1. RBI to extend UPI to feature phone users
Tags: Economics/Business
Highlights
The UPI facility will soon be extended to feature phone users. At the moment, the unified payments interface (UPI) — the single largest retail payments system in the country in terms of volume of transactions for small value payments — is available only for smartphones.
It will help to further deepen digital payments and make them more inclusive, ease transactions for consumers, facilitate greater participation of retail customers in various segments of financial markets and to enhance the capacity of service providers.
This will be done by leveraging on innovative products from the RBI’s regulatory sandbox on retail payments.
The regulator has also proposed to make the process flow for small value transactions simpler through an ‘on device’ wallet in UPI applications.
Unified Payment Interface (UPI)
National Payments Corporation of India National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007. It is a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems. List of other NPCI Products -
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RBI Regulatory Sandbox The Regulatory Sandbox(RS) usually refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may (or may not) permit certain regulatory relaxations for the limited purpose of the testing. The RS allows the regulator, the innovators, the financial service providers (as potential deployers of the technology) and the customers (as final users) to conduct field tests to collect evidence on the benefits and risks of new financial innovations, while carefully monitoring and containing their risks. It can provide a structured avenue for the regulator to engage with the ecosystem and to develop innovation-enabling or innovation-responsive regulations that facilitate delivery of relevant, low-cost financial products. The RS is an important tool which enables more dynamic, evidence-based regulatory environments which learn from, and evolve with, emerging technologies. Objectives
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On Device Wallet On Device Wallet or mobile wallet is a virtual wallet that stores payment card information on a mobile device. These are a convenient way for a user to make in-store payments and can be used at merchants listed with the mobile wallet service provider. Eg - Apple Wallet, Samsung Pay |
Current RBI Governor - Shaktikanta Das
Current NPCI Head - Dilip Asbe
2. City Union Bank Launches payment keychain “On the Go”
Tags: Economics/Business
- Private sector lender City Union Bank (CUB), in collaboration with the National Payments Corporation of India (NPCI) and manufacturing partner Seshaasai, has unveiled ‘On-the-Go’ contactless wearable keychains for debit cards.
- The device would enable customers to make fast payments up to ₹5,000 in all RuPay enabled point-of-sale devices without entering a PIN,
- For payments above ₹5,000, customers would need to tap and then enter the PIN.
Headquarters of City Union Bank :Kumbakonam, Tamil Nadu.
3. ADB to provide loan to India
Tags: Economics/Business
Government of India and Asian Development Bank(ADB) has signed two agreement for loan to projects in India
- ADB will provide a $125 million loan to improve access to safe and affordable drinking water supply and citywide inclusive sanitation services in Dehradun and Nainital cities in the state of Uttarakhand.
- It will also provide a $150 million loan to provide access to inclusive, resilient, and sustainable housing for the urban poor in the state of Tamil Nadu.
Asian Development Bank It was set up in 1966 after a resolution was passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East in 1963 . ADB was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world. Originally there were 31 members when the Bank was set up in 1966 and now it has 68 members—of which 49 are from within Asia and the Pacific and 19 outside. India is the largest recipient of ADB loan Headquarter of ADB : Mandaluyong City, Manila, Philippines Current President of ADB: Masatsugu Asakawa of Japan |
4. Contribution of Manufacturing of MSME sector
Tags: Economics/Business
In a statement to the Rajya Sabha the Union Minister for Micro Small and Medium Enterprise(MSME) Narayan Rane gave information about the contribution of the MSME sector in Indian Economy
The share of the MSME manufacturing in All India manufacturing gross value output during the year 2018-19 and 2019-20 were 36.9% and 36.9% respectively.
The share of export of specified MSME related products to All India exports during 2019-20 and 2020-21 was 49.8% and 49.4% respectively.
