The Tribune, Chandigarh, India

	Cobrapost expose: Action against more banks likely, says RBI Chennai, July 4 The RBI today said it will take action against some more banks for alleged violation of regulatory norms following an expose by a news portal. "Well, we have taken action against specific banks. Action against some more specific banks is in process. We will take a final view on that," RBI Governor D Subbarao told reporters after the board meeting here. "And after this specific action is completed, we have to take a systemic view about how to rectify some of the deficiencies that we have identified," he said. "I don't think it is a problem with the laws of the country. I think it is a problem with enforcing the rules that are already on the rule book," he said. "So, the first thing we must be doing is to ensure that the regulations that are there on the book are implemented," he added. Last month, a penalty of Rs 5 crore has been imposed on Axis Bank, Rs 4.5 crore on HDFC Bank and Rs 1 crore on ICICI Bank after enquiring into charges levelled by a online portal Cobrapost. The penalty followed scrutiny carried out by RBI of books of accounts, internal control, compliance systems and processes of these three banks at their corporate offices and some branches during March/April 2013. In its second round of expose, the portal in May had accused 23 public and private sector banks and insurance companies of "running a nation-wide money laundering racket." Those named in the expose include SBI, LIC, PNB, Bank of Baroda, Canara Bank, Yes Bank, Reliance Life, Tata AIA, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Dena Bank, Corporation Bank, Allahabad Bank, Central Bank of India, Dhanlaxmi Bank, Federal Bank, DCB Bank and Birla Sun Life. Cobrapost alleged that the financial sector entities offered to open bank accounts and lockers for customers without following Know Your Customer (KYC) norms, convert their black money into white and obtain fictitious PAN cards. On fake notes, RBI Deputy Governor K C Chakrabarty said counterfeit currency situtation has not deteriorated so far but remains a problem. "If you see Governor's policy statement, we are encouraging the Banks to identify and help us to detect. Partly, this problem is a national problem. We are also working with the security agencies to stop this menace," Chakrabarty said. "But what do we encourage and what we request the media that you must save the people. Whenever they are in possession of a fake note, they must surrender it to the nearest bank. We will be able to tackle that problem, much more in a competent matter," he added. — PTI
	Chidambaram plans to place DTC Bill in monsoon session New Delhi, July 4 The government plans to introduce a Bill for a Direct Taxes Code (DTC) during the forthcoming monsoon session of Parliament, Finance Minister P Chidambaram has said. The code, which will replace the existing Income Tax Act 1961, aims to rationalise tax rates to bring more people and companies under the tax net. "It (modified draft of Direct Taxes Code) will be ready in a day or two. Then we will take it to the Law Ministry and do the drafting. Once the drafting is done, we will take the note to the Cabinet and the official amendments to the Direct Taxes Act, 2010, I hope to place it in the monsoon session," he said. The month-long monsoon session of Parliament is expected to start later this month. The minister said there are three versions to the DTC Bill - the DTC 2009 version, DTC 2010 Bill and the Standing Committee report — and he would endeavour to reconcile them. "We have to reconcile all three as far as possible and I have an obligation to adhere, as far as possible, to the recommendations of the Standing Committee," Chidambaram said. The DTC Bill was introduced in Parliament in 2010 and was referred to the Standing Committee on Finance headed by senior BJP leader Yashwant Sinha. Among other things, the Committee had suggested raising the income tax exemption limit to Rs 3 lakh as against Rs 2 lakh proposed in the DTC Bill, 2010.The Income Tax Act was enacted in 1961. The first draft prepared by Chidambaram in 2009 had proposed a income tax slab from Rs 1.6-10 lakh, Rs 10-25 lakh and Rs 25 lakh and above. Besides, the corporate tax was proposed at 25 per cent. This was followed by the draft Direct Taxes Code Bill prepared by the then Finance Minister Pranab Mukherjee in 2010 which proposed the slabs at Rs 2-5 lakh, Rs 5-10 lakh and Rs 10 lakh and above. Here the corporate tax was proposed at 30 per cent. The Standing Committee in its recommendation suggested the slabs in the brackets of Rs 3-10 lakh, Rs 10-20 lakh and Rs 20 lakh and above. On corporate tax, it recommended that the rate be retained at 30 per cent. The current rates for income tax would continue at 10, 20 and 30 per cent, respectively. — PTI direct taxes code The Direct Taxes Code, which will replace the existing Income Tax Act 1961, aims to rationalise tax rates to bring more people and companies under the tax net. The month-long monsoon session of Parliament is expected to start later this month.
