Page 10 - Banking Finance August 2024

RBI CORNER

Reserve Bank

Centre's net direct tax col- nance standards, risk management The central bank has issued 'Regula-
practices and compliance culture. tion of Foreign Trade under Foreign
lection grows 21% so far
As part of the Reserve Bank's continu- Exchange Management Act (FEMA),
in FY25 ous engagement with the senior man- 1999 - Draft Regulations and Direc-
The Central government has so far this agement of its regulated entities, Das tions' in this regard.
year collected Rs.4.62 trillion in direct held meetings with the managing di- As per the draft, every exporter should
taxes after adjusting for refunds, mark- rectors (MDs) and chief executive of- furnish to the specified authority a
ing a 20.99% growth annually, the ficers (CEOs) of public sector banks and declaration specifying the amount rep-
Central Board of Direct Taxes (CBDT) select private banks. resenting the full export value of the
said recent quoting provisional figures. goods or services.
The governor in his opening remarks
This includes corporate taxes of Rs. 1.8 noted the continued improvement in
trillion and personal income tax of Rs. RBI to link UPI, Asean pay-
banks' asset quality, loan provisioning,
2.81 trillion. The personal income tax capital adequacy, and profitability, the ment systems
figure includes proceeds from securi- RBI said in a statement.
ties transaction tax (STT). RBI has joined Project Nexus, an initia-
"While acknowledging the higher resil- tive to enable instant cross-border re-
The Centre had collected Rs. 3.82 tril-
ience and strength of the banking sector, tail payments by linking domestic Fast
lion in net direct taxes in the compa- Payment Systems.
rable period of the last financial year. he highlighted the importance of further
strengthening the governance standards, Nexus will initially interlink India's UPI
The latest figures include the first in-
risk management practices and compli- to the FPS of Malaysia, the Philippines,
stalment of advance tax collections, ance culture in banks," Das said. Singapore, and Thailand by next year.
for which the due date was 15 June.
Indonesia is set to join the platform in
The government has in the interim RBI proposes rationalising the future.
budget for FY25 projected a revenue "In my view, the greatest advantage of
of Rs. 10.4 trillion from corporate tax norms on foreign trade
Project Nexus will be to make cross-bor-
and a revenue of Rs. 11.56 trillion from transactions der payments much faster and less costly.
personal income tax.
The RBI proposed rationalising regula- This is a precursor to greater interna-
tions that cover export and import tional cooperation among countries to
RBI aks banks to streng-
transactions with an aim to promote enable faster cross-border remittances
then governance ease of doing business and empower at a lower cost," said RBI governor
RBI governor Shaktikanta Das asked banks to provide more efficient service Shaktikanta Das at the signing of the
banks to further strengthen the gover- to their foreign exchange customers. agreement.

BANKING FINANCE | AUGUST | 2024 | 9