Code of Conduct for Insurance Agents
Code of Conduct for Insurance Agents
The Insurance Regulatory and Development Authority of India (IRDAI) has informed that as per Sec 42(3)(h) of Insurance Act, 1938 amended vide Insurance Laws (Amendment) Act, 2015, an agent who has violated the code of conduct as may be specified by the regulations will be disqualified to act as an Agent.
Therefore, the Authority has notified Guidelines on Appointment of Insurance Agents, 2015 vide IRDA/AGTS/CIR/GLD/046/03/2015 dated 16th March 2015. In terms of the said guidelines, a code of conduct for agents has been prescribed with a view to ensure that the agents act fairly in the process of insurance solicitation and strictly adhere to the terms and conditions to which their appointment is subjected to. As per Clause VIII.1) a) v) of Guidelines on Appointment of Insurance Agents, 2015 the insurance agent has to disclose the scales of commission in respect of insurance products offered for sale, if asked by the prospect.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
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Amendment in Negotiable Instrument Act
The President of India has promulgated the Negotiable Instruments (Amendment) Ordinance, 2015 (No.6 of 2015) on 15th June, 2015. The Ordinance provides for determination of territorial jurisdiction of courts for trying cases relating to offence of dishonour of cheques under Section 138 of the Negotiable Instruments Act, 1881 (NI Act).
The Ordinance has amended the NI Act to, inter-alia, stipulate the follow:
• Filing of cases only in a court within whose local jurisdiction the bank branch of the payee, where the payee delivers the cheque for payment through his account, is situated, except in case of bearer cheques, which are presented to the branch of the drawee bank in that case the local court of that branch would get jurisdiction;
• Providing that where a complaint has been filed against the drawer of a cheque in the court having jurisdiction under the new scheme of jurisdiction, all subsequent complaints arising out of section 138 of the NI Act against the same drawer shall be filed before the same court, irrespective of whether those cheques were presented for payment within the territorial jurisdiction of that court; and
• Providing that if more than one prosecution is filed under section 138 of the NI Act against the same drawer of cheques before different courts, upon the said fact having been brought to the notice of the court, the court shall transfer the case to the court having jurisdiction as per the new scheme of jurisdiction.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
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Proposal for Introducing ‘Interoperable Cash Deposit’ in National Finance Switch (NFS) Gets in Principle Approval from RBI Subject to Certain Conditions
National Payments Corporation of India (NPCI) has informed that it submitted a proposal for introducing “Interoperable Cash Deposit” in National Finance Switch (NFS) and has received in principle approval from Reserve Bank of India (RBI) subject to certain conditions. The proposed service inter-alia has the facility of participating NFS member banks to deposit cash in other bank’s Cash Deposit Machines (CDMs) with cash deposit limit of Rs. 46, 999/- per transaction.
Under Aadhaar Enable Payment System (AEPS), banks are providing Aadhaar Enabled and Inter-operable Micro ATMs to their Business Correspondents which are capable of doing payment services for other banks. NPCI has informed that post final approval from RBI, the pilot launch will be done within three months of such approval.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
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IRDA Norms: Authority Comes out with Revised Second Exposure Draft on 29.05.2015 That does not Mandate Percentage Limits for Banks to Sell Products of Insurance Companies
The Insurance Regulatory and Development Authority of India (IRDAI) has informed that the Insurance Laws (Amendment) Act, 2015 defines corporate agents as an insurance intermediary under section 2(1) (f) of the IRDAI Act, 1999. This necessitated the Authority to come out with new set of regulations for corporate agents and accordingly IRDAI had come out with an exposure draft on 31st March, 2015 for seeking comments of various stakeholders. Based on examination of the responses/concerns of various stakeholders, the Authority has come out with a revised second exposure draft on 29.05.2015. This exposure draft does not mandate percentage limits for banks to sell products of insurance companies.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
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Introduction of Prepaid Payment Instruments for Mas Transit System
Reserve Bank of India (RBI) vide its circular dated 9th July, 2015 introduced a new category of semi-closed Prepaid Payment Instrument (PPI) with the following features:
· The semi-closed PPIs will be issued by the mass transit system operator (PPI-MTS) after authorization under the Payment and Settlement Systems Act, 2007 to issue and operate such semi-closed PPIs;
· The PPI-MTS will necessarily contain the Automated Fare Collection application related to the transit service to qualify as PPI-MTS;
· Apart from the mass transit system, such PPI-MTS can be used only at other merchants whose activities are allied to or are carried on within the premises of the transit system;
· The PPI-MTS issuer will ensure on-boarding of merchants (only those permissible as under (iii) above) following due procedure applicable to any other PPI issuer;
· The PPI-MTS will have minimum validity of six months from the date of issue;
· The issuer may decide upon the desired level of KYC, if any, for such PPIs;
· The PPI-MTS issued may be reloadable in nature and at no point of time the value/balance n PPI can exceed the limit of Rs. 2000/-;
· No cash-out or refund will be permitted from these PPIs;
· Funds transfer under the Domestic Money Transfer (DMT) guidelines will also not be applicable to these PPIs;
· All other extant guidelines for escrow arrangement, customer grievance redressal mechanism, agent/merchant due diligence, reporting and MIS requirements etc applicable to issue of PPIs would continue to be applicable in respect of PPI-MTS.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
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Task Force on Financial Redressal Agency
The Government has set up a Task Force on Financial Redress Agency (FRA), as recommended by the Financial Sector Legislative Reforms Commission (FSLRC), on June 5, 2015, with the following Terms of Reference:
Review the international best practices in consumer grievance redress, including ombudsmen and other dispute resolution mechanisms, with a focus on the financial sector.
