The post Poor Economic Growth will lead to high inflation and job loss in India appeared first on Thepost24.
]]>The situation become more tense because Indian economical was already in poor state much before the corona pandemic hit the nation last years. Although government offered some relief package last year to industries and common man. Which has helped economy to grow little bit in October to December last year. This year no relief offered by government or RBI to help the people of industry so far.
As per RBI, Consumer Confidence Survey and Current Situation Index fell to a record low in May. Let me tell you that, this survey organised by RBI every year to understand the consumers confidence in economy. If this index gor above 100 that means the common people are feeling better about themselves. The survey also represent that people has full confidence in current economic condition of the country. This time it has fell down to less than 50% means Poor Economic Growth will trouble Indians for sure.
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It is not only Current Situation Index but Futures Expectations Index is also reported at all timely low this time. The participants in the RBI survey have expressed their fears that India Poor Economic Growth will hit the country in all aspects.As per survey, people believe that countries economic condition will be weak for entire year. The Reserve Bank said that its futures expectation index also declined from 108.8 to to 96.4 in May 2021. This survey also revealed the reduction in the expenditure of the households.
The Reserve Bank survey also said that people are more concerned about their employment and living condition. Poor Economic Growth of India in last few year has already caused huge job loss. Now the Employment index has drooped further and million lost their job in last one year due to corona. This job loss has reported in both formal and informal sector. Recently CMIE published a data and claimed that 10 million people lost their job in second wave of corona in last two months.
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RBI survey also released peoples fear in drop of their income and job loss. This will lead to poor living condition and drop the demand in almost all sectors. When large number of people loose their job and face drop in monthly income than they will not buy nonessential items. They will only spend money for essential items required for living. It will not be a good sign and Poor Economic Growth will impact all sector for sure.
This is bad news for a country’s economy when primary consumption of goods and services reduced. The High Frequency Economic Indicator indicating a moderation in all activities. This data issued more or less on a monthly to understand the demand of people. It is expected that all business activities will be slow down for full year due to Poor Economic Growth in India.
Also Read: How New Financial Rule change your life in new fiscal year starting
The impact is already visible in market and demand for electricity has decreased in industrial consumption. Unemployment rate is rising in all sector from a very long time. There is a very less possibility for new job creation in market. Almost all sectors freez the new hiring and focusing on job cuts and pay revision for existing employees.
According to the Reserve Bank Survey, most people are anticipating inflation to remain high for a long time. This is adding to the troubles on the monetary policy as well which had stalled interest rate cuts for more than a year due to rising inflation. Moreover RBI will not be able to cut interest rate even in future to boost economy and growth. This is only possible when government take initiative and announce relief to the people and industry. They may help to improve in Poor Economic Growth in long run.
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The experts are also expecting that inflation rate to be 10.2% in May. This is 150 basis points higher than their estimate in March. They are forecasting inflation to remain at 10.8% for the next three months from May. This is 70 basis points higher than the inflation forecast reported in March. It is estimates that the inflation rate can be 10.9% in the next one year. This will further kill the pole of people expecting job, or good living standard this year.
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]]>The additional tax was announced on the interest received from the Employees Provident Fund (EPF) in the General Budget 2021-22. Now deposit upto 2.5 lakh PF in a financial year will be tax free. But If you invest more than that, you will have to pay tax on the interest earned on additional amount beyond 2.5 lakh.
Also Read: Loan Moratorium Case decision pronounced in Favour of Banks
The government has described the new wage code from 1st April. This will be applicable to all employees working in government and private sector in the country. The new salary structure will be enforced for all employees and they will receive new salary based on new structure. As per new structure 50% of Cost to Company (CTC) has to be be part of base salary component. It means your 50% of take home salary will be contain basic salary components described by the government of India.
Government has provisioned the Pre filled Tax Return Form available for the individual tax payers. It will be available for all tax payers from 1st April 2021. As per government sources, it will ease down the complex tax calculation and tax liability for individual tax payers in the country. This will also encourage more people to file their income tax due to this easy form availability for each tax payer.
Also Read: What is Code Of Wages 2020 and how this will impact Indian
The government has also ease down the tax return filing for the senior citizens beyond 75 years of their age. This will be applicable to all senior citizens dependent on their livelihood from the interest earn on fix deposits (FDs). But this relaxation is not applicable for the senior citizens having other source of income like rental, stock market or other business sources etc. But this is a big relief to a large section of senior citizens living their life on FDs interest.
Government has made a life little difficult to TDS defaulters and people who file later turns for their TDS liability. The government has made changes to section 206AB of the Income Tax Act. Under this, if you do not file ITR on time then you will have to pay double TDS from April 1, 2021. It will help small business owners to become more disciplined to file their returns on time. As per new rule, TDS and TCL rates will revised to 10-20% which was earlier 5-10%.
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Now government has made Aadhar and Pan card link to your account mandatory. Now you will not be able to hide your income liability any more. Earlier this was only linked to salary and provident funds to track tax liability. Due to this people had an option to hide earning from mutual fund, stock market and other sources. But new rule will link everything and make system transparent to calculate your tax liability. It means you will pay more tax.
Although government has revised the income tax return filling date for FY 2019-2020 due to corona pandemic. But government has implemented the late fee (penalty) for filing income tax return beyond 1st April 20201. The government has revised the late fee rule under the Finance Bill 2021. This will help many individual business owners and individual to file their delayed income tax. But additional late fee will make them unhappy for sure.
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Many passbook and cheque books become useless from 1st April 2021 due to merger of banks. If you have a bank account with Dena Bank, Vijaya Bank, Corporation Bank, Andhra Bank, Oriental Bank of Commerce, United Bank of India and Allahabad Bank, then your passbook and check book will become use less from 1st April 2021. This change is happening due to the merger of these seven public sector banks into various other banks. Although it will not impact your banking transaction and your entire financial details will shift to new bank.
Now government has allowed pension fund managers to charge more money from people investing in pension funds. The Pension Fund Regulatory and Development Authority (PFRDA) has allowed the Pension Fund Manager (PFM) to charge higher fees from its customers from 1 April 2021. Government believe this will attract more foreign investment in this segment. But this certainly not good for individual investors hoping higher pension.
Also Read: Why Cheque Deposit Rules Changed from RBI from 1st January
Now government has mandatory to have 2 airbags in each car for driver and passanger next to driving seat. As per new safety standard all car manufacturer has to provision dual airbag in all variants of cars way forward. This is good for the passengers safety. But this will increase the cost of base level cars for 1st time car owners or people looking for a smaller family car.
The summary of these 10 new rules indicate that government has assured their higher income from addition tax and penalty etc. But government and its police has absolutely no clarity for economical refund and new job creation in the country.
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]]>Court also said that differed EMI doesn’t mean that EMI cancelled and not changed in future. Customer will pay the EMI after moratorium period as before. Supreme Court also denied any further financial relief to customers in Loan Moratorium Case. Now customers has to pay the all pending EMIs regularly and bank has all option to collect their landings. In case of no payment of regular EMIs beyond 31st August customers will be pushed in to defaulters list as before.
While hearing the Loan Moratorium Case, court said that there is a limited scope for judicial review on governments economic policy and its decisions. The court will not debate academic matters of trade and commerce. It is not courts job to decide which public policy could have been better. The court said that the government decides the economic policy based on the opinion of the experts from RBI. Any change or restructuring of government policy has to be done by them.
Also Read: RBI Monetary Policy remains same and no relief offered to common man
Court further said that economic expertise cannot be expected from the court. Even if the policy has different views, than too court cannot interfere and determine the strength of economic policy. Court is not an advisors to the Center Govt on Economic Policy. While addressing to government argument, court said to government that it has to take care of public health, jobs etc. Court also said that government has incurred huge losses during pandemic and we have to consider that in account while expecting relief. This Loan Moratorium Case judgment was delivered by a bench of Justices Ashok Bhushan, Justice R. Subhash Reddy and Justice MR Shah.
During the start of coronavirus pandemic and strict lockdown last year in the country. The government of India decided to offer loan borrowers a relief in their monthly EMIs. Reserve Bank of India (RBI) offered a moratorium period of 3 month to the loan borrowers from 1st March 2020. Later this scheme was extended for another three months and lasted on 31st August 2020. In this Loan Moratorium Case customer had a choice to postpone their EMIs during this period. Customer got protection for not adding their name in defaulters list due to non payment of EMIs during moratorium period.
