June 10, 2024

SLR full form stands for Statutory Liquidity rRatio. It is a monetary policy tool that the Reserve Bank of India (RBI) uses to assess the liquidity at the banks’ disposal. SLR requires banks to keep a certain amount of their money invested in specific central and state government securities. Statutory Liquidity Ratio popularly called SLR is the minimum percentage of deposits that the commercial bank maintains through gold, cash and other securities. However, these deposits are maintained by the banks themselves and not with the RBI or Reserve Bank of India.  What is Statutory Liquidity Ratio (SLR) SLR refers to the percentage of the aggregate deposits that commercial banks have to invest in liquid assets. The RBI has specified such liquid assets which banks have to invest in to maintain their SLR. As per RBI, liquid assets may be maintained – (i) in cash, or (ii) in gold valued at a price not exceeding the current market price, or (iii) Unencumbered investment in approved securities ‘Approved Securities’ means those securities that are issued by the Central Government or any State Government or other securities that are specified by the RBI from time to time. The RBI specifies the SLR status of securities issued by the Government of India and the State Governments. Here are a few examples of approved SLR securities: Dated securities of the Government of India Treasury Bills of the Government of India Dated securities of the Government of India are issued from time to time under the market borrowing program and the Market Stabilisation Scheme. State Development Loans (SDLs) are issued from time to time under their market borrowing program. Any other instrument may be notified by the Reserve Bank of India. NDTL, in banking parlance, is the aggregate of savings account, current account, and fixed deposit balances held by a bank. So banks have to keep 18% (or whatever the statutory liquidity ratio rate is) of their aggregate deposits with the RBI in the form of liquid securities. As opposed to CRR, in the Statutory Liquidity Ratio, the bank does earn some interest from the government security they invest in. All banks that are administered by the RBI have to maintain SLR and CRR. How does Statutory Liquidity Ratio work Every bank must have a particular portion of their Net Demand and Time Liabilities (NDTL) in the form of cash, gold, or other liquid assets by the end of the day. The ratio of these liquid assets to the demand and time liabilities is called the Statutory Liquidity Ratio (SLR). The Reserve Bank of India (RBI) has the authority to increase this ratio by up to 40%. An increase in the ratio constricts the ability of the bank to inject money into the economy. RBI is also responsible for regulating the flow of money and stability of prices to run the Indian economy. Statutory Liquidity Ratio is one of its many monetary policies for the same. SLR (among other tools) is instrumental in ensuring the solvency of the banks and cash flow in the economy.  Objectives of SLR 1) One of the main objectives is to prevent commercial banks from liquidating their liquid assets when the RBI raises the CRR. 2) SLR is used by the RBI to control credit flow in the banks. 3) In a way, SLR rate also makes commercial banks invest in government securities. 4) Making banks invest a portion of their deposits in government securities also ensures the solvency of such banks. 5) SLR might be a monetary policy tool, but it has also helped the government sell a lot of its securities. So SLR helps in the government’s debt management program and RBI’s monetary policy as well. Components of Statutory Liquidity Ratio Section 24 and Section 56 of the Banking Regulation Act 1949 mandates all scheduled commercial banks, local area banks, Primary (Urban) co-operative banks (UCBs), state co-operative banks and central co-operative banks in India to maintain the SLR. It becomes pertinent to know in detail about the components of the SLR, as mentioned below. Liquid Assets  These are assets one can easily convert into cash – gold, treasury bills, govt-approved securities, government bonds, and cash reserves. It also consists of securities, eligible under Market Stabilisation Schemes and those under the Market Borrowing Programmes. Net Demand and Time Liabilities (NDTL) NDTL refers to the total demand and time liabilities (deposits) of the public that are held by the banks with other banks. Demand deposits consist of all liabilities, which the bank needs to pay on demand. They include current deposits, demand drafts, balances in overdue fixed deposits, and demand liabilities portion of savings bank deposits. Time deposits consist of deposits that will be repaid on maturity, where the depositor will not be able to withdraw his/her deposits immediately. Instead, he/she will have to wait until the lock-in tenure is over to access the funds. Fixed deposits, time liabilities portion of savings bank deposits, and staff security deposits are some examples. The liabilities of a bank include call money market borrowings, certificate of deposits, and investment deposits in other banks. SLR Limit SLR has an upper limit of 40% and a lower limit of 23%. Click here to read more on CRR & Repo Rate Uses of Statutory Liquidity Ratio (SLR) As the chief monetary authority of our economy, RBI is responsible for handling cash flows, inflation levels, and price levels in the country. To carry out its functions efficiently, RBI has many tools at its disposal. These include; Repo rate, reverse repo rate, marginal standing facility, bank rate, open market operations, moral suasion, CRR, SLR, and a few others. In many ways, SLR also helps RBI control inflation. Raising SLR makes banks park more money in government securities and reduce the level of cash in the economy. This helps raise price levels and inflation in the economy. Doing the opposite helps maintain cash flow in the economy. Reducing SLR leaves more liquidity with banks, which in turn can fuel growth and demand in the economy. This is

harkhand ration card is very important for all the citizens of the state. To make it easier, the government has started the online application process for getting a ration card. Now people can apply for a ration card online from home and the card will be issued as soon as possible. The ration card is provided by the state food department. If you already have a ration card or have recently applied online, then you should know that the government keeps updating the Jharkhand Ration Card List 2024 from time to time. During these updates, the names of some families may be removed. If you want to check whether your name is in the new ration card list or not, Under the National Food Security Act, the government offers ration cards to eligible citizens nationwide, allowing them to purchase subsidised food grains through the Public Distribution System. Issued by the Food, Civil Supplies, and Consumer Affairs Department, these cards also serve as proof of identification. In Jharkhand, the ration card initiative targets providing essential food grains to marginalised communities, ensuring their inclusion in the country’s food security framework Jharkhand Ration Card List 2024 Click on the ‘e-Services’ option provided on the menu bar. Select the ‘e-Ration card’ link. Choose the ‘Village list’ tab. Select your respective district, Taluk, Gram Panchayat, Village and click on the ‘Go’ button. The list of ration cards in the selected village will be displayed on the screen. Purpose of Jharkhand Ration Card List Ration card allows the government to provide essential commodities like wheat, rice, sugar and kerosene at a very low price to the families in the state who are struggling financially. This means that ration card helps poor people to get these essential items at low rates. Jharkhand Ration Card Eligibility AAY This ration card is given under the Antyodaya Yojana and for people who are weaker than other classes of people financially. PHH These ration cards are given to families who are a part of the Priority Household who live in the rural parts of the state. NPHH Non-Priority Households receive a different ration card as the families classified under this have a stable annual income. They are not given subsidised items. White ration card This is given to people who have an annual income of more than Rs.1 lakh. How to Check the Ration Card List of Jharkhand? Visit the official website of ‘Aahar Jharkhand’ – https://aahar.jharkhand.gov.in/. On the homepage, select the ‘Family NFSA’ option. From the district-wise list displayed on the screen, select the municipality/block you wish to check the list for. Next, click on the ‘Village list’ tab.  A comprehensive list of all the ration cards issued in the selected village will appear on your screen.  Process to Apply for a Ration Card in Jharkhand Visit the official website of ‘Aahar Jharkhand’. Next, select the ‘Online Service’ option and then click on ‘Online Application’. You will be redirected to a different page. Read all the information given on this page before clicking on ‘Proceed’. Next, select the ‘Apply for new ration card’ option. Next, click on ‘Proceed’ and then enter your phone number. Once you have entered your mobile number, the screen will display the application form.  Fill in all the required details and then proceed to click on ‘Continue’. Next, you will receive a one-time password (OTP) on the phone number you just entered. Enter the OTP in the dialogue box and then click on ‘Submit’. You will receive a reference number on the screen, make a note of it for future reference. Next, click on ‘Save’ before printing out the duly filled document. Submit this application form along with the required documents at your nearest DSO office.  Documents Required: Ration Card in Jharkhand Bank Passbook Passport-size photo of each family member attested by a Gazette Officer Electricity Bills House rent receipt Telephone Bill Aadhar Card Mobile number Income Certificate Caste Certificate or Category Certificate Gas connection details How to Check the Ration Card’s Status in Jharkhand? Visit the official website of ‘Aahar Jharkhand’. Select the ‘Online Service’ option. Next, click on the ‘Application Status’ tab. Next, enter the details that are prompted such as the application number or your mobile phone number.  