Home Daily Updates IMPORTANT CURRENT AFFAIRS & DAILY NEWS UPDATES : 25 - JUNE - 2016
IMPORTANT CURRENT AFFAIRS & DAILY NEWS UPDATES : 25 - JUNE - 2016
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Saturday, 25 June 2016 11:07

 

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DAILY NEWS UPDATES

25- JUNE - 2016

 

INDIA, GHANA SIGN THREE AGREEMENTS TO STRENGTHEN CO-OPERATION IN VARIED FIELDS

India and Ghana signed three bilateral agreements to strengthen co-operation in varied fields. The agreements were signed during the first ever visit of President Pranab Mukherjee to Ghana, a nation on West Africa’s Gulf of Guinea.

Highlights of the agreements

• The three agreements signed with Ghana included one for visa waivers for holders of diplomatic and official passports and one for setting up a Joint Commission.

• The commission will periodically review various aspects of the multi-dimensional relationship between the two countries. A mutually convenient date for its first meeting will be decided later.

• The third agreement was for collaboration in diplomatic training between the Indian Foreign Service Institute and a Ghanaian institute of the same standing.

India- Ghana Relations

• India is the largest foreign investor in Ghana today, with more than 700 projects. More than 222 of these projects are in the manufacturing sector.

• Bilateral trade between India and Ghana has increased to 1.2 billion US dollars from 538 million US dollars in 2010.

• Ghana has also sought India’s civil nuclear cooperation to explore the possibilities of reducing its dependence on traditional energy sources to cut costs and focus on cleaner environment.

• After hosting the third India Africa Forum Summit (IAFS) in New Delhi in October 2015, India is working on a plan to consolidate and further strengthen its engagement with Africa.

MICROSOFT SIGNS AGREEMENT TO ACQUIRE LINKEDIN FOR $26.2 BILLION

Microsoft Corporation and LinkedIn Corporation announced that they have entered into a definitive agreement.

As per the agreement, Microsoft will acquire LinkedIn for 196 dollar per share in an all-cash transaction valued at 26.2 billion dollar, inclusive of LinkedIn’s net cash. However, LinkedIn will retain its distinct brand, culture and independence.

About Microsoft Corporation

Microsoft Corporation is an American multinational technology company headquartered in Redmond, Washington.

It develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services.

Its best known software products are the Microsoft Windows line of operating systems, Microsoft Office office suite, and Internet Explorer and Edge web browsers.

It is the world's largest software maker by revenue, and one of the world's most valuable companies.

It was founded by Paul Allen and Bill Gates on 4 April 1975.

About LinkedIn Corporation

LinkedIn is a business-oriented social networking service.

It was founded on 14 December 2002 and launched on 5 May 2003.

It is mainly used for professional networking.

As of 2015, most of the site's revenue came from selling access to information about its users to recruiters and sales professionals.

LEWIS HAMILTON WINS 2016 CANADA GRAND PRIX OF FORMULA 1

Mercedes racing driver Lewis Hamilton of Britain won the Formula 1 Canada Grand Prix title.

To win the title, he overcame Ferrari driver Sebastian Vettel in the final race held in Montreal, Canada.

For Hamilton, the present win in Montreal was the fifth in his career and the second in a row. His previous titles were secured in 2007, 2010, 2012 and 2015.

In the 2016 season, it was the second title for him as he already secured the Monaco Grand Prix on 29 May 2016.

Overall, he has more race victories than any other British driver in the history of Formula One and is currently third on the all-time wins list, with 45 wins.

About Lewis Hamilton

• He is a British Formula One racing driver from England.

• He currently races for the Mercedes AMG Petronas team.

• He is the 2008, 2014 and 2015 Formula One World Champion.

• In his first season in Formula One, he set numerous records while finishing second in the 2007 Formula One Championship.

• He won the World Championship the following season, becoming the then-youngest Formula One world champion in history before Sebastian Vettel broke the record two years later.

• Following his second world title in 2014, he was named BBC Sports Personality of the Year.

• In 2015, he became the first British driver in history to win consecutive F1 titles.

• He is the only driver in the history of the sport to have won at least one race in each season he has competed to date.

JOINT NAVAL EXERCISE MALABAR 2016 BEGINS

India, the United States and Japan on 10 June 2016 began the annual exercise Malabar 2016. This is the 20th edition of Malabar Exercise.

