Private lender HDFC Bank has made online transactions through RTGS and NEFT free of cost from November 1, with an aim to promote a digital economy.
On the other hand, various charges for cheque-related transactions as well as request for additional leaves will get costly from early next month for non-managed savings and salary accounts.
According to the revised fees and charges for savings and salary accounts, customers will not have to pay any charge for doing online transactions through Real Time Gross Settlement (RTGS) and the National Electronics Funds Transfer (NEFT) from November 1, 2017.
Earlier, customers were charged Rs 25 each for Rs 2-5 lakh online transaction via RTGS and Rs 50 each for such money transfers over Rs 5 lakh. Online NEFT transactions attracted a fee of Rs 2.5 for less than Rs 10,000, Rs 5 for Rs 10,001-1 lakh and Rs 15 for above Rs 1 lakh to Rs 2 lakh.For NEFT transactions of over Rs 2 lakh, there was a fee of Rs 25.
However, any NEFT or RTGS transaction carried out at the bank branch will be payable.
Digital payment platform Paytm on Tuesday introduced payments using BHIM UPI on its platform, using which users can create their own Paytm BHIM UPI ID on the app, which will be issued by Paytm Payments Bank.
Also, Paytm users can link any of their savings bank account with this unique Paytm BHIM UPI ID and start sending and accepting money. With Paytm BHIM UPI, users can now make seamless and instant money transfers directly between two bank accounts, with no waiting time to add beneficiary. They will also not have to share their bank account details and IFSC code with anyone to receive money. This will enable a larger pool of Paytm users to transact digitally with more choices, greater ease and convenience.
To create UPI ID, users can go to the BHIM UPI section on the Paytm app home screen. These IDs will be users’ registered mobile number. For example, if a Paytm user’s registered mobile number is 9123456789, the UPI ID will be generated as 9123456789@paytm. Users can link their Paytm BHIM UPI ID with their existing savings bank account.
3. India Signs Loan Agreement with World Bank for US $119 Million.
A Financing Agreement for IBRD loan of 119 million dollar for the “Odisha Higher Education Programme for Excellence & Equity (OHEPEE) Project” was signed with the World Bank here on Tuesday.
The Financing Agreement was signed by Sameer Kumar Khare (Joint Secretary, Department of Economic Affairs) on behalf of Government of India and Hisham A. Abdo Kahin, Acting Country Director, World Bank (India) on behalf of the World Bank.
A Project Agreement was also signed by GVV Sarma, Additional Chief Secretary, Department of Higher Education, Government of Odisha and Hisham A Abdo Kahin, Acting Country Director, World Bank.
The Objective of the project is to improve the quality of and students’ students’ equitable access to selected institutions and enhance governance of the higher education system in Odisha.
4. IRDA makes linking of Aadhaar with insurance policy mandatory.
Regulator Insurance Regulatory and Development Authority of India (IRDA) on Wednesday said linkage of Aadhaar number with insurance policies is mandatory and asked insurers to comply with the statutory norms.
“The Authority clarifies that, linkage of Aadhaar number to insurance policies is mandatory under the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017,” the IRDA said.
The government had in June had notified the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017, making Aaadhar and PAN/Form 60 mandatory for availing financial services including insurance and also for linking the existing policies with the same.
In a communication to all life and general insurance companies, IRDA said the rules have “statutory force” and as such they have to implement them without awaiting further instructions.
Commenting on the communication, MD and CEO of ICICI Lombard Bhargav Dasgupta said it is a progressive and logical step towards creating a unified platform for financial services and at the same time promote the government’s digitization agenda. “While there may be some short term challenges to overcome, we see significant long term benefits in terms of preventing frauds and streamlining the KYC process,” he said.
There are 24 life insurance companies and 33 general insurers (including standalone health insurance firms) operating in the country.
5. PayPal Launches Domestic Payments in India.
American digital payments company PayPal launched domestic operations in India on Wednesday. At launch, Indian consumers will be able to make transactions at select online merchants. Merchants offering PayPal will be able to process both local and global payments through the platform, getting access to PayPal’s more than 200 million customers around the world and in India through a single integration.
PayPal has been offering cross-border payments in India for close to a decade and claims to control a third of the country’s B2C export payments. Now, with the launch of domestic operations, both merchants and customers will also be able to transact using PayPal in India.
However, customers in India will not be able to store any money in their PayPal accounts as the company is yet to receive a prepaid payment instrument (PPI) licence from the RBI.
“We’re coming to India as a value-added payment aggregator, and have the appropriate licences to do that,” said Anupam Pahuja, Managing Director at PayPal India. “As we move ahead, we are looking at PPI licences and regulations very carefully. We will see what the next step is.”
6. GST on AC, non AC restaurants reduced to 5 percent.
The GST Council, which held its 23rd meeting in Guwahati on Friday reduced the tax rate on 178 items from 28 per cent to 18 per cent. GSTCouncil also brought all AC and non-AC restaurants in the 5 per cent GST bracket without the input tax credit (ITC). Only 50 items, mostly demerit, sin and luxury goods will be in the 28 per cent tax bracket.
All members of the GST Council felt that input tax credit (ITC) to restaurants is not passed on customers. Goods and Service Tax (GST) was being charged on existing rates which put additional tax burden on restaurant goers. Thus, we decided that restaurant industry will not get the benefit of ITC, Finance Minister Arun Jaitley said.
Rates for all AC and non-AC restaurants will be 5 per cent. "Since they did not pass on the ITC benefit to customers, they will not be eligible for the benefit themselves," Jaitley added. Restaurants in hotels will cost the same, except in starred hotels which charge Rs 7,500 or more. The rate for restaurants in starred hotel will remain 18 per cent. Outdoor catering will be taxed at 18 per cent along with ITC, the Finance Minister added.
Taxpayers with turnover up to Rs 1 crore will have to file invoices once every quarter, whereas those with turnover above Rs 1 crore will have to file their invoices every month, Finance Secretary Hasmukh Adhia said in a press conference after the GST Council meet.
7. GST rate on 178 items which are used daily, reduced from 28 percent tax to 18 percent or less.
In the biggest GST rejig yet, tax rates on over 200 items, ranging from chewing gum to chocolates, to beauty products, wigs and wrist watches, were on Friday cut to provide relief to consumers and businesses amid economic slowdown.
As many as 178 items of daily use were shifted from the top tax bracket of 28 per cent to 18 per cent, while a uniform 5 per cent tax was prescribed for all restaurants, both AC and non-AC, Finance Minister Arun Jaitley said after the GST Council meeting here.
Currently, 12 per cent GST on food bill is levied in non-AC restaurants and 18 per cent in air-conditioned ones. All these got input tax credit, a facility to set off tax paid on inputs with final tax.
Jaitley said the restaurants, however, did not pass on the input tax credit to customers and so the facility is being withdrawn and a uniform 5 per cent tax is levied on all restaurants without the distinction of AC or non-AC.
Restaurants in starred-hotels that charge Rs 7,500 or more per day room tariff will be levied 18 per cent GST but input tax credit is allowed for them. Those restaurants in hotels charging less than Rs 7,500 room tariff will charge 5 per cent GST but will not get input tax credit.
The all-powerful GST Council pruned the list of items in the top 28 per cent Goods and Services Tax (GST) slab to just 50 from current 228. So, only luxury and sins goods are now only in highest tax bracket and items of daily use are shifted to 18 per cent.