Dinner Party Prep: Economy Expectations For 2018, Digital Transactions, MDR Rates & More

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 what’s trending in the economy  this week:

stock market iconmoney-baginterestWhen people talk about the economy expectations for 2018 you can talk about the four themes for this year:

Broking and research firm CLSA has identified these 4 themes that will do well this year. So for all those traders these can be your top bets:

  • Corporate banks like ICICI showing good balance sheet and strong ratio between their savings and current account deposits to their total deposits. 
  • Small banks that are likely to become large like Indusland Bank because of their acquisitions & expansion plans.
  • Housing finance banks like HDFC which will witness significant rise in home loans due to government plans for affordable housing in 2018.
  • Non-lending institutions like insurance companies, mutual funds etc. because of an increase in people’s interests towards investments. 

BITCOINS RISEWhen someone talks about Bitcoins tell them India’s stand on cryptocurrencies:

On Tuesday Finance Minister Arun Jaitley restated the Government’s stand on cryptocurrencies stating that they will not be considered legal tender in India. But if one wants to invest in them they can at their own risk because these currencies function anonymously. Further RBI stated the risks of trading in bitcoins: hacking, lack of an authorized central agency, valuation only based on speculation and trading may subject the user to illicit or illegal activities. Although, the government is open to change its opinion on  cryptocurrencies in the future, currently they are a big NO-NO

chequeDebit cardWhen someone talks about Debit Card tell them that there will be no charges on debit card transaction up to Rs. 2000:

For every card or digital transaction you make, the store needs to give a small percentage (less than 2%) of that to the bank because the bank has accepted the card payment on the store’s behalf. This is called as a merchant discount rate or MDR. 

Just last month the Cabinet approved a proposal that states that the Government will bear the Merchant Discount Rate (MDR) charges on all transactions up to Rs. 2000 made through debit cards, or other digital system in order to promote digital transactions in the country. The charges will be borne by the Government for a period of two years from 1st January, 2018 having an impact of at least Rs 2,512 crore on the government. 

P.S.- MDR has to be borne by the store and not the customer. The RBI strictly states if a shop charges extra for card payments then it is incorrect and they can complain to the Bank or RBI in this regard. 

Debit cardinterest rates

When someone talks about digital transaction tell them that digital transactions rose to 1.06 billion in December:


Since the government’s Demonetization exercise in 2016, there has been a peak in the number of digital transactions. This December the country digital transactions cross the 1 billion mark. Its month on month rise was a whopping 6.05%. The government has been pushing the people to use digital transactions since a while and its effects have been showing.

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 hello@missmanage.com and we will cover it in our next edition.


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