- National Payments Corp. of India (NPCI) unified payments interface (UPI) project will allow customers to transfer money and make payments almost as easily as they send a text message.
- UPI will allow a customer to instantaneously transfer funds across different banks with the use of a single identifier.
- The product will eliminate the need to exchange sensitive information such as bank account numbers, one time passwords or phone numbers during a financial transaction.
- Details covered in a previous post. Click here
- Are new models of banks which can enable transfers and remittances through a mobile phone.
- They can also offer services such as automatic payments of bills, and purchases in cashless, cheque less transactions through a phone. e.g. Airtel Payment Bank.
8.Monetary Policy Panel
- The Monetary Policy Committee (MPC) is a committee of the Reserve Bank of India, headed by its Governor.
- The MPC is entrusted with the task of fixing the benchmark policy rates such as Repo, Reverse repo etc.
- According to the government, the MPC will have six members. Three will be nominated by the government and the rest by RBI including the governor.
- While the majority voice of the committee will be final in deciding the interest rates and the RBI will have to accept the verdict, the governor gets a casting vote in case of tie.
9.National Capital Goods Policy
- Goods that are used in producing other goods, rather than being bought by consumers. For example machinery, equipment, vehicles and tools used to produce goods or services in order to produce consumer goods.
- The policy aims to create over 21 million additional jobs by 2025.
- This is first ever policy for Capital Goods sector with a objective of increasing production of capital goods from Rs 2,30,000 crore in 2014-15 to Rs 7,50,000 crore in 2025 and raising direct and indirect employment from the current 8.4 million to 30 million.
- The policy aims to encourage exports of capital goods and promote manufacturing activity in the Indian economy, while strengthening government’s Make in India initiative
- The policy envisages increasing exports from the current 27 per cent to 40 per cent of production.
- It will increase the share of domestic production in India’s demand from 60 per cent to 80 per cent thus making India a net exporter of capital goods.
- The policy also aims to facilitate improvement in technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSMEs (micro, small and medium Enterprises).
10.Independent Fiscal Council
- Recommended by 14th Finance Commission, Fiscal Council aims to objectively evaluate budget announcements and forecasts.
- Such an institution is seen critical to improve the government’s credibility on fiscal management.
- It is important because the government aims to contain fiscal deficit within 3% limit in the coming years.