It was only a “ Matter of Time “

 

 

Context :

RBI allows linking credit cards with UPI: Here’s what you need to know  /  Indian Express / 08 June 2022

 

Extract :

Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday allowed the linking of credit cards on the UPI platform.

During his speech where the central bank chief announced a 50 basis points (bps) hike in the repo rate to curb the rising inflation, Das announced this key regulatory measure which is likely to benefit most credit card holders in the future.

 

Das said that to begin with, Rupay credit cards will be linked to the UPI platform and this will provide additional convenience to users and enhance the scope of digital payments.

 

Currently, UPI facilitates transactions by linking savings / current accounts through users’ debit cards.

Speaking about the UPI platform the RBI governor said “UPI has become the most inclusive mode of payment in India with over 26 crore unique users and 5 crore merchants on the platform.

In May 2022 alone, about 594 crore transactions amounting to Rs 10.4 lakh crore were processed through UPI…It is now proposed to allow linking of credit cards on the UPI platform.”

MY  TAKE  :

Ø  BHIM : the Unstoppable……………………………. [ 14 April 2017 ]

 

Extract :

Journey So Far  :

BHIM V 1.0   /   Dec 2016 

BHIM V 2.0  /   March 2017

BHIM V 3.0 /   April 2017

 

Future Versions Envisaged :

BHIM V 4.0  /  June 2017

BHIM V 5.0  /  Oct 2017

BHIM V 6.0  /  Dec 2017 

Feature : To subsume in itself , all Automatic Payment Apps

===================================================

BHIM V 7.0  /  April 2018 :

Feature :

Integrating all Private Mobile Wallets into BHIM to create UTI ( Unified Transaction Interface ) , leading to ,

 

UPI + UTI = " Less Cash " + " Less Evasion " + " Less Black "

 [ Read :  From  UPI to  UTI  ( 07 Dec 2016 ) ]

 

BHIM V 8.0  / June 2018

Feature :

Motivating ALL buyers to use BHIM by depositing certain percentage of GST paid on each purchase transaction into the PPF / EPF accounts ( DBT ) and thereby take care of Social Security after retirement

 

BHIM V 9.0 / Oct 2018

------------------------------------------------------------------------------------------- 

BHIM V 10.0 / Dec 2018

 Feature :  Bring daily wage earners , SMEs in the banking net

 

 

Dear Shri Shaktikant Dasji,

 

 

Congratulations on this initiative

 

I urge you to consider my above-mentioned suggestions for early implementation

 

 

With regards

 

Hemen Parekh  /  hcp@RecuitGuru.com  /  10 June 2022

 

 

Related Readings :

 

 

Ø  Cards Vs Mobile Wallets……………………………………. [ 15 Jan 2017 ]

 

Ø  When BHIM is here, can ARJUN be far away ? ….[ 30 Dec 2016 ]

 

Some more news reports :

 

UPI transactions to go up credit card link   ………….. Business Line  /  10 June 2022

 

Extract :

 

Even as the Reserve Bank of India has announced UPI linking to credit cards, a few companies such as Jupiter Edge and LazyPay are already offering products that offer credit on UPI through wallets.

“There exist a few players in the market who are offering ‘credit on UPI’ through a wallet form factor. This has been enabled by RBI’s Master Directions regarding mandatory interoperability of full KYC PPIs (through UPI for wallet PPIs and through card networks for card-based PPIs) starting 2022-23,” said a report by Kotak Institutional Equities.

 

 

RBI’s UPI-Credit Card Linking Plan is not adding up for Banks , Fintech ………../  ET   /   10 June 2022

 

Extract :

 

While the announcement—on Wednesday-- by the Reserve Bank of India to permit quick response (QR)-based payments through RuPay cards, which are backed by the National Payment Corporation of India (NPCI), is expected to result in a five-fold increase in credit on the UPI platform, industry sources estimate it will take at least six months for a full roll-out of credit-card based payments.

Industry members are of the view that once final operating guidelines are released shortly by the banking regulator and NPCI, it will require sizable upgradation of the current UPI infrastructure across all fintech providers.

As a result, current UPI third-party apps including the likes of PhonePe, Paytm , and Google Pay will have to undertake a re-KYC process for merchants and upgrade their technology layer for stringent KYCs, they said.

