sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
General »
 Government likely to withdraw tax notice on free banking services
 Senior Citizens Savings Scheme Rules, 2004
 How salaried individuals can avail full potential of I-T benefits
 The Central Board of Direct Taxes unveiled new Income Tax Return forms for assessment year 2018-19 on 5 April. Although the manner of filing returns remains the same as compared to last year, certain changes have been incorporated in the new ITR forms.
 Income Tax efiling: Must-do steps to file your IT return for FY 2017-18 on time till you get Form 16
 What are the tax filing deadlines for financial year 2017-18?
 How income tax department can penalise you for under-reporting, misreporting income
 Start your tax planning right now
 Government confident of meeting fiscal deficit, tax revenue targets
 Clarification with respect to the E-way Bill System
 Here is how you can save on taxes

Ernst & Young: Making fin inclusion must for new players is problematic
March, 10th 2011

Leading industry expert Ernst & Young (E&Y) today said if the financial inclusion project is to be materialised and sustained, it must be pushed directly by the government, as in the present model it is not only unviable but will also deter prospective new bank licence applicants.

"The Reserve Bank is inviting trouble by insisting on a financial inclusion plan as a mandatory criterion for getting new bank licences," E&Y National Leader (Global Financial Services Ashvin Parekh told PTI here.

"Since the current inclusion model is not a profitable model, this will not only deter prospective licence applicants from seeking licence, but will also create problems for the entire banking industry as banking is a highly inter-related business," he said.

It seems that the Reserve Bank is either not getting the right direction or not sure of its direction when it comes to the inclusion project, if the latest vibes are any indication, he said, adding, "I feel the regulator is on the back foot now."

He further said, "I don't think any private business house will be in a position to make such a huge investment needed for inclusion just because it is mandated."

Parekh, who did not join the RBI committee that wrote the draft paper on new bank licences, despite an invitation citing conflict of interest, further said, "if the Centre can give away Rs 6,000 crore by way of capital infusion to the weak public sector banks, why can't it start a mechanism to start the financial inclusion project."

"The government is in a much better position to start this project and then incentivise banks to carry on," he said.

Many of the existing banks do not have the financial wherewithal to take up a long-term projects, as the inclusion project will be a viable business proposal for banks only after a long period, he added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions