The Reserve Bank of India (RBI) on Wednesday set up an expert committee under former Sebi chairman U.K. Sinha to suggest long-term solutions for the economic and financial sustainability of the MSME sector. RBI has announced the panel a day after it allowed a one-time restructuring of existing debt up to ₹25 crore for the micro, small and medium enterprises (MSMEs) which have defaulted on payment but the loans given to them have continued to be classified as standard assets.

The eight-member committee will also examine the factors affecting the timely and adequate availability of finance to the sector, the central bank said in a statement. “The expert committee will submit its report by the end of June 2019,” it said.

The MSME panel has been asked to review the current institutional framework in place to support the MSME sector and study the impact of the recent economic reforms on the sector and “identify the structural problems affecting its growth”.

To study the global best practices with respect to MSMEs and recommend its adoption in India, wherever appropriate, and review the existing MSME-focused policies and its impact on the sector are among the issues which the panel will look into.

Railway Minister Piyush Goyal today said that Train 18 will run from Delhi to Varanasi. He said that the run-time of Train 18 between Delhi and Varanasi will be eight hours, "one-and-a-half-times" faster than the fastest train on the route.

While the railways had been saying that it had proposed two routes for Train 18-- Delhi to Bhopal and Delhi to Varanasi-- this is the first time that the route has been officially confirmed.

"We have successfully tested the train and the suggestions are being incorporated. Very soon the train will be dedicated to the nation and we have requested that Prime Minister Narendra Modi flag it off. This train will run between Delhi and Varanasi in eight hours and the fastest train between the two cities takes 11.30 hours," Mr Goyal said.

While Mr Goyal refused to give a date for Train 18's first run, he said it would "begin service soon".

Sources said that the first commercial run of Train 18 would begin next week, just ahead of the Kumbh Mela, which starts in Prayagraj on January 14.

"Train 18 will be flagged off by PM Modi ahead of the Kumbh Mela," the sources said.

The government on Wednesday approved amendment to the Trade Unions Act, 1926 to make provisions regarding recognition of trade unions.

The present act provides for only registration of trade unions. Currently, there is no provision for recognition of unions in the Act.

The recognition is necessary because recognised trade union of an industry or establishment gets bargaining or negotiating rights with the employer.

"The Union Cabinet chaired by Prime Minister Narendra Modi has approved amendment to the Trade Unions Act, 1926 to make provisions regarding recognition of Trade Unions," an official statement said.

Assam Chief Minister Sarbanand Sonowal has welcomed the  Union Cabinet's decision to implement the Assam Accord signed in 1985. He said the Cabinet's decision is a historic step to safeguard and protect the interest and cultural and linguistic identity of the indigenous people of the state. 

The Union Cabinet yesterday approved the setting up a high-level committee for implementation of clause 6 of the Assam Accord and measures envisaged in the Memorandum of Settlement, 2003 and other issues related to the Bodo community. 

"Welcoming the decisions, Mr Sonowal said this is a New Year’s gift to the people of the state from the  Centre.  He said the Cabinet decision will go a long way in securing the future of all indigenous communities of the state.  Assam state BJP President Ranjeet Kumar Dass has also welcomed the decision. 

The Union Cabinet on Wednesday approved the re-structuring of existing National Health Agency as “National Health Authority” with an aim to efficiently implement Pradhan Mantri – Jan Arogya Yojana (PM-JAY). With this, the existing society, “National Health Agency”, has been dissolved and its status now stands enhanced to that of an Authority.

The National Health Authority shall have full autonomy, accountability and the mandate to implement PM-JAY through an efficient, effective and transparent decision-making process. Dubbed as “Modicare” the PM-JAY, is being described as the world’s largest health insurance scheme. It is a cashless and paperless access to health services up to Rs. 5 lakhs per year to poor and vulnerable people identified as per the socio economic caste census.

“The world’s largest healthcare scheme rightfully deserves the most efficient and effective governance structure with total accountability,” said J P Nadda, Minister for Health and Family Welfare.

The government said that creation of the National Health Authority will lead to more effective implementation of PM-JAY as it will align the accountability with responsibility. With the authority, faster decision-making will be done, as the multi-layered structure has been simplified and the role of the Authority has been clarified.

Paving the way for the first ever-three way merger of public sector lenders, the Cabinet Wednesday approved amalgamation of Dena Bank and Vijaya Bank with Bank of Baroda that would create the country's third largest lender.

