1. Employees' Provident Fund Organization increased the interest rate on Employees' Provident Fund to 8.15%
Tags: Economy/Finance National News
Employees' Provident Fund Organization (EPFO) has fixed the interest rate on Employees' Provident Fund (EPF) deposits at 8.15% for the financial year 2022-23, which is higher than the previous year's interest rate of 8.10%.
An Overview of the News
Last year's interest rate of 8.10% The interest rate provided by EPFO for EPF deposits was the lowest in more than 40 years.
EPFO has sought approval from the Finance Ministry for the new interest rate.
The CBT will also review the annual accounts of EPFO along with the interest rate on EPF deposits for the financial year 2022-23.
EPFO has given four months time to the subscribers of Employees' Pension Scheme 1995 to opt for higher pension as per the order of the Supreme Court.
Members can opt for higher pension till May 3, 2023.
About Employees Provident Fund Organization (EPFO)
It is a statutory body under the Ministry of Labor and Employment, responsible for operating provident funds, pension schemes and insurance schemes for the organised sector workforce in India.
It manages a corpus of over Rs 17 lakh crore with over 6 crore clients.
EPFO aims to provide social security benefits to workers in the organised sector and ensure their financial stability and well-being.
Since its inception in 1951, the EPFO has expanded its ambit to include pension and insurance benefits, and in 2014, it launched the Universal Account Number (UAN) to ease EPF account management and ensure transparency.
About Employees Provident Fund (EPF)
It is a mandatory retirement savings scheme in India for employees with income below a certain salary limit.
Both the employer and the employee contribute 12% of the employee's basic salary and dearness allowance to the EPF account every month.
Employees can withdraw their EPF balance after a certain period or in case of certain contingencies, and EPF is an important component of an employee's retirement plan.
2. Government imposes surcharge for Google Pay and other payment apps
Tags: Economy/Finance National News
The National Payments Corporation of India (NPCI) has issued a circular suggesting "Prepaid Payment Instruments (PPI)" charges on merchant transactions on Unified Payments Interface (UPI).
An overview of the news
NPCI has introduced an interchange charge of up to 1.1 per cent on merchant UPI transactions done using prepaid payment instruments from April 1.
It will be levied on UPI payments above Rs 2,000 made to online merchants, large merchants and small merchants.
NPCI has clarified that there will be no charges for UPI payment from bank account to bank account or normal UPI payment.
With UPI, customers will have the option of using any bank account, RuPay credit card and prepaid wallet on a UPI-enabled app.
What is the interchange fee?
The interchange fee is levied to cover the costs of accepting, processing, and authorising transactions.
This is likely to make the transaction costlier.
Interchange fee is a fee paid by payment service providers to wallet issuers such as banks.
These wallets are mainly online payments like Paytm, PhonePe and Google Pay.
National Payments Corporation of India (NPCI)
NPCI, an umbrella organization for operating retail payment and settlement systems in India, has been initiated by the 'RBI' and the 'Indian Banks' Association' (IBA) under the 'Payment and Settlement Systems Act, 2007'.
It is a 'not-for-profit' company established under the provisions of Section 25 of the Companies Act 1956 (as amended in 2013), with the objective of providing physical and electronic payment infrastructure to the entire banking system in India.
3. India’s overall exports cross all time high of 750 Billion US dollars
Tags: Economy/Finance National News
Commerce and Industry Minister Piyush Goyal has said on March 28 that India's total exports have crossed US$ 750 billion which is the highest ever and this achievement has come in the 75th year of independence.
An overview of the news
In 2021-22, the country's goods and services exports reached an all-time high of US$ 422 billion and US$ 254 billion, respectively, taking total shipments to US$ 676 billion.
Exports fell by 8.82 per cent in February 2022, while imports fell by 8.21 per cent, the biggest decline in more than two years.
Experts have expressed concern over the slowdown in exports due to recession concerns and weak global demand.
Exports declined by 8.8 per cent to $33.88 billion in February 2023 from $37.15 billion in February 2022.
Imports also declined for the third consecutive month in February at $51.31 billion, down 8.21 per cent from $55.9 billion a year ago.
The country's trade deficit in February stood at $17.43 billion.
