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Showing posts from February 17, 2017

RBI PROPOSES LOWER MDR FROM APRIL 1 TO KEEP DIGI PAY MOMENTUM

The Reserve Bank of India (RBI) has proposed that the merchant discount rate (MDR or charge) on debit card transactions be rationalised on the basis of turnover.

Transactions up to Rs.2,000 do not attractacharge but this is to end on March 31. The central bank issued draft guidelines on its website that propose the MDR be “on the basis of merchant turnover, rather than present slabrate based on transaction value”.

Besides, there should be differentiated MDR for the government and QRcode related transactions.

Also, “there isaneed to differentiate MDR between acquiring infrastructure involving physical terminals, including mobile pointofsale, or mPOS, and digital acceptance infrastructure models such as QR code”.

RBI proposes that whereamerchant is willing to pay upfront for the card acceptance infrastructure, the MDR has to be on the lower side.
The draft proposes different categories of merchants, based on the categories proposed in the coming goods and services tax (GST).

For example,amerc…

IT ministry to handle all e-transactions promotions

With an aim to boost digital payments, the government has said that all matters related to promotion of digital transactions will be handled by the ministry of electronics and information technology (Meity).According to an order issued by the Cabinet Secretariat, “Promotion of digital transactions including digital payments” has been delegated to the IT Ministry.
On Thursday, President Pranab Mukherjee gave his approval to amend the ‘Government of India, Allocation of Business Rules, 1961’ to assign the new role of accelerating digital payments to the ministry.
“Promotion of digital transactions including digital payments has been formally assigned under the purview of Meity. The digital payments mission is expected to be set up shortly by the ministry,” said an official from IT ministry, who did not wish to be named.
The IT ministry is tasked with promotion of e-governance for empowering citizens, promoting inclusive and sustainable growth of the electronics and information technology. …

Mutual funds can now invest in REITs, InvITs: Sebi

To make real estate and infrastructure investment trusts more attractive for investors, regulator Sebi has notified norms allowing mutual funds to invest their money in such entities.
The move comes after Sebi in its board meeting in January permitted mutual funds to invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). A mutual fund is permitted to invest only up to 5% of its net asset value in units of a single issuer of alternative securities. The maximum allowed investment in alternative instruments by a single fund will be capped at 10%. The cap will not be applicable in the case of index fund or sector—or industry—specific scheme. “A mutual fund may invest in the units of REITs and InvITs... No mutual fund under all its schemes shall own more than 10% of units issued by a single issuer of REIT and InvIT,” Sebi said in a notification dated 15 February. The move is part of Sebi’s effort to get more number of investors into REITs and InvITs, …

Sebi allows foreign investors to buy shares via primary markets

Capital markets regulator Securities and Exchange Board of India has allowed foreign investors to acquire shares through primary markets in depositories and clearing corporations. Prior to this, foreign investors could acquire shares of depositories and clearing corporations only through secondary market. The move comes at a time when Central Depository Services (India) Ltd is preparing to launch its initial public offering. Mint New Delhi,17th Febryary 2017