Also Read: What is Code Of Wages 2020 and how this will impact Indian
But soon after the end of moratorium period customer started complaint about banks additional interest charged on EMIs. Bank started charging compound interest on interest from customers opted for EMI postpone during moratorium period. The consumers knocked the door of court and ask for clarity in this regard. When matter reached to Supreme Court, they asked the centre government why banks are changing interest on interest. Then the government file and reply in court and said that bank will not charge the interest on EMIs upto 2 Crs as per Loan Moratorium Case and policy.
The government looks confused on Loan Moratorium Case because no clear guideline was issued for borrowers and banks. Many borrowers thought that EMI is deferred and nothing has to be paid for this benefit. Bank thought EMI is differed but bank can charge interest for the moratorium period. The government no clarity on this issue has increased confusion between bank and borrowers.
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By the way current government is known for its confusing policy and not sharing final results of its policy outcome. Government earlier decision for implementing demonetisation is unknown till date. Even people doesn’t know what government achieved with demonetisation where 100s lost their life and millions lost the jobs and business. Similarly half cooked GST implemented which still has issues and inconvenience. You must know that such policies of government killed the MSME, SME and large number of organised job in the country. But still government keep announcing such confusing policy. Don’t know for whom to benefit.
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]]>The post What is Code Of Wages 2020 and how this will impact Indian labour law appeared first on Thepost24.
]]>It means employees will get less salary every-month due to these new Code Of Wages 2020. Even the balance sheets of companies will get affected. These rules will be enforced from 1st April this year. The Code on Wages 2020 Bill passed by the Modi government in Parliament last year. This will definitely increase the earning for government but employees and employer may not get any benefit.
The new Code Of Wages 2020 will redefine the salary structure for the employees working with companies. Now employees has to keep allowance more tea the 50% of the total CTC (Cost To Company). This Code Of Wages 2020 will completely redefine the labour laws in India. Since the freedom in last 73 years, Indian has not seen much reform in our labour laws. The government claims that it will be beneficial for both employers and workers. But labour experts differ to government view and say companies will more exploit to employees after this new rule.
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The new salary structure will force employees to contribute more for PF and gratuity every month. They will also force to accept and declare non allowance portion more than base salary of 50%. According to the new rule, the basic salary should be 50% or more of the total salary. This may attract more taxes on the non allowance component and reduce the take home salary for the employee. The companies will also force to pay more money for the employees PF and gratuity.
Modi government has proposed 12 hours of work for the employees. It mean employer will force employee to work for 12 hrs in same or less salary. Although employers may not be allowed to take more than 5 Hrs continuous job from the employee in single stretch. Employee has to take minimum 30 minute break in each 5 hrs stretch as per new Code Of Wages 2020 rule. New rule may benefit employers but definitely it will not benefit to the employees.
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The new law also define the rule for overtime for the employees. Now 15-30 minutes work also calculated as 30 minute overtime for the employees. As per earlier rule less than 30 minute work was not considered as over time for the employees. The rule of overtime may not help the employees because employer will ask employee to work for 12 hrs as per new rule. The employee will not be productive for over time after 12 Hrs daily work.
Increase in contribution to PF and Gratuity and PF will increase retirement corpus of employees. This will make it easier for people to live a pleasant life after retirement. Although employee has to work more and get less money during his employment due to this Code Of Wages 2020 rule. The salary structure of high-paid officers will undergo the biggest change and they will be the most affected due to this.
Also Read: Cheque Deposit Rules Changed from RBI
The companies also not very happy because they are forced for higher PF and gratuity contribution due to this new rule. This will directly impact on their balance shree and reduce profitability. The companies will also try to find a way to get more work from employee due to this higher contribution to PF and graduate. Companies will also try to keep low cost resource to save their money after this rule.
As per expert only government has benefited with this new Code Of Wages 2020 rule. Now government will get larger shared from employees and employees on the name of PF and gratuity. The government will also collect higher taxes on non allowance money due to this new rule. Now employees will get less opportunity to save taxes in thir salary component.
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Many believe that this rule will only benefit certain corporate who wish to pay less to their employees and want to take more work from them. This will also increase the exploitation from employers for 12 Hrs working rule. Now employers will expect employees to work for 12 Hrs in same salary and if employee refuse them they will through them out and higher a low cost resource.
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]]>The word mutual implies to a group of people coming together and the fund is a sum of money saved or made available for a particular purpose. The term mutual funds means a group of people putting their money together to buy Shares or bonds, sometimes both together. Mutual funds collect money from investors and invest them on their behalf. The investments are spread across the wide section of industries, this ensures that risk is controlled. Because all stocks may not move in the same direction, the same proportion at the same time.