4. ICICI Lombard introduces country's first 'anywhere cashless' facility
Tags: Economy/Finance
For the first time in the country, ICICI Lombard General Insurance launched 'Cashless Anywhere' facility for health insurance policyholders to avail cashless facilities at any hospital.
An overview of the news
This facility will be subject to the approval of the hospital for cashless facility.
Policyholders have to inform the company 24 hours before the date of admission giving basic information about the patient, policy details, name of the hospital, diagnosis and treating doctor.
Any hospital, if not a part of ICICI Lombard's existing network, can get treated with this new facility to avail cashless facilities.
Initially launched as a pilot project, this facility can now be availed across India through the 'IL TechCare' application, at no cost to the customers from their own pocket.
It aims to expand insurance coverage by setting up more network partners in Tier-II and Tier-III cities, and actively seek and provide better options to customers.
About ICICI Lombard General Insurance
It is a subsidiary of ICICI Bank Limited, a general insurance company.
The company offers insurance products for machinery, fire and special perils, inland transit, product liability, workmen's compensation, tractors, marine and export credit.
It also offers health insurance, travel insurance, retail insurance, home insurance and motor insurance.
It also markets and distributes its products through agents, brokers, telesales, direct tie-ups, workplaces and online channels.
ICICI Lombard is headquartered in Mumbai, India.
5. Government hikes raw jute MSP Rs 300 to Rs 5,050 per quintal
Tags: Economy/Finance National News
Cabinet Committee on Economic Affairs (CCEA) on 24 March increased the minimum support price (MSP) of raw jute by Rs 300 to Rs 5,050 per quintal for 2023-24 season.
An overview of the news
The approval is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
The MSP of Raw Jute (TD-3 equivalent to earlier TD-5 grade) has been fixed at Rs 5,050 per quintal for 2023-24 season.
The announced MSP for raw jute for the 2023-24 season is in line with the principle of fixing the MSP at a level of at least 1.5 times the all-India weighted average cost of production announced by the Government in the Budget for 2018-19.
It assures a minimum of 50 per cent as profit margin.
This is one of the important and progressive steps towards ensuring better remunerative returns to the jute growers and promoting quality jute fibre.
The Jute Corporation of India shall continue as the nodal agency of the Central Government to conduct price support operations and the loss, if any, incurred in such operations shall be fully reimbursed by the Central Government.
What is Minimum Support Price (MSP)?
MSP is the rate at which the government buys food grains from farmers.
This is based on the calculation of at least one and a half times the cost of production incurred by the farmers.
The Government of India fixes the MSP for 24 items twice a year.
When the market price falls below the declared MSP, the government buys food grains from the farmers at the MSP rate.
Who decides MSP?
The MSP price is calculated by an expert committee under the ministry of Agriculture.
The expert committee is called CACP (Commission for Agricultural Costs and Price).
It recommends the MSP to the Agricultural ministry and the ministry announces the MSP.
However the Agricultural Ministry is not bound to accept the recommendation of the CACP.
6. Cabinet approves 4% hike in dearness allowance to central government employees
Tags: Economy/Finance National News
The cabinet has announced a 4% increase in dearness allowance for central government employees and pensioners.
An Overview of the News
With a four per cent increase in DA, the total DA becomes 42 per cent of the basic pay.
The increase in dearness allowance will benefit over 47 lakh central government employees and over 69 lakh pensioners.
The Union Cabinet has approved the release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from January 1, 2023.
The combined impact on the exchequer on account of both dearness allowance and dearness relief would be more than Rs 12 thousand 815 crore per annum.
The increase in Dearness Allowance is as per the approved formula, which is based on the recommendations of the 7th Central Pay Commission.
About Dearness Allowance (DA)
Dearness Allowance (DA) is compensation given to employees to offset the effects of inflation and is calculated as a percentage of an employee's basic salary.
The rate of inflation varies depending on the location, job profile and policies of the organisation.
Dearness Allowance is revised from time to time to keep it relevant and effective.
It aims to provide relief to the employees who are struggling to face the rising cost of living, maintain their standard of living and meet the day to day expenses.
DA is paid in addition to basic pay and is subject to income tax.
7. Income tax dept launches mobile app AIS for Taxpayers
Tags: Economy/Finance National News
The Income Tax Department has launched a free mobile app named 'AIS for Taxpayers'.
