Mangaluru surfer Tanvi to represent India at Fiji world championship

Bengaluru, Jan 6: Chief minister BS Yediyurappa has plenty on his plate ahead of the 2020-21 state budget to be presented on March 5 what with the economic slowdown and a sizeable shortfall in revenue, but the biggest worry is the uncertainty surrounding Goods and Services Tax (GST) compensation from the Centre.

There is also uncertainty over the state’s share under devolution of funds as per the 14th Finance Commission recommendation.

Finance department officials say that while Rs 3,500 crore is expected as GST compensation for every two months, the devolution of funds would have yielded about Rs 7,000 crore for the current fiscal. But the economic slowdown appears to have hit the Centre’s finances and is likely to impact the state’s share of funds.

“The GST payment for August-September came only in December and we are unsure how much we will get for October-November and December-January,” an official said. Estimates suggest the state’s share under devolution of funds could be reduced by half.

At a meeting of finance department officials last week, Yediyurappa is said to have admitted that unlike those states where non-BJP parties are in power — they have threatened agitations and court cases — the government cannot go “against” Prime Minister Narendra Modi’s regime.

Instead, Yediyurappa has urged senior IAS finance department officials to lobby for funds with their counterparts in New Delhi. On his part, Yediyurappa is said to have already written to Modi and finance minister Nirmala Sitharaman to at least release the state’s share of GST compensation for the current calendar year of 2019. He is planning to personally meet the PM in Delhi to push the state’s case.

New Delhi, May 29: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.2 crore on Karnataka Bank Limited for non-compliance of asset classification, divergence and provisioning norms.

"The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949. 

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the central bank said in a statement on Thursday.

According to the central bank, the statutory inspection of the bank with reference to its financial position as on March 31, 2017, and as on March 31, 2018, and the Risk Assessment Reports (RAR) pertaining thereto revealed, inter-alia, non-compliance with the directions issued by RBI.

Earlier, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions.

After considering the bank's reply to the notice, oral submissions made in the personal hearing and examination of additional submissions, RBI concluded that the charges of non-compliance with RBI directions warranted imposition of monetary penalty, according to a release.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.