Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
Open DEMAT Account with in 24 Hrs and start investing now!
Finance Bill »
Open DEMAT Account in 24 hrs
 Amendments to the Arbitration and Conciliation Bill, 2015
 General Circular 39 dated 14.10.2014:Clarification on matters relating to Consolidated Financial Statement.New
 Financial Scene: Hope beckons in public finance
 Eyeing central bank's support on financial reforms, Government keeps RBI out of FSAT purview
 General Circular 36 dated 17 Sept 2014: Clarification with regard to provisions of Corporate Social Responsibility(CSR) under section 135 of the Companies Act,2013.
 Finance Ministry may pitch for stricter norms for non-performing assets
 Manappuram plans to enter SME, housing finance business
 Finance ministry, RBI work out informal arrangement to avoid open clashes on policy issues
 FM asks Finance Ministry to implement financial reform panel views
 Interim Budget 2006-2007
 Budget 2006-2007
 Full text of the amendments
 Economic Survey 2004-2005
 Highlights - Economic Survey 2004-2005

Eyeing central bank's support on financial reforms, Government keeps RBI out of FSAT purview
October, 09th 2014

The finance ministry has relented on a key recommendation of the Financial Sector Legislative Reforms Commission (FSLRC) as it looks to get Reserve Bank of India governor Raghuram Rajan's backing for big-ticket financial reforms.

The central bank's decisions will not face judicial review by the proposed Financial Sector Appellate Tribunal (FSAT) that is meant to hear all appeals pertaining to the financial sector. The BN Srikrishna-headed FSLRC had recommended that FSAT hear appeals against RBI, pitching it as oversight to "ensure greater scrutiny over the actions of the regulator". This would have meant another layer of scrutiny in addition to that of constitutional courts.

"In the proposed setup, FSAT will not be empowered to undertake judicial review of RBI's regulatory decisions," said a finance ministry official aware of the development. Finance minister Arun Jaitley has endorsed this view.

Guv's support critical

It will also reassure a central bank that has not been enthusiastic about recommendations regarded as eroding its clout.

Rajan has been explicit about his views on the suggestions, particularly in relation to regulatory functions, calling them "schizophrenic" and arguing that implementing them could turn RBI into a "paper tiger". Former central bank governor D Subbarao had also expressed reservations about the FSLRC recommendations.

The governor's support is critical as the finance ministry has begun implementing the FSLRC's recommendations, setting up four task forces last week, indicating that it was ready to press ahead with a broader reforms programme as suggested by the panel.

The task forces will draw up the roadmap for creation of the Public Debt Management Agency, Resolution Corporation and Financial Data Management Centre in line with the new government's intent to pursue aggressive financial sector reforms.

The FSLRC report had been submitted to the previous UPA government but the Modi administration, keen to pursue financial sector reforms, has decided to take forward the commission's recommendations.

"It is essential to strengthen and modernise the legislative regulatory framework," Jaitley had said in his July 10 budget speech. "There are some important recommendations of the Financial Sector Legislative Reforms Commission, like the enactment of the Indian Financial Code, which is considered necessary for better governance and accountability. It will be my endeavour to complete the process of consultations with all the stakeholders expeditiously on this."

Home | About Us | Terms and Conditions | Contact Us
Copyright 2023 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting