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Payments Infrastructure Development Fund – Inclusion of PM SVANidhi Scheme beneficiaries
- The Reserve Bank has now decided to include street vendors identified as part of the PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi Scheme) in tier-1 and tier-2 centres as beneficiaries under the PIDF Scheme.
- The Payments Infrastructure Development Fund (PIDF) Scheme was announced by the Reserve Bank on January 5, 2021.
- The objective of the scheme was to encourage deployment of Points of Sale (PoS) infrastructure (both physical and digital modes) in tier-3 to tier-6 centers and north eastern states.
- The street vendors in tier-3 to tier-6 centers will continue to be covered under the Scheme by default. PIDF presently has a corpus of Rs. 345 crore.
About PM SVANidhi Scheme
- Under this, the govt. is facilitating the working capital loan of up to Rs 10,000 for 1-year tenure to Street Vendors, vending in urban areas.
- On timely and early repayment, they are eligible for an enhanced working capital loan up to Rs 20,000 and Rs 50,000 in the second and third tranches respectively.
- The Scheme provides for incentives in the form of interest subsidy at the rate of 7 per cent per annum on regular repayment of the loan and cash-back up to Rs 1,200 on undertaking a prescribed number of digital transactions.
- As of July 30, 2021, 43.3 lakh loan applications have been received. Out of these 25.3 lakh loans have been sanctioned and 22.8 lakh loans have been disbursed.
- As of July 30, 2021, under the 'SVANidhi se Smariddhi' Programme, the socio-economic profile of 5.3 lakh PM SVANidhi beneficiaries along with their family members has been completed.
RBI enhances limit under Indo-Nepal Remittance Facility to Rs 2 lakh
- The Reserve Bank of India has increased the limit of fund transfer under the Indo-Nepal Remittance Facility Scheme from Rs 50,000 per transaction to Rs 2 lakh per transaction.
- Earlier there was a ceiling limit of 12 transactions in a year. Now, this limit has also been removed
- However, for cash-based transfers under the Indo-Nepal Remittance Facility, the per transaction limit of Rs 50,000 will still be present with a maximum number of transfers in a year allowed at 12.
About the Indo-Nepal Remittance Facility:
- Indo-Nepal Remittance Facility is a fund transfer mechanism from India to Nepal (not otherwise) that operates on NEFT. It was started by RBI in the year 2008. It is managed by SBI in India and Nepal SBI Bank Limited (NSBL) in Nepal.
India's FY22 Q1 GDP Data released by MoSPI
- India’s Gross Domestic Product (GDP) for the April-June quarter (Q1) of the ongoing financial year 2021-22 (FY22) grew by 20.1 per cent, as per the provisional estimates of GDP released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday.
- The Gross Value Added (GVA) at basic prices during Q1 of FY22 was 18.8 per cent, against (-)22.4 per cent in the corresponding quarter year ago, the data showed.
- The sharp rise in Q1 GDP data can be mainly attributed to a low base last year.
What is Base Effect?
- In the Base effect, base is the comparison month, quarter or year. For Example in the Above Article IIP in May grow to 29.3% because we are comparing it with same month of last year and IIP has crashed by 33.4% in May 2020 (Means -33.4%, so if you have 100 kg of something last year and it decreases to 67kg in the current year and next year it again become 120kg so your total increase will be by 53kg, approx. an increase of 44%, as you have base as previous year)
- As there were nation wide lockdown last year so Industries were not producing anything for few month and that's why we had Negative GDP in One Particular Quarter in last FY but now in this FY there were no Country wide lockdown only state wise so industries were out of it and that's production happened and it is more or less similar of last to last FY (2019-20) but we are comparing from FY (20-21) and that's why any periodic number looks increased just because of Base effect.
Centre releases over ₹13,000 crore aid to Rural Local Bodies
- Finance Ministry has released ₹13,35.70 crore to 25 states for providing grants to rural local bodies under 15th Finance Commission
- The biggest chuck from the latest disbursement went to Uttar Pradesh at ₹2,162.4 crore, followed by Maharashtra ( ₹1,292.1 crore) and Bihar ( ₹1,112.7 crore)
- The Dept. of Drinking Water & Sanitation (DDWS), Ministry of Jal Shakti, Govt of India will act as the nodal Department for determining the eligibility of the rural local bodies for the ‘15th FC tied grant for water & sanitation
- Based on the recommendations of the Finance Commission, this is the first instalment of Tied grants of the year 2021-22.
- Such grants are released to RLBs to improve two critical services namely: Sanitation and maintenance of open-defecation free (ODF) status and supply of drinking water, rainwater harvesting and water recycling.
