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The Union Cabinet on Wednesday gave its nod to a slew of proposals including raising the authorised capital of Nabard from existing ₹5,000 crore to ₹30,000 crore.
The authorised capital can be increased beyond ₹30,000 crore in consultation with the RBI, as deemed necessary from time to time. Besides, Nabard can now lend to Medium Enterprises and handlooms firms.
The Cabinet also gave its nod for transfer of RBI’s 0.4 per cent equity in Nabard amounting to ₹20 crore to the government. This will remove the conflict in RBI’s role as banking regulator and shareholder in Nabard.
Start-up fundsIn another decision the Cabinet approved proposals with regard to the Fund of Funds of Start-ups (FFS) which was established in June. Now, the Alternate Investment Funds (AIFs) supported by FFS shall invest at least twice the amount of contribution received from FFS in qualified start-ups.
Further, if the amount committed for a start-up in whole has not been released before a start-up ceases to be so, the balance funding can continue thereafter.
It was also decided that operating expenses for carrying out due diligence, legal and technical appraisal, convening meeting of Venture Capital Investment Committee, etc. would be met out of the FFS to the extent of 0.50 per cent of the commitments made to AIFs and outstanding. This will be debited to the fund at the beginning of each half year; i.e. April 1 and October 1.
The Cabinet also approved amendments to Customs Act, Customs Tariff Act, Central Excise Act, Repeal of the Central Excise Tariff Act.
In a statement it said, amendments or repeal of various provisions of other Acts which will no longer be relevant consequent upon roll out of GST will result in cleansing of the irrelevant portions from the Statute Book and reduce multiplicity of taxes.
The Cabinet also approved amendments to ‘The Right of Children to Free and Compulsory Education Act, 2009’.
A government statement said this will enable the in-service untrained elementary teachers to complete their training and ensure that all teachers at the elementary level in the country have a certain minimum standard of qualifications.
In another decision, the Cabinet gave its nod to the MoU between the Indian Computer Emergency Response Team (CERT-ln) under the Ministry of Electronics and Information Technology and the US Homeland Security Department on cooperation in the field of Cyber Security.
The MoU was signed on January 11.
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