- CBDT notifies NBFID under section 10(48D) of Income Tax Act, 1961
Notification number – 31/2022 – Income Tax
Dated – 18.04.2022
In exercise of the powers conferred by clause (48D) of section 10 of the Income-tax Act, 1961 (43 of 1961) the Central Government hereby notifies the National Bank for Financing Infrastructure and Development, established under section 3 of the National Bank for Financing Infrastructure and Development Act, 2021 (17 of 2021), for the purposes of the said clause for a period of ten consecutive assessment years beginning from the assessment year 2022-2023.
- RBI permit banks to reckon Govt securities as Level 1 HQLA under FALLCR
Circular number – RBI/2022-23/25 DOR.LRG.REC.19/21.04.098/2022-23
Dated – 18.04.2022
In terms of the circular on Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR), the assets allowed as Level 1 High Quality Liquid Assets (HQLAs) for the purpose of computing the LCR, inter alia, include (a) Government securities in excess of the mandatory SLR requirement and (b) within the mandatory SLR requirement, Government securities to the extent allowed under (i) Marginal Standing Facility (MSF) and (ii) Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) [15 per cent of the banks’ Net Demand and Time Liabilities (NDTL)].
Since MSF has been reduced to 2 per cent from 3 per cent of NDTL from January 1, 2022, the total HQLA carve out from the mandatory SLR, which can be reckoned for meeting LCR requirement, has reduced to 17 per cent of NDTL (2 per cent MSF plus 15 per cent FALLCR) from 18 percent.
On a review, it has been decided to permit banks to reckon Government securities as Level 1 HQLA under FALLCR within the mandatory SLR requirement up to 16 per cent of their NDTL. Accordingly, the total HQLA carve out from the mandatory SLR, which can be reckoned for meeting LCR requirement will be 18 per cent of NDTL (2 per cent MSF plus 16 per cent FALLCR).
Applicability:
This circular is applicable to all Commercial Banks other than Regional Rural Banks, Local Area Banks and Payments Banks. These instructions shall come into force with immediate effect.
- Guidelines for Members of CMA Institute on Responding to any Tender
Notification number – CWA/1/2017
Dated – 18.04.2022
In exercise of the powers conferred on it under clause (1) of Part II of the Second Schedule of the Cost and Works Accountants Act, 1959, the Council of the Institute of Cost Accountants of India hereby issues the following guidelines for compliance by the members of the Institute:
- A member of the Institute in practice shall not respond to any tender issued by an organization or user of professional services in areas of services such as audit and attestation services which are exclusively reserved for Cost Accountants by a statute. However, such restriction shall not be applicable where minimum fee of the assignment is prescribed in the tender document itself or where the areas are open to other professionals along with the Cost Accountants.
- These Guidelines shall come into force on the date of publication in the Gazette of India.
- Disclosures in Financial Statements- Notes to Accounts of NBFCs
Notification number – CWA/1/2017
Dated – 19.04.2022
Non-Banking Finance Companies (NBFCs) are required to make disclosures in their financial statements in accordance with existing prudential guidelines, applicable accounting standards, laws, and regulations. The additional disclosure requirements for NBFCs in accordance with the SBR framework. These disclosures are in addition to and not in substitution of the disclosure requirements specified under other laws, regulations, or accounting and financial reporting standards. More comprehensive disclosures than the minimum required are encouraged, especially if such disclosures significantly aid in the understanding of the financial position and performance.
Applicability:
This circular is applicable to all NBFCs. The Annex specifies the applicability of specific disclosure requirements to specific NBFC layers as per Scale Based Regulation. It may be noted that disclosure requirements applicable to lower layers of NBFCs will be applicable to NBFCs in higher layers. These guidelines shall be effective for annual financial statements for year ending March 31, 2023, and onwards.