Banking Current Affairs for 26 May 2023
Google Pay & NPCI Collaborate to launch RuPay credit cards support on UPI
- Google Pay in association with the National Payments Corporation of India (NPCI) rolled out support for RuPay credit cards on Unified Payments Interface (UPI).
- Google Pay users can now link their RuPay credit cards with Google Pay to pay at online and offline merchants.
Key Highlights :
- This feature will give more flexibility to Google pay users and increase the adoption of digital payments in India.
- This feature will be available to RuPay credit card holders of Axis Bank, Bank of Baroda (BoB), Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank (PNB) and Union Bank of India (UBI).
- The integration of RuPay Credit Card on UPI delivers a remarkable user experience seamlessly combining the convenience of UPI with the benefits of RuPay Credit Card.
- Thereafter, users will need to set a unique UPI PIN by entering the last 6 digits of the card number and expiry, entering the OTP from their bank.
- At present, there is no option to add Visa and Master-issued credit cards to Google Pay or any other UPI payment app in India.
- The Reserve Bank of India (RBI) had allowed linking of RuPay credit cards to the UPI platform in June 2022.
What is Rupay?
- RuPay is Indian multinational financial services and Payment service system that was conceived and launched by NPCI in 2014.
- It was created to fulfil the vision of RBI to establish a domestic, open and multilateral system of payments.
- On 19 August 2020, NPCI International Payments Limited (NIPL) was launched to increase globalisation and availability of RuPay in foreign markets.
- RuPay offers debit cards, credit cards, prepaid cards and government scheme cards like RuPay PMJDY, RuPay Kisan credit card, etc.
Finance Ministry clarifies no tax collection on foreign spending via credit cards for payments up to Rs 7 lakh
- Payments through international debit or credit cards up to ₹7 lakhs will not come under the Liberalised Remittance Scheme (LRS).
- The Finance Ministry clarified such payments will not attract Tax Collected at Source (TCS).
- Meanwhile, transactions through UPI (Unified Payment Interface) exceeding ₹7 lakhs by Indians abroad will be treated at par with international credit or debit cards.
- They will be treated at par with international credit or debit cards.
What is LRS?
- The LRS was introduced in India in 2004 by the Reserve Bank of India (RBI).
- It is a scheme that enables Indian residents to remit funds abroad for certain specified purposes.
- To liberalize the existing foreign exchange regulations and facilitate the smooth transfer of funds abroad by Indian residents.
- Under the scheme, individuals were allowed to remit up to USD 25,000 per financial year for eligible transactions.
Key Highlights :
- Under LRS, all resident individuals, including minors, are permitted to freely remit up to $2,50,000 per fiscal year for any permissible current or capital account transaction or a combination of both.
- Resident individuals are allowed to use foreign exchange facilities up to the limit of $2,50,000 only.
- Corporates, partnership firms, HUF, Trusts etc. are not eligible for the scheme.
- The Ministry of Finance (MoF) in consultation with the Reserve Bank of India (RBI) has omitted Rule 7 of FEM (CAT) Rules 2000.
- It has removed the relaxation given to the users of international credit cards for their transactions by a person when they are on overseas visit.
- The change brings overseas international credit card spending under the liberalised remittance scheme (LRS) of the RBI.
- The government announced that all international credit card spending outside of India will be a part of LRS, which will attract a higher tax collected at source at 20%.
- The new tax rate will come into effect from July 1, 2023.
About MoF :
- Cabinet Minister : Nirmala Sitharaman
- Minister of State : Bhagwat Karad,Pankaj Choudhary
Bharti AXA Life Insurance rolls out phase-1 of Project Servottam’
- Bharti AXA Life Insurance rolled-out and completed the first phase of its ‘Project Servottam’ – under which 20 policy servicing journeys were re-considered and the project enabled a 360-degree transformation of physical services into digital services.
- The digital roadmap allows customers to service their policy online in a few clicks, according to a statement shared by the life insurer.
Key Highlights :
- Through Project Serv-o-ttam, customers can easily update their contact details and undertake other policy-related tasks such as switching funds, surrendering their policy, and applying for a loan through DigiServe – the company’s customercentric portal, which can be accessed from their website.