- Out of the total Grant-in-aid allocated for Panchayati Raj institutions, 60 per cent is ‘Tied Grant’. It’s earmarked for national priorities like drinking water supply, rainwater harvesting and sanitation
- The remaining 40 per cent is ‘Untied Grant’ and is to be utilised at the discretion of the Panchayati Raj institutions for location-specific felt needs, except for payment of salaries.
Tied grants are meant to ensure the availability of additional funds to the RLB over and above the funds allocated by the Centre and the State for sanitation and drinking water under the Centrally Sponsored Schemes.
The States must transfer the grants to the RLB within ten working days of receiving from the Union Government. Any delay beyond ten working days will result in interest.
15th Finance Commission Recommendations:
- As per 15th Finance Commission recommendations, Rs. 1.42 Lakh Crore tied grant to Panchayats for water & sanitation during 2021-22 to 2025-26
- In all, the 15th Finance Commission recommended Rs. 2,36,805 Crore to RLBs/ PRIs for the period 2021-22 to 2025-26.
- It has recommended 60% of the allocation to RLBs/ Panchayats i.e. Rs. 1,42, 084 Crore as a tied grant to be utilized for a.) supply of drinking water, rainwater harvesting and water recycling; and b.) sanitation & maintenance of open-defecation free (ODF) status
PayU to acquire BillDesk for $4.7 billion in biggest fintech deal
- Global consumer internet group and technology investor Prosus NV announced on Tuesday that an agreement has been reached between PayU and the shareholders of the Indian digital payments provider BillDesk to acquire BillDesk for $4.7 billion.
- The transaction, which is subject to approval from the Competition Commission of India, builds on previous successful acquisitions by PayU in India, including CitrusPay, Paysense and Wibmo.
- BillDesk, founded in 2000, is a leading payment businesses in the country.
- Prosus, is a Dutch company (HQ: Netherlands) that is the international Internet assets division of South African multinational Naspers. The global investment group is the largest consumer Internet company in Europe, and among the largest technology investors in the world.
- Bob van Dijk - Group CEO of Prosus
- Laurent Le Moal - CEO of PayU
- M N Srinivasu - Co-founder of BillDesk
FDI equity inflows up 168% to $17.57 billion during April-June 2021-22
Total FDI inflow rose to $22.53 billion during the first three months of 2021-22 as against $11.84 billion in the same period of the last year
- Total FDI comprises equity inflows, reinvested earnings and other capital.
- FDI equity inflow grew by 168 per cent in the first three months of 2021-22 ($17.57 billion) compared to the year ago period ($6.56 billion)
- The data showed that the automobile industry has emerged as the top sector during the period under review with 27 per cent share of the total FDI equity inflows.
- Further, Karnataka is the top recipient state during April-June 2021, with 48 per cent share of the total FDI equity inflows. It was followed by Maharashtra (23 per cent) and Delhi (11 per cent).
New BH-series drives in one pan-India vehicle registration
In a move to bring in one vehicle registration valid across the country, the government today introduced a new registration mark called the Bharat Series (BH), effective September 15.
- With the BH-series, vehicles will not require any transfer of registration and will be valid across the country, the Ministry of Road Transport and Highways (MoRTH) said.
- Currently, a person is allowed to keep vehicle for a maximum of one year in any State other than the one it is registered in. Owners have to get such vehicles re-registered before the expiry of one year (12 months).
The format
- The registration mark for BH-series vehicles will be generated randomly through the portal and shall be in black on white background. The BH-series registration mark format will be YY BH #### XX, giving the last two digits of the year of registration (YY), the BS Code, followed by four numerals and two letters from the alphabet
MV tax for 2 years
- The Motor Vehicles Tax for BH-series vehicles shall be levied electronically through the portal for two years, or in multiples of two, as the case may be
Commerce Ministry recommends anti-dumping duty on polyester spun yarn from China, Indonesia, Vietnam
- In a move that will give a boost to the domestic man-made fibre (MMF) sector, the Directorate General of Trade Remedies has recommended anti-dumping duty on polyester spun yarn from units based in China, Indonesia and Vietnam ranging between $4 per tonne and $281 per tonne for five years.
- The duties will have to be notified by the Finance Ministry before they are officially imposed.
Dumping duty
- Dumping is said to take place when imports are at prices lower than the normal value or the price at which the item is sold in the domestic market of exporting country.
- Material injury is caused when the domestic industry suffers losses due to dumping.
- Anti-dumping duties can be imposed only when both dumping and material injury are established, per WTO rules.
SIDBI provides first approval under SCDF to TN Government
Small Industries Development Bank of India (SIDBI) provided the first approval under SIDBI Cluster Development Fund (SCDF) to the Government of Tamil Nadu
- Set up with RBI’s support, SCDF was created to support hard infrastructure facilities in clusters across the country.