Next, click on ‘Check Status’ to view the status of your application on the screen. How to Make Corrections to an Existing Ration Card in Jharkhand? Step 1: Visit the official website of ‘Aahar Jharkhand’. Step 2: On the homepage, click on the ‘New Ration’ option and then select ‘Already Registered. Step 3: Enter your ration card number and the registered mobile number in the dialogue box that appears.  Step 4: Enter the details that are prompted and you will be shown your ration card details. Step 5: Next, enter your Aadhaar number and click on ‘OTP’. Step 6: Enter the OTP to fill in the required details and make corrections on the new page you are redirected to.  Step 7: Next, click on ‘Proceed’. Step 8: Take a printout of the form and submit it to your nearest DSO office with the required documents supporting the change of details.  Alternatively, you can select the ‘Downloads’ option from the homepage and download the required self-declaration form depending on what are the details you wish to change.  You will need to duly fill in the form, attach the required documents and submit it to your nearest DSO office. FAQs What is the ration per person in India? Each month, a person with a ration card is entitled to up to 10 kg of ration.  Where are the DSO offices in Jharkhand located? DSO offices are located all over the state of Jharkhand. To check the list of DSO offices, you can visit the official website at aahar.jharkhand.gov.in. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting

DPT-3 is a return of deposits that companies must file to furnish information about deposits and/or outstanding receipt of loan or money other than deposits. When it comes to corporate governance, meeting compliance requirements play a vital role in fostering transparency and upholding the trust of stakeholders. Among these critical requirements, is the filing of Form DPT 3 which caters to the depositors of a company. DPT 3 is an annual return of deposits filed to the Registrar of Companies to intimate the authority of all the deposit and non-deposit receipts a company has accumulated in a financial year. The significance of DPT 3 filing cannot be overstated. It goes beyond mere paperwork; rather, it holds the key to promoting financial integrity and safeguarding the interests of depositors. By providing a comprehensive record of deposits received by companies throughout a financial year, DPT 3 empowers regulatory authorities to closely monitor corporate financial health, effectively mitigating potential risks and malpractices. Moreover, DPT 3 filing extends its reach into clarifying financial dealings, allowing companies to distinguish between deposits and other transactions. What is Form DPT-3? DPT-3 form is a one-time return form of loans that has to be filed by a company that has outstanding loans not treated as deposits. According to the latest Ministry of Corporate Affairs (MCA) Amendments, it is mandatory for all companies excluding the Government Companies to file a one-time return for the outstanding receipts of money which are loans of the company but are not considered deposits. MCA vide its notification dated 22nd January 2019 notified that every company other than a government company must file a one time return in DPT 3. It is also required to be filed annually. Accordingly, a sub-rule (3) was inserted after sub-rule (2) in Rule 16A of the Companies (Acceptance of Deposits) Rules, 2014 which reads as follows:  Every company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to 31st March, 2019, as specified in Form DPT-3 within “ninety days from 31st March, 2019” along with a fee as provided in the Companies (Registration Offices and Fees) Rules, 2014.  *The said time period was then amended by issue of General Circular No.05/2019 which stated that the additional fee will be levied after 30 days from the deployment of the form DPT -3 on MCA 21 portal. Therefore, the revised due date was 31st of May 2019. Since then the form must be filed annually. Legal Provisions for DPT 3 Filing Section 73(2), Companies Act: The legal foundation for DPT 3 filing lies in the Companies Act, 2013. Specifically, Section 73(2) of the Act provides the framework for acceptance of deposits by companies, in accordance with the relevant rules issued by the Ministry of Corporate Affairs in consultation with the Reserve Bank of India. Section 16, Companies (Acceptance and Deposits) Rules: Rule 16 of the Companies (Acceptance and Deposits) Rules states that every company to which these rules apply, shall on or before the 30th day of June, of every year, file with the Registrar, a return in Form DPT 3 along with the fee as provided in Companies (Registration Offices and Fees) Rules, 2014 and furnish the information contained therein as on the 31st day of March of that year duly audited by the auditor of the company in Form DPT 3. Section 16A, Companies (Acceptance and Deposits) Rules: Company (Acceptance of Deposits) Amendment Rules, 2020 introduced amendments to the original rules and added new provisions in Rule 16A. The new amendments addressed various aspects of DPT 3 filing. One-Time Filing Requirement: The 2020 amendment introduced a one-time filing requirement for outstanding deposits of companies up to the date of the amendment for all financial years since 2014-15. This new provision was added through Clause 3 of Rule 16A. Annual Filing of DPT 3: Another significant clarification made by the 2020 amendment was the requirement for companies to file Form DPT 3 on an annual basis for all companies other than Government Companies. This ensures that the RoC has up-to-date information about the deposits accepted by the company every year. Who is exempt from filing the return? Every company except a government company must file this return.  