MSME (Micro Small Medium Enterprises) Definition Micro Enterprises :A micro enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹1 crore and turnover does not exceed ₹5 crore Small Enterprises : A small enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹10 crore and turnover does not exceed ₹50 crore Medium Enterprises: A medium enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹50 crore and turnover does not exceed ₹250 crore |
5. Economics/Business
Tags: Economics/Business
1. Visa complains to US govt about India backing local rival RuPay
- The Visa company issued a statement to the U.S. during a meeting between company executives, including U.S. Trade Representative (USTR) Catherine Tai and CEO Alfred Kelly. It has complained to the government that domestic payments rival RuPay is promoting India's "informal and formal" manner. Due to this, American Visa Company has suffered loss in India.
2. Government approves strategic disinvestment of Central Electronics Ltd.
- The Union Government announced that it has approved the strategic divestment of Central Electronics Ltd (CEL) - a CPSE under the Department of Scientific and Industrial Research (DSIR).
- The winning bid was by Nandal Finance and Leasing Ltd for Rs 210 crore.
- The Alternative Mechanism (AM) on strategic disinvestment comprises Road Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Minister of State for Science and Technology Jitendra Singh.
3. Direct tax collection grew by 68%
- According to the Union Minister of State of Finance, the Net Direct Tax Collection figures for the FY- 2021-22 as on 23.11.2021 are at Rs 6,92,833.6 crore showing a growth of 67.93 percent and 27.29 percent over the net collection figures for the corresponding period FY 2020-21 and FY 2019-20.
4. RBI Supersede Reliance Capital Board
The Reserve Bank of India (RBI) on November 29 said it has superseded the board of Reliance Capital due to the defaults of the company in meeting various payment obligations.
RBI has appointed Nageswar Rao Y, former executive director of Bank of Maharashtra as the Administrator of the Company.
5. Indian Economy grew by 8.4% in July-September 2021-22(2nd Quarter).
The National Statistics Office, under the Ministry of Statistics and Programme Implementation, has released the economic data regarding the second quarter (July-September) of 2021-22.
- The Gross Domestic Product(GDP)at constant price grew by 8.4% as compared to the same period last financial year.
- The growth rate in the first six month of the current financial year is 13.7 %.
6. GST Collection Increased
Gross Goods and Services Tax (GST) collections hit ₹1,31,526 crore in November, the second highest since the GST was implemented in July 2017 and the second month in a row that collections have crossed ₹1.3 lakh crore.
- Revenues for November were 25% higher than the same month last year and 27% over the pre-pandemic levels of 2019-20.
7. 30 Billion Dollar of India-China Trade Deficit in First two quarters of Financial Year 2021-22
- India’s trade deficit with China stood at $30.07 billion during April-September 2021 as per Union Ministry of Commerce and Industry.
8. Debt to GDP Ratio of States Worrying as per Reserve Bank of India (RBI) Report
The Combined Debt to GDP ratio of states is expected to remain at 31% by end March 2022
This is published by RBI in its report ‘State Finances: A Study of Budgets of 2021-22’
According to the report the target was 20% for 2021-22, so the estimated figures are really worrying.
9. Export Dip widens Trade Deficit to record 23.27 Billion Dollars
- India’s merchandise exports (also known as tangible exports or retail exports) slipped below the $30 billion mark for the first time in eight months in November to $29.88 billion, even as imports rose sharply
6. Indian Economy grew by 8.4% in July-September 2021-22(2nd Quarter)
Tags: Economics/Business
The National Statistics Office, under the Ministry of Statistics and Programme Implementation has released the economic data regarding the second quarter (July-September) of 2021-22.
Highlights
- The Gross Domestic Product( GDP)at constant price grew by 8.4 % as compared to the same period last financial year.
- The Gross Domestic Product( GDP) at constant price is estimated at ₹35.73 lakh crore, as against ₹32.97 lakh crore in Q2, 2020-21.
- The Quarterly Gross Value Addition (GVA) at Basic Prices at Constant (2011-12) Prices in Q2 2021-22 is estimated at ₹32.89 lakh. crore, as against ₹30.32 lakh crore in Q2 2020-21, showing a growth of 8.5 percent.
- In the first quarter (April to June )2021,the GDP growth rate was 20.1%.
- The growth rate in the first six month of the current financial year is 13.7 % .
