Page 15 - Banking Finance December 2023

ROUNDUP

manufacturers like Tesla Inc. into the is anticipated to reach Rs 1.50 lakh tified goods. To promote organic prod-
constantly expanding market. Under crore this fiscal year, GeM CEO P K ucts, NCOL was founded as a multi-
the new EV policy, manufacturers may Singh told reporters in this location. state cooperative at the federal level.
be able to import fully-built (CBU) elec- Its goal is to increase produce returns
According to him, states and central
tric vehicles into India at a tax rate of while providing direct market access
ministries including coal, power, de-
15% as opposed to the current 100% fense, and finance, as well as Central to organic farmer and producer orga-
for cars that cost more than $40,000 Public Sector Enterprises (CPSEs) like nizations.
(INR 33.29 lakh). Coal India, NTPC Ltd., and ONGC, were

The tax break may enable the Ameri- the top purchasers of services. Credit bureaus must pay
can company, which is presently devel- With over 62 lakh sellers and service Rs. 100 every day for late
oping its entry into the Indian market, providers offering a vast array of goods updates.
to test-market its goods before making and services, GeM has over 63,000
a major commitment. government buyer organizations. A framework has been put in place by
Only if automakers consent to begin At the moment, this portal can be used the RBI that mandates compensation
of about Rs 100 per day to banks and
producing their goods in India shortly, for transactions by state governments, credit information companies (credit
pledge to begin sourcing parts locally, federal agencies, public sector organi- bureaus) for any delays in updating a
and offer bank guarantees for any zations, and central armed police borrower's credit report.
shortcomings in their pledges will the forces.
tax be reduced. Additionally, credit bureaus are man-
The portal offers a huge selection of dated to notify borrowers via email
"The government will also take guar- goods, ranging from cars to office sup- and SMS whenever a lender accesses
antees from the companies towards plies. Among the main product catego- their credit report. Lenders have also
creating an ecosystem for suppliers, ries are computers, office furniture, been directed to notify borrowers
with around 20% of parts being sourced and automobiles. when their payments are past due.
locally in the first two years which
would go up to 40% by the fourth Home Minster launches Lenders will now have to appoint nodal
year," stated an individual with knowl- officers to handle consumer complaints
edge of the change. "Bharat Organics," a coop- with credit bureaus. Credit institutions
are required to perform root cause
erative brand. analysis (RCA) of customer grievances
The GeM portal's public
The newly established National Coop- at least twice a year, according to the
service purchase could erative Organics Ltd (NCOL) has RBI. They should also use data rejected

reach Rs. 1.5 trillion. launched organic food products under by CICs and the CIC-provided data qual-
the brand name "Bharat Organics." ity index (DQI) as sources for informa-
Due to an increase in purchasing ac- Union Home and Cooperation Minister tion when conducting root cause analy-
tivities by various ministries and de- Amit Shah claims that this initiative will sis (RCA).
partments, it is anticipated that ser- be the nation's "biggest undertaking"
vices purchased through the govern- over the next five years and that it will Following the meeting of the monetary
ment portal GeM will reach a total of also become the "most trusted and policy committee, the RBI decided in
Rs 1.5 trillion during this fiscal year, biggest brand" in the global organic April to put in place a compensation
according to a senior official. framework, and this announcement
product market in the years to come. was made public. ""With the rise in
On August 9, 2016, the Government e- In order to guarantee the market's customer complaints regarding credit
Market (GeM) portal went live, en- accessibility to certified organic prod- information reporting and the func-
abling all central government minis- ucts, Shah stated that by the following tioning of credit information companies
tries and departments to make online year, 439 laboratories would be estab- (CICs), a comprehensive framework
purchases of goods and services. lished nationwide, offering "great con- has been established to strengthen
"In 2019-20, services procurement venience to the farmers in getting and enhance the effectiveness of the
brought in just Rs 3,069 crore; by 2022- their products certified" as well as to grievance redress mechanism and cus-
23, it had grown to Rs 65,957 crore. It NCOL in the process of buying the cer- tomer service provided by credit insti-

14 | 2023 | DECEMBER | BANKING FINANCE