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TMI BlogSPECIFIED SERVICE PROVIDER UNDER THE FINANCIAL RESOLUTION AND DEPOSIT INSURANCE BILL, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... SPECIFIED SERVICE PROVIDER UNDER THE FINANCIAL RESOLUTION AND DEPOSIT INSURANCE BILL, 2017 - By: - Mr. M. GOVINDARAJAN - Other Topics - Dated:- 21-12-2017 - - Specified service provider Clause 2(34) of the Financial Resolution and Deposit Insurance Bill, 2017 ( Bill for short) defines the expression specified service provider as a person as specified under the Second Schedule. The Second Schedule provides the following persons amount to specified service provider- Any banking institution, other than eligible co-operative bank including an insured service provider; Any insurance company; Any financial market infrastructure; Any payment system, as defined under the Payment and Settlement systems Act, 2017 not notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied under section 227 of the Insolvency and Bankruptcy Code, 2016; Any non banking financial company, not notified under section 227 of the Insolvency and Bankruptcy Code, 2016; Any systematically important financial institution; Any other financial service provider (excluding individuals and partnership firms), not notified under section 227 of the Insolvency and Bankruptcy Code, 2016; A holding company of any specified service provider enumerated above, registered in India which is not notified under section 227 of the Insolvency and Bankruptcy Code, 2016 subject to the determination by the Corporation under the proviso to section 33(1); Non regulated operational entities within a financial group or conglomerate of a specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied service provider enumerated above subject to the determination by the Corporation under the proviso to section 33(1); Branch offices of body corporate incorporated outside India, carrying on the business of providing financial service in India; Any other entity or fund which may be notified by the Central Government. Registration of specified service provider Chapter V of the Bill deals with the procedure for registration of specified service provider. Clause 33 of the Bill provides that on the date of commencement of this Act, every specified service provider shall be deemed to be registered under this Act. A holding company of such service provider or a non regulated operational entity within a financial group or c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onglomerate of a specified service provider is classified into a category of risk to viability such holding company or the non regulated operational entity within a financial group or conglomerate of the specified service provider, shall be deemed to be registered from the date of such classification. No separate registration is required under this Act for the specified service provider. Where the appropriate regulator issues a license, authorization or permission by virtue of which a person is categorized as a specified service provider, such person shall be deemed t be registered under this Act. Every banking institution shall be deemed to be registered as an insured service provider for obtaining deposit insurance under this Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the grant of a banking license by the appropriate regulator. A banking institution registered under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 shall be deemed to be registered as an insured service provider under this Act. Register of specified service provider The Resolution Corporation shall maintain a register with such details and information of each specified service provider as may be specified by regulation made by the Resolution Corporation. Such register shall be made available for inspection by any person subject to such conditions and payment of fees as may be specified by regulations made by the Resolution Corporation. Obligation of regulator The appropriate regulator shall, within fift ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een days from the commencement date of this Act or the issuance of a license, authorization or permission, provide to the Resolution Corporation such information as may be specified by the regulations made by the Resolution Corporation relevant for the maintenance of the register of specified service provider. Withdrawal/cancellation of registration Even though the appropriate regulator withdraws or cancels the license, permission or authorization issued to the specified service provider, such entity shall be deemed to be a specified service provider for the purposes of this Act. The registration of an insured service provider shall stand cancelled in the following circumstances- the insured service provider has been prohi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bited permanently from receiving fresh deposits; the insured service provider has ceased to be a banking company or a co-operative bank, within the meaning of Section 36A(2) of the Banking Regulation Act, 1949, or has converted itself into a non banking institution; the insured service provider has been informed by notice in writing by the Reserve Bank of India that its licence has been cancelled under section 22 of the Banking Regulations Act, 1949 or has converted itself into a non banking institution; the insured service provider hastransferred all its deposit liabilities in India to any other institution; a liquidator has been appointed in respect of such insured service provider; the insured service provider has been ama ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lgamated with any other insured service provider; where the insured service provider is an eligible co-operative bank, if it ceases to be so under the law governing such insured service provider; or the insured service provider has been ordered to be liquidated. The Resolution Corporation may, in consultation with the appropriate regulator, cancel the registration of an insured service provider and classify it to be as such risk to viability as may be specified by the regulation made by the Resolution Corporation if it fails to pay the premium under section 22 for three consecutive periods. No registration shall be cancelled without giving one month s notice in writing to the insured service provider calling upon it to pay the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount in default. Liability Where the registration of a specified service provider or an insured service provider has been withdrawn or cancelled, it shall not- entitle such specified service provider or insured service provider, to any refund for any fees or premia paid to the corporation under this Act; or affect the liability of such specified service provider or insured service provider for payment of premium or fees for the period before such withdrawal and of any interest due. If a specified service provider or an insured specified service provider makes any default in payment of any amount of fees or premium, it shall, for the period of such default, be liable to pay to the Corporation interest on such amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at such amount at such rate not exceeding 8% over and above the bank rate, as may be specified by the regulations made by the Resolution Corporation. Restoration The Resolution Corporation may, in consultation with the appropriate regulator, restore the registration of an insured service provider whose registration has been cancelled, if the insured service provider requests the Resolution Corporation to restore the registration and pays all the amounts due by way of premia from the date of default till the date of payment together with interest due thereon, on the date of payment. The Resolution Corporation shall not restore the registration of an insured service provider unless it is satisfied on an inspection or otherwise tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t such insured service provider is eligible to be registered as an insured service provider. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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