Government may merge 27 PSU banks

The Banks Board Bureau (BBB), which will independently oversee consolidation.
It is not feasible to bring down the government’s share in state-owned banks below 51%, consolidation to create strong banks is the only survival option.
PSB hold more than two-thirds of assets in India’s banking industry. They hold about 85 percent of non-performing loans also.

The likely list of public sector bank with anchor bank ( with which other banks will get merged) is shown below.

1. State Bank of India ( Anchor Bank)

State Bank of Hyderabad
State Bank of Patiala
State Bank of Travancore
State Bank of Bikaner & Jaipur
State Bank of Mysore

2. Punjab National Bank (Anchor Bank)

Oriental Bank of Commerce
Allahabad Bank
Corporation Bank
Indian Bank

3. Canara Bank (Anchor Bank)

Syndicate Bank
Indian Overseas Bank
UCO Bank

4. Union Bank Of India (Anchor Bank)

IDBI Bank Ltd
Central Bank of India
Dena Bank

5. Bank of India (Anchor Bank)

Andhra Bank
Bank of Maharashtra
Vijaya Bank

6. Bank of Baroda (Anchor Bank)

United Bank of India
Punjab & Sind Bank
Bhartiya Mahila Bank

Interest rates rates for small savings schemes slashed

The government slashed interest rates small savings schemes,

Schemes old rates % New rates %
1.PPF                                                 8.7       to       8.1
2.NSC                                                8.5       to       8.1
3.KVP                                                 8.7      to       7.8
4.Senior Citizen Savings Scheme     9.3      to       8.6
5.Sukanya Samriddhi Yojana,            9.2      to       8.6

This aims to move towards market-linked rates for small savings schemes,

This will help banks to move for lower interest rate regime and allow RBI to reduce repo rate.

Indirect Tax Dispute Resolution Scheme, 2016

1.The scheme aims to reduce the pending litigations before the first appellate authority (Commissioner Appeals). The scheme is applicable in respect of dispute with respect to Customs Act, 1962, Central Excise Act, 1944 & Finance Act, 1994 (Service TAX).

2. It aims at disposing of the pending appeals and the declarant shall get immunity from all the proceedings under the Act, in respect of indirect tax dispute.

3. It will come into force w.e.f. 01.06.2016 and the person desirous of applying under the said scheme shall apply by 31.12.2016.

4. The declarant thereafter shall pay tax due along with the interest and penalty equivalent to 25% of the penalty imposed in the impugned order within 15 days of the receipt of acknowledgment. The declarant shall intimate the payment details within 7 seven days of making the payment along with the proof of payment.

5. Once theorder is passed by the designated authority, the appeal pending before the Commissioner (Appeal) shall stand disposed
6. The order so passed by the designated authority shall result in conclusion of proceedings
7. Moreover, the amount paid under such declaration shall not be allowed to be refunded. However, the said scheme cannot be availed by the following assessee’s:

7.1 If the order is in respect of search and seizure proceedings

7.2. If the order is in respect of prosecution instituted before 01.06.2016 for any offence punishable under the Act

7.3. If the order is in respect of narcotic drugs or other prohibited goods

7.4. If the order is in respect of any offence punishable under the Indian Penal Code, the Narcotics Drugs and Psychotropic Substances Act, 1985 of the Prevention of Corruption Act, 1988