Digital payments up 30.2% in FY21: According to RBI data

Digital payments up 30.2% in FY21: According to RBI data

According to RBI data, digital payments grew by 30.19 per cent in the year ended March 2021, demonstrating the country’s adoption and deepening of cashless transactions. The newly created Digital Payments Index (RBI-DPI) grew to 270.59 at the end of March 2021, up from 207.84 the previous year.

“In recent years, the RBI-DPI index has shown remarkable growth, indicating the fast adoption and deepening of digital payments across the country.”

The Reserve Bank of India had previously announced the creation of a composite Reserve Bank of India – Digital Payments Index (RBI-DPI) with March 2018 as the basis to measure the amount of payment digitisation in India.

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The RBI-DPI is made up of five major metrics that can be used to track the depth and penetration of digital payments in the country over time.

Payment Enablers (25 percent weight); Payment Infrastructure – Demand-side variables (10 percent); Payment Infrastructure – Supply-side factors (15 percent); Payment Performance (45 percent); and Consumer Centricity (45 percent) (5 per cent).

Govt’s net tax collection rises 86% to Rs 5.57 lakh crore in Quarter1

The RBI said in January that the index would be issued semi-annually starting in March 2021, with a four-month lag.

RBI & Economy – Monetary Methods!

RBI and Economy – Monetary methods.!

RBI money printing must be the last option, can consider Covid bonds: Subbarao

The central bank can directly print money & finance the govt, but it should avoid doing so unless there is absolutely no alternative, former RBI governor D Subbarao on Wednesday said while pointing out that India is ‘nowhere near such a scenario.

In an interview with PTI, Subbarao suggested that to deal with the second wave of COVID-19 induced slowdown in the economy, the govt can consider Covid bonds as an option to raise
borrowing, not in addition to budgeted borrowing, but as a part of that.

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“It (RBI) can (print money) but, it should avoid doing so unless there is absolutely no alternative. For sure, there are times when monetisation despite its costs – becomes inevitable such as when the govt cannot finance its deficit at reasonable rates.” We are nowhere near such a scenario,” he said. India’s economy contracted by less-than-expected 7.3 per cent in the fiscal ended March 2021. For 2021-22, the deficit has been put at 6.8 per cent of the GDP, which will be further lowered to 4.5 per cent by 2025-26.

The due date for ITR filing for salaried taxpayers extended

Announcements: RBI Governer Press Conference

1. Term loan moratorium extended till August 31, 2020 – The loan moratorium will be extended till August 31, 2020. This makes it a six months moratorium.

2. Deferment of Interest on Working Capital – Interest on working capital is deferred by another 3 months i.e. till 31st August 2020.

3. Conversion of Interest on working capital to interest term loan – Lending institutions are being permitted to convert the accumulated interest on working capital facilities over the deferment period (up to August 31, 2020) into a funded interest term loan (Repayable before 31st March 2021).

3. The margin for Working Capital – Drawing Power – Lending institutions are being permitted to restore the margins for working capital to the original level by 31st March 2021.

4. Reduce the repo rate by 40 bps to 4 percent. Accordingly, the Interest rate would be reduced.

5. Export Credits – Maximum permissible export credit (Pre and Post Shipments) extended from 12 months to 15 months.

6. Payment against Imports – Extension of time limit for making payments against imports from 6 months to 12 months

7. Support to EXIM Bank – Facility of Rs 15,000 crore line of credit for 90 days for US dollar swap facility will be provided to EXIM Bank.

8. Extension of Resolution Timelines – Deferment or moratorium period shall be excluded while calculating 180 days resolution period.

9. Group Financing – Group exposure extended from 25% to 30%

10. Support to SIDBI- In order to provide greater flexibility of SIDBI, another 90 days extension for the 90-day term loan facilities will be offered.

11. Assets Classification – Loan Moratorium shall not have any implications on changes in assets classification, credit history, and aging norms, etc.

12.Trade Impact – Volume of world trade can shrink by 13%-32% this year.

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