Wondering if you are up to speed with topics that are likely to pop up at your upcoming dinner meet? Here is an overview of everything that’s been up with the economy this week:
When someone talks about ATM tell them that Foreign Bank ATM fell 18% in the last three year.
The total number of foreign ATM’s in India in 2014 was 1141 including ATM’s of banks like HSBC, Standard Chartered Bank, DBS Bank, CITI Bank etc. But the number dropped to 934 ATM’s this September according to RBI’s Data, which is a drop of at least 18% in the last three years.
Possible reasons for this could be: India’s gradual shift to a cashless economy, thanks to demonetization and banks charging for withdrawals beyond the monthly limit. Banking are finding it more profitable to use other bank ATMs for their customers. And lastly ATMs are expensive costing around Rs.1 lakh per month only for maintenance, rental and network charges. That’s why banks are focusing more on developing their digital facilities and shutting down high maintenance ATM services.
When someone talks about KYC tell them that RBI has extended two months for e-wallets to complete KYC
RBI has granted all e-wallet providers 2 months extension (till February) to complete their client’s KYC processes. The earlier deadline was 31st December but many companies failed to meet the deadline because of the huge number of e-wallet users present in India.
When someone talks about Government plans to borrow Rs.50,000 crore to meet its fiscal deficit target.
Fiscal deficit is a situation whereby expenses exceed incomes. Almost all countries face such a situation because their government spends more than they earn. You may assume that might be a bad thing but economists argue that some amount of fiscal deficit is good for the economy until it exceeds the limit and then it could be bad.
India is close to missing the the fiscal deficit target for this year and has decided to borrow Rs.50,000 crore from the public to make up for the deficit. In exchange of the money borrowed, the public will get government securities. These are safe government instruments that usually give fixed interests after regular intervals and the principal amount is returned on maturity. The government almost never defaults on these securities.One of the reasons for missing the fiscal deficit target was due to slow tax collections after G.S.T. confusion. But the government has assured that it would not borrow anything further in the third quarter of the year and would reduce its other borrowings to make up for this deficit.
When someone talks about G.S.T. tell them about e-way bill.
The government expects G.S.T. collection to increase by 20-25 percent due to the E-way bill. E-way bill is an online method to regulate movement of goods. Out of 29 states 17 states including Uttar Pradesh and Uttarakhand has already introduced E-way bill in some form. The e-way bill will become compulsory from February because they reduce the chances of corruption and the whole process can be done online. Government expects around 40 Lakhs e-bills to be generated on an everyday basis.
Now that you know these topics, the next time someone mentions them you know what to say. If there are any such topics spoken about at a party that have made you feel out of the loop, write to us at firstname.lastname@example.org and we will cover it in our next edition.