In an effort to boost digital payments, the Union Cabinet has decided to waive the merchant discount rate (MDR) applicable on all debit cards, BHIM and UPI transactions up to Rs 2,000.
Bankers will soon act on the 28 defaulters identified in Reserve Bank of India's second list and haul them to the National Company Law Tribunal (NCLT) for resolution under the Insolvency and Bankruptcy Code (IBC).
According to a senior finance ministry official, the surge in charges would impact Digital India movement so there is need to look into the issue.
On a cumulative basis, the CAD increased to 1.8 per cent of GDP in the first half of 2017-18 from 0.4 per cent in comparable period of last fiscal on the back of widening of the trade deficit.
For similar reasons, RBI had also imposed Rs 6 crore penalty on Yes Bank and Rs 2 crore on IDFC bank for deficiencies found in regulatory compliance relating to loans and advances
"Post demonetisation, there were some ups and downs but digital transactions are going up compared to what was prevailing a year ago. There was a need for more of such incentives at different levels," Khan said.
Joshi pointed out how successive Indian governments have been stuck with the idea of 51 percent ownership and have only flirted with the idea of privatization.
In the poll of more than 30 economists, annual consumer inflation, due to be released on Dec. 12 at 1200 GMT, was seen surging to a 13-month high of 4.20 percent in November from October's 3.58 percent.
Taking the fight to the arena used by fraudsters promising prize money from the RBI, the central bank has itself launched an SMS campaign and a 'missed-call' helpline to warn people against such scams.
Bank loans rose 9.64 percent YoY to Rs 79.62 lakh crore as on November 24, 2017, compared to 6.6 percent growth in same period in 2016 and 9.3 percent in 2015, shows the latest provisional Reserve Bank of India (RBI) data.
In order to boost debit card usage for payments, the RBI on Wednesday that it will rationalise the framework for the MDR applicable on debit card transactions.
"Volume is unlikely to make up for the shortfall in reduction of fees in the short-term and hence, the near-term impact would be marginally negative for a few players like Axis, HDFC, ICICI and SBI," analysts at domestic brokerage Kotak Securities said in a note.
Governor Urjit Patel said that the RBI’s stance will likely be neutral for a quarter or two. The question is will the RBI have to take a call on hiking rates or changing stance much earlier?
"This will be reform and a recap package and not just a recap package, so as to ensure that this money is used to strengthen public sector banks' balance sheets and that we don't sow the seeds of the next boom and bust cycle of lending," Patel told reporters.
MDR is the rate charged to a merchant by a bank for providing debit and credit card services.
After a regulatory diktat, Yes Bank, Axis Bank and those mentioned above had reported divergences in their NPAs worth over Rs 12,000 crore cumulatively for the financial year 2016-17. ICICI Bank, Axis Bank and Yes Bank also reported such divergences in 2016-17.
The Reserve Bank of India (RBI) Monetary Policy Committee kept the repo rate unchanged at 6 percent in the fifth bi-monthly meet and pointed that recapitalisation of public sector banks will help in improving credit flow.
The Reserve Bank of India (RBI) on Wednesday kept its key lending rate — the repo rate — unchanged at 6 percent.
The revised MDR aims at achieving the twin objectives of increased usage of debit cards and ensuring sustainability of the business for the entities involved.
Live updates from outcome of Monetary Policy Commitee meeting and press conference
The monetary policy is important in terms of whether they will indicate there is scope for easing going forward. Policy announcement for today will likely be a pause,” said V Srinivasan, Deputy MD of Axis Bank.
If the MPC didn’t find space to cut rates on October 7, it is unlikely to find reasons to slash rates on December 6.
All but two of 54 analysts in a Reuters Poll said the repo rate would be left at 6.00 percent, the lowest since November 2010.
“Their view of the economy doesn’t seem to be correct... (By keeping rates high) they have imposed a high output sacrifice,” Ashima Goyal, a member of Prime Minister’s Economic Advisory Council told Bloomberg.
The fifth monetary policy for the financial year 2017-18 is likely to be a non-event as most experts predict a status quo.