 

 

 

FAME III about to arrive ?

 

 

Context :

GST Council may bring rate on li-ion cells on par with EVs   /  MINT /  09 June 2022

Extract :

India may cut the goods and services tax on lithium-ion batteries and bring them on a par with taxes on electric vehicles to give a fillip to its green mobility plans.

Currently, EVs are taxed at 5%, while lithium-ion batteries are taxed at 18%.

Any decision on changing GST would have to be taken by the GST Council.

The council last cut GST rate on lithium-ion batteries from 28% to 18% in 2018.

Now, with greater emphasis on the EV ecosystem and more automakers entering the fray, there is a renewed chorus for a price parity between batteries and EVs, as the latter is taxed much lower at 5%.

“As per the current GST regime, tax rates on lithium-ion batteries and electric vehicle supply equipment (EVSE) are 18% and 5%, respectively. The GST Council, the decision-making body on GST provisions, may consider reducing the differential across the two tax rates. The council will take an appropriate decision in this regard at a suitable time," the draft policy said. 

The government think tank also suggested an existing scheme be revised or a new scheme be launched to provide subsidies to developers of battery-swapping stations.

The government is expected to develop the final policy in around three months.

 

MY  TAKE  :

 

Ø  Anomaly by Oversight ?................................ [ 02 Nov 2017 ]

Extract :

Ø  I am talking of GST rate of 28 % on imported Lithium-ion batteries required for electric vehicles , whereas GST rate on finished EV is fixed @ 12 % !

 

Ø  If GST on these imported batteries was reduced to 12 % , the cost of manufacture of EV , would come down by Rs 0.70 lakh 

 

Ø  I do hope the next meeting of GST Council expected to be held on 10^th Oct , would reduce the GST rate on Li-ion Batteries to 12 %

--------------------------------------------------------------------------------------------

Ø  FAME II > FAME III > FAME IV …………………… [  05  March  2019  ]

 

Extract :

What , if any , is the shortcoming of just announced FAME  II  ?

 

 #     It focuses solely on “ Incentivizing the Buyers “ through subsidies

  

#    There are no “ Incentives “ for the vehicle manufacturers to ramp up

      production or commercialize “ cost  reducing “ technologies, especially in the

      matter of Lithium-ion batteries which constitute up to 40 % of EV

      ex-factory price

       

#    There are no “ dis-incentives “ for manufacture / sale / purchase of Petrol –

      Diesel vehicles

 

 #    Linking the subsidy amounts with battery size is not the right method .

     

      In fact a vehicle with a smaller size battery , but giving same performance (

      speed – range – charging time etc ) as a vehicle with a bigger battery,  should

      be rewarded with higher subsidy !

 

      =====================================    

 

      Congratulations , Shri GopuKumarji ………………..[ 30 Jan 2019 ]

 

Extract :

 

Ø  No GST on Sodium-ion cells produced by these licensees , nor payment of any Corporate Income Tax for 10 years for these Licensees

 

    

Ø  If for any reason , it is not possible to exempt the entire income from Corporate Income tax , then , at least the income derived from exports of sodium-ion cells , should be exempted

   =================================================

 

Dear  GST  Council Members :

 

I hope you to consider my following suggestions :

#   For imported Lithium Ion Batteries, reduce GST to 5 %

#   For locally manufactured Li-ion Batteries, reduce GST to 3 %

#   For locally manufactured batteries having Advanced Chemistry, reduce GST to

     ZERO %

     ( Some examples of Advanced Chemistry Batteries :

Ø   “ Zinc-Air “ Battery under development by IIT-Madras

Ø  “  Sodium – Ion “ Battery developed by CECRI

Ø  “ Alu – Air “ Battery for which IOC has formed JV with PHINERGY ( Israel ) / www.al-air.com

Ø  “ Green Hydrogen “ process developed by CECRI

Ø  “ Iron – Air “ Battery  

 

With regards,

Hemen Parekh  /  hcp@RecruitGuru.com  /  09 June 2022  

 

 

Infra Projects : How to control TIME – COST over-runs

 

 

Context :

640 infra projects running behind schedule, some up to 26 years  

(  Business Line / 06 June 2022 )

Extract :

Delays in land acquisition, eco clearance, tying up of funds key reasons; cost overrun up 23%

A new railway line of 142 kms between Hejjala and Chamarajanagar in Karnataka has been waiting for around 312 months or 26 years to be laid. This is one of 647 projects facing time overrun as on May 1, according to a report prepared by the Infrastructure and Project Management Division (IPMD) under the Statistics Ministry. 