An overview of the news
Taxpayers can use the app to view their information related to Tax deducted at Source (TDS), interest, dividends, share transactions, tax payments, Income Tax refunds and other Information.
They can also view GST Data and foreign Remittances as available in Annual Information Statement (AIS).
Taxpayers will also have the option and facility to provide feedback on the information displayed in the app.
Taxpayers can access the information by registering on the app through PAN number, OTP sent to the mobile number and authenticating with the e-mail registered on the e-filing portal.
The app is available on Google Play and App Store.
8. 26th edition of 'Elevate' held in Dubai
Tags: Economy/Finance Summits International News
The sixth pitching session of the second season of Elevate concluded in Dubai 22 March.
An overview of the news
The event saw the participation of six startups from India and the registration of 180 investors.
The six startups that participated in the Elevate session were winners of the National Startup Awards 2022.
Season II to Session VI hosted a special guest, Padmaja Ruparel, Co-Founder, Indian Angel Network (IAN).
She is a member of the Government's NEAC, the National Expert Advisory Committee on Innovation, Incubation and Technology Entrepreneurship.
She shared her insights and thoughts on the opportunities in the growing startup ecosystem in India.
India's Commercial Representative in Dubai Kalimuthu welcomed the guests and set the tone for the programme.
Six startups from India who participated
Film board Movie Technologies inc,
Trascender Services Pvt Ltd,
Cogos Technologies Pvt Ltd,
Changejar Technologies Pvt Ltd,
Makerinme Technologies Pvt Ltd,
Revamp Moto Pvt Ltd
About Elevate
Elevate is a pitching series organized by the Consulate General of India in Dubai, providing a platform for startups to connect with investors and global counterparts.
The first season of Elevate started at the India Pavilion at Expo 2020 Dubai and consisted of twenty sessions.
The second season debuts in May 2022, and this episode marks the sixth installment of the season.
9. UAE’s Emaar first overseas company to start a mega-mall project in Kashmir
Tags: Economy/Finance State News
Emaar, a Dubai-based real estate developer, has become the first foreign company to invest in a mega-mall spread over one million square feet in Srinagar.
An overview of the news
Lieutenant Governor Manoj Sinha on 19 March laid the foundation stone of the mega Mall of Srinagar to be built by Dubai’s Emaar Group at Sempora area of the city.
The project will have a transformative impact on the Union Territory and will boost infrastructure and employment generation.
Emaar Group will invest a total of ₹500 crore, including ₹250 crore for the mega-mall and setting up IT towers in Jammu and Srinagar.
This mega-mall is the first significant Foreign Direct Investment (FDI) in Jammu and Kashmir.
The mall, a joint venture between Emaar and Delhi-based real estate firm Magna Waves Buildtech, is likely to be operational by 2026.
10. Cabinet approves listing of IREDA on Stock Exchanges
Tags: Economy/Finance National News
The Union Government on 18 March approved the listing of the Indian Renewable Energy Development Agency (IREDA) on the stock exchanges.
An overview of the news
The Cabinet Committee on Economic Affairs (CCEA) decided to approve an Initial Public Offer (IPO) by way of partial sale of the government's stake in CPSEs to raise funds by issuing fresh equity shares.
The Department of Investment and Public Asset Management (DIPAM) will carry out the listing process.
Earlier in the year 2017 also IREDA was given approval to bring IPO.
According to the government, in March 2022, it was decided to invest Rs 1500 crore in IREDA.
This has changed the capital structure of the company, due to which it has become necessary to bring an IPO.
Significance of the move
The approval will help the IPO unlock the value of the government's investment and provide an opportunity to the public to own a stake in national assets and earn from it.
This will help IREDA to raise a part of its capital requirement for carrying out development plans without depending on the exchequer.
The move will improve governance through greater market discipline and transparency arising out of listing requirements and disclosures.
Indian Renewable Energy Development Agency (IREDA)
It was incorporated as a Public Limited Company in the year 1987 as a 'Non-Banking Financial Institution'.
It is a Miniratna (Category 1) type company functioning under the administrative control of 'Ministry of New and Renewable Energy, Government of India.
Its function is to encourage projects related to new and renewable energy sources and to provide them financial assistance for their development.
It has been notified as a 'Public Financial Institution' under section 4'A' of the 'Companies Act, 1956'.
Chairman and Managing Director - Pradip Kumar Das
