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BUSINESS AND ECONOMY - January 2024

Jan 2024

Jan 02, 2024

Yes Bank Faces Penalty of Rs. 3 crore by Tamil Nadu GST Department

  • Yes Bank, the private sector lender, received a tax receipt worth Rs. 3 crore from the Tamil Nadu Goods and Services Tax (GST) department on December 31, 2023, on account of various GST issues.
  • The bank had received two separate tax notices from the Bihar GST department for Rs. 20,000 and Rs. 1,38,584, respectively, in December .
  • Yes Bank is an Indian bank headquartered in Mumbai, India and was founded by Rana Kapoor and Ashok Kapoor in 2004.

Jan 01, 2024

RBI Defers Implementation of Norms on Penal Charges Levied by Banks

  • The Reserve Bank of India (RBI) deferred the implementation of norms regarding penal charges levied by banks and financial institutions to April 1, 2024, for new loans. This decision came after requests from regulated entities.
  • Initially issued in August, these norms were set to be implemented from January 1, 2024.
  • According to the norms, a penalty, if charged for non-compliance with the material terms and conditions of the loan contract by the borrower, should be categorized as 'penal charges'. These charges shall not be levied in the form of 'penal interest' added to the interest rate on advances. Furthermore, no additional interest should be computed on such charges.
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