EPFO IS IN PLAN TO INCREASE SALARY LIMIT TO ₹21000/-

Government can increase the salary limit for the retirement savings scheme of the Employees Provident Fund Organization (EPFO). The present limit is Rs 15,000. It is being considered to increase limit to Rs 21,000. Where total number of employees is more then 20, the employee and the employer have to contribute their respective shares to the retirement savings scheme of PF. According to the news of The Economic Times, a committee will also be formed to decide on the salary limit in near future.

12% of the basic salary of the employee goes to EPFO. Company / employer also puts the same amount in there PF account. However, out of 12 % of the company portion, 8.33 %  goes to the employee’s pension scheme and 3.67 % to the EPF.

So far changes in salary limit has been incorporated for 8 times. When the scheme was started in 1952, basis salary limit was Rs.500. After that in 1962 it was increased to Rs 1,000 then to Rs 1,600 in 1976, Rs 2,500 in 1985, Rs 3,500 in 1990, Rs 5,000 in 1994, Rs 6,500 in 2001 and Rs 15,000 in 2014. If this time the limit will be increased to Rs 21,000, then 75 lakh more employees will come under EPFO .Presently there are more than 6.8 crore employees registered under EPFO.

Date : 7/1/23 Information from Source.

Annapurna Finance on same path of Bandhan Bank

Bhubaneswar-based company Annapurna Finance has applied for the universal bank licence and set itself on the same path that Bandhan Bank took eight years ago.Reserve Bank of India (RBI) said Annapurna Finance is the only entity who had applied for a universal bank licence in last month ie. December through the on-tap licensing route.If it makes the cut then company will become second microfinance institution to receive a universal bank licence after Bandhan Bank in 2015. This, after Sachin Bansal-backed Chaitanya India Fin Credit fell short in 2022.The journey of Annapurna Finance began in 1990 as a society by the name of People’s Forum. Promoted by Gobinda Chandhra Pattnaik, the forum began operations in the Khurda district of Odisha with an aim to help self-help groups and promote socioeconomic development of surrounding area.

Broadly company is engaged in microfinance lending to women borrowers under self-help groups, joint-liability groups, individual loans, housing loans and MSME loans.Annapurna Finance has strong capitalisation, long track record of the promoters in the microfinance industry and diversified resource profile lend comfort as far as the ability of the company to repay loans is concerned, says credit rating agency CareEdge. In fact, CareEdge has reaffirmed its ‘CARE A’ rating on the company’s Rs 1,312 crore long-term facility and ‘Stable Outlook’, according to a press release dated December 28.

Date :7/1/23  Information from Sources

4 PSU BANKS TO BE PRIVATIZED TILL YEAR END

Recently PMO had also written letter to the Ministry of Finance for acceleration the process of privatization.In order to raise funds and improve the financial health of the state-owned banks,the government aimed to keep stakes in only five PSU banks, and privatize the rest of them.

Indian government has drawn a list of four PSU banks namely, Punjab & Sind Bank, Bank of Maharashtra, UCO Bank and IDBI Bank , which directly or indirectly holds majority stakes and wants to dis-invest equity.

The story of bank mergers and acquisitions is quite old. In recent years, the Indian banking system has seen many mergers and acquisitions. In March 2020, the Union Cabinet had approved the merger of 10 public sector banks into four, paving the way for the largest consolidation among state-owned lenders. 

1) Punjab National Bank took over the Oriental bank of Commerce and the United Bank.
2) Canara Bank took over Syndicate Bank.
3) Union Bank of India took over Andhra Bank and Corporation Bank. 
4) Indian Bank was to be merged with Allahabad Bank.
5) Bank of Baroda got merged with Vijaya Bank and Dena Bank. - 2018
6) State Bank Of India got merged with five associate banks and Bhartiya Mahila Bank. -2017

Date : 16/9/2020 Information: By Sources

SBI ANNOUNCED CUT IN MCLR ON 7TH MAY 2020

State Bank Of India ( SBI ) countries largest lender announce reduction in Margin Cost of fund based Lending Rate (MCLR ) on 7th May 2020. MCLR will be reduced by 15 basis points. One year MCLR will come down to 7.25% from 7.40 % which is effective from 10th May 2020.

With the cut in MCLR Emi of Home loan will be cheaper. MCLR is totally based on bank own cost of fund. If MCLR is linked to home loan it will not bring down your EMI's immediately as MCLR based loan typically have one year resting clause.

SBI has also cut interest rate on retail term deposits by 20 basic points for tenure upto 3 years, effective from 12th May 2020. This is the third cut in FD rate in two months. For senior citizen it has introduced " SBI Wecar Deposit "Under this 30 basic point premium will be paid on retail senior citizen deposits. This scheme is in effect till 30 Sep 2020.

Date :7/5/20  Information from Sources

J. CREW FILES FOR BANKRUPTCY PROTECTION ON MONDAY 4TH MAY 2020

J. CREW Group filed for bankruptcy protection on 4th May 2020 during period of COVID - 19.It is New York based retail cloth chain. It is known for Preppy Clothing. Apparels were worn by Michelle Obama at time of Obama when President of USA. 

Bankruptcy was filed in Virginia Federal Court with approximate $2 billion total debt.

J. Crew has about 13000 employees before April 2020. It is the first High - Profile retailer to seek protection since the spread of corona virus spread across the world. 

Date : 5/5/20  Information from Sources

RBI MAY EXTEND MORATORIUM PERIOD BY ANOTHER 3 MONTHS

By declaring 3.0 lock-down till May 17 by Government of India, Certain relaxation are given on category bases of Red , Orange and Green Zone. Moratorium period is near to end hence RBI is thinking on extending another 3 months period.

The repayment of the loan will be started once moratorium period ends after 3 months. If  RBI consider proposal and give second moratorium period for 3 months it will help people and industries impacted by present situation of Covid-19 in lock-down.

Suggestion for the same came from many PSU and Private sector bank.

Date :5/5/20 Information from Sources.  

THE CKP CO.- OP. BANK LICENCE CANCELLED BY RBI

The CKP Co-Operative Bank's Licence was cancelled by RBI in ongoing lock-down. Depositors are entitled upto Rs 5 lakh post liquidation.

Presently there are approximately 1.25 lakhs Account holders and Approximately 0.11 lakhs Depositors and Investors. The total Net worth is around Rs 230 Cr. Total cumulative amount under Fixed deposit is around Rs 480 Cr.

In 2014 after first Stroke bank Board has tried to improve the financial condition. On March 31,2020 RBI extended permit for another 2 months. But due to some issue on 2nd May 2020 RBI cancelled the Licence.

Date : 3/5/20  Information by Sources.