TP Ostwal on how new tax laws will help MSMEs and its pitfalls
TP Ostwal highlights the risks of delayed payments to MSMEs, urging timely settlements within 45 days to avoid disallowances and hefty tax penalties. The complex policy may inadvertently steer buyers towards unregistered MSMEs or large suppliers. Key Points
Economic TimesRBI issues revised norms to streamline bill payments process
These directions will be applicable from April 1, 2024 to banks, NPCI Bharat BillPay Limited and other non-bank payment system participants. Bharat Bill payment System (BBPS) is an integrated bill payment platform which enables payment or collection of bills through multiple channels using various payment modes, like UPI, internet banking, cards, cash, and prepaid payment instruments. Key Points
Economic TimesCompanies and vendors are trying to escape the impact of an Income Tax law taking effect this year
Under the law --- section 43B(h) of the Income Tax Act --- whose impact would be felt for the first time this year, a business entity failing to pay its vendors registered as `micro or ‘small (MSE) within 45 of delivery, would not get the deduction of its purchase in the year of the purchase but can claim the deduction only in the year of ‘actual payment. Thus, deduction disallowance for unpaid outstanding would increase the taxable income and tax of companies for FY24. Key Points
Economic TimesDigital payments rise 10.94 pc annually at September-end 2023: RBI data
RBI's Digital Payments Index (RBI-DPI) stood at 418.77 at end-September 2023 compared to 377.46 in September 2022 and 395.57 in March 2023. The index comprises five broad parameters that enable the measurement of the depth and penetration of digital payments in the country over different periods. Key Points
Economic TimesQuishing’s here, look before you QR code
India Business News: Learn how to protect yourself from QR code scams and cyber criminals. Follow these tips to stay safe while using digital payment platforms and avoid falling prey to frauds. Key Points
Times Of India
After a year of regulatory ban, Razorpay, Cashfree secure RBI nod for payment aggregator business
With the final licence in hand, merchant onboarding opens up for both startups. They had been placed under an embargo by the Reserve Bank of India from onboarding new merchants almost a year ago. Key Points
Economic TimesRBI raises automatic payment limit via UPI to Rs 1 lakh
UPI emerges preferred mode of payment for a large section of population with over 11.23 billion transactions recorded in November. The Reserve Bank of India on Tu Key Points
The Tribune IndiaAustralia unveils draft law to regulate digital payment providers
The Australian government said on Wednesday it planned to introduce laws that would empower the central bank to regulate digital wallet providers including Apple Pay (AAPL.O) and Alphabet's (GOOGL.O) Google Pay. Key Points
ReutersDigital payments rise 13% YoY at March-end 2023: RBI data
RBI's Digital Payments Index (RBI-DPI) stood at 395.57 at end-March 2023 compared to 377.46 in September 2022 and 349.30 in March 2022. Key Points
Economic TimesBarclays wins UK Supreme Court case over push payment fraud
Barclays (BARC.L) on Wednesday won a UK Supreme Court appeal that turned on the extent of banks' duties to protect customers from fraudsters, in a closely watched decision lawyers say could stem a flood of litigation. Key Points
Reuters
Digital India: About 88 per cent wage payment under MNREGS done through ABPS in May
Digital India: National Payments Corporation of India data shows that there is a higher success percentage to the extent of 99.55 per cent or above where Aadhaar is enabled for Direct Benefit Transfer (DBT). Key Points
Firstpost88 pc wage payment under MNREGS done through ABPS in May: Govt
The ministry added that job cards cannot be deleted on the basis that a MGNREGS worker is not eligible for ABPS."Mahatma Gandhi NREGA is a demand driven Scheme and is affected by various economic factors. Key Points
Financialexpress88 pc wage payment under MNREGS done through Aadhaar Based payment System in May: Govt
National Payments Corporation of India data shows that there is a higher success percentage to the extent of 99.55 per cent or above where Aadhaar is enabled for Direct Benefit Transfer (DBT). In case of account-based payment such success is about 98 per cent, the data shows. Key Points
Economic TimesRBI plans lightweight payments system for emergency situations: All you need to know
The RBI has come up with a plan to develop a lightweight payments and settlements system, which will be an alternative to existing payment systems such as RTGS, NEFT, and UPI to ensure seamless operations during extreme situations. Here's all you need to know. Key Points
India TodayIndiGo onboards SoftBank-backed Juspay as official payment partner
IndiGo has partnered with SoftBank-backed Juspay as its official payment partner to handle payments for direct bookings on the airline's app and website. Juspay has partnerships with Amazon, Flipkart, Swiggy, Big Basket, Cred, Ajio, Airtel, Ixigo , Axis Bank, Yes Bank, TATA Digital, and others, with more than 50 million transactions handled daily. The partnership comes as the Indian airline sector is rebounding after the pandemic. Key Points
Economic Times
RBI working on light weight, portable payment system for critical transactions during catastrophic events
The Reserve Bank of India (RBI) is developing a lightweight and portable payment system designed to operate during war or natural disasters without relying on complex wired networks. It will be called the Light weight and Portable payment System (LPSS) and is expected to have minimalistic hardware and software and will only be made active on a need basis. The system will handle critical transactions for the economy, such as those related to the government and markets, and help maintain liquidity. RBI said the LPSS could help ensure a near-zero downtime of the payment and settlement system and enhance public confidence in digital payments. Key Points