Additionally, as per Rule 1(3) of the Companies (Acceptance of Deposits) Rules 2014, the following companies are also exempt:  Banking company Non-Banking Financial Company  A housing finance company registered with National Housing Bank Any other company as notified under proviso to subsection (1) to section 73 of the Act What is the Last Date (Due Date) to File the DPT-3 Form? As per the Companies (Acceptance of Deposits) Amendment Rules, 2019, all the companies have to compulsorily file the one-time deposit return in E-form DPT-3 within 90 days from the end of the Financial Year. Note: Purpose of Form Periodicity Last Date to File Return of Deposit & Particular not considered as Deposit Yearly Yearly 30th June 2024 for FY 2023-24 Filing of DPT 3 DPT-3 may be of two varieties, as follows: One time return Annual return Transactions not considered as deposits Any amount received from the government or guaranteed by the government, foreign government/foreign bank. Any amount received as a loan or facility from any Public Financial Institutions, Insurance Companies or Banks Any amount received from a company by a company. Subscription to securities and call in advance. Any amount received from the director of the company or a relative of the director of the Private company, who held the positions at the time of lending.   Any amount received by the company from an employee, not exceeding his annual salary under the employee contract such as non-interest bearing security deposit. Any amount received in the course of, or for the purposes of, the business of the company as an advance for the supply of goods or provision of services or as a security deposit for the performance of

As a small business owner, you need to conduct regular audits to ensure your records are accurate. Although many business owners dislike the idea of auditing, audits can be beneficial to your company. An audit provides credibility to the policies, procedures and finances of a company. This provides the shareholders with confidence that the accounts of a company are true and fair. To maintain a good business reputation, it is essential to understand audits and how businesses conduct them What is Audit? An audit is a type of investigation of existing reports, statements or business as a whole. Individuals and companies hire an auditor to examine the financial reports of an entity, accounting statements, management reports, expense and revenue reports and operational accounts.  In most cases, a CPA or Certified Public Accountant is engaged in the auditing process. They obtain ‘reasonable assurance’ of records being accurate and fair and comply with set standards. The auditing process also helps firms to identify certain inefficiencies in their business processes and finances and make recommendations to improve the situation. However, the main focus mostly remains to check any wrongdoings or non-compliance of firms.  Importance of Audits Audits are important for a business as they provide a sense of credibility to the financial statements and reports of the firm. It also gives stakeholders confidence that financial accounts are fair and true to what is produced.  Moreover, an audit is an important process that helps in enhancing the financial health and internal systems of a business. As the process can identify any inaccuracy or wrongdoings in accounts, rectifying them for efficient business becomes easy. Different Types of Audits Internal Audit This type of audit takes place within the company, where owners take the initiative to get the firm audited by an auditor. The internal auditing process is considered a way to update company board members and shareholders about the finances. It also helps to check and align with the firm’s financial goals. If you conduct an internal audit in your firm, the results can help assess risk management processes and policies, along with analysing the operational process of the company. External Audit The external audit process is compulsory for certain organisations according to the requirements and rules set by its shareholders. The report of the external audit is shown to all shareholders during the company’s annual general meeting and Board of Directors meeting. Certain independent professionals conduct external audits based on the qualifications stated in the rules. Such audits can be commenced half-yearly, quarterly or annually, and results can be used to bring enhancement in business proceedings. Performance Audits This audit is performed within an organisation for various reasons. The main objectives that a firm focuses on when requesting a performance audit are to evaluate internal controls of the company analyse business perspectives, assess different effectiveness and results of the program and conduct operational audits. In this case, auditors assess the processes and