• Review the present practices of management of financial consumer redress in India.
• Support the Ministry of Finance in procuring the services of competent consultant(s) to operationalise the FRA.
• Guide and monitor the consultant(s) in order to develop the design, business model, funding, financial controls, risk management plan, administrative plan, process manuals, information technology system and accountability and reporting mechanisms, etc.
• The Task Force will complete its task within one year.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
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Gold Deposit Scheme (GDS): Salient Features Include-All Designated Banks can Operate GDS as per Guidelines Issued by RBI; Banks Issue a Passbook/Certificate to Depositor; Resident Indians Can Invest etc.
The Central Government, with a view to bring privately held stock of gold in circulation, to reduce the country’s reliance on import of gold and to provide its owners with some income apart from freeing them from the problems of storage, movement and security of gold in their possession, had notified the Gold Deposit Scheme (GDS) on September 15, 1999. Some of the salient features of the scheme inter-alia include the following:
· All designated banks may operate GDS as per the Guidelines issued by the Reserve Bank of India (RBI).
· Gold (bars, coins, jewellery etc) is accepted in scrap form only.
· Resident Indians may invest in GDS.
· The banks issue a passbook or certificate for deposit of gold to the depositor.
· The Gold Certificate is repaid in gold. Such repayment may also be made in rupee equivalent to the price of gold as on the date of maturity at the option of the subscriber.
· Premature payment, either in the form of gold or in cash equivalent to the price of gold on the date of encashment is allowed after the initial lock-in period.
· Individual banks are free to fix the interest rates.
· The maturity period of gold deposits range from six months to seven years.
· The interest earned is exempt from Income Tax, Wealth Tax and Capital Gains Tax.
The Government has no proposal to limit deposits under the proposed GDS to 100 grams.
The gold garnered through GDS is mobilized as gold loans to domestic jewellery industry. GDS aims to reduce the country’s reliance on import of gold and curb the Current Account Deficit.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
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Reduction in Customs Duty
Recognizing the need to encourage the growth of Indian tonnage, the Government has exempted Customs and Excise Duty leviable on bunker fuels, namely IFO 180 CST and IFO 380 CST used in Indian flag vessels for transportation of EXIM and empty containers between two or more ports in India vide notifications No. 31/2014-Customs and No.21/2014-Cetnral Excise, both dated 11.11.2014. the estimated revenue implication of the aforesaid exemptions is Rs. 57 crore in full year.
At present the Government has no proposal under consideration to review existing customs duty rules with regarded to bringing/wearing gold by air passengers coming from foreign country to India.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
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posed the creation of a Senior Citizen Welfare Fund through use of certain unclaimed amounts under various specified schemes.
The Senior Citizens Welfare Fund Act has been passed along with the Finance Act, 2015. The scheme Rules for Senior Citizen Welfare Fund are under preparation.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.
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Change in Tariff Value of Gold Notified
In
exercise of the powers conferred by sub-section (2) of section 14 of the
Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs,
being satisfied that it is necessary and expedient so to do, hereby makes the
following amendment in the notification of the Government of India in the
Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated
the 3rd August, 2001, published in the Gazette of India,
Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E),
dated the 3rd August, 2001, namely:-
In the said notification, for TABLE-1,
TABLE-2, and TABLE-3 the following Tables shall be
substituted namely:-
TABLE-1
|
Sl. No.
