MCA:
MCA has constituted a High Level Committee to suggest the measure for improved monitoring of Corporate Social Responsibility (CSR). The High Level Committee (HLC) has submitted its Report & have suggested various measures for improved monitoring of the implementation of corporate social responsibility policies. The HLC has recommended various methodologies for monitoring compliance by the companies, measure and process for monitoring & evaluation of CSR projects / activities through expert agencies. The HLC also recommended to increase the limit of administrative cost of 5% to 10-15% and requested the MCA to sync the provision of the CSR with Income Tax for the purpose of deduction available under various sections like Section 80G, 35A. Through this report a request is also made to the MCA to clarify the provisions w.r.t definition of Net Profit under Section 135(1) and Section 135(5) of the Companies Act, 2013.
RBI:
RBI has modified the directions issued to the Non Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) w.r.t pricing of credit by MFIs. The maximum variance between the minimum and maximum interest rate on loans cannot exceed 4 per cent as per the directions, however the Ministry of Social Justice & Empowerment, Government of India, has proposed to expand its outreach by channelizing funds through select NBFC-MFIs at lower rate of interest for the National Scheduled Castes Finance & Development Corporation (NSFDC). In order to enable NBFC-MFIs to act as channelizing agents of NSFDC, it has been decided that the condition relating to the maximum variance permitted shall not be applicable to loans extended by NBFC-MFIs against funding by NSFDC. For this, NBFC-MFIs shall maintain proper record of funds received from NSFDC and the lending out of those funds. Appropriate disclosures in this regard shall be made in the balance sheet of such NBFC-MFIs.
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