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fleetroot-blog · 2 years ago

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How Pandemic Has Enhanced Your Commute To Work

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As countries come out of lockdown and people resume their daily commutes, you need to be prepared for the changes you would see in your daily modes of transport and people's behavior when traveling. The pandemic has forced citizens around the world to experience many changes and the way we travel daily will not be spared either. As people become more health conscious of microorganisms in the atmosphere, the changes in the way we travel will not be the same. Let's check the difference point by point on the blog. 1) To practice social distancing: those who can afford to travel in a private vehicle will add to the traffic problem many cities face. The government emphasized public transport or ride-sharing to reduce congestion on the roads, but people switching to private vehicles will offset the government's efforts. This will not only have adverse effects on the environment but will also have other effects. 2. To reduce physical contact, people are turning to online transactions. Many startups have developed apps that allow users to transfer money or make payments for products or services using a QR code or contact numbers linked to their bank accounts. There is no lower limit on the amount, but banks and online payment applications set policies to limit the number and amount of transactions at their discretion. This will have both positive and negative effects that may not materialize immediately but can be predicted in the future. 3. To practice social distancing between drivers and passengers: public transport operators such as taxis, auto rickshaws, and bus owners have installed a transparent plastic layer to stay away from passengers. In many vehicles some kind of partition is installed, even to separate the passengers. These are mostly transparent to allow passengers to scan the code and make an online payment. 4. Enforce social distancing measures to reduce passenger numbers in public vehicles: In practice, this would increase transport costs, which would affect the public finances. In today's environment, where many people have lost the means to earn a living, they do not need an increase in transportation costs. 5. Cities around the world have started changing street layouts to allow more public vehicles: As many employees continue to work from remote locations, more vehicles may be added to maintain social distancing for those who need to travel to work, such as employees. B. Employees who work in production companies or logistics companies. Even if this arrangement could be temporary, it would be of great value.

6. Since one of the ways to prevent the spread of Covid was to track and trace the people who contracted Covid and those who came into contact with those affected, the government, as well as private companies, have Applications developed or modified in this way to maintain a record of the movement of the public and the people they came into contact with, as well as the places where they came into contact with one another. 7. As governments roll out vaccinations, taxi aggregation companies and public transport companies are rushing to ensure drivers are vaccinated. Few companies have presented their vaccines and the government has a strategy to vaccinate the public as soon as possible. 8. Public transport vehicles are disinfected regularly and usually after the end of the journey. Robotic machines are implemented in some places, while manual labor is used in most places. This would reduce the risk of people catching the virus. 9Regular temperature checks at train stations, bus stations, or airports, either manually or through a screening system, can help determine if a person has a fever, which is the main symptom of Covid. This would be a mandatory check and in most cases, people will not be able to travel unless they comply or have a high fever. People are expected to practice personal hygiene such as masks, gloves, disinfectants, or regular health checks. These things will not go away anytime soon. Regular temperature checks or Covid tests when other symptoms are observed can help fight Covid at an early stage, which can help prevent serious damage to the body. 10. Reduce the rush at a certain time of day that causes crowding in public places such as vehicles, schools, and offices. To implement this, companies are also making changes to work schedules for people on the same team and would also change the attendance policy to practice social distancing. 11. Until the global pandemic is fully over, citizens are expected and required to follow safety precautions. Many Asians are already practicing personal hygiene for other reasons like pollution or other deadly viruses like bird flu etc. The changes mentioned above have many disadvantages, some notable of which are listed below. Social distancing could also hurt society, as people would rather isolate themselves in public than socialize. Studies are being conducted to understand the mental effect of self-isolation on the masses. Additional measures to implement safety will incur additional costs for companies driving public vehicles. This in turn would accrue to the general public. 12. People who choose to travel in their vehicle temporarily increase vehicle sales and fuel consumption. It's much quicker to change trains on the road than by train or plane These changes may be temporary and only last until the pandemic is in place, but they are necessary.

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ericfruits · 6 years ago

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Indians are switching to digital payments in droves

THE ALLEYS of the 150-year-old Chor (Thieves’) Bazaar, a colourfully named flea market in Mumbai, are crammed with goats, used tyres, speakers, drills and other assorted ephemera. But even in this unlikely place, modern payment methods are gaining a foothold. In stalls abutting the market, bags of sand can be paid for by providing a phone number or scanning a QR (quick response) code. Many countries have seen digital payments take off in the past few years; in India, where little over a decade ago a cheque could take more than two weeks to clear, it feels like a revolution.

It is one that has been shaped, not always intentionally, by government policies. September 2010 saw the arrival of Aadhaar, a system of biometric IDs that could be used to open a bank account. After becoming prime minister in 2014, Narendra Modi chivvied bankers to open accounts for everyone. Around 360m basic “Jan Dhan” (people’s wealth) accounts were opened, adding to the 243m accounts already in existence. But many sat empty, or held just a rupee or two put in by banks under government pressure to reduce the number of zero-balance accounts.