- The fund is envisaged to support setting up, upgrading and renovation of MSME infrastructure in areas other than agriculture.
Focused engagement
- The expert committee on MSMEs headed by UK Sinha has recommended a more focused engagement of SIDBI with State governments for MSME development and promotion including use of priority sector shortfall (PSS) funds to create a low-cost lending window for State Governments for infrastructure projects in clusters.
- Accordingly, SIDBI set up Project Management Units (PMUs) in 11 States including Assam, Andhra Pradesh, Rajasthan, Gujrat, Haryana, Maharashtra, Delhi, Uttar Pradesh, Uttarakhand, and Tamil Nadu.
PFRDA increases the entry age in National Pension System (NPS) to 70 years
The Pension Fund Regulatory and Development Authority (PFRDA) has increased the entry age for the National Pension System (NPS) from 65 years to 70 years.
- Earlier the eligible age to invest in NPS was 18-65 years which has now been revised to 18-70 years.
- As per the revised norms, any Indian Citizen, resident or non-resident and Overseas Citizen of India (OCI) between the age of 65-70 years can join NPS and continue or defer their NPS Account up to the age of 75 years.
- If a person joins NPS after 65 years, then the Normal Exit shall be after 3 years. Exit before 3 years will be considered premature exit.
PhonePe receives direct broking license from IRDAI
Flipkart-owned digital payments platform PhonePe has received an insurance broking licence from the Insurance Regulatory and Development Authority of India (IRDAI).
- This means that with the new ‘direct broking’ license, PhonePe can now distribute insurance products from all insurance companies in India, on its platform.
- Earlier in January 2020, PhonePe entered the insurtech sector, but with a limited insurance ‘corporate agent’ license, which restricted it to partner with only three insurance companies per category.
- CEO of Phonepe: Sameer Nigam
- Headquarters location of Phonepe: Bengaluru, Karnataka.
LIC launches ANANDA mobile app for Agents
The Life Insurance Corporation of India (LIC) has launched the mobile application of its digital paperless solution, “ANANDA” for LIC agents.
- ANANDA stands for Atma Nirbhar Agents New Business Digital Application. The ANANDA mobile app was launched by LIC Chairperson MR Kumar, through Video Conferencing
- The ANANDA tool enables LIC agents to register new LIC policies from the comfort of their homes.
Bank of India raises ₹2,550 cr through QIP
- State-owned lender Bank of India on Tuesday said it has closed its qualified institutional placement (QIP), raising ₹2,550 crore.
- Life Insurance Corp of India (LIC), ICICI Prudential Life Insurance Company and Bajaj Allianz Life Insurance Company are the three investors which subscribed to more than 5% of the equity offered in the qualified institutional placement issue.
HSBC appoints former SBI chairman Rajnish Kumar as independent director
The Hongkong and Shanghai Banking Corporation Limited (HSBC) on Monday said it has appointed former State Bank of India (SBI) chairman Rajnish Kumar as an independent non-executive director.
- Kumar retired in October 2020 following a 40-year career at India’s largest lender.
- He is currently a director of India’s Lighthouse Communities Foundation, an independent director of Larsen & Toubro Infotech Limited, a senior advisor of Baring Private Equity Asia Pte. Ltd in Singapore and an advisor of Kotak Investment Advisors Ltd in Mumbai.
RBI fines four White Label ATM operators ₹6 cr for regulatory non-compliance
- According to a statement by RBI, BTI Payments Pvt Ltd and Hitachi Payment Services have been fined ₹2 crore each. Meanwhile, Tata Communications Payment Solutions and Vakrangee Ltd have been fined ₹1 crore each
- RBI has imposed these penalties in exercise of powers vested in the central bank under the provisions of Section 30 of the Payment and Settlement Systems Act, 2007.
Centre selects 10 banks to manage Life Insurance Corp IPO
India has selected 10 investment banks including Goldman Sachs, Citigroup and SBI Capital Market to handle the initial public offering of Life Insurance Corp of India, two government sources said, in what is set to be the country's biggest ever IPO.
- The other selected lenders are JM Financial Ltd, Axis Capital, Nomura, BofA Securities, J.P. Morgan India Pvt Ltd, ICICI Securities and Kotak Mahindra
- The government expects to raise 800 billion-900 billion rupees ($11 bln-12.2 bln) from its stake sale in Life Insurance Corp (LIC), as part of its plans to raise 1.75 trillion rupees from a privatization programme in the current fiscal year ending in March.
- LIC, India's biggest insurance company with assets of over 34 trillion rupees ($461.4 billion), has a subsidiary in Singapore and joint ventures in Bahrain, Kenya, Sri Lanka, Nepal, Saudi Arabia and Bangladesh.