- The project was aimed at digitizing 8 critical policy servicing journeys – which includes, the demographic change, bank account update, fund switch, payment mode & method change, loan application, partial withdrawal, policy surrender and online nominee update.
- Additionally, Project Serv-o-ttam also offers front-desk employees a single-screen view of customer and policy information, enabling them to provide timely and efficient service to customers.
About Bharti AXA Life Insurance :
- Established : 2006
- Headquarters : Mumbai, Maharashtra, India
- MD & CEO : Parag Raja
- Bharti AXA Life Insurance is a joint venture (JV) between the Indian conglomerate Bharti Enterprises and the Paris, France based AXA Group.
Central Board of Direct Taxes issues taxation guidelines for online gaming platform
- Central Board of Direct Taxes (CBDT) stated that in a set of guidelines that Online gaming platforms need not deduct tax at source on winnings withdrawn by players if the amount is less than ₹100 a month and meets certain riders.
Key Highlights :
- As per this, net winnings below ₹100 in a month will not be subject to tax deducted at source (TDS) at the time of withdrawal provided the tax liability will be deducted when the net winnings withdrawn exceeds this limit in the same or the subsequent month or at the end of the fiscal year.
- As per section 194BA of the Income Tax Act, online gaming companies paying to any person any income by way of winnings during the financial year, should deduct income-tax on the net winnings in his user account.
- If the money in the user account is used to buy an item in kind and given to the user, then it is to be treated as net winnings in cash and tax is to be deducted at source.
- Where the net winnings are wholly in kind or partly in cash, and partly in kind but the part in cash is not sufficient to meet the liability of deduction of tax, the gaming company should ensure that tax has been paid in respect of the net winnings, before releasing the winnings.
- The Union government has carved out a distinction between online skill-based games and other games such as lottery, puzzles and crossword puzzles through new clauses in the Income Tax Act as disclosed in the Finance Bill on February 1,2023 thereby providing much-needed clarity to the nascent industry in terms of taxation over winnings on online gaming platforms.
- The finance bill has introduced two new sections – Section 194BA that pertains to TDS (tax deducted at source) on net winnings from online games and section 115 BBJ related to computation of tax on winnings from online games.
- The Bill has removed the minimum threshold of Rs 10,000 for TDS while also allowing it to be calculated either at the end of the financial year or at the time of user withdrawal, with effect from July 1, 2023.
- Prior to this, gaming companies were required to deduct TDS at the rate of 0.1 percent for each winnings of over Rs 10,000 while gross winnings from online gaming were taxed at a flat rate of 30%.
BoB introduces Live Video Calling & Live Web Chat facility to enhance customer service
- Bank of Baroda (BoB), one of India’s leading public sector banks,launched two innovative customer service initiatives a Live Video Calling service – bob Video Chat and a Live Web Chat facility – bob Live Chat on its
website, to enhance the overall experience for customers and prospective customers.
- Bank of Baroda is the first Public Sector Undertaking (PSU) bank to offer live video chat and live web chat services to its customers.
- The bank’s virtual assistant/chatbot will allow customers to initiate a live chat with a customer service executive to resolve their queries.
- The BOB Video Chat facility is available on the bank’s website homepage and at its Digital Banking Units (DBUs) nationwide.
- The live video and text chat launch would elevate the customer experience by helping customers get answers to their banking queries.
- In addition, the Bank has also launched an easy-to-remember, single 8-digit toll-free number – 1800 5700 – with 24x7x365 customer support, which is available in 11 languages including English, Hindi, Marathi, Gujarati, Tamil, Telugu, Malayalam, Kannada, Odia, Punjabi and Bengali.
About BoB :
- Founded : 20 July 1908
- Headquarters : Vadodara, Gujarat, India
- MD & CEO : Sanjiv Chadha
Shri Piyush Goyal will inaugurate the 44th edition of the ISO COPOLCO Plenary.
- Union Minister Piyush Goyal will inaugurate the 44th edition of the ISO COPOLCO Plenary.
- The 44th edition of the coveted annual consumer policy forum – ISO COPOLCO Plenary will be organized from 23 to 26 May.
- The topics of deliberations at the plenary included challenges related to involving consumers, protection of their rights and legal modalities.
- This year’s plenary is very important for India and the international community.