If you want to invest you can invest directly or hire a mutual funds advisor. Directly you will invest in a direct plan of mutual funds scheme. The advisor will invest in a regular plan of the scheme.
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If you are investing directly you can visit the website of the mutual funds or its authorized branches with relevant documents. The advantage of investing directly is that you don’t have to pay a commission to the advisor. But the drawback is you have to do the documentation, research, monitor investments all by yourself.
Equity mutual funds invest directly in stocks. It invests a major part of its corpus in stocks and the investment objective of these funds is long-term capital growth. Equity funds invest a minimum 65% in equity and equity-related securities. These funds may invest in a wide range of industries or focus on one or more industry sectors. These investments can give you a chunk of returns but it can be risky because it depends on the stock market. These types of investments are suitable for investors interested in the long-term.
These schemes invest in debt securities such as bonds, corporate debentures, government securities, and money market instruments. Investors should opt for debt schemes to achieve their short-term goals that are below five years. Debt schemes are safer than equity schemes and provide modest returns. These funds are suitable for investors whose main objective is the safety of capital with moderate growth.
Also Read: How New Financial Rule change your life in new fiscal year
Liquid Mutual funds are safest they invest in safer short-term investments such as Treasury Bills, Certificates of Deposit, and Commercial Paper for a period of less than 91 days. The aim of Liquid Funds is to provide easy liquidity, preservation of capital and moderate-income. These funds are ideal for individual investors looking for moderate returns on their surplus funds.
Balanced funds are often known as hybrid funds. These funds invest in equities and fixed income instruments in line with the pre-determined investment objective of the scheme. It is for investors who are looking for a mixture of income, safety, and modest capital appreciation. They generally have an investment pattern of investing around 60% in Equity and 40% in Debt instruments.
Open-ended funds scheme allows you to redeem your money anytime. It is available for subscription throughout the year and investors can buy and sell units at Net Asset Value (NAV) related prices. These funds don’t have any maturity date.
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A close-ended fund is a fund that has a fixed maturity period, e.g. 5-7 years. These funds are open for subscription for a specified period at the time of the initial launch. These funds are listed on a recognized stock exchange.
Interval funds combine the features of open-ended and close-ended funds. These funds may trade on stock exchanges and are open for sale or redemption at predetermined intervals on the prevailing NAV.
The biggest advantage of investing in mutual funds is risk diversification. Mutual funds widen investments across various industries and asset classes. So the chances of loss are low as compared to the stock market.
Also Read: Investment Decisions are always based on financial goals
Another advantage of investing in mutual funds is the ability to get in and out with ease. In general, your money is available to you anytime you want to sell it.
When you are buying mutual funds, you are also choosing a professional money manager. This manager uses the money that you invest to buy and sell stocks that he or she has carefully researched. It is also best for investors who do not have the time or skill to manage their own portfolio can invest in mutual funds.
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]]>The post How to file Income Tax Return for YouTuber or freelancer appeared first on Thepost24.
]]>Do you know how a YouTuber or freelancer can file Income Tax Return in India? Now people are little concern as the last date for Income Tax Return filing coming closer. Many fear to pay penalty addition to tax if they miss the return filing before the due date. This is a special year due to Covid-19 in the world. Many professional missing personal consultation from tax professionals. They fear delay in their return filing due to this issue.
Let me tell you that the tax department has already taken many initiatives to ease down the Income Tax Return Filing. They have simplified the forms for individual taxpayers. Now working professional can take Form 16 from employers to file return themselves. But this is not so simple for other professional like Freelancers or YouTubers in India. The government and IT department working on process to ease down return filing for them.
If you work as a Freelance, running YouTuber channel or providing placement services. Then you required to file a different form for your income tax. You required to file ITR-3 or ITR-4 form for your annual returns. ITR-3 form has to be filled by the people who earn money from the internet or provide professional services. The government encouraging people to earn money from Internet services. They are promoting self-employment fro, young professionals. Government of India allowed such professional to file Income Tax Return under ITR-4. Under this form, they can opt for preemptive taxation and show 50% of their gross receipts under ITR-4.