The main aim of this exercise is to boost the interoperability amongst the three navies and develop common understanding of procedures for Maritime Security Operations.

About Malabar Exercise 2016

• Malabar 2016 will be conducted with the harbour phase at Sasebo and with the sea phase in the Pacific Ocean.

• The scope of MALABAR-16 includes professional interactions in harbour and a diverse range of activities at sea, including complex surface, sub-surface and air operations.

• This year, four Indian ships are participating in the exercise including INS Satpura, INS Sahyadri, INS Shakti and INS Kirch.

• The ships have embarked one Sea King 42B ASW helicopter and two Chetak utility helicopters.

• The US Navy will be represented by ships from CTF 70 of the USN 7th fleet, which is based at Yokosuka, Japan.

• The CTF will include the aircraft carrier USS John C Stennis (CVN 74), Ticonderoga class Cruiser USS Mobile Bay and Arleigh Burke class destroyers USS Stockdale and USS Chung Hoon.

• In addition, one nuclear powered submarine, carrier wing aircraft and Long Range Maritime Patrol aircraft will also participate in the exercise.

• Japanese Maritime Self Defence Force (JMSDF) will be represented by JS Hyuga, a helicopter carrier with SH 60 K integral helicopters and Long Range Maritime Patrol aircraft.

• Additionally, the Special Forces (SF) of the three navies will also interact during the exercise.

Background
The Malabar exercise began as a joint naval exercise between the United States and India back in 1992. It has been the subject of concern over the past few years because of its potential for expansion.

In 2015, Japan participated together with Washington and New Delhi as part of a longstanding effort to get Tokyo involved as a permanent member of the exercise.

JAL MARG VIKAS PROJECT ON RIVER GANGA TO ENABLE COMMERCIAL NAVIGATION

Jal Marg Vikas is a project on the river Ganga that is being developed between Allahabad and Haldia to cover a distance of 1620 kilometers.

The project is being implemented with technical and investment support from World Bank and would be completed over a period of six years at an estimated cost of 4200 crore rupees.

It envisages development of a fairway with three metres depth which would enable commercial navigation of at least 1500 ton vessels on the river.

The construction of multi modal terminals, jetties, river information system, channel marking, navigational lock, river training and conservancy works are to be undertaken as part of the project.

They are:

Varanasi: Phase-I (A) of the project is being implemented on 5.586 hectares of land at Ram Nagar, Varanasi, mainly for offshore works of the terminal.

Haldia: 61 acres of land has been taken on 30 years’ lease from the Haldia Dock Complex for construction of the terminal.

Sahibganj: The requirement of land for the main terminal, rail and road connectivity, resettlement and rehabilitation of 235 households has been assessed at 241.63 acres for which land acquisition proceedings are in progress.

JUPITER-LIKE PLANET, KEPLER-1647B, ORBITING TWO STARS DISCOVERED

Scientists have discovered a Jupiter-like planet, Kepler-1647b, orbiting a system of two stars, making it the largest such cosmic body ever found.

The planet Kepler-1647b, located in the constellation Cygnus, was discovered by astronomers from NASA's Goddard Space Flight Centre and San Diego State University (SDSU) in the US.

Researchers said that the Kepler-1647 is 3700 light-years away and about 4.4 billion years old, roughly the same age as the Earth.

About Kepler-1647b

• The planet was discovered by using NASA’s Kepler Space Telescope, an instrument launched in 2009 to look for potentially habitable planets beyond our solar system.

• The stars are similar to the Sun, with one slightly larger than our home star and the other slightly smaller.

• The planet has a mass and radius nearly identical to that of Jupiter, making it the largest transiting circumbinary planet ever found. Planets that orbit two stars are known as circumbinary planets.

• It takes 1107 days (over three years) to orbit its host stars, which is the longest period of any confirmed transiting exoplanet found so far.

• Orbit of the planet puts it within the so-called habitable zone, which means the range of distances from a star where liquid water might pool on the surface of an orbiting planet.

• Like Jupiter, it is also a gas giant, making the planet unlikely to host life.

The study was published in the Astrophysical Journal.

ISRAEL ELECTED AS CHAIR OF A PERMANENT COMMITTEE OF UN FOR THE FIRST TIME

The United Nations General Assembly elected Israel to chair its Legal Committee, which is also known as the Sixth Committee.

It is for the first time ever that Israel has been chosen to head one of its six permanent committees.