 

The IPMD is tasked with monitoring Central Sector projects costing more than Rs

150 cr in 16 sectors. It is done through the mechanism of Online Computerized

Monitoring System

The physical performance is measured in terms of ,

#   Milestones , and

#   Percentage Physical progress ,

Against

#  The Target Dates , and

#  Quantities,

Whereas the Financial Performance is measured on a Yearly Basis with respect to

the link expenditure on each project

The report has prepared a list of 46 projects for focussed attention. These have,

#  Cost Over-runs of 50 % or more , and

#  Time overruns of 50 Months and more

These amount for nearly 40 % of the total cost overruns and 20 % of the total

Time Overruns

 

===================================================

MY  TAKE  :

These Infra Projects are turning out to be like a Black Hole, devouring TIME and MONEY

 

Dear Narendrabhai,

Whereas it is not possible to totally eliminate all TIME-COST overruns , it is

certainly possible to bring these overruns down to 5 % or less, provided you insist

that PROJECT PROPOSING MINISTERS / OFFICERS, strictly follow the procedure

described in my following earlier e-mail :

 Nothing prettier than PERT ! ………………………………………… [ 04 Dec 2015 ]

Extract :

My suggestions  :

*    When any Ministry submits any Project Proposal for Cabinet approval, it must

      be accompanied by a PERT (Program Evaluation and Review Technique ) 

     chart , clearly showing all the " Activities " lying along  the CRITICAL PATH (

      earlier known as the CRITICAL PATH METHOD )

      

      That PERT Chart must accompany a tabulation showing, for each " Activity ",

         #   " Pessimistic Time "

        #    " Optimistic Time " , and the

        #    " Most likely Time "

      Since Admiral Rickover , introduced this mandatory requirement for awarding

      tender to build the first nuclear submarine, some 50 years ago , all US

      government departments follow this procedure for all govt contracts

*    Insist that all the government departments / contractors, responsible for

       execution of any of these "activities", update the PERT chart status online on

       the web site of the Project Monitoring Group

*   PERT charts for all the projects should be made visible to the general public

*   If there is any " slippage " in any activity lying on the CRITICAL PATH , the

      name of the department or contractor responsible , must appear in bold RED

      letters , against that activity

      This is the only INNOVATION that we need , to ensure that the projects get

      completed in time and within budget

 

With regards,

Hemen Parekh / hcp@RecruitGuru.com / 06 June 2022

 

Related Readings :

Thank You, Dear Prime Minister ……………………….[ 13 Oct 2021 ]

No More Delayed Projects ? ……………………………….[ 26 Aug 2021 ]

Monitoring Projects in Real-time ? …………………….[ 11 Aug 2020 ]

PERT for Digital Dashboard…………………………………[ 27 Feb 2018 ]

Remembering Admiral Rickover ! ………………………[ 04 June 2017 ]

Project planning can optimise costs and improve operations /  BL on Campus  /  13 April 2022

 

CC :

DR. G P Samanta    /  Secretary  /   secretary@mospi.gov.in

Ms. T. Rajeswar  /  Additional Secretary  /  as-mospi@nic.in

Shri Arindam Modak   /  Deputy Director General  /  arindam.modak@gov.in

Shri Ravi Gupta  /   Director   /  dir-ipmd@mospi.gov.in

Shri Anand Joshi  /  Under Secretary   /  anand.joshi28@gov.in

Smt. Rinki Gupta   /   Deputy Director   /  dd-in-ipmd@mospi.gov.in

Smt. Saumya Sakshi   /  Deputy Director  /  dd-ir-ipmd@mospi.gov.in

 

Shri R Venkatakrishnan

Partner – RVKS Associates /  rvk@rvkassociates.com  / assurance@rvkassociates.com