Economic TimesChinese technicians, engineers may get faster visas for work
There are some sectors which require technicians to come to set up plants here and that's a good idea as it will benefit our manufacturing and exports. We will raise it with the external affairs ministry, said an official, who did not wish to be identified. Exporters have raised the issue of delay in visas to Chinese technicians, which is affecting companies such as those making non-leather footwear and sports shoes in commencing their operations. Key Points
Economic TimesAadhaar-based pay must for MGNREGS wages from July 1
The rural development ministry then decided to continue to allow payments through both ABPS and the usual electronic payment through the National Automated Clearing House (NACH) until March 31. It later extended the deadline to June 30. Key Points
Economic TimesShipment from abroad stuck at ports after new payment system glitches
In a two series tweet, CBIC said CBIC has noted difficulties being faced by members of the trade in making duty payments over the customs automated system. It maybe noted that an upgraded and modern system of payment is live since 1/4/ 2023. Our technical teams are working overtime to fix some teething issues and the problems being temporarily noticed will be resolved at the earliest. . Key Points
Economic TimesBanks again fail to share subsidy with payments service cos
A letter addressed by the NPCI steering committee to all member banks on January 16 had decided that lenders will have to share 0.15% incentive to issuers and 0.025% incentive to be given to payment systems operators. A similar letter was also sent in December. ET has seen a copy of both the letters. Key Points
Economic Times
Aadhaar-linked NREGS payments to get more time
The directive for a mandatory use of the Aadhaar-Based payment System (ABPS) under the MGNREGS from February 1 had stoked massive protests by workers, many of whom claimed that they were being deprived of payments due to technical glitches. Subsequently, the rural development ministry decided to allow payments through both the ABPS and the usual National Automated Clearing House (NACH) electronic payment system until the end of March. Key Points
Economic TimesPM Modi hails UPI as India, Singapore link online payment systems
India and Singapore on Tuesday linked their online payment systems, which will enable instant, and cost-effective cross-border funds transfers. Prime Minister Narendra Modi said the large number of transactions via UPI demonstrate that the indigenously designed payment system is very secure. Key Points
India TodayOn KYC compliance front, payment aggregators may be second to some
As fintech startups try to onboard merchants faster than competition, theyre mostly conducting only the basic checks prescribed by the RBI and skipping enhanced due diligence which could help keep fraudsters away. Large payment companies are approaching KYC more as a security checklist — perhaps for cost considerations — than a monitorable mandate by the RBI. Key Points
Economic TimesAadhaar frauds: RBI ready with masterplan to curb Aadhaar-enabled payment system (AePS) scams
AePS has emerged as one of the most popular payment systems, especially in rural areas in the last few years. At present, 35 commercial banks, 40 rural banks, and 52 cooperative banks offer an Aadhaar-enabled payment system, according to the NPCI website. However, the system has been plagued by issues such as lack of infrastructure and security risks. Currently, there is no two-factor authentication on the Aadhaar-enabled payment system. Key Points
Economic TimesProcessing charges a drag on fast-growing payments startups
Digital payment startups are facing rising payment processing charges despite revenue growth, impacting profitability. High operation costs persist due to fees charged by network operators and system maintenance expenses. Key Points
Economic Times
India Inc using various ploys on payments to small businesses for dodging tax impact
The new law under Section 43B(h) of the Income Tax Act, which mandates payment to micro and small enterprises (MSEs) within 45 days of delivery to claim deductions, is causing concern and leading to various strategies by businesses and vendors to mitigate its impact. Some companies are attempting to avoid the law's impact by sending letters to vendors without expecting responses, while others are issuing post-dated cheques or raising objections within 15 days of delivery to delay payment obligations. Key Points
Economic TimesIndia’s banks are making $64 billion from a freebie
India saw over 10 billion cashless transactions in August, with most of them being online and cost-free. However, customers using mobile-phone wallets to pay bills over 2,000 rupees are subject to a 1.1% fee. Despite concerns about the lack of profit motive, India's payment revenue reached $64bn last year, making it the fourth highest globally. Key Points
Economic TimesDon’t make Aadhaar-based payments mandatory for NREGA till mechanism is foolproof: House panel
The system, first introduced in 2017, was finally made mandatory in January. But a panel report tabled Thursday, says all ‘major bottlenecks’ should be resolved first. Key Points
ThePrintIndia and Japan may look at linking fast payment systems, says RBI governor
Reserve Bank of India Governor Shaktikanta Das said India may explore linking their Unified Payments Interface (UPI) with Japan's fast payment system for more efficient and cost-effective cross-border payments. This move follows a successful real-time linkage between UPI and PayNow with Singapore earlier this year. Key Points
Economic TimesHCL Tech share price jumps 3% today after Q4 results beat market expectations; Should you buy, hold or sell?