In the secret ballot election, Israel received 109 Yes votes. No votes were cast against Israel. However, there were 23 abstentions, 14 invalid ballots and 43 votes for other countries in the Western European.

About Sixth Committee

The United Nations General Assembly Sixth Committee (Legal) is one of the main committees of the United Nations General Assembly.

The Sixth Committee is the primary forum for the consideration of legal questions in the General Assembly.

The committee has universal membership, which means all member states of the UN are de jure members of the Sixth committee.

It is led by a chairman assisted by three vice-chairmen and a rapporteur.

It meets every year from late September to late November.

GUNIT CHADHA RESIGNS AS CEO OF DEUTSCHE BANK ASIA PACIFIC REGION

Gunit Chadha resigned as Chief Executive Officer (CEO) of Asia Pacific region of Deutsche Bank AG. He will leave the office on 17 July 2016.

About Gunit Chadha

• Chadha joined Deutsche Bank in 2003 as the CEO for the global lender’s India business.

• In 2012, he was elevated to co-CEO for its Asia Pacific business and later in October 2015 was appointed as CEO for the Asia Pacific.

• Under Chadha’s leadership, Deutsche Bank had started its investment banking, retail banking and institutional broking business in India.

• Prior to Deutsche Bank, he was CEO of IDBI Bank Ltd.

Comment
This is the second high profile exit from the bank. Earlier in June 2016, the bank announced that Quintin Price, Head of its asset management business and a member of the management board is also set to quit.

The company had earlier announced a shocking 6.8 billion Euros loss for the year ended December 2015. In January, the bank had announced a restructuring drive and had decided to cut down its exposure in a number of global markets, while also announcing spending cuts.

VIJAY MALLYA DECLARED AS PROCLAIMED OFFENDER BY MONEY LAUNDERING COURT

Businessman Vijay Mallya was declared as a Proclaimed Offender by a special court for the Prevention of Money Laundering Act (PMLA) in Mumbai in a loan diversion case.

The court issued proclamation under Section 82 of Criminal Procedure Code (CrPC) against Vijay Mallya.

The move came after the Enforcement Directorate (ED), an investigation agency under the Union Finance Ministry, on 10 June 2016 filed a petition over a case where Mallya is suspected to have diverted a 430 crore rupees loan given by IDBI Bank Ltd to his Kingfisher Airlines Ltd.

The ED requested the court to issue an order under Section 82 of the Criminal Procedure Code (CrPC) and term Mallya a proclaimed offender, citing multiple arrest warrants pending against Mallya including a non-bailable warrant (NBW) under the Prevention of Money Laundering Act (PMLA), 2002.

Mallya left the country on 2 March 2016 for London on a diplomatic passport. The ED now plans to send the court order to the UK authorities to start on the process of deportation.

The directorate has identified around 4000 crore rupees worth of assets owned by Mallya.

Who is a proclaimed offender?

A person is termed as a proclaimed offender in a criminal investigation if the court believes that the accused has absconded or is concealing himself, so that the warrant cannot be executed.

According to the Section 83 of CrPC, the proclaimed offender is required to appear before the PMLA court and the investigation agency within 30 days.

UNION MINISTRY OF RAILWAYS SIGNS JV AGREEMENT WITH ODISHA GOVERNMENT

The Union Ministry of Railways on 14 June 2016 signed a Joint Venture (JV) Agreement with Odisha Government. The agreement was signed by VP Dudeja on behalf of Railways Ministry and Sanjay Rastogi, Pr Secretary of Transport, Odisha Government.

Highlights of the JV Agreement

• The MoU envisages formation of a Joint Venture company having 51 percent stake of the State Government and 49 percent stake of Ministry of Railways.

• The company will primarily identify projects and possible financing avenues in addition to Union Government and the State Government.

• After finances for a project are tied up, project specific special purpose vehicles shall be formed.

• These SPVs can have other stake holders from Industries, Central PSUs, State PSUs etc. However, the JV companies shall be  mandatory stake holders with minimum 26 percent shares in the SPVs.

• The Railways Ministry will also sign a concession agreement of 30 years with the project SPV for safe and sound operation, revenue sharing and providing technical & marketing logistics to the SPV.

• At the end of concession period, the railways will have option to take over the assets at a nominal price.

• The most important aspect of this MoU is that the ownership of the land shall vest with the SPVs which is a departure from previous practice. This will give financial leverage to the company to exploit commercial potential of the land.

