UPI Booms, Debit Dozes 💳

Good Morning ☕

Amidst the digital revolution sweeping through India's financial landscape, poor debit cards seem to be stuck in a snooze mode! With the Unified Payments Interface (UPI) taking center stage, recent data from the Reserve Bank of India (RBI) unveils a sluggish affair for debit cards. UPI transactions are projected to hit a whopping 160 billion by 2025-26. While plastic counterparts are gradually multiplying, it's the UPI's no-surcharge feature that's stealing the spotlight for small transactions. Looks like the debit cards need a wakeup call!

Important News of the Day

1. Debit card usage slow for three years and UPI transactions up 428%

Debit card usage in India has remained sluggish due to the surge in digital transactions, particularly through the Unified Payments Interface (UPI), according to recent data from the Reserve Bank of India (RBI). UPI transactions are expected to cross 160 billion by 2025-26. The increase in card issuance has been gradual, but the number of active debit and credit cards has been growing. The major difference between UPI payments and credit cards is that there is no surcharge, making it more viable for small transactions.

2. ‘Not even a square inch’: Ladakh LG refutes China land occupying claim

The Lieutenant Governor of Ladakh, B D Mishra, has refuted Congress leader Rahul Gandhi's claim that China has occupied a large portion of Indian land in Ladakh. Mishra stated that no Indian land has been occupied by China and that India's Defense Forces are prepared to give "a bloody nose" to anyone engaging in any misadventure. This claim has been supported by satellite imagery. Rahul Gandhi has not yet responded to the LG's statement.

3. India's August inflation may be significantly above RBI's 2-6% target range

India's August inflation is expected to be significantly above the Reserve Bank of India's (RBI) target range of 2-6%, according to experts. Although retail inflation is likely to have eased to 7% in August from July's 15-month high of 7.44%, it is expected to remain above the target range. The official data on retail inflation was released on September 12. The RBI targets inflation at 2-6% but aims to bring it to the mid-point of 4%. Inflation in India is expected to be 4.10% by the end of this quarter, according to Trading Economics global macro models and analysts' expectations.

4. Nuclear energy is clean but too risky to rely on

Nuclear power is a clean energy source that does not emit carbon dioxide, making it a tempting path to carbon neutrality free of fossil fuels. However, nuclear power poses unique safety and security threats, relative to other sources of electricity, and the waste disposal risks are significant. Nuclear power plants are being phased out around the world due to concerns about safety and other issues. Without additional nuclear, the clean energy transition becomes more difficult and more expensive, requiring $1.6 trillion of additional investment in advanced economies over the next two decades.

5. Byju's plans asset sale to pay off $1.2 billion loan

Edtech giant Byju's is planning to sell two of its businesses, reading platform Epic and higher education platform Great Learning, to pay off its term loan B lenders. Byju's had acquired Epic and Great Learning in 2021 to build its $22 billion empire. The company is also proposing to sell its overseas ventures to pay back its entire $1.2 billion loan. Byju's has been in a dispute with its lenders, who claimed that the company has technically defaulted on the terms of the loan, despite paying all the installments on time.

6. G20 Summit: Startups hope Delhi Declaration to help ease capital access

The G20 Summit held in New Delhi has included startups in the New Delhi Leaders' Declaration for the first time ever in the history, which has been lauded by the Indian startup ecosystem. The inclusion of startups in the declaration is expected to help ease capital access. The digitalisation agenda was not controversial at the summit, and India has been building digital momentum throughout the G20 presidency.

7. India clamps down on Chinese steel, enacts 5-year anti-dumping duty as import rises 62%

India has imposed a five-year anti-dumping duty on specific types of Chinese steel as imports surged by 62% between April and July 2023 compared to the same period last year. The move is aimed at protecting the domestic steel industry from cheap imports and comes amid concerns over the one-sided nature of trade engagement with China. China sold 0.6 million metric tons of steel to India, beating South Korea to become the biggest steel exporter to India.

8. Centre responds to Opposition’s allegations

The Congress and Trinamool parties have accused the Indian government of spending 300% more than the allocated budget for the G20 summit in Delhi. However, the government's fact-checking team from the Press Information Bureau (PIB) has contested these allegations, stating that the spending was not just for the summit but also included investment in long-term infrastructure and assets. According to government records, over Rs 4,100 crore was spent on sprucing up the capital for the G20 summit. Union MoS Meenakshi Lekhi claimed that the Delhi government and the Centre have collectively spent Rs 4,000 crore.

9. India, Saudi to link power grids using subsea cable

India and Saudi Arabia have agreed to link their power grids using a subsea cable, which could significantly boost the reliability of power grids in both countries and foster economic development. The agreement follows another more expansive infrastructure connectivity project plan to develop an India-Middle East-Europe economic corridor. The submarine cable project will be connected from the coast of Gujarat to Saudi Arabia, and the distance from Mundra Port in Gujarat to the coastal city of Fujairah in Saudi Arabia is 1,600 km. The project is being undertaken to extend a new era of energy diplomacy, and both countries want to strengthen their relations beyond crude oil.

10. Saudi plans to set up sovereign wealth fund office in GIFT City

Saudi Arabia is considering opening an office of its sovereign wealth fund (SWF) in Gujarat International Finance Tec-City (GIFT) to facilitate investments. The investment minister of Saudi Arabia, Khalid A. Al Falih, said that he would send a strong delegation to GIFT City within the next few weeks to explore the opportunity. Meanwhile, India is planning to open an investment office in Riyadh. The two countries are also exploring submarine power cable connectivity as part of a new era of energy diplomacy. Saudi Arabia is also planning to invest in Indian start-ups.

World News 🌎

• North Korea's Kim Jong Un in Russia for talks with President Putin

• US allows transfer of $6 billion for Iran prisoner swap deal

• Musk's Starlink denial for Ukraine's Crimea operation sparks Pentagon inquiry

• FDA authorizes updated Covid-19 shots for Omicron variant from Pfizer, Moderna

• Kim Jong Un leads delegation of arms industry officials on visit to Russia

• India, Saudi mull local currency trade

• ‘Global deal to stop MNC tax avoidance likely by 2023 end’

• Kim Jong Un enroute to meet Putin; US urges N Korea ‘not to sell Russia arms’

• 'Going to bed': Joe Biden jokes about rushing to nap between presser in Vietnam

• Biden says 'raised human rights, free press’ issues with PM Modi, Cong takes dig

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