Here is today’s important banking news to keep you updated and help you prepare for IBPS and other bank exams:
Important Banking News: GST Will Become a Reality Soon: Arun Jaitley
- Finance Minister Arun Jaitley on Thursday hoped that the opposition parties will “see reason” and the Goods and Services Tax (GST), which is held up in Rajya Sabha, will become a reality soon.
- “It (GST) has been supported by most political parties and I am sure others will also see reason and this law will become a reality very soon,” the minister said while inaugurating the two-day India Investment Summit here.
- He said the government is also working on streamlining the direct taxation system.
- “We want to rationalise our direct tax system in order to make it one of the most competitive regimes in the world comparable with what competitive economies elsewhere have,” Mr Jaitley added.
- He further said reform is a continuous process and “there is no finishing line” for that as “it has to go on and on because challenges keep coming up”.
- GST, which will subsume all indirect taxes such as excise duty, service tax and sales tax into one uniform rate, is stalled in the Rajya Sabha as the Congress is pressing for three changes.
- The Congress has stalled the passage of the constitutional amendment Bill, derailing the government’s plan to roll out GST from April 1, 2016.
- The three demands are a cap on the GST rate in the Constitution itself, removal of the proposed 1 per cent additional tax on inter-state movement of goods and setting up a judicial panel to adjudicate disputes among states.
- The budget session of Parliament commences on February 23. While the first part of the session will end on March 16, the second part will be take place from April 25 to May 13.
Important Banking News: RBI not Looking to Reduce Risk-Taking Appetite in Economy: Raghuram Rajan
- The Reserve Bank of India’s move to clean up balance sheets of commercial lenders is not aimed at reducing the risk-taking appetite of company owners, Governor Raghuram Rajan said on Wednesday.
- “We should not in any way reduce risk-taking in the economy,” Rajan said in an interview.
- The central bank has been urging banks to proactively clean up their balance sheets, including accounting for potential stressed assets. Rajan said this exercise is intended to put key stalled projects back on track and was not meant to penalise promoters.
- He also said that the central bank will not stand in the way of revealing the names of defaulters if there was a “public case” for it after the Supreme Court allowed regulators to do so.