The finance ministry has sought from the Reserve Bank of India (RBI) Rs 27,380 crore that was withheld by the central bank <a href="http://www.wionews.com/business-economy/govt-wants-policy-on-how-much-cash-reserve-rbi-should-have-board-member-s-gurumurthy-177590">towards risks and reserves</a> in previous years, sources have said.

The RBI had retained Rs 13,190 crore towards risks and reserves in 2016-17. It increased to Rs 14,190 crore in 2017-18. Together, the&nbsp;retained amount is Rs 27,380 crore.

The ministry has requested the RBI to provide an interim surplus for the current fiscal on the analogy of the previous financial year and transfer the amount withheld from the surplus of 2016-17 and 2017-18, sources said.

Earlier this month, Economic Affairs Secretary Subhash Chandra Garg had said the government expects Rs 28,000 crore from the RBI as interim dividend during the current fiscal.

The RBI, which follows July-June financial year, has already transferred Rs 40,000 crore in the current fiscal.

If the central board of the RBI approves the transfer of Rs 28,000 crore requested by the government as interim dividend for the current fiscal, the total surplus transfer by the central bank would be Rs 68,000 crore in 2018-19.

According to sources, the government expects Rs 69,000 crore dividend in the next financial year.

The government has projected to mobilise Rs 82,911.56 crore as dividend or surplus from the RBI, nationalised banks and financial institutions during 2019-20.

After making provision for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which the provision is to be made by or under the Act or which are usually provided by bankers, the balance of the profits shall be paid to the central government, as per the RBI Act.

The finance ministry has sought from the Reserve Bank of India (RBI) Rs 27,380 crore that was withheld by the central bank towards risks and reserves in previous years, sources have said.

The finance ministry has sought from the Reserve Bank of India (RBI) Rs 27,380 crore that was withheld by the central bank towards risks and reserves in previous years, sources have said. The RBI had retained Rs 13,190 crore towards risks and reserves in 2016-17. It increased to Rs 14,190 crore in 2017-18. Together, the retained amount is Rs 27,380 crore. The ministry has requested the RBI to provide an interim surplus for the current fiscal on the analogy of the previous financial year and transfer the amount withheld from the surplus of 2016-17 and 2017-18, sources said. Earlier this month, Economic Affairs Secretary Subhash Chandra Garg had said the government expects Rs 28,000 crore from the RBI as interim dividend during the current fiscal. The RBI, which follows July-June financial year, has already transferred Rs 40,000 crore in the current fiscal. If the central board of the RBI approves the transfer of Rs 28,000 crore requested by the government as interim dividend for the current fiscal, the total surplus transfer by the central bank would be Rs 68,000 crore in 2018-19. According to sources, the government expects Rs 69,000 crore dividend in the next financial year. The government has projected to mobilise Rs 82,911.56 crore as dividend or surplus from the RBI, nationalised banks and financial institutions during 2019-20. After making provision for bad and doubtful debts, depreciation in assets, contribution to staff and superannuation fund and for all matters for which the provision is to be made by or under the Act or which are usually provided by bankers, the balance of the profits shall be paid to the central government, as per the RBI Act.

Government asks Reserve Bank of India for Rs 27,380 crore: Sources

India&#39;s Income Tax department has come down strongly upon individuals and firms depositing unusually high amounts of demonetised Rs 500 and Rs 1000 currency in their accounts, issuing notices that ask for the source of the funds. &nbsp;

Hundreds of notices have been issued across the country after banks reported certain cases of &quot;unusual or suspicious volumes of cash deposits&quot; in their accounts, primarily beyond Rs 2.5 lakh, Indian news agency PTI reported.

The notices ask entities for supporting documents, books of accounts and bills to explain the unusual cash deposits, PTI reported.

&quot;If you are assessed to Income Tax, then you shall also file the copy of Income Tax Return of last two years,&quot; an I-T department notice stated.

&quot;The notices are being issued where the department feels the cash deposits made in the demonetised currency is suspect. This is part of the vigil that the taxman has deployed to check instances of tax evasion, money laundering and black money in the wake of the demonetisation of the two high denomination currencies on November 8,&quot; income tax officials told PTI.

They disclosed that notices had been issued in cities and towns across the country under section 133 (6) of the Income Tax Act which deals with the power to call for information.

