Page 13 - Banking Finance June 2023

ROUNDUP

wishful thinking by western news agen- The list on which services from Ama- crore houses have been sanctioned
cies," an official told news agency ANI. zon, Google, Meta, Instagram and under PMAY-Urban, with more than
Earlier updates had indicated that Microsoft also feature - all have more 1.1 crore houses already grounded and
while talks continued, rules were yet than 45 million monthly active users. 73.45 lakh houses already delivered to
to be formulated for trade in local cur- beneficiaries.
That puts them in a category under a
rencies.
new EU law, known as the Digital Ser-
No bank guarantees using
Meanwhile a Reuters report cited In- vices Act (DSA), imposing measures
dian government officials to say that from August such as annual audits and client funds
Russia was not comfortable holding a duty to effectively counter
The Securities and Exchange Board of
rupees and wanted to be paid in Chi- disinformation and hate content.
India barred stock brokers from pledg-
nese yuan or other currencies.
ing clients' funds with banks.
850-900m Indians to life in
At present, stock brokers and clearing
Govt's fresh drive against
urban areas by 2050: Puri members pledge clients funds with
fake GST registrations Union minister Hardeep Singh Puri said banks which in turn issue bank guaran-
GST authorities have been forced to that India is likely to have 850-900 tees to clearing corporations for higher
launch a special drive against "fake million people living in urban areas by amounts.
2050, pointing out that urbanisation is
registrations" as the menace refuses to "This implicit leverage exposes the
taking place at a fast pace.
die down, with scammers resorting to market and especially the client's funds
new tricks to claim input tax credit The Union housing and urban affairs to risks," Sebi said in a circular.
(ITC) and defraud the exchequer. minister said the challenges for urban The regulator said beginning May 1, no
Officers have been instructed to iden- sectors are changing. new bank guarantees should be cre-
tify those using forged papers to regis- "Urbanisation is taking place at a ated out of clients' funds by stock bro-
ter or claim bogus input tax credit, faster pace. Every minute, 20-30 kers.
deregister them, seek a refund of the people are coming (to urban areas). By All existing bank guarantees created
credit and wherever needed attach 2050, India is likely to see 850-900 out of clients' funds should be wound
their property or bank accounts. Be- million people living in urban spaces," down by September 30, 2023.
sides, those who were in the chain for Puri told reporters on the sidelines of
However, this new framework would
the input tax credit, will also be asked an event.
not be applicable for proprietary funds
to refund them.
He said that a lot of this will happen
of stock brokers in any segment and
A similar exercise had been under- autonomously with private invest- stock brokers proprietary funds depos-
taken in the past, which resulted in not ments, but housing finance assumes ited with clearing member in the ca-
just several fraudsters being removed greater importance. pacity of a client.
from the system but also saw some
He addressed a gathering at the 53rd
large companies face questions as they foundation day of the Housing & Urban TDS coverage doubled in 6
had bought goods or availed of services
Development Corporation Ltd
from them, directly or indirectly. But years
(HUDCO).
the problem persists. In a review meeting with the finance
The minister also stressed that urban
ministry, the Central Board of Direct
schemes such Pradhan Mantri Awas Taxes (CBDT) said that the introduction
19 online sites face stricter
Yojana (PMAY), Swachh Bharat Mission
of new TDS codes, which have almost
EU Rules and Atal Mission for Rejuvenation and doubled from 36 to 65 in eight years,
Urban Transformation (AMRUT) are
The European Union designated 19 has led to an increase in total reported
nearing maturity and all of them are
online platforms, including Instagram, transactions in FY 2021-22 to 144 crore
doing well.
TikTok and Twitter, as having user as compared to the total reported
numbers so big they will come under According to the Union housing and transactions in FY 2015-16 of 70
stricter regulatory rules for content. urban affairs ministry, more than 1.2 crores. This has also increased the
12 | 2023 | JUNE | BANKING FINANCE