systems of the business to measure its productivity and efficiency towards business goals. Compliance Audits Compliance audits mainly examine the processes and policies of a business or a specific department in the firm. The aim is to check whether the business is compliant with regulatory or internal standards. Such audits are mostly conducted within educational institutions or regulated industries. Operational Audits This auditing process is very similar to an internal audit. Organisations conduct this audit internally, but in some cases, agents are hired externally to complete this procedure. The main aim here is to enhance organisational operations and spot any inefficiencies. Moreover, operational audits analyse the policies, processes, goals and outcomes of functions. Statutory Audits A company conducts statutory audits to check whether it complies with all the policies and regulations stated by the Government. An external auditor verifies these regulations while conducting an external business audit.  The auditing process results demonstrate different results in the financial report, including bank statements, earnings on investment and total clients. This auditing enhances the trust and transparency among business stakeholders and the public, making it efficient as time passes. IRS Tax Audits This is a type of tax audit that analyses the accuracy of tax returns filed by the business. Here, the auditors look for irregularities in the tax liabilities of the company and make sure the business does not underpay or overpay their taxes. IRS audits are generally conducted randomly by the auditors and are done via in-person interviews or mail. Payroll Audit Payroll auditing systems focus on identifying different errors and improving business compliance to protect it from different frauds. Such audits are either conducted by internal auditors or any third-party auditor hired by the firm.  Information System Audit Such an auditing system helps evaluate different IT risks of a business and understand the systems followed. Different technology-oriented firms use IT audit systems to ensure the security of their data, analyse technology uses, protect systems from hackers and recommend improvement points to the system. Moreover, the reports from this audit guarantee stakeholders that company objectives are met, and business structure stays updated. Forensic Audit Here, the financial records of a business are examined to identify any illegal financial activities. The auditor or a forensic accountant looks for evidence that could be provided in the court and brings resolution to conflicts among stakeholders. It is important to note that forensic audits must be conducted if an individual suspects theft, inaccuracies or fraud in financial balances.  FAQs What’s the Purpose of an Audit? Audits are generally meant to ensure that businesses and individuals are being honest and accurate about their financial positions. But the purpose of an audit depends entirely on the type of review in question. Corporations are routinely audited to ensure that they’re compliant and are following accounting standards. Audits also ensure that businesses are representing their financial well-being accurately. How Do I Prepare for an IRS Audit? It may seem daunting but an IRS audit shouldn’t worry you. The agency routinely conducts audits for corporations and individuals. Some are selected randomly. Others are flagged because of certain types of income, credits, and deductions. The best

The Reserve Bank of India (RBI) plays a crucial role in regulating and supervising banks to ensure the stability of the Indian financial system. As part of its regulatory function, the RBI has the authority to impose penalties on banks for non-compliance with its guidelines, directions, and regulations. These penalties are intended to enforce adherence to the prescribed norms and maintain the integrity of the banking sector. In this article, we will explore the reasons behind RBI penalties on banks, discuss possible solutions to avoid such penalties, and examine recent case studies to understand their implications. The Regulatory Purview of RBI The RBI is the central banking institution of India and is responsible for formulating and implementing monetary policy, supervising the banking system, and maintaining financial stability. Its regulatory purview extends to commercial banks, cooperative banks, non-banking financial companies (NBFCs), and other financial institutions operating in India. The RBI issues guidelines, directions, and regulations to ensure the proper functioning of these institutions and safeguard the interests of depositors and consumers. The key regulations and guidelines issued by the RBI cover various aspects of banking operations, including prudential norms, risk management, capital adequacy, liquidity management, asset classification, provisioning, customer service, fraud prevention, cybersecurity, and anti-money laundering measures. Banks are required to comply with these regulations and guidelines to maintain their license to operate. The RBI plays a critical role in enforcing regulatory norms and maintaining financial stability. It has the authority to impose penalties on banks for non-compliance and