|
Chapter/
heading/ sub-heading/tariff item
|
Description of goods
|
Tariff value US $
(Per Metric Tonne)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
|
1
|
1511 10
00
|
Crude Palm Oil
|
650 (i.e. no change)
|
|
2
|
1511 90
10
|
RBD Palm Oil
|
674 (i.e. no change)
|
|
3
|
1511 90
90
|
Others – Palm Oil
|
662 (i.e. no change)
|
|
4
|
1511 10
00
|
Crude Palmolein
|
680 (i.e. no change)
|
|
5
|
1511 90
20
|
RBD Palmolein
|
683 (i.e. no change)
|
|
6
|
1511 90
90
|
Others – Palmolein
|
682 (i.e. no change)
|
|
7
|
1507 10
00
|
Crude Soya bean Oil
|
742 (i.e. no change)
|
|
8
|
7404 00
22
|
Brass Scrap (all grades)
|
3488 (i.e. no change)
|
|
9
|
1207 91
00
|
Poppy seeds
|
1913 (i.e. no change)
|
TABLE-2
|
Sl. No.
|
Chapter/
heading/ sub-heading/tariff item
|
Description
of goods
|
Tariff
value
(US $)
|
|
(1)
|
(2)
|
(3)
|
(4)
|
|
1
|
71 or
98
|
Gold,
in any form, in respect of which the benefit of entries at serial number 321
and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed
|
354 per
10 grams
|
|
2
|
71 or
98
|
Silver,
in any form, in respect of which the benefit of entries at serial number 322
and 324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed
|
498 per
kilogram (i.e. no change)
|
TABLE-3
|
Sl. No.
|
Chapter/
heading/ sub-heading/tariff item
|
Description
of goods
|
Tariff
value
(US $ Per Metric Tons )
|
|
(1)
|
(2)
|
(3)
|
(4)
|
|
1
|
080280
|
Areca
nuts
|
2268
(i.e. no change)
|
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Decline in Wholesale Price Index
Inflation based on
wholesale price index (Base 2004-05=100) remained negative since November 2014
as shown in table below:
Wholesale Price
Inflation (in per cent)
|
Period
|
Jul-14
|
Aug-14
|
Sep-14
|
Oct-14
|
Nov-15
|
Dec-14
|
Jan-15
|
Feb-15
|
Mar-15
|
Apr-15
|
May-15
|
June-14
|
|
WPI
Inflation
|
5.4
|
3.9
|
2.4
|
1.7
|
-0.2
|
-0.5
|
-0.9
|
-2.2
|
-2.3
|
-2.4
|
-2.4
|
-2.4
|
Source: Office of the Economic Adviser,
DIPP; Note: figure for last two months are provisional
The decline in
wholesale price inflation is due to fall in inflation of majority of the groups
like non-food articles, minerals, crude petroleum, fuel and power, rubber and
plastic products and basic metals, alloys and metal products.
In India, inflation
is measured in terms of Wholesale Price Index (WPI) as well as consumer Price
Indices (CPIs) viz, Consumer Price Index-Rural, Urban, Combined, Consumer Price
Index-Industrial Workers, Consumer Price Index-Agricultural Labourers and
Consumer Price Index-Rural Labourers. The Reserve Bank of India (RBI) has
started using CIP-combined as the sole inflation measure for the purpose of
monetary policy. The agreement on Monetary Policy Framework between the
Government and the RBI dated February 20, 2015 defines the price stability
objective explicitly in terms of the target for inflation as measured by the
Consumer Price Index-Combined.
This was stated by Shri Jayant Sinha, Minister of
State in Ministry of Finance in written reply to a question in the Lok Sabha today.
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Simplification of ITR Forms; Issue of PAN Cards
The Government has
simplified Income Tax Returns (ITR) Forms for individuals and HUFs not having
business or professional income. In ITR Form No. 2 and 2A, the main form does
not contain more than three pages and other information relevant for computation
of income will be captured in the schedules which are required to be filled up
only if applicable.
The numbers of
Permanent Account Number (PAN) cards issued during the last three years are as
under:
|
Sl.No.
|
Financial Year
|
No. of PAN cards issued
|
|
1
|
2012-13
|
2,89,86,321
|
|
2
|
2013-14
|
2,82,44,419
|
|
3
|
2014-15
|
1,87,63,216
|
|
4.
|
2015-16
(till
20.7.2015)
|
56,78,234
|
The issue of PAN
cards is presently being executed through (i) procedure of manual applications
and (ii) through online application procedure. Both procedures are executed
through Service Providers namely National Securities Depository Limited (NDSL)
and UTI Infrastructure Technology and Services Limited (UTIITSL).
The improvement in
the process of PAN allotment is an ongoing process. The Income Tax Department
is constantly engaged in leveraging technology for improving the process for
the issue of PAN cards.
This was stated by
Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to
a question in the Lok Sabha today.
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