Page 12 - Banking Finance February 2021

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funding and money laundering. India telecom companies such as Airtel and annual accruals in stock markets through
has been a member of FATF since 2010. Vodafone Idea may not be enthusiastic exchange-traded funds (ETFs)-ESIC does
The clarification came after news of in their purchase. not have the mandate to do so.
KYC requirement on any purchase of The spectrum sale can fetch the Govt eyes DBT for
gold, silver, jewellery, or precious gems government over Rs 3.9 lakh crore at
and stones below Rs 2 lakh in cash was just the reserve price. fertiliser subsidy now
circulated on various platforms. The government came out with the In its bid to disincentivise farmers from
In India, cash transactions above Rs 2 notice inviting applications (NIAs) for excessive use of chemical fertilizers,
lakh are not allowed under Section the auctions, which are happening the government is preparing to move
269ST of the Income-Tax Act, 1961. after five years. However, the on a long considered proposal for
Dealers not receiving cash more than government has skipped the sale of the direct cash transfer of the subsidy
Rs 2 lakh in compliance with the much-coveted 5G airwaves in this amount to farmers' bank accounts.
existing provisions of the I-T Act will not round, auctions for which could though The funds transferred will be used only
be covered under this notification. be announced soon. for buying soil nutrients while two
options are being explored to decide
SEBI to rope in agency to ESIC may invest corpus in the cash subsidy - either by fixing the
trace errant entities equities, MFs, bonds amount per acre/hectare or a
lumpsum amount for all identified
SEBI is looking to rope in an A chunk of the Rs. 91,000 crore corpus beneficiaries on the lines of PM-Kisan
independent agency that will trace that the Employees' State Insurance scheme, official sources said.
accused entities against whom notices Corporation (ESIC) keeps in ultra-safe, The plan to move to DBT will be a
have been issued by the authorities, but low-yielding fixed deposits (FDs) fundamental change in the manner in
and serve summons to them. The work could find its way into stock markets which fertilizer subsidies are
is expected to be carried out by and corporate bonds, with the Union administered in India as funds have been
engaging systems through competent government considering an expansion transferred to manufacturing and
manpower such as ex-servicemen, ex- in its investment scope. retailing companies. Direct payments
police personnel, investigators, The move could open up new to farmers are seen as better to ensure
detectives and alike. investment avenues such as mutual delivery of subsidies to the end-user. The
In a notice issued, the regulator invited funds, corporate bonds, commercial draft report of a panel under Niti Aayog
applications for empanelment of an papers of leading private banks, and member Ramesh Chand had
agency for providing such services. The even equities, two government officials recommended the two options and
scope of the work includes tracing of aware of the plan said on condition of consultations are on to finalise the plan.
accused entity based on records and anonymity. "Once the mechanism is approved, we
addresses provided by the regulator ESIC deducts a portion of salary from will be able to roll it out in three to four
and serving of summons or notices employees earning up to Rs. 21,000 a months. Though authenticating size of
issued by the SEBI''s special courts and month, who are primarily industrial land holdings is challenging, we can
SEBI authorities on behalf of the workers. The money is invested in fixed take the data from PM-Kisan, which
regulator. deposits of public sector banks and has the details of beneficiaries and
bonds of public sector units (PSUs), and their land holdings," said an official.
Govt auctions for the returns are used to provide Currently, farmers are allowed to buy
spectrum from March 1 medical assistance from primary to as much fertilizer as they want at
tertiary care to these staff and their
The government will look to bridge the subsidised rate and its based on a "no
yawning fiscal deficit through sale of families. denying" policy. The government
spectrum that begins from March 1. Unlike the Employees Provident Fund directly pays the subsidy amount to
The sale of airwaves, a total of Organisation (EPFO)-the other social manufacturers or marketing firms.
2,251MHz, is being seen as crucial for security body under the labour ministry Under the new system, the subsidy will
the exchequer even though struggling with a larger corpus investing some of its be credited to farmers.

12 | 2021 | FEBRUARY | BANKING FINANCE