Systemic failure - Definition / Legal Terminology - Income Tax

For the purposes of section 286(9)(I) of the Income Act 1961. Systemic failure with respect to a country or territory means that the country or territory has an agreement with India providing for exchange of report of the nature referred to in sub-section (2), but- (i) in violation of the said agreement, it has suspended automatic exchange; or (ii) has persistently failed to automatically provide to India the report in its possession in respect of any international group having a constituent entity resident in India.