on the recommendations of the Council, hereby notifies that a registered person having annual turnover in the preceding financial year as specified in column (2) of the Table below shall mention the digits of Harmonised System of Nomenclature (HSN) Codes, as specified in the corresponding entry in column (3) of the said Table, in a tax invoice issued by him under the said rules.

[GST] Interest Rates On Delayed Payment & Delayed Refunds - Notified

Taxation Laws (Country: India)

Central Board of Excise and Customs, in its Notification No. 13/2017 – Central Tax dated the 28th June, 2017, has prescribed the rate of interest on delayed payment of tax and the rate of interest on delayed refunds, as necessary to be paid under respective sections 50, 54 and 56 of the Central Goods and Services Tax Act, 2017. The notification's contents is reproduced as under:

"In exercise of the powers conferred by sub-sections (1) and (3) of section 50, sub-section (12) of section 54 and section 56 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby fixes the rate of interest per annum, for the purposes of the sections as specified in column (2) of the Table below, as mentioned in the corresponding entry in column (3) of the said Table.

[Steel] Clarifications By Standing Committee Constituted Under DMI&SP Policy

The Government had approved a Policy for providing preference to domestically manufactured iron & steel products in government procurement (DMI&SP Policy) and notified the same on 8th May, 2017. The policy has come into force from the date of its publication in the Gazette of India.

Policy for providing preference to Domestically Manufactured Iron and Steel Products (DMI&SP) in Government procurement - click here for (.pdf) gazette copy

The policy mandates to provide preference to Domestically Manufactured Iron & Steel Products (DMI&SP), in Government Procurement in which a minimum value addition of 15% have taken place domestically. Each Ministry or Department of Government and all agencies/entities under their administrative control will be under the purview of the DMI&SP policy.

The policy is applicable to supply of iron & steel products having aggregated estimate value of INR 50 Crores or more. The policy has provisions for waivers to all such procurements, where specific grades of steel are not manufactured in the country, or the quantities as per the demand of the project cannot be met through domestic sources.

[DGFT] Supply Of Essential Commodities To Republic Of Maldives During 2017-18

Directorate General of Foreign Trade, in its Notification No. 12/2015-2020 dated the 27th June 2017, has specified the quantities allowed for supply of some essential commodities to the Republic of Maldives during 2017-18. The contents of the said notification is as under:

"In exercise of the powers conferred by Section 3 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2015-2020, the Central Government hereby allow the following quantities of potato, onion, rice, wheat flour and sugar for export to the Republic of Maldives under bilateral trade agreement between Government of India and Government of Maldives during the period 2017-18:
Supply Of Essential Commodities To Republic Of Maldives During 2017-18

2. Export of the above items shall be exempted from any existing or future restriction / prohibition during the period 2017-18 to the Republic of Maldives.

[RBI] Data On ECB / FCCB / RDB For May 2017

The Reserve Bank of India has today(27-Jun-2017) released the data on External Commercial Borrowings (ECB), Foreign Currency Convertible Bonds (FCCB) and Rupee Denominated Bonds (RDB) both, through Automatic Route and Approval Route, for the month of May 2017.

The said Data is available for access/download here  - click here

India Signs Loan Agreement with the World Bank for USD 35 Million for “Assam State Public Financial Institutional Reforms Project”

An agreement for IBRD Credit of USD 35 Million from World Bank for “Assam State Public Financial Institutional Reforms Project” was signed today(27-Jun-2017) at New Delhi. (Source: PIB)

The agreement was signed by Shri Raj Kumar, Joint Secretary (MI), Department of Economic Affairs on behalf of the Government of India and Mr. John Blomquist, Acting Country Director, World Bank (India) on behalf of the World Bank.

The Implementing Entity Agreement was signed by Additional Chief Secretary (Finance), Department of Finance, on behalf of Government of Assam, and the Country Director (India) on behalf of the World Bank. The programme size is USD 44 million, of which USD 35 million will be financed by the Bank, and the remaining amount will be funded out of State Budget.

[RBI] Monitoring Of Foreign Investment Under PIS In Indian Companies – Incorporation In Caution List – M/s AU Small Finance Bank Ltd

The Reserve Bank of India, in its press release # 2016-2017/3488 dated 27th June, 2017, has notified that M/s AU Small Finance Bank Ltd. (earlier known as M/s AU Financiers (India) Ltd.) is in the process of listing its equity shares by way of an Initial Public Offering (IPO). Reserve Bank has further notified as follows:

a. The company has passed the necessary resolutions at the Board of Director’s level and also of special resolution by its General Body for increasing the Foreign Institutional Investors (FIIs)/ Foreign Portfolios Investors (FPIs) investment limit under Portfolio Investment Scheme up to 49% of the paid up capital of the company.

b. The total foreign investment from all sources i.e. Global Depository Receipts (GDRs)/American Depository Receipt (ADR)/ Foreign Direct Investment (FDI)/ Foreign Institutional Investors (FIIs)/ Foreign Portfolios Investors (FPIs)/ Non Resident Indian (NRI)/Persons of Indian Origin (PIO) in the company shall not exceed 49% under Portfolio Investment Scheme(PIS).

[SEBI] Review Of Offer for Sale (OFS) Of Shares Through Stock Exchange Mechanism

Securities Law Updates (Country: India)

SEBI, in its circular no. CIR/MRD/DP/ 65 /2017 dated June 27, 2017 addressed to all the Stock Exchanges, has modified some of the existing provisions with respect to restriction on sale of shares by promoters post OFS. The contents of the said circular is as under:

1. Comprehensive guidelines on Offer for Sale of Shares through stock exchange mechanism were issued vide circular no CIR/MRD/DP/18/2012 dated July 18, 2012. These guidelines have been modified from time to time based on the representation/suggestion received from various stakeholders.

2. Based on the representation received and in order to further streamline the process of OFS with an objective to encourage greater participation by employees, the existing provision with respect to restriction on sale of shares by promoters post OFS is modified as follows:

[DGFT] Amendment In Export Policy Of Muli Bamboo & Export Policy For Bamboo Products

Directorate General of Foreign Trade (DGFT), has issued a notification no. 11/2015-2020 dated 23rd June, 2017 regarding amendment in export policy of Muli Bamboo and export policy for bamboo products. The contents of the said notification is as follows:

In exercise of the powers conferred by Section 3 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992), as amended, read with Para 1.02 of the Foreign Trade Policy, 2015-20, the Central Government hereby makes the following amendments, with immediate effect, in Chapter 14 of Schedule 2 of ITC(HS) Classification of Export & Import Items, as amended from time to time :

A. The existing entries against SI. No. 90, Chapter 14 of Schedule 2 of ITC(HS) Classification, shall be substituted as follows:

Postponement Of Provision Relating To TDS (Section 51) & TCS ( Section 52) Of CGST / SGST Act 2017

Taxation Laws (Country: India)

With the objective of ensuring smooth rollout of GST and taking into account the feedback received from the trade and industry regarding the provisions of deduction of tax at Source under Section 51 of the CGST / SGST Act 2017 and collection of tax at source under Section 52 of the CGST / SGST Act 2017, the following has been decided :-

1. The provisions of Tax Deduction at Source (Section 51 of the CGST / SGST Act 2017) and Tax Collection at Source (Section 52 of the CGST/SGST Act, 2017) will be brought into force from a date which will be communicated later.

2. Persons who will be liable to deduct or collect tax at source will be required to take registration, but the liability to deduct or collect tax will arise from the date the respective sections are brought in force.