1. Unified Payment Interface crosses 1 mn hits mark; value soars to Rs 457 cr

Unified Payment Interface crosses 1 mn hits mark; value soars to Rs 457 cr

Transactions on the Unified Payments Interface (UPI) platform have crossed the one million-mark in December, reports Shritama Bose in Mumbai.

By: | Published: December 27, 2016 6:50 AM
UPI, Transactions, UPI transactions, Online Payment, Demonetisation Transactions on the Unified Payments Interface (UPI) platform have crossed the one million-mark in December, reports Shritama Bose in Mumbai. (Source: Reuters)

Transactions on the Unified Payments Interface (UPI) platform have crossed the one million-mark in December, reports Shritama Bose in Mumbai. Moreover, in just over a month of its launch, SBI Pay—State Bank of India’s UPI app —has seen 5,00,000 downloads.

Data from Reserve Bank of India (RBI) show total UPI transactions between December 1 and December 22 at 1.2 million valued at R457.07 crore. This is up from 0.3 million transactions in November valued at R90.5 crore. The average ticket size has risen to R3,808 in December from R3,016 in November.
While digital payments have increased post the withdrawal of high currency notes on November 8, the jump in UPI-based transactions can be partly attributed to the fact that two large lenders—SBI and HDFC Bank — joined the platform on November 23.

With this, 33 banks have joined the platform and 27 banks have their own UPI apps.
HDFC Bank does not have a separate UPI app. Punjab National Bank, IDFC Bank, Union Bank, Allahabad, Canara Bank and Bank of Maharashtra all have separate UPI apps.

UPI has been described as a WhatsApp moment in finance. Built on the existing IMPS platform that allows real-time transfer of money, it is inter-operable across banks. A customer’s multiple bank accounts can be added to a single bank’s UPI app and neither the payer or payee needs to share their bank account details or IFSC code with each other. Moreover, sellers can also raise a payment request a feature that should help merchants raise invoices.

UPI has been described as a WhatsApp moment in finance. Built on the existing IMPS platform that allows real-time transfer of money, it is inter-operable across banks. A customer’s multiple bank accounts can be added to a single bank’s UPI app and neither the payer or payee needs to share their bank account details or IFSC code with each other. Moreover, sellers can also raise a payment request a feature that should help merchants raise invoices.
Personal, corporate taxes to
come down next year With the continued sluggishness — if not decline — in private investment and stressed top-lines of corporates, lowering the tax rate has become an imperative, the sources added.
On Sunday, a day after the prime minister lamented low or zero tax rate for certain types of financial income and said that this could be increased it in a fair, efficient and transparent way, the finance minister Arun Jaitley said no such plan was in the offing, but the markets, which feared reintroduction of long-term capital gains tax, were not fully pacified (the sensex lost 233 points on Monday).

Jaitley on Monday said at a revenue department function that “a lower level of taxation that is globally compatible is necessary if the country has to have a broader base of economy.” He said gone were the days of the philosophy that high taxation would bring greater revenues and that since 1991 the course of economy had altered itself. “And the mindset of the tax payer (should be) that payment of legitimate taxes is a responsibility and then it should be reciprocated by you with a confidence in the tax payer.

The taxpayer is to be trusted, except when it’s proven otherwise. And therefore only in those select cases, very objectively selected, you go in for a wider audit or a wider scrutiny itself,” Jaitley said. “There are no grey areas in taxation laws. It’s either black or white. It’s either payable or not payable.

And therefore to discover grey areas in fiscal laws is not possible, that’s the same principle that applies to criminal law also, either an offence has been committed or not committed,” the minister said.

Markets spooked by PM’s tax talk, Sensex at 5-week low Fe Bureau adds: Bank of America Merrill Lynch wrote in a recent report the combined impact of demonetisation and the Goods and Services Tax(GST) would leave corporate earnings volatile for the next 3-4 quarters, at least. Downgrades are likely to continue, the brokerage added. However, valuations, it noted, were less of a hurdle given the MSCI India was trading 15.7 times one year forward. Moreover, it expects government to act soon—providing both a monetary and fiscal stimulus. The difficulties on the lack of cash now should end in a few weeks, it observed in a report.

DIPP asked by PMO to pick low-hanging fruit for Budget. The panels’s suggestions are supposed to be first reviewed by Cabinet secretary Pradeep Kumar Sinha before being sent to the PMO.
As part of this exercise, the panel has been looking at steps to further strengthen the Make-In-India and the Start-Up India programmes, and the Budget could reflect such measures, said one of the officials. Ease of doing business will again get prominence, with special focus on digitisation and more IT-enabled government processes.

One of the priority areas will be enhancing the country’s competitiveness in sectors like textiles and garments, capital goods, defence production, chemicals & petrochemicals, maintenance repair and overhauling of aircraft and ship repair and even information technology hardware could get utmost importance, one of the officials said.

Customs and excise duty rates on certain inputs, raw materials, intermediaries and components and certain other goods could be tinkered with in the Budget to prepare for the goods and services tax regime, which, analysts say, could be introduced only in September 2017 or later.
To promote Make In India, the Budget 2016-17 had decided to withdraw customs duties exemption on direct imports of specified goods by the central or state governments. Even the customs duty exemption on specified goods imported by contractors of the central government or even the PSUs was withdrawn.

The last Budget also raised the basic customs duty on certain capital goods from 7.5% to 10% and hiked it on metals like primary aluminium and zinc alloys from 5% to 7.5%.

  1. Manish Kumar
    Jan 20, 2017 at 6:38 am
    Thank you for sharing such great information. It has help me in finding out more detail about Upi
    Reply

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