After Prime Minister Narendra Modi announced the demonitisation of 500 rupee and 1000 rupee notes on November 8, the department has also stepped up vigil against real estate players, bullion traders and suspected hawala operatives to check the illegal use of the scrapped currency and subsequent generation of black money, PTI reported.

The taxman has also deployed checks on cooperative banks. In Mangalore, it found that old currency worth Rs eight crore was exchanged by five societies which had accounts in a cooperative bank in the city.

The department also recently issued notices to hundreds of charitable and religious organisations in the country enjoying tax exemptions to inform them about their cash balances as of November 8.

The notices were issued in order to keep a check on possible &quot;accommodation&quot; of black money in old currency by way of charitable contributions or donations to the organisations.

Old notes can be exchanged or deposited until December 30, after which they will cease to hold any value. A person can exchange Rs 2000 worth of old money for new in a bank. The remaining amount must be deposited.

The amount of money that can be withdrawn from an ATM in a day is Rs 2500 for recalibrated machines. A savings account holder can withdraw up to Rs 24,000 per week from the bank which includes cash withdrawn from ATMs. A current account holder can withdraw upto Rs 50,000 in a week. The only exceptions to this rule are families where weddings are imminent where the withdrawal limits have been increased to Rs 2.5 lakh in a week. 
 
(WION with inputs from PTI)

The I-T department has asked individuals and firms depositing more than Rs 2.5 lakh for the source of their income

India's Income Tax department has come down strongly upon individuals and firms depositing unusually high amounts of demonetised Rs 500 and Rs 1000 currency in their accounts, issuing notices that ask for the source of the funds. Hundreds of notices have been issued across the country after banks reported certain cases of "unusual or suspicious volumes of cash deposits" in their accounts, primarily beyond Rs 2.5 lakh, Indian news agency PTI reported. The notices ask entities for supporting documents, books of accounts and bills to explain the unusual cash deposits, PTI reported. "If you are assessed to Income Tax, then you shall also file the copy of Income Tax Return of last two years," an I-T department notice stated. "The notices are being issued where the department feels the cash deposits made in the demonetised currency is suspect. This is part of the vigil that the taxman has deployed to check instances of tax evasion, money laundering and black money in the wake of the demonetisation of the two high denomination currencies on November 8," income tax officials told PTI. They disclosed that notices had been issued in cities and towns across the country under section 133 (6) of the Income Tax Act which deals with the power to call for information. After Prime Minister Narendra Modi announced the demonitisation of 500 rupee and 1000 rupee notes on November 8, the department has also stepped up vigil against real estate players, bullion traders and suspected hawala operatives to check the illegal use of the scrapped currency and subsequent generation of black money, PTI reported. The taxman has also deployed checks on cooperative banks. In Mangalore, it found that old currency worth Rs eight crore was exchanged by five societies which had accounts in a cooperative bank in the city. The department also recently issued notices to hundreds of charitable and religious organisations in the country enjoying tax exemptions to inform them about their cash balances as of November 8. The notices were issued in order to keep a check on possible "accommodation" of black money in old currency by way of charitable contributions or donations to the organisations. Old notes can be exchanged or deposited until December 30, after which they will cease to hold any value. A person can exchange Rs 2000 worth of old money for new in a bank. The remaining amount must be deposited. The amount of money that can be withdrawn from an ATM in a day is Rs 2500 for recalibrated machines. A savings account holder can withdraw up to Rs 24,000 per week from the bank which includes cash withdrawn from ATMs. A current account holder can withdraw upto Rs 50,000 in a week. The only exceptions to this rule are families where weddings are imminent where the withdrawal limits have been increased to Rs 2.5 lakh in a week. (WION with inputs from PTI)

Demonetisation: Income Tax notices for those depositing large amounts of cash

Facing questions, the Indian government on Wednesday insisted in the Rajya Sabha that the State Bank of India (SBI) had not&nbsp;waived off Rs 7,000 crore loan, including that of industrialist Vijay Mallya, and asserted that such cases are being pursued.

Finance Minister Arun Jaitley referred to the Mallya loan issue as a &quot;terrible legacy&quot; which the National Democratic Alliance (NDA)&nbsp;government had inherited from United Progressive Alliance (UPA).

