Skip to content

Business News at 9:30 a.m. on April 18

Here is the latest business news from Indian Express at 9:30am on 18 Apr 2022

“You are listening to Expresso Business Update. This is the latest news from the world of Indian and international business brought to you by The Indian Express and The Financial Express.

The Narendra Modi government has put on the back burner its plan to implement the so-called “fresh start process” for the indebted poor under the Bankruptcy and Insolvency Code, given the complexities of putting such a framework in place at this time, they said. the sources to the Financial Express. Instead, the government will focus first on further strengthening the IBC architecture to achieve rapid resolution of toxic assets while preventing unscrupulous elements from gaming the system and launching the cross-border corporate insolvency framework, the sources said. The IBC already has provisions for the “fresh start process” for individual insolvency. It provides a debt relief of up to Rs 35,000 for the poor who do not own homes, earn up to Rs 60,000 a year and have assets of up to Rs 20,000 each. However, as it marks a drastic change in the way insolvency resolution is generally carried out, the IBC must first be amended to allow the “fresh start” scheme to come into operation.
Moving on to the latest World Bank report. Extreme poverty in India fell to 10.2% in the pre-COVID-19 year of 2019 from 22.5% in 2011, and the pace of reduction in rural India has been more dramatic than in urban areas, according to a World Bank working paper. The level of poverty in rural and urban areas was reduced by 14.7 and 7.9 percentage points, respectively, during the period 2011-2019. While it decreased to 11.6% in rural areas in 2019, the urban poverty level stood at 6.3%. Extreme poverty has been measured in terms of the number of people living on less than $1.90 a day, which is approximately Rs 145. Interestingly, urban poverty increased by 2 percentage points in the demonetization year of 2016, and rural poverty increased by 10 basis points. in 2019, which coincides with an economic slowdown before Covid spread its tentacles, the newspaper showed.
Now, here’s how changes to cash withdrawals will affect debit card usage. The Reserve Bank of India’s push to enable ATM Unified Payments Interface-backed cash withdrawals is likely to cause a severe dent in debit card usage, according to payments industry executives. . UPI, already a preferred mode of payment at store windows and for small-value online transactions, is now set to eat up the last remaining bastion of debit card cash withdrawals. At Rs 1.63 trillion, the value of merchant UPI transactions in February 2022 was well above the value of debit and credit card transactions at POS terminals, which was Rs 1.43 trillion. rupees According to a recent report by HDFC Securities, UPI accounts for nearly three quarters of all transaction volumes below Rs 500. Harish Prasad, Head of Banking, FIS, said debit card issuance by banks had seen significant growth over the last five to seven years. This can now start to flatten out.
Up to the latest in the LIC bound for the IPO. The government has amended the rules of the Foreign Exchange Management Law, paving the way for up to 20 percent foreign direct investment in insurance giant LIC. The government plans to dilute its stake in LIC through the Initial Public Offering. LIC had submitted in February the Draft Red Herring Prospectus to the market regulator Sebi for the IPO. Last month, Sebi approved the drafts and the insurer is in the process of presenting a request for proposal with changes. Following Cabinet approval, the Department for the Promotion of Industry and Internal Trade on March 14 modified the Foreign Direct Investment policy to facilitate foreign investment in LIC before the mega public offering.
Moving on to the proposed changes to the GST blocks. With most states on board to increase revenue so they don’t have to rely on the Center for compensation, the GST Council at its meeting next month is likely to consider a proposal to remove the 5 percent slab by moving some assets. mass consumption to 3 percent and the rest to 8 percent, according to a PTI report. Currently, GST is a four-tier structure of 5, 12, 18 and 28 percent. Also, gold and gold jewelry are taxed at 3 percent.
And finally, here is your trading guide for today. National stock markets are trading again today after a four-day gap. S&P BSE Sensex had closed the previous week at 58,338 points, down 1.95% during the holiday-shortened week, while the NSE Nifty 50 had closed down 1.8% at 17,475 points. Ahead of this week’s trading session, global signs were not favorable as Wall Street closed lower last week and Asian stock markets were in the red during early trading hours on Monday. SGX Nifty was in the red, suggesting a flat or negative start to trading for the day.

You were listening to Expresso Business Update from The Indian Express and The Financial Express. Ask your digital assistant device to play the latest Indian Express business news and stay up to date with happenings in finance and business stories.

Leave a Reply

Your email address will not be published.