Also Read: 24×7 NEFT allowed by RBI for Indian banks without fee
If you are Freelancing or Youtube and you have bought some goods for your work. You will be allowed to claim the expenses to reduce your tax burden. These expenses can be rent, repair, depreciation, office expenses. Travel, food, entertainment and hospitality expenses can be claimed under this section. Claims of these expenses will reduce your taxable income and it will help to save taxes.
If you have taken health insurance for yourself or your family. If you live in a house on rent then you can show these expense to reduce your tax liability. Also, if you have made any tax saving investment, such as FDs or mutual funds, that can also help you to save taxes. Apart from this if you have deposit money in PPF etc., you can claim them under 80C, which will reduce your taxable income.
Also Read: CKP Co-op Bank ordered to Lockdown by RBI
Let me tell you that many youths attracted to the self-employment these days. They are running their online store, running Youtube Channels or providing consulting services. Many are earning significant money from online platforms. It is small but a fast-growing segment for people earning online. Now the government has to ease down the return filing process for these people.
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]]>Also Read: What is Interest on loan moratorium case and why this important for us
The Positive Payment System is an automated platform which will reduce banking fraud. This system will put an authentication process for the cheques validation from the issuing person. Issued cheque will not get processed until issuing person will authenticate the cheque details. SMS, mobile app, Internet banking or ATM will be used to authenticate the validity of cheque from the account holder. If any deviation found during the validation then check payment will put on hold. This new rule will be applicable for all cheque payment above Rs 50,000.
Government has also made some change in GST return for small taxpayers from 1st January 2021. Now small taxpayers will be allowed to file quarterly GST returns Although they have to pay taxes on monthly basis. This scheme will be applicable for taxpayers who’s annual return is less than 5 crore in the last financial year. This scheme looks very good for the small businessman. They can focus more on their business instead for circle around the tax consultants every month. Hope this will benefit both government and small businessman in coming years.
Also Read: RBI Monetary Policy remains the same and no relief offered to the common man
The government has also applied the rule to reduce the life insurance premium from 1st January 2021. This scheme will be applicable for standard term plan from insurance companies in India. Indian insurance regulator IRDA had directed the insurance companies to introduce a standard term life insurance plans. This will be a big relief for the people interested to buy a standard Tem Plans from Insurance companies. The insurance companies also forced to reduce the premium for their plans due to this policy change.
Apart from Cheque Deposit Rules few more changers introduced from 1st January 2021. Now Oil companies will be independent for the LPG cylinder pricing in India. Government of India and petroleum ministry will not interfere in the LPG prices in India. The oil companies are free to regulate the LPG cylinder prices in India. Let me tell you that LPG Cylinder prices have increased by Rs. 100 in the month of December. Now oil companies expected to increase the prices further in the month of January 2021.
These are the good initiative from the government of India apart from LPG price regulation handover to oil companies. Now they have to regulate it and keep increasing prices every day like diesel and petrol. This will have a direct impact on the common man. We personally not in favour to handover petroleum products price regulation to oil companies. Rather government has to think of regulating the price of these products and bring them into GST.
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]]>Governor Shaktikanta Das predicted the economy growth decline at 7.5 percent in the current financial year. Das said that the Reserve Bank is committed to safeguarding the interest of depositors in the financial system. They also want to make sure the financial markets functioning in orderly manner. This year commercial banks will not pay any dividends.
Also Read: Loan Moratorium Case decision pronounced in Favour of Banks
The RBI has maintained a soft stance in their monetary policy because they expect inflation to decrease in this winter. Das also said that all the members of the Monetary Policy Committee have decided to keep the repo rate unchanged. They are in favor to control the high level of inflation. He said that they will ensure that sufficient cash available in the economy with current policy. He also said that there are early signs of economic revival seen in the second quarter of the current financial year. Inflation based on the consumer price index expected to be 6.8 percent in the third quarter and 5.8 percent in the fourth quarter.
In easy words banks give us loans and we have to pay interest on that loan. Similarly, banks also require huge amount of money for their day-to-day operations. For this they take loans from the Reserve Bank of India (RBI). The rate at which the Reserve Bank charges interest on this loan from banks called repo rate.
Also Read: What is Interest on loan moratorium case and why this important for us
And if RBI loans available to the banks at the lower interest rate then everyone get benefited. The common borrowers get cheaper loan from the bank for their need. And if the Reserve Bank increases the repo rate then it will become expensive for banks and their customers respectively.