Law Minister Ravi Shankar Prasad said there would be no retrenchment of employees and that their services conditions would also not be affected post merger.

The boards of the three banks have also cleared the share-swap ratio for the proposed amalgamation.

As per the Scheme of Amalgamation announced by Bank of Baroda, shareholders of Vijaya Bank would get 402 equity shares of BoB for every 1,000 shares held in the bank.

The Telangana High Court has come into being with justices taking oath today. Justice T B N Radhakrishnan was sworn in as the Chief Justice of the Telangana High Court this morning. Telangana and Andhra Pradesh Governor E.S.L. Narasimhan administered oath of office to him. 

Later, Justice Radhakrishnan administered the oath of office to 12 justices of Telangana High Court on the premises of the High Court. AIR Correspondent reports the advocates and legal fraternity have been demanding separate high court for Telangana ever since the separate state was carved out in 2014. However, the things moved fast after Andhra Pradesh Chief Minister Chandrababu Naidu gave in writing that the High Court in his state Capital, Amaravati will be readied by 31st December. 

The newly-elected leaders of the BNP, headed by imprisoned former premier Khaleda Zia, will not take oath as they have rejected the results, the party announced Tuesday, hours after the government said the MPs-elect will be sworn into Parliament on January 3.

The Bangladesh Nationalist Party (BNP), which rejected the poll outcome as “farcical” and demanded fresh election, won five seats in the 300-member Parliament.

Prime Minister Sheikh Hasina’s ruling alliance swept to a landslide victory in the 11th general elections, securing a third straight term.

The opposition alliance, comprising the BNP and some smaller parties, criticised the Election Commission (EC) and accused its chief of being biased.

Information Minister Hasanul Haq Inu said the newly-elected lawmakers will be sworn in to Parliament on January 3 (Thursday), Dhaka Tribune reported.

A gazette notification will be issued on Wednesday, he said.

The BNP, alleging irregularities including ballot stuffing and ouster of opposition polling agents from voting centres, said the party’s MPs-elect will not take oath as they have already rejected the results, Daily Star reported.

The party took the decision in principle at a meeting of its standing committee at its chairperson’s Gulshan office, it said.

The Reserve Bank of India (RBI) on Tuesday allowed lenders to recast loans of stressed micro, small and medium enterprises (MSME), provided the total fund and non-fund based exposure to such a borrower does not exceed ₹25 crore. Such a debt restructuring, the central bank said, would not lead to a downgrade in asset classification.

“RBI has decided to permit a one-time restructuring of existing loans to MSMEs that are in default but ‘standard’ as on January 1, 2019, without an asset classification downgrade,” RBI said in a statement.

The government has been pushing RBI to provide relief to the stressed MSME sector. The central bank’s board on 19 November advised RBI to consider a scheme to recast loans of MSMEs, which have been hurt by the disruption caused by demonetisation in late 2016 and the implementation of the goods and services tax (GST) in July the following year.

The MSME loan restructuring, according to the RBI statement, has to be implemented by 31 March 2020 and a provision of 5% of the total outstanding loan, in addition to the money already set aside to cover potential losses, will have to be made for such borrowers. “Each bank or non-banking financial company (NBFC) should formulate a policy for this scheme with board approval which shall, inter alia, include framework for viability assessment of the stressed accounts and regular monitoring of the restructured accounts,” RBI said.

Army Chief Gen Bipin Rawat reviewed the security situation along the Line of Control and the hinterland in Jammu and Kashmir. Gen Rawat, accompanied by Northern Army Commander Lt Gen Ranbir Singh and Chinar Corps Commander Lt Gen AK Bhatt, visited the frontier district of Kupwara yesterday. 

Army Chief was briefed about the recent counter-infiltration operations. Gen Rawat interacted with the troops and spent the first day of 2019 with troops in the Kashmir Valley. 

Army spokesperson said, Gen Rawat was appreciative of the sharp vigil and ness along the Line of Control and high morale of the troops, and further exhorted them to remain for any eventuality.
 
Army Chief also interacted with senior police officials and discussed the prevailing internal security situation in the valley. Gen Rawat also appreciated the seamless cooperation and synergy being maintained among all the agencies. 

Army Chief arrived in Kashmir valley yesterday on a two-day visit to the state.