He gave the clarification after Communist Party of India-Marxist (CPI-M) leader Sitaram Yechury alleged during a discussion on demonetisation that the government was favouring &quot;crocodiles&quot; while &quot;small fishes&quot; were dying. In this context, he alleged that SBI had written off Rs 7,000 crore Non Performing Assets (NPAs).&nbsp;

He named Mallya as one of those whose loans had been written off. &quot;SBI has waived Rs 7,000 crore from their non-performing assets, of loans which are not being returned,&quot; Yechury said. He said a performing asset is where interest has been serviced and non-performing where interest is not serviced but you will still preserve it.

Intervening, Jaitley said, &quot;Written off does not mean waiver.... It does not mean that the loan ceases to be a loan. We will still chase the loan, the entry in the book changes that is from being performing assets, it become a non-performing.&quot; The Finance Minister told the opposition, &quot;there is a little bit of malapropism involved in this. Don&#39;t go by literal meaning write-off, it does not. Write-off does not mean loan waiver. Loan still remains.&quot; He said the government continues to pursue the case.

To this Yechury retorted that the complex explanation ultimately means that &quot;in effect it is something that is not going to be realised&quot; and questioned &quot;whatever&nbsp;you do all these &#39;hera-pheri&#39; (irregularities)...Will the government do the same thing for the farmers?&quot; Jaitley further clarified that the loan (to Mallya) was sanctioned when the present government was not in power, an apparent reference to the previous UPA rule.

&quot;Again this was restructured when another government was in power. This is the only loan for which second restructure was wanted by that government. So we inherited a terrible legacy,&quot; he said.

He reiterated that written off implies that in the accounting book, the performing assets becomes non-performing and that is all. &quot;Otherwise the liability to pay and right to recover still remains,&quot; he said. Around Rs 1,200 crore in dues owed by Vijay Mallya&#39;s collapsed Kingfisher Airlines has been labelled as &quot;write off&quot;&nbsp;in the books of country&#39;s largest lender, the State Bank of India.

(PTI)

Arun Jaitley says there's a distinction between the State Bank of India 'writing off' and 'waiving off' a loan

Facing questions, the Indian government on Wednesday insisted in the Rajya Sabha that the State Bank of India (SBI) had not waived off Rs 7,000 crore loan, including that of industrialist Vijay Mallya, and asserted that such cases are being pursued. Finance Minister Arun Jaitley referred to the Mallya loan issue as a "terrible legacy" which the National Democratic Alliance (NDA) government had inherited from United Progressive Alliance (UPA). He gave the clarification after Communist Party of India-Marxist (CPI-M) leader Sitaram Yechury alleged during a discussion on demonetisation that the government was favouring "crocodiles" while "small fishes" were dying. In this context, he alleged that SBI had written off Rs 7,000 crore Non Performing Assets (NPAs). He named Mallya as one of those whose loans had been written off. "SBI has waived Rs 7,000 crore from their non-performing assets, of loans which are not being returned," Yechury said. He said a performing asset is where interest has been serviced and non-performing where interest is not serviced but you will still preserve it. Intervening, Jaitley said, "Written off does not mean waiver.... It does not mean that the loan ceases to be a loan. We will still chase the loan, the entry in the book changes that is from being performing assets, it become a non-performing." The Finance Minister told the opposition, "there is a little bit of malapropism involved in this. Don't go by literal meaning write-off, it does not. Write-off does not mean loan waiver. Loan still remains." He said the government continues to pursue the case. To this Yechury retorted that the complex explanation ultimately means that "in effect it is something that is not going to be realised" and questioned "whatever you do all these 'hera-pheri' (irregularities)...Will the government do the same thing for the farmers?" Jaitley further clarified that the loan (to Mallya) was sanctioned when the present government was not in power, an apparent reference to the previous UPA rule. "Again this was restructured when another government was in power. This is the only loan for which second restructure was wanted by that government. So we inherited a terrible legacy," he said. He reiterated that written off implies that in the accounting book, the performing assets becomes non-performing and that is all. "Otherwise the liability to pay and right to recover still remains," he said. Around Rs 1,200 crore in dues owed by Vijay Mallya's collapsed Kingfisher Airlines has been labelled as "write off" in the books of country's largest lender, the State Bank of India. (PTI)

Vijay Mallya's $1.7 billion loan not waived off, India's finance minister states

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