- Many leaders from government and business sectors will participate in the summit and an international delegation of eminent stakeholders will mark their presence.
- Different Workshops and addresses by several high-level speakers will be part of this ISO COPOLCO Plenary.
- International Standards Organisation (ISO) was founded on 23 February 1947.
- It is an international body with 168 countries as members.
- It develops and publishes international standards in all technical and nontechnical fields except electrical and electronic engineering.
Government cuts subsidy on electric two-wheelers
- The government has cut the subsidy on electric twowheelers in an effort to overhaul the financial incentives given to this growing industry.
- The heavy industries ministry announced that the subsidy would be reduced to ₹10,000 per kilowatt hour (kWh) effective 1 June from ₹15,000 currently.
- The lower subsidy would be applicable to all electric twowheelers registered on or after 1 June, the ministry said in a notification.
- Further, the cap on incentives for such vehicles has been lowered to 15% of the ex-factory price of vehicles
from the earlier 40%.
- But the total amount allocated toward providing incentives for these vehicles will be raised from the current ₹2,000 crores.3
- On 17 May, the ministry announced the impending plan to lower the subsidy on electric two-wheelers.
- The FAME Scheme was launched in 2019 for a three-year period.
- The scheme has now been extended until 31 March 2024.
- The scheme provides incentives for electric vehicles in the segments of electric threewheelers, electric four-wheelers, and electric buses.
- Privately owned registered electric two-wheelers are also eligible for subsidies.
AL-MOHED AL-HINDI 2023 Naval Exercise held between India & Saudi Arabia
- The second edition of Al-Mohed-Al Hindi, Joint Naval Exercise between India and Saudi Arabia, conducted from 21 – 25 May 2023 off Al Jubail, Saudi Arabia.
- This exercise will enhance maritime security, and enhance interoperability between the Indian and Saudi
- The first edition of this exercise was successfully conducted in August 2021, Indian Naval Ship (INS) Kochi, the flagship destroyer of the Western Naval Fleet, arrived at the Port-al-Jubail, Saudi Arabia representing India.
Key Highlights :
- In 2023, maritime patrol aircrafts are also participating in the exercise.
- This exercise will deepen defence ties between India and Saudi Arabia.
- AL-MOHED AL-HINDI 2023’ comprises a series of exercises conducted on land and at sea.
- Marking a significant milestone in the growing defense cooperation between India and the Kingdom of Saudi Arabia, the INS TARKASH, the flagship frigate of the Indian Western Naval Fleet, along with the INS SUBHADRA, an offshore patrol vessel, arrived at Port Al-Jubail.
- INS TARKASH was commissioned in 2012 and is a state-of-the-art stealth frigate of the Talwar class.
- It is equipped with advanced weapon-sensor technology.
- The name of the ship, derived from the Sanskrit word ‘Tarkash,’ meaning “Quiver of Arrows,” pays homage to its agility and versatility.
- INS TARKASH has actively participated in many humanitarian missions such as Operation Raahat, Operation Kaveri, etc.
- INS SUBHADRA is a patrol vessel of the Sukanya class.
- It served as a test bed for Dhanush ballistic missiles.
About Indian Navy :
- Headquarters : New Delhi, Delhi
- Chief of the Naval Staff : Admiral R Hari Kumar
About Saudi Arabia :
- Prime Minister : Mohammed bin Salman Al Saud
- Capital : Riyadh
- Currency : Saudi riyal
V. Prraneeth becomes India's 82nd Grandmaster
- V.Prraneeth became Telangana’s sixth and India’s 82nd Grandmaster when he outwitted GM Hans Niemann of US in the penultimate round of Baku Open 2023.
- The win against the top seed helped Prraneeth to cross ELO 2500 in the live ratings, 2500.5 to be exact having already earned the third GM norm in the earlier tournament.
- The 15-year-old Prraneeth earned his first GM-norm at GM March 2022 where he also became an IM and his second GM-norm at Biel MTO in July 2022.
- Nine months later, he earned his final GM-norm at 2nd Chessable Sunway Formentera Open 2023.
- The first Indian Grandmaster was Viswanathan Anand, who held the title in 1988.
- Sayantan Das became India’s 81st Grandmaster after his victory at the International Festival des Jeux in Cannes, France.