HCL Tech shares rose today after IT giant declared an interim dividend of Rs 18 per share. The record date has been fixed as April 28, 2023, for the payment of the interim dividend and the payment date has been set as May 9, 2023. Key Points
Financialexpress
Discoms' dues down by a third to Rs 93,000 crore in less than a year of enforcing Late payment Surcharge R
The outstanding dues of electricity distribution utilities (discoms) have decreased by one-third to around Rs 93,000 crore in less than a year since the implementation of the Late payment Surcharge (LPS) Rules in June 2022. The LPS scheme has led to financial discipline among discoms, ensuring that outstanding dues and current bills are paid in time. Strict implementation of the LPS Rules can make the power sector more viable, and non-payment of current dues can result in the regulation of power supply. The power ministry has also made it mandatory for discoms to open credit letters or make timely payments for power supply to ensure financial discipline. Key Points
Economic TimesPAN-Aadhaar linking fee: How to check status of challan payment
PAN-Aadhaar linking deadline over: The income tax department has provided a clarification on PAN-Aadhaar linkage on its official Twitter handle for those individuals who are having difficulty linking the two. Here is what you should know. Key Points
Economic Times300 Indian banks hit after ransomware attack cripples payment systems: Report
A ransomware attack on a service provider of banking technology systems has temporarily shut down nearly 300 small banks across India. An audit was being conducted to ensure the attack does not spread further. Key Points
India TodayCentre examining FDI flow from China in Paytm Payments Services
The Reserve Bank's action against PPBL follows a comprehensive system audit report and subsequent compliance validation report of external auditors. These reports revealed persistent non-compliances and continued material supervisory concerns in PPBL. Key Points
Economic TimesAfter France and Singapore, India's UPI payment model reaches Sri Lanka
India's Unified Payments Interface (UPI) technology will now be accepted in Sri Lanka, as several agreements were exchanged between the two countries. UPI has already partnered with France, UAE, and Singapore for cross-border transactions. Key Points
mint
HDFC Bank revises charges, fees structure on personal loans from 24 April
The HDFC Bank scrip had closed 0.34 per cent down at ₹1,557.30 a piece on the BSE on Friday Key Points
mintInitiated process to withdraw communication on payment of OROP dues in 4 instalments: Govt to SC
In the compliance note of March 17, the Defence Ministry said its budget outlay for financial year 2022-23 is Rs 5.85 lakh crore, of which approximately Rs 1.32 lakh crore is planned expenditure for total pension disbursement. Key Points
The Indian ExpressGovt may consider 0.3% uniform fee to maintain UPI payment system and ensure financial viability: Report
The government may consider a 0.3 per cent uniform digital payment facilitation fee to fund the infrastructure required for such transactions and also to ensure financial viability of the UPI payment system, suggested a study by IIT Bombay. Key Points
The Tribune IndiaE-commerce is giving MSMEs a chance to go global
Traditionally, only large businesses could consider cross-border trade as part of their expansion strategy. But digitisation drives are now helping small businesses also take the leap. Key Points
Economic TimesRules amended to push sale of surplus power on bourses
Amendments have also been made to align the rules with statutory provisions related to accessing the national power grid. The rules lay that if outstanding dues are paid, the regulation of access will end and need to be restored within a day after the payment. Key Points
Economic Times