Background:
• In view of the growing demands for railway lines in various states, Railways Ministry announced in its budget speech regarding setting up of Joint Ventures with states for focused project development.

• 17 State Governments consented for formation of Joint Venture Companies in collaboration with the Ministry of Railways for development of rail infrastructure in their respective States.

• Draft MoUs were sent to these State Governments and discussions were also held with them to clarify various provisions of the MoU.

• MoUs have already been signed with seven state governments- Odisha, Maharashtra, Chhattisgarh, Andhra Pradesh, Telangana, Kerala and Haryana.

• Jharkhand and Gujarat have shown their keenness to sign JV Agreements.

• Karnataka is already having a Joint Venture (by the name K-RIDE) with Ministry of Railways.

• The other States who have consented for formation of State JVs are Punjab, Bihar, West Bengal, Madhya Pradesh, Rajasthan, Tamil Nadu and Uttar Pradesh.

PETER THOMSON OF FIJI ELECTED AS PRESIDENT OF 71ST SESSION OF UNITED NATIONS GENERAL ASSEMBLY

The United Nations General Assembly (UNGA) elected Peter Thomson, Permanent Representative of Fiji, as President of its upcoming 71st session.

Thomson was elected in a rare secret ballot vote. He defeated Andreas Mavroyiannis of Cyprus by a secret-ballot vote of 94 to 90, with one abstention.

The Fiji representative will replace current General Assembly President Mogens Lykketoft.

Thomson will begin his tenure in September 2016 at the commencement of the 71st General Assembly session.

Who is Peter Thomson?

Peter Thomson is a Fijian diplomat.

He has served as Fiji's Permanent Representative to the United Nations since February 2010.

For the year 2014, he was elected President of the Executive Board of the United Nations Development Programme (UNDP), the United Nations Population Fund (UNFPA) and the United Nations Office of Project Services (UNOPS).

He was the architect of the name-change of the UN's Group of Asian States to the new name of the Asia-Pacific Group, effective 2011.

The President of Fiji conferred on Peter Thomson the award of Officer of the Order of Fiji in 2014.

About United Nations General Assembly

The United Nations General Assembly is one of the six principal organs of the United Nations.

It is the only organ in which all member nations have equal representation.

Its powers are to oversee the budget of the UN, appoint the non-permanent members to the Security Council, receive reports from other parts of the UN and make recommendations in the form of General Assembly Resolutions.

The General Assembly meets under its president or Secretary-General in regular yearly sessions.

The first UNGA session was convened on 10 January 1946 in the Westminster Central Hall in London. It included representatives of 51 nations.

FLORIDA’S STONEGATE BANK TO ISSUE FIRST US CREDIT CARD FOR USE IN CUBA

Florida-based Stonegate Bank issued a new credit card that will allow Americans to use it in Cuba during their visit to the country. The card will help the US visitors to avoid the Cuban 10-percent penalty on the dollar.

Pompano-beach based Stonegate is also the first US bank to introduce a debit card for use in Cuba.

The bank announced that US travelers will be able to use its Mastercard to charge purchases at Cuban state-run businesses and some private businesses, starting 15 June 2016.

Initially, the bank will issue only 1000 cards and each card will feature artwork by celebrated Cuban painter Michel Mirabal.

CHINA SHIFTS ITS STRATEGY ON INDIA’S NSG MEMBERSHIP

  • China said the “door is always open for discussions” on NSG memberships, subtly shifting from its earlier stand that India’s membership was not on the agenda for the nuclear group’s plenary in Seoul this week.
  • In sharp contrast to what China said earlier: “The upcoming NSG Plenary Meeting in Seoul will not cover this issue (of NSG memberships for non-signatories to the Non Proliferation Treaty (NPT)) either.
  • Therefore there is no point talking about supporting or opposing the entry of a particular non-NPT country at this moment.
  • Meanwhile, Pakistan Prime Minister’s advisor on Foreign Affairs Sartaj Aziz told parliament that Islamabad has “successfully” blocked India’s bid to gain membership of the NSG.

