Importers in US beware: DOJ escalates customs fraud enforcement under FCA - the false claims act
In the 8-minute
Audio Interview
, Ms. Beidel discusses these questions:
Can you give our listeners a brief background on the False Claims Act and how it has been used in the past?What makes you predict a trend in FCA use in the customs and tariff space?What can companies do to be prepared for that increased use of the False Claims Act?
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Economic Times
13 hours ago
- Economic Times
Interest rates, dollar sales boost RBI income by 27%
RBI's FY25 net income surged by 27% due to higher global interest rates and dollar sales, enabling a record surplus transfer to the government. Increased returns from foreign currency assets and forex transactions significantly contributed to this rise. The central bank also strategically increased its gold holdings to bolster its asset mix and manage risks. Tired of too many ads? Remove Ads Income from Forex Transactions Up 33% Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Price Stability, Liquidity A surge in global interest rates and gains from dollar sales to stem the rupee's fall boosted the Reserve Bank of India's (RBI's) FY25 net income by 27%, enabling it to transfer a record surplus to the central government and help bridge the fiscal gap. North Block's money manager also demonstrated the prudence it expects from mainstream lenders, boosting gold holdings in its overall asset mix to mitigate quality slippage central bank's net income rose to ₹2.69 lakh crore last fiscal, up from ₹2.11 lakh crore a year earlier, as its investments in overseas assets yielded decade-high returns, its annual report shows.'Income from foreign sources increased 38% to ₹2.58 lakh crore,'' the annual report said. 'The rate of earnings on foreign currency assets was 5.31% during the year compared with 4.21%'' in the year before that.A sharp increase in the returns from foreign currency assets (FCA) of the central bank helped it last week pay a dividend of ₹2.69 lakh crore to the government, up from ₹2.1 lakh crore a year ago, giving the Centre a fiscal space of 0.12% of payout was higher despite an increase in the contingency risk buffer (CRB) to a maximum 7.5% of the RBI's balance sheet under a revised economic capital framework (ECF).'Earnings on FCA improved significantly on account of better returns on the dollar,'' said Dipanwita Mazumdar, economist at Bank of Baroda . 'This becomes critical given that our forex reserves held by the RBI have been increasing and are being invested in various avenues.''Interest income from investments in foreign securities was up 48% to ₹97,007 crore against ₹65,328 crore in FY24. The report also says that RBI's income from foreign exchange transactions rose 33% to ₹1.11 lakh crore in FY25, against ₹83,616 crore a year ago.'This ensures that the Centre meets its fiscal deficit target of 4.4% of GDP—if not exceed,' said Gaura Sengupta, chief economist, IDFC FY19, the RBI adopted the ECF that required the central bank to maintain a contingency risk buffer of 5.5–6.5%.'The dividend would have been even higher if the provisioning wasn't increased to 7.5% of total assets from 6.5% earlier,' said Sengupta. 'Indeed, if the provisioning was maintained according to the old framework, the dividend would have been ₹3.5 lakh crore.'Under the revised ECF, the CRB is 4.5–7.5% of the central bank's balance sheet.'The dividend announcement, though lower than market expectation, was still larger than the budgeted estimate by 0.15% of GDP,'' said Anubhuti Sahay, Head of India Economics Research, Standard Chartered forward, domestic economic activity is expected to strengthen from the lows of the first half of FY25, said the annual report. The economic outlook is an important deciding factor in arriving at the CRB inflation is expected to ease and move further toward the legally mandated target in 2025–26, said the annual report. Monetary policy is committed toward achieving durable price stability, which is a necessary prerequisite for high growth on a sustained basis, said the Reserve Bank will undertake liquidity management operations in sync with the monetary policy stance and keep system liquidity adequate to meet the needs of the productive sectors of the economy, said the annual FY25, the RBI's total expenditure rose 7.76% to ₹69,714 crore, due to higher interest spends, printing of notes and employee expenditure also includes provisions toward the contingency fund and asset development fund (ADF). However, no provision was made toward amount of ₹44,861.70 crore was provided toward the contingency fund to maintain the Available Realised Equity at the level of 7.5% of the balance sheet. Accordingly, the balance in CF as on March 31, 2025, was ₹5.42 lakh crore, compared with ₹4.29 lakh crore as on March 31, size of the balance sheet increased by ₹5.78 lakh crore, or 8.2%, to ₹76.25 lakh crore. The increase on the assets side was due to a rise in gold holdings, domestic investments and foreign investments by 52%, 14.3% and 1.7%, the liabilities side, expansion was due to an increase in notes issued, revaluation accounts, and other liabilities by 6.03%, 17.32% and 23.31%, assets constituted 25.73% while foreign currency assets, gold (including gold deposit and gold held in India) and loans and advances to financial institutions outside India constituted 74.27% of total assets as on March 31, 2025, against 23.31% and 76.69%, respectively, as on March 31, share of gold in net foreign assets increased to 12% as at end-March 2025 from 8.3% as at end-March 2024, mainly due to revaluation gains from gold credit to the government expanded during the year owing to the liquidity injection through purchase of G-secs via open market operations during January–March 2025.
Time of India
a day ago
- Time of India
Importers in US beware: DOJ escalates customs fraud enforcement under FCA - the false claims act
In the 8-minute Audio Interview , Ms. Beidel discusses these questions: Can you give our listeners a brief background on the False Claims Act and how it has been used in the past?What makes you predict a trend in FCA use in the customs and tariff space?What can companies do to be prepared for that increased use of the False Claims Act?
United News of India
7 days ago
- United News of India
Forex reserves fall to USD 685.73 bn on May 16: RBI
Mumbai, May 23 (UNI) India's foreign exchange reserves declined by USD 4.89 billion (₹31,650 crore) in the week ended May 16, 2025, to stand at USD 685.73 billion (₹58.66 lakh crore), according to data released by the Reserve Bank of India (RBI) on Friday. Despite the sharp weekly drop, the overall reserves posted a robust year-on-year growth of USD 37.03 billion (₹4.59 lakh crore) and a rise of USD 17.40 billion (₹1.53 lakh crore) since the end of March 2025, reflecting underlying strength in India's external sector position. Foreign Currency Assets (FCA), which form the largest component of the reserves, increased marginally during the week by USD 279 million (₹11,019 crore), taking the total to USD 581.65 billion (₹49.75 lakh crore). Since March-end, FCA rose by USD 14.09 billion (₹1.24 lakh crore) and showed an annual gain of USD 12.64 billion (₹2.33 lakh crore). Gold reserves were valued at USD 81.22 billion (₹6.95 lakh crore), recording a steep weekly fall of USD 5.12 billion (₹42,520 crore). However, gold holdings were still higher by USD 3.04 billion (₹26,538 crore) from end-March and surged by USD 24.02 billion (₹2.18 lakh crore) over the year. Special Drawing Rights (SDRs) stood at USD 18.49 billion (₹1.58 lakh crore), down by USD 43 million (₹90 crore) over the week. SDRs rose by USD 321 million (₹2,866 crore) since March-end and also recorded a similar annual increase. India's Reserve Position in the International Monetary Fund (IMF) was reported at USD 4.37 billion (₹37,404 crore), reflecting a weekly decline of USD 3 million (₹59 crore). It was down by USD 52 million (₹451 crore) since March, but up by USD 44 million (₹1,279 crore) compared to the same period last year. The RBI noted that foreign currency assets exclude its own SDR holdings, investments in bonds issued by IIFC (UK), funds under SAARC and ACU currency swap arrangements, and contributions to Nexus Global Payments. UNI BDN RN
