1. RBI asks banks and non-banks to enable interoperability among PPIs issued by them by March 31, 2022.
- RBI has asked banks and non-banks to enable interoperability among Prepaid Payment Instruments (PPIs) issued by them by March 31, 2022.
- RBI said that it would be mandatory for PPI issuers to give the holders of KYC-compliant PPIs interoperability.
- This interoperability should be given through authorized card networks in the case of PPIs in the form of cards and IPI for PPIs in the form of electronic wallets.
- RBI circular gives exemption to PPIs for Mass Transit Systems (PPI-MTS). PPI-MTS shall remain exempted from interoperability.
- PPIs are instruments that facilitate purchase of goods and services against the value stored in/on such instruments.
- RBI has increased the maximum amount outstanding from Rs 1 lakh to Rs 2 lakh for KYC- compliant PPIs.
- RBI said that the feature of cash withdrawal would be permitted for fully-KYC PPIs issued by non-bank PPI issuers as well.
- Maximum limit for cash withdrawal will be Rs 2,000 per transaction with an overall limit of Rs. 10,000 per month per PPI.
2. GST Council expected to consider lowering general rate of interest.
- During its meeting on May 28, GST Council is expected to consider lowering the general rate of interest.
- General rate of interest is technically known as general interest charges (GIC). They are levied on late payment of tax or claiming of excess input tax credit (ITC).
- Presently, these rates vary between 6% and 24%. Finance Ministry has lowered the rates or even waived them off in certain cases.
General Rate of Interest under GST for delayed compliance (in %)
Tax Department to collect
Delayed payment of tax
Excess claim of input tax credit
Assessee to get
Refund not given within 60 days
Not getting refund as ordered by Appellate Authority
3. CCI gives approval to acquisition of YES AMC and YES Trustee by GPL Finance and Investments Limited (GPL).
- Competition Commission of India (CCI) has given approval to acquisition of YES Asset Management (India) Limited (YES AMC) and YES Trustee Limited (YES Trustee) by GPL.
- GPL Finance and Investments Limited (GPL) will acquire 100% equity shares of YES AMC and YES Trustee.
- GPL will acquire Yes Mutual Fund and become its sole sponsor. It is registered with the Reserve Bank of India as a non-deposit taking and non- systemically important Non-Banking Financial Company (NBFC).
- GPL is classified as an investment company. It is part of White Oak Group, an investment management and investment advisory group founded by Mr Prashant Khemka.
- YES AMC and YES Trustee belong to YES Bank Limited group. YES AMC acts as an asset management company / investment manager to YES Mutual Fund.
4. Cochin Port Trust awards Rs 122.50 crore annual maintenance dredging contract to DCIL.
- Cochin Port Trust has awarded Rs 122.50 crore annual maintenance dredging contract to Dredging Corporation of India Limited (DCIL).
- Dredging Corporation of India has won the second contract this month.
- On May 13, DCI has won Rs 98 crore maintenance dredging contract at Paradip Port Trust.
- Dredging Corporation of India was set up in 1976 to provide dredging services to Major Ports of India.
- Visakhapatnam Port Trust, Paradip Port Trust, Jawaharlal Nehru Port Trust and Deendayal Port Trust own a 73.47 % stake in it.
Topic: Indian Economy
5. Wholesale inflation reaches all time high of 10.49% in April 2021 on YoY basis.
- As per Commerce Ministry data, wholesale inflation has reached an all-time high of 10.49% in April 2021 on a YoY basis.
- The rise in WPI inflation is mainly due to the rise in prices of crude petroleum, mineral oils viz petrol, diesel etc, and manufactured products.
- On a month-on-month basis, WPI inflation increased by 31 basis points as compared to 7.39% in March.
- In February, wholesale inflation was 4.17%. In January, it stood at 2.51%.
- Inflation for primary articles increased 3.83% in April over March. Inflation index for fuel and power declined by 1% in April over March.
- In the case of manufactured products, the inflation index increased 1.65% in April compared to March.
- WPI Food Index increased from 5.28% in March to 7.58% in April.
- As per Commerce Ministry, the compilation of WPI for March 2021 has been done at a weighted response rate of 76%. Final figure for February 2021 is based on a weighted response rate of 91%.
- CPI-based retail inflation decreased to 4.29% in April as per data released by the Ministry of Statistics & Programme Implementation (MoSPI) on May 12. It was 5.52% in March.
Topic: Banking/Financial Schemes
6. Ministry of Commerce may ask RBI to continue Interest Equalisation Scheme for exporters beyond June 30, 2021.
- Ministry of Commerce may ask RBI to continue Interest Equalisation Scheme for exporters beyond June 30, 2021.
- Interest Equalisation Scheme allows all eligible sectors to access credit at lower interest rates.
- Interest Equalisation Scheme was launched in April 2015. Last fiscal, it was extended by a year.
- Under the scheme, banks provide credit at the lower interest rate to exporters and the differential amount is later reimbursed by the government.
- In Union Budget for 2021-22, government has made a provision of Rs 1,900 crore for the Interest Equalisation Scheme.
Topic: Reports and Indices
7. International Energy Agency (IEA) releases a special report.
- International Energy Agency (IEA) releases a special report titled ‘Net Zero by 2050: a Roadmap for the Global Energy Sector’.
- IEA’s report provides insights before 26th Conference of the Parties (COP26) meet in Glasgow in November. It suggests the need to stop oil, gas projects.
- The report provides an in-depth study of ways to transition to a net-zero energy system by 2050.
- It also provides over 400 milestones to guide the global journey to net-zero by 2050.
- The report calls for annual additions of solar PV to reach 630 gigawatts by 2030. It also calls for annual additions of wind power to reach 390 gigawatts.
Topic: Reports and Indices
8. Nomura India Business Resumption Index (NIBRI) declines to 61.9 for the week ending May 16.
- Nomura India Business Resumption Index (NIBRI) has declined to 61.9 for the week ending May 16 from 66.1 in the earlier week.
- After the decline, NIBRI is now at levels last seen in June 2020. The decline is mainly driven by a sharp fall in mobility indicators.
- Google’s workplace and retail & recreation mobility indices fell by 5pp and 8.4pp, respectively. Apple driving index declined by 3.4pp.
- Power demand is continuing to decline by 4% week-on-week basis for fourth consecutive week.
- Labour participation rate declined to 40.5% from 41.3% last week. Unemployment rate increased to 14.4% from 8.7%.
- Nomura is a Japanese financial holding company.