In this section

Two further developments gave those unused accounts a purpose. The first was the launch in 2016 of the Unified Payments Interface (UPI), an interbank money-transfer system. The second was “demonetisation” later that year, when 86% of banknotes in circulation were recalled. That caused economic carnage—but also gave digital payments a galvanic boost. Paytm, India’s largest digital-wallet firm, took out ads thanking Mr Modi for the move.

Paytm now claims 371m users. PhonePe, a subsidiary of Walmart-owned Flipkart, claims more than 150m, and BHIM, run by a government-led bank co-operative, 46m. The value of digital transactions has risen more than 50-fold in the past two years, with many more smaller payments (see chart). Even the drivers of Mumbai’s three-wheeled auto-rickshaws have begun accepting payments that go through UPI to their (presumably new) bank accounts.

China’s giant payment apps, WeChat and Alipay, send transfers between their digital wallets, going through an official clearing house. Cryptocurrencies, which some tout as a possible future for digital money, touch the regulated financial system only when they are bought and sold. By contrast India’s pioneers, which started with digital wallets, are fast becoming interoperable with UPI, which sends money directly between bank accounts. The result is both well integrated with the banking system and flexible enough to allow innovation in serving customers.

Regulators are happy with the system, says Saurabh Tripathi of BCG, a consultancy, since it protects deposits, increases financial inclusion and cuts tax evasion from unreported cash deals. It also suits banks, since they get fine-grained information on transactions that can be used for credit analysis and product customisation.

The global tech giants like the look of it, too. Google Pay is already available in India and Amazon Pay plans to launch soon. WhatsApp, which has 300m Indian users, has run a trial of a payments service with 1m of them, though the government’s requests regarding privacy and data-localisation are delaying it going nationwide. The success of other dominant chat apps that have moved into payments, such as WeChat Pay in China and Kakao Pay in South Korea, suggests that whenever its launch happens, it will go with a bang. ◼

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simmyyyr · 4 years ago

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Digital Payments: Driving Smart Mobility in India

According a report by United Nations by 2050, the urban population in India will have increased to 87.7 million and the rural population will account for 78.3 million people. This would increase the population density and also add immense pressure on the existing resources and infrastructure. Transportation won't be spared either.

The changing payment landscape in India has raised the bar for technology players as well as solution providers. Today, consumers have a multitude of options to purchase any good or service and mostly, this happens with just a few clicks. It comes as no surprise that consumers will seek the same, if not heightened, sense of convenience when it comes to mobility as well. This makes payments an integral part of the ever-evolving mobility scenario in India. While mobility has gained momentum in the last few years, payments as a service will certainly drive this forward.

QR Code Ticketing Even before QR code revolutionised the digital payments as we know it today, Kochi Metro introduced QR based (paper) ticketing in 2017. AGS Transact Technologies collaborated with KMRL to address the main concern with use of QR codes in transit i.e., longer scanning time, by launching a more efficient QR code system that takes only 100 milliseconds to scan the code as compared to the 250 milliseconds taken by a contactless card to scan. Cut to the covid-19 pandemic, QR code is driving the wave of contactless payments in India across all sectors including mass mobility. The biggest advantage that QR based tickets offers is swifter and hassle-free checkouts. Being contactless, this solution is seen as a game-changer in days to come. BEST in Mumbai and State Transportation Buses in Maharashtra are already beginning to test this 'contactless' ticketing solution.

Mobility Cards Currently, each mode of transport in India has its own ticketing system and mobility cards such as National Common Mobility Card intends to integrate this. For instance, if a commuter has to reach destination B from point A, all he has to do is tap a single card (NCMC) at all ticketing or entry/exit points - be it metro, buses, ferry or even an auto rickshaw. This eliminates the hassle of carrying exact change and also brings down the commute time significantly. Being RuPay-operated, this card can be used to withdraw cash from ATMs as well. Looking at the pandemic and its impact, these NCMC cards are likely to consume the future of mobility. Recently, Prime Minister Narendra Modi launched National Common Mobility Card (NCMC) service for the Delhi Metro's Airport Express. This card will enable passengers from any part of the country to use their NCMC-compliant RuPay debit card for seamless travel. Kochi Metro had already deployed NCMC Cards with Axis Bank where AGS Transact Technologies is the system integrator. Similarly, Bangalore Metro and Chennai metro station are also in process of introducing NCMC. Bangalore Metro has already awarded this work to RBL Bank Ltd. where AGS Transact Technologies will be the Technology Partners.

National Electronic Toll Collection To avoid congestion at toll plazas, National Highways Authority of India or NHAI has introduced FASTag, a RFID based sticker, to process seamless electronic toll collection. FASTag assures swifter and more transparent toll process as the RFID tag on the windshield is scanned as the vehicle passes the toll plaza. The usage of FASTag has seen a sharp increase in the past few months as public transport had almost come to a standstill and people grew extremely apprehensive of using cash. There are over 20 million FASTag users in the country and this surge is a result of the robust digital payment system, strong infrastructure and government's push towards digital payments. Other than making this tag mandatory, there are plans of using FASTags for other utilities like fuel and parking as well.

Road Ahead Mobility as a Service (MaaS) is set to be the next big thing in India. With an integrated mobility system, India's commute will be smarter, faster and