In easy words when banks left with large amount after their daily work then they keep that money in Reserve Bank. RBI pays interest on this amount for the duration bank keep in the RBI. The rate at which the Reserve Bank pays interest on this amount is called reverse repo rate.
Also Read: Indian economy will drop by 10.5 percent in current FY 2020-21
Whenever large amount of cash appears in the markets then RBI increases the reverse repo rate. With this increased interest banks deposit their money to the RBI for higher interest. In this way banks left with less money to play in the market.
You all are aware that the corona has impacted every citizens life across the world. Millions have lost their life and Billions have impacted financially. Many people lost their livelihood in this corona pandemic. Millions of people lost their jobs forced to work on less pay with same expenses. Considering all this RBI is not willing to take hit and they don’t want to pass any benefit to common man in this tough time. They continue to find opportunity in this disaster situation.
If RBI will continue to keep the same adamant policy to earn money in this situation. This may make common man very unhappy with current government. And they may face the heat in long run. So we urge RBI to rethink for their monetary policy.
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]]>The post What is Interest on loan moratorium case and why this important appeared first on Thepost24.
]]>Also Read: Why income insecurity is higher in urban Indian comparing rural Bharat
Loan moratorium scheme shouted by the central government as instant relief in the Covid-19 pandemic. They have propagated and took full credit for this scheme as relief for loan borrowers in India. While offering this scheme they have not clarified whether the bank will charge additional interest of postponed EMIs. Instead of getting relief from this scheme now poor borrowers forced to pay more as interest on postponed EMIs. Now millions of people lost their job, many businesses shut. The banks move in sync with RBI for additional interest looks unfair.
This case represented by Solicitor General Tushar Mehta in the supreme court. While presenting this case Mehta said that the government actively considering the issue and hoped to take a decision in two-three days. The bench said that Mehta should try to give an affidavit to the concerned parties by Thursday. So that the matter can heard again on 5th October. Court also said the decision taken by the government should bring on record along with the affidavit.” Mehta said that the government serious on this issue and affidavit can filed after a decision from stakeholders in this case.
Let me tell you that the Supreme Court had extended the loan moratorium till 28th September. Until this period banks will not declare any accounts as Non-Performing Assets (NPAs). The loan moratorium offered by RBI considered as instant relief in the Covid-19 crisis. But the hidden facts like interest on postponed EMI not shared before with borrowers. Now banks are behind borrowers and asking for the interest.
When this matter came to court, the government said that the government is consulting the concerned persons and banks for a solution at the earliest. The apex court gave two weeks time to the Center and the Reserve Bank to file their reply and ask them to take a decision in regards before the timeline ends.
This case listed by a bench of Justices Ashok Bhushan, Justice R Subhash Reddy, and Justice MR Shah on 28th September. The bench hopes that the Center and the Reserve Bank would actively consider these issues. The bench also clarified that this is a final opportunity for the hearing and it will not be postponed after this.
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]]>However, RBI has allowed the Bank depositors to withdraw up to 5 Lakhs. But the bigger question that looms over the Bank. It is whether liquidity available to address the depositors saving security.
As per sources, the non-performing assets (NPA) of the Bank has crossed 95%. This is the main reason for RBI decision to shut the bank with immediate effect.
Very few people of Mumbai know about this CKP Co-op. it has operations in Mumbai and surrounding only. It has 8 branches in Mumbai and including two branches in the adjoining Thane district.
Due to the COVID_19 lockdown, the story did not get the attention of media. Neither depositors rushed to the bank and started protest about banks. Normally depositors rush to such ailing banks to withdraw their hard-earned earnings. Lack of popularity and Corona Virus must have been reasons why there are no crowds at the Bank.
The CKP Co-op Bank had a huge exposure to Small and Medium Enterprises. These firms largely belonged to the troubled Real Estate sector.
The Real Estate sector has been bleeding profusely for quite some time. Several Real Estate Companies have even closed operations due to a lack of demand in the market. Grim Economic conditions are the main reasons why consumers are refraining from property investment.
The large real estate companies are somehow surviving in these adverse conditions. The smaller ones could not handle the pressure and succumbed.
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There has been no immediate fraud reported for the bank in the public domain. But you never know if RBI has any information about foul play for lending etc.
It may be a collective failure of the Bank as well as a weak economic system that must have caused the closure too. But all this is just speculative at this point. Only once a full-fledged investigation is conducted will anybody be able to ascertain the real reasons of why the Bank has actually shut down.
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