RBI needs to develop software to monitor banks’ functioning - Amitabh Ghosh, Former Governor

The Reserve Bank of India (RBI) needs to develop a software to monitor the banks and also interact with leading market players to keep track of the implementation of the financial regulations passed by it. These views were expressed by Amitabh Ghosh, former RBI Governor, at a panel discussion organised by the Indian Institute of Management, Lucknow during its annual leadership summit. Stressing on the need to regulate the financial sector, Ghosh cautioned against the over-regulation. He said the RBI has been passing regulations which are often ignored by the banks. “There is no meaning of instructions until they are implemented and it is not possible for the RBI to monitor the banks on a day-to-day basis,” said Ghosh. This is where a good IT system can play an important role, Ghosh opined. “The RBI should develop a software that captures all important day-to-day aspects of the bank, particularly the adverse aspects and the incumbents of the Central bank should take cognisance of the information. Only with such a monitoring system would it be possible for the RBI to control and regulate the sector,” he said.

DIN: New number must to file IT returns

New Delhi: Taxpayers will now have to procure a 'new number' for filing returns and making any communication with the Income Tax department.
   The unique Document identification number (DIN), on the lines of numbers like PAN and TAN, will be quoted on “every” income tax-related communication, including returns to be filed next year for the financial year 2010-11. According to the new guidelines brought out by the Central Board of Direct Taxes (CBDT), the DIN will be mandatory “in respect of every notice, order, letter or any correspondence” with the department, by the taxpayers.
   “The DIN will be generated by the I-T department and will be useful, essentially, for error-free filing of tax returns, claiming refunds and other communication with the department by the assesses,” a senior Finance Ministry official said.
   The ‘Aykar Sampark Kendras’ will hand out the DIN from this month, the official said. Assesses will not be put to any trouble, as the numbers will be generated and allotted by the department itself.
   I-T officials will also be allotted the numbers in order to streamline the process, the official said, adding, the number has to be produced thereon for every activity with the department. Taxpayers and tax collectors are currently required to quote Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) among others when returns are filed with the department.
   According to section 282B of the Income Tax Act that deals with DIN, if the document sent to the tax authority does not bear this unique computer-generated number then “such document, letter or any correspondence shall be treated as invalid and shall be deemed never to have been received.”
   DIN is aimed at bringing more transparency in tax administration as the whole exercise involves a number of documents. PTI

Interviews for new SEBI Chief on Dec. 3

The government may soon decide on the successor to CB Bhave, chairman, Securities and Exchange Board of India (Sebi), with a selection panel scheduled to hold final interviews on December 3. Among those shortlisted for the post, U K Sinha, chairman, Association of Mutual Funds in India, and corporate affairs secretary R Bandyopadhyay are said to be the top contenders, according to sources.  Sources said the committee could consider calling more candidates, apart from those already shortlisted. One such person could be K P Krishnan, currently secretary of the Economic Advisory Council to the Prime Minister and formerly a joint secretary in the capital market division of the Department of Economic Affairs under the finance ministry.  About half a dozen persons had been selected for the final interviews, but at least two of them – State Bank of India Chairman O P Bhatt and Reserve Bank of India Deputy Governor K C Chakrabarty – might not be interested in the position, sources said. The panel had zeroed on seven candidates at its last meeting, but some of them opted out.