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

RBI Governor Presser Highlights :

1. Repo rate reduced by 75 basis points to 4.4%

2. Rev repo reduced by 90 basis points to 4%

3. GDP growth for Q4 19-20 and FY 20-21 to be affected

4. Aggregate demand may weaken

5. Future outlook uncertain and negative

6. CRR reduced by 100 basis points to 3% for 1 year to release 1.37 lakh crores

7. Min daily CRR balance reduced from 90% – 80% till 30/06/2020

8. 3.74 lakh crore liquidity injected

9. 3-month moratorium on payment of installments of Term Loan outstanding

10. Interest on WC facilities to be deferred by 3 months

11. Such deferment not to be considered for NPA

12. Revised DP calculations by reassessing WC cycle

13. All measures not to effect credit history

14. Total liquidity injection 3.4% of GDP

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