	EPFO launches transfer claim form for online transactions New Delhi, July 4 Taking the first step towards launch of online PF transfer claim facilities, retirement fund body EPFO today unveiled the revised transfer claim form for the purpose. The launch of full-fledged service of online transfer of provident fund transfer claims would take more than a month, EPFO's Central Provident Fund Commissioner KK Jalan said. The revised transfer claim form, which could be used online as well as manually, was unveiled by the Labour and Employment Minister Sis Ram Ola. According to Jalan, the full-fledged service of online transfer of PF accounts on changing jobs would be possible only after employers' have digital signatures for the purpose. This is estimated to cost around Rs 700 for an employer. At present, Employees' Provident Fund Organisation (EPFO) is supposed to settle a transfer of PF claim in 30 days period as per its citizen charter. Through online settlement of claims, the body envisages to do it in three days. On this occasion, the minister said the expectation of EPFO beneficiaries for a timely settlement of claims is a justified one. During 2012-13, 107.62 lakh claims were settled, out of which 88 per cent of claims were processed within the prescribed 30 days as per the body's citizen charter. EPFO is expecting 1.2 crore claims in the current fiscal. The Labour Minister directed that all efforts should be made to not only settle the claims within the time, but also to reduce the time taken in settlement of claims. The revised form will be called 'Transfer Claim Form' instead of Form 13 for easy comprehension by beneficiaries. — PTI
	RBI should cut policy rate by 1% this fiscal, says CII Bangalore, July 4 Stressing on the need to revive the economy and push investment, industry body CII today said RBI should cut key policy rate by 1 percentage point in this financial year. It said that increased investment and consumption demand were key ingredients for the revival of the economy. "It is important to lift the economy from the current level. One crucial ingredient for the growth to kick start is investment and consumption demand. I strongly believe that RBI needs to work in tandem with the government in boosting growth by reducing interest rate by 100 bps in the current fiscal year," CII president S Gopalakrishnan said. He also suggested reviving stalled projects to facilitate higher overall investments. "CCI (Cabinet Committee on Investment) should clear at least top 50 stalled projects and go for their revival in the next 60 days," he told reporters here. Stressing on the need to improve investors confidence, he said, "government efforts on fiscal consolidation and economic reforms must continue for this to happen." "There is also a need to consider raising FDI caps in critical sectors such as Defence and Telecom. Also fast tracking of multi-brand retail is needed," he added. Expressing concerns over the slowdown in the manufacturing sector, he said, "there is need to align manufacturing plans at national and state level and implement national manufacturing policy, including setting up of National Investment and Manufacturing Zones." Commenting on the food security bill, Gopalakrishnan said, "CII is in support of food security Bill, but things such as distribution pattern, identification of beneficiaries has to be looked into." "What also needs to be seen is the impact of the bill on agriculture and agriculture productivity and also on the country's fiscal and current account deficit." On developments in the infrastructure sector, he said "while PPP (Public Private Partnership) in infrastructure has been a success story to an extent, there is over lasting feeling that PPP is at cross roads." There is need to set up an independent PPP commission with authority and jurisdiction to renegotiate terms of contract, he added. — PTI
	Odisha completes land acquisition for Posco Paradip/Bhubaneswar, July 4 Land acquisition for the South Korean steel major Posco's proposed steel plant near Paradip was completed today with the Odisha Government demolishing 25 more betel vines at Gobindpur village, official sources said. "We have acquired 2,700 acres of land for Posco's first phase of 8mtpa capacity steel mill. The local administration acquired 700 acres of land during this last phase. The acquired land will be handed over to the state owned Industrial Infrastructure Development Corporation (IDCO) soon," said Jagatsinghpur district collector SK Mallick. Admitting that there was opposition from a section of people during land acquisition, Mallick said the government has distributed Rs 6.72 crore among the beneficiaries. A total of 488 betel vines were demolished and their land acquired from Gobindpur village during the last phase. The land acquisition for Posco project was completed in five different phases spanning over two years, the district collector said rejecting allegation of use of force for the exercise. "We have acquired land from the people who agreed for it," he said. — PTI