A HIGH-POWER COMMITTEE RECOMMENDED CHANGES TO INFRASTRUCTURE ALONG COAST

  • A high-power committee has recommended changes to laws governing infrastructure development along India’s coast.
  • The most significant being giving greater powers and responsibilities to coastal States to regulate development, maintain and conserve ecologically fragile zones.
  • Also the committee has in several places recommended that local town planning regulations be preferred over the existing Coastal Regulation Zone (CRZ) restrictions.
  • Last month, the Central Information Commission ordered that the Environment Ministry share the report with Mr. Kohli. The report can be viewed on the CPR website.
  • According to a statement by the CPR analysing the report, the new Act proposes the devolution of powers to State and Union Territory governments along with local authorities for CRZ II (built up cities and towns), CRZ III (rural areas) and CRZ IV (12 nautical miles into the sea) areas.
  • These are for activities not covered under the Environment Impact Assessment Notification, 2006.

THE ENVIRONMENT MINISTRY HAS PROPOSED A NEW POLICY FOR THE MANAGEMENT OF FORESTS

  • The Environment Ministry has proposed a new policy for the management of forests that among other things proposes a green cess to promote “ecologically responsible behaviour” and called on the government to promote the sustainable use of wood.
  • Promotion of wood use, obtained from sustainably-managed forests and trees, would play a positive role in mitigating climate change and ensuring sustainable living.
  • Governments and stakeholders must shift from regulating to promoting cultivation, harvesting, transportation and marketing of wood,” the policy added.
  • This even as the forest policy also emphasises that the government “must double tree cover, outside forests, within a decade.”
  • It proposes a national implementation framework to be in place within six months of the notification, and exhorts States to draft their state forest policies and prepare an implementation framework.
  • “Environmental cess, green tax, carbon tax etc. may be levied on certain products and services for facilitating ecologically responsible behaviour, garnering citizen's contribution and supplementing financial resources,” the policy adds.
  • India has set an ambitious target of bringing a third of its geographical area under forest-and-tree cover within a decade, up from the current one-fourth.
  • The policy acknowledges it but recommends that this be done by replenishing these lands with native species rather than “introducing exotic species.”
  • In a nod to the Union government’s controversial decision to declare certain animals as “vermin” and implicitly sanctioning the slaughter of nilgai, wildpigs and monkeys in certain States.
  • the forest policy recommends mitigating human-wildlife conflicts by taking up habitat enrichment, providing adequate and timely compensation in case of injury or loss of human life, property, crop damage or livestock casualties and developing teams of well-equipped and trained forest personnel.i

INDIA LOOKING TOWARDS MOZAMBIQUE FOR PULSE IMPORTS

  • The Union government sent a delegation to Mozambique to explore the options of importing pulses on a government-to-government basis.
  • The high-level delegation is led by Consumer Affairs Secretary Hem Pande, an official statement said.
  • The delegation includes senior officials of the Ministries of Commerce and Agriculture and those from the Metals and Minerals Trading Corporation of India, a state trading body.
  • Another team of senior officials is already in Myanmar on the same mission.
  • India’s pulse output has been affected by two consecutive years of drought.
  • Because of a gap of 7 million tonnes between demand and supply, the retail prices have soared, with urad dal costing Rs. 195 a kg last week. In most parts of the country, the average prices, primarily of tur dal and urad dal, are ruling high.
  • Malawi is another African country with which India is having talks on buying pulses.
  • During 2014-15, India produced 17.2 million tonnes of pulses, while during 2015-16 the output was 17.06 million tonnes against the demand of 23.66 million tonnes. The pulse prices increased by 29.6 per cent on an average during 2015-16.

SCRAMJET ENGINES NOW ON ISRO’S AGENDA

  • Flush with the success of the technology demonstration flight of its Reusable Launch Vehicle last month, ISRO is gearing up to test a scramjet engine based on air-breathing propulsion.
  • The test flight of the indigenously developed scramjet engine is scheduled to take place from the Satish Dhawan Space Centre at Sriharikota sometime in July.
  • Named Advanced Technology Vehicle (ATV), the test platform will comprise a scramjet engine hitched to a two-stage sounding rocket (RH- 560).
  • The air-breathing engine will be released at a height of 70 km and ignited during the coasting phase. Apart from the hypersonic ignition at Mach 6, ISRO hopes to sustain the combustion for 5 seconds.