violations of its directions. The penalties imposed on Kotak Mahindra Bank and ICICI Bank demonstrate the RBI’s commitment to maintaining the integrity of the banking system and ensuring that banks operate in accordance with established regulations. The RBI’s actions send a strong message to the banking sector, emphasizing the importance of regulatory compliance and ethical conduct. Banks must view the RBI’s directives as guidelines to be followed diligently, rather than mere suggestions. Common Reasons for Penalties Non-compliance with Prudential Norms: Banks are required to adhere to prudential norms relating to income recognition, asset classification, and provisioning. Failure to comply with these norms can attract penalties from the RBI. Violations of KYC and AML Norms: Know Your Customer (KYC) and Anti-Money Laundering (AML) norms are essential for preventing money laundering and terrorist financing. Banks must ensure thorough due diligence of their customers and report suspicious transactions to the Financial Intelligence Unit (FIU). Non-compliance with these norms can lead to penalties. Incorrect or Delayed Reporting: Banks are required to report various transactions and frauds to the RBI within specified timeframes. Failure to report accurately or within the prescribed timelines can result in penalties. Conflict of Interest: Banks should avoid sanctioning loans or engaging in financial transactions that involve conflicts of interest, such as lending to companies where their directors have personal interests. Such actions can attract penalties. Non-Adherence to Customer Service Standards: Banks must follow the RBI’s guidelines on customer service, including fair practices, grievance redressal mechanisms, and adherence to the code of conduct for recovery agents. Failure to comply with these standards can lead to penalties. Solutions to Avoid Penalties Strengthening Internal Audit and Compliance Mechanisms: Banks should establish robust internal audit and compliance functions to monitor and ensure adherence to RBI guidelines. Regular audits can help identify any non-compliance issues and take corrective actions promptly. Training and Awareness Programs: Regular training programs should be conducted for bank employees to create awareness about RBI guidelines and regulations. Employees should be well-informed about their responsibilities and the consequences of non-compliance. Robust Risk Management and Due Diligence: Banks should have effective risk management frameworks in place to identify and address potential risks. Due diligence processes should be strengthened to ensure that loans and transactions are sanctioned after proper evaluation and in line with regulatory requirements. Timely and Accurate Reporting: Banks must ensure timely and accurate reporting of transactions, frauds, and other relevant information to the RBI. This includes adhering to reporting timelines and providing complete and accurate data. Engagement with Regulatory Experts: Banks can benefit from engaging with regulatory experts and consultants who can provide guidance on compliance requirements. Periodic reviews by external experts can help identify areas of improvement and ensure compliance with RBI guidelines. The Role of Technology in Ensuring Compliance Technology plays a significant role in helping banks ensure compliance with RBI regulations. The adoption of advanced compliance software and tools can automate compliance processes, monitor transactions in real-time, and generate accurate reports. Artificial Intelligence (AI) and machine learning can be utilized to detect suspicious transactions and patterns, reducing the risk of non-compliance. Blockchain technology can provide transparent and tamper-proof transaction records, enhancing accountability and regulatory compliance. Case Studies: Recent Penalties and Their Implications the RBI has imposed penalties on several banks for non-compliance with its regulations. The Reserve Bank of India (RBI) has been actively enforcing regulatory norms and imposing penalties on banks for non-compliance. In recent times, two prominent banks, Kotak Mahindra Bank and ICICI Bank, have faced penalties due to serious violations of RBI’s various directions. These penalties have not only highlighted the need for strict adherence to regulatory guidelines but also raised important questions about the impact on the banking sector as a whole. Kotak Mahindra Bank: Failing to Ensure Compliance and Due Diligence- Kotak Mahindra Bank has been slapped with a monetary penalty of ₹3.95 crore by the RBI. The penalty stems from the bank’s failure to carry out the annual review and due diligence of a service provider, as well as its failure to ensure that customers are not contacted outside specified hours. The RBI also found that the bank levied interest from the disbursement due date instead of the actual date of disbursement, contrary to the terms and conditions of sanction. Additionally, the bank imposed foreclosure charges despite the absence of a prepayment penalty clause in the loan agreement for loans recalled or foreclosure initiated by the bank.The penalties imposed on Kotak Mahindra Bank highlight the importance of conducting regular reviews and ensuring compliance