The Reserve Bank of India has proposed the introduction of a prepaid payment instrument (PPI) that could be used only for transactions of goods and services worth up to Rs 10,000. It issued a statement announcing this following the Monetary Policy meeting on December 5, 2019.The central bank believes that the usage of PPIs, like the one proposed, can help promote digital payments and financial inclusion.It added that only banks and non-banking financial companies will be authorised to issue and load these PPIs. The instrument could be used for pay bills and merchant payments and transfer payments online.Close Since it is a lower value PPI, the customer will have to submit essential minimum details to procure it from the bank. RBI said it will give final instructions about this by December 31, 2019 after notifying the changes to Foreign Exchange Management Act Regulations. related news NEFT to be available 24x7 from December 16: RBI Forex kitty continues to swells, … [Read more...] about Fintechs laud RBI’s move to introduce prepaid payment instrument
Manas ChakravartyMarkets across the world have suddenly been spooked by fears of a growth slowdown. Here’s what the Reserve Bank of India said in its monetary policy statement a few days ago: "…global economic activity has shown increasing signs of weakness on rising trade tensions. Among advanced economies, economic activity appears to be slowing in the US in Q42018, after a buoyant Q3. The Euro area growth lost pace in Q3, impacted by weaker trade growth and new vehicle emission standards. The Japanese economy contracted in Q3 on subdued external and domestic demand."The RBI said growth was also slowing in some emerging markets, most importantly China. For India too, there have been warnings of lower growth after the September quarter gross domestic product growth came in lower than anticipated. Fitch Ratings has been the latest to jump aboard the bandwagon, reducing its estimate of India's GDP growth this fiscal from 7.8 percent earlier to 7.2 percent.Close … [Read more...] about Quick Take | Does the market really have a reason to worry about lower global growth?
BSP supremo Mayawati on December 7 asked the Uttar Pradesh government to ensure "proper justice" to the family of Unnao rape victim who succumbed to severe burns in Delhi hospital. The death of the 23-year-old woman is extremely painful and the BSP is with the victim's family in this hour of grief, she said in a tweet in Hindi."UP government should take special initiative soon to provide proper justice to the victim's family. This is the demand of justice and people," she said.In another tweet, she added, "To prevent such traumatic incidents all over the country, including in UP, state governments should create fear of law among people and in view of the incidents, the Centre should also make a law to ensure strict punishment by hanging to death within a stipulated time-frame."Close Mayawati's reaction comes after the death of the Unnao rape victim in Delhi hospital. related news Trade war goes digital: countries eye tariffs on Internet economy Woman dancer from Mumbai … [Read more...] about Ensure proper justice to Unnao rape victim’s family: Mayawati asks UP government
Foreign exchange reserves gained $2.484 billion to touch a new high of $451.08 billion in the week to November 29, according to the weekly data released by the Reserve Bank on December 6.In the previous week, the reserves had increased by $347 million to $448.6 billion.Announcing the fifth bi-monthly monetary policy on Thursday, governor Shaktikanta Das had said the reserves touched $451.7 billion as of December 3, an increase of $38.8 billion since April.Close In the reporting week, the rise in reserves was mainly on account of an increase in foreign currency assets, a major component of the overall reserves, which rose by $2.642 million to $419.367 billion, according to the data. related news Unnao case: Want to see accused shot dead or hanged, says victim's father Bank of Japan to consider offering bleaker view on output as trade war bites: Sources Trade war goes digital: countries eye tariffs on Internet economy Expressed in dollar terms, the foreign currency assets … [Read more...] about Forex kitty continues to swells, scales past $451-bn-mark
Reports of a country-wide waiver of farm loans by the central government, on the lines of the Agricultural Debt Waiver and Debt Relief Scheme announced by the UPA-II government in 2008, have been doing the rounds.It’s hardly surprising, in view of the belief that it is widespread rural distress that unseated the BJP governments of Chhattisgarh, Madhya Pradesh, and Rajasthan. The perception that the promise of farm loan waivers helped the Congress win Madhya Pradesh and Chhattisgarh have added fuel to the speculation. That a farm loan waiver scheme by the Vasundhara Raje government couldn’t stave off defeat is of course airily brushed away.The Reserve Bank of India says total farm loan waivers amounted to 0.32% of the country’s GDP in 2017-18 and states have already budgeted for waivers to the extent of 0.2% of GDP this fiscal. Since 2014, we have seen agricultural debt relief announcements in Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra, Uttar Pradesh, … [Read more...] about Quick Take | Farm loan waivers end up hurting the people they want to help