THIRD SATELLITE IN CARTOSAT-2 SERIES TO BE LAUNCHED

  • The PSLV-C34 is set to lift the third satellite in the Cartosat-2 series and an Indian record-making 19 small satellites into space. It will be the 36th PSLV launcher to fly from the Satish Dhawan Space Centre, Sriharikota.
  • The current Cartosat-2 spacecraft is an Earth observation spacecraft and will be put into a pole-to-pole orbit 515 km from surface.
  • The spacecraft is said to offer the best resolution of less than a metre on an Indian satellite, going as sharp as 60 cm. That is a measure of the smallest size of objects it can pick up on Earth.
  • This is the highest number of deployments by an Indian launcher.

PANAMA INAUGURATE WIDER CANAL

  • The Central American nation is to officially open its expansion work on the century-old Panama Canal after years of costly work with a ceremony featuring regional leaders and foreign dignitaries.
  • The project ran hundreds of millions of dollars over budget and two years past deadline, taking nine years to complete at a cost of more than $5.5 billion.
  • It required the construction of new locks, enlarged access and a deepening of the canal bed. Enough metal was used over the nine years to build 20 Eiffel Towers.
  • The pharaonic task of broadening the 80-kilometer canal, which is sometimes called the eighth modern wonder of the world, is a source of pride for Panama.
  • With the expansion, the Panama Canal — through which five per cent of world maritime commercial traffic already passes — will be able to take ships carrying three times as much cargo as before, up to 14,000 containers.
  • The government also hopes to wrest back “a good part” of the cargo traffic currently going through Egypt’s Suez Canal.

INDIA MAY HAVE TO AMEND THE SOEC CLAUSE

  • The International Civil Aviation Organisation template on air services agreements says that the SOEC norms in bilateral agreements address “potential concerns such as safety, security or other economic aspects.
  • However, the template is not binding and the countries are free to set their own terms.
  • India will have to amend the SOEC clause in its agreement with a particular country for allowing an airline with majority foreign control to fly abroad.
  • At present, only a couple of countries that India has bilateral agreements with do not acknowledge the SOEC norms.

VISAKHAPATNAM PORT HAS BEEN DECLARED AS THE SECOND GATEWAY PORT FOR NEPAL

  • Visakhapatnam Port has been declared as the second gateway port for Nepal after Kolkata-Haldia.
  • The movement of traffic-in-transit between Port of Visakhapatnam and Nepal will be in sealed containers and in full rake only and the cost of transhipment will be borne by the consignor/consignee.
  • Visakhapatnam Port has the deepest container terminal among major ports with permissible draft of 15 metres and LOA up to 320 metres. Most of the transit cargo of Nepal will be from China.
  • The terminal can act as an ideal gateway for east-bound cargo. Handling of cargo will be advantageous in terms of ocean freight and liner detention.
  • India and Nepal signed the agreement recently to provide the additional transit facility to Nepal through the Visakhapatnam Port as second gateway port.
  • The agreement provides for transport of the cargo through the rail route connecting Visakhapatnam-Jogbani or/and Visakhapatnam-Birgunj. In addition to the rail route, four road routes have been identified.
  • The agreement facilitating transport of EXIM cargo through the Visakhapatnam Port is a historic milestone.

SMALL BUSINESSES, WHICH CONTRIBUTE 45 PER CENT TO INDIA’S GDP, TRANSACT PRIMARILY IN CASH

  • Small businesses, which contribute 45 per cent to India’s GDP, transact primarily in cash despite the Centre’s push towards digital transactions, according to a study.
  • A study by MasterCard and the Confederation of All India Traders (CAIT) estimates that there are 10 crore micro-merchants — defined as primarily business-to-consumer (B2C) enterprises, with an employee strength of 2-20 workers each and who deal only in cash — constituting about 95 per cent of the MSME sector.
  • The government’s push towards digital transactions has barely made a dent in this category because providing access in itself is not enough.
  • Currently, even the government’s Jan Dhan Yojana and RuPay debit cards are focussed on rural India bypassing most of the small merchants who reside in towns.
  • Where people have cards, they do not use them for transactions.
  • There are three main deterrents in going for digital transactions. The first is the rule that transactions of more than Rs.2 lakh will draw the attention of the Income Tax Department since they require a PAN card to be provided.
  • The second hindrance is that banks charge an additional fee for card transactions, which the merchants, who already survive on small margins, have to pass on to the customer. This, in effect, makes cash a cheaper option for the consumer.
  • The third deterrent is there is lack of awareness about the benefits of using cards for payments and higher costs in conducting cash transactions.

 

 

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Last Updated on Tuesday, 28 June 2016 08:23
 

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