Govt incentive to Boost Exports and Housing Sector
- The housing projects under the special window include non-NPA (Non-Performing Assets) and non-NCLT (National Company Law Tribunal) projects.
- Merchandise Exports from India Scheme (MEIS) for textiles will be replaced by the scheme for Remission of Duties or Taxes on Export Product (RoDTEP).
- Textile and all other sectors will transit into RoDTEP from January 1, 2020, which currently enjoy incentives up to 2 per cent over MEIS.
- The Export Credit Guarantee Corporation (ECGC) scope will be expanded to export credit insurance service (ECIS).
RBI allowed Payment Banks to apply for Small finance banks
- The SFB licence to the payments banks will allow them to boost deposits and lend, that is currently capped at Rs 1 lakh per customer.
- The minimum paid-up capital requirement for SFBs is also revised by the RBI from Rs 100 crore to now Rs 200 crore.
- Promoter’s shareholding should be a maximum of 40% by the end of 5 years, and within 10years it should be down to 30% and within 15years it should be down to 15% shareholding.
RBI suggest Federal body like GST council for Farming Sector
- Banks should increase credit for consumption loans to farmers and other allied farm activities up to a sanctioned limit of Rs 1 lakh.
- The centre should complete updation and digitisation of land records in a time-bound manner.
- RBI had set up the 'Internal Working Group’ in February 2019 to understand the reasons for the regional disparity in agricultural credit and suggest measures.
Government Slashed the Corporate Tax Rates
- The tax rates are slashed by following an amendment in the Income-tax Act 1961 and the Finance (No. 2) Act 2019.
- The effective rate for domestic companies with inclusive surcharge and cess shall be 25.17%.
- The effective rate for new domestic companies with inclusive surcharge and cess shall be 17.01%.
- Rs. 1.45 lakh crore is the estimated total revenue foregone for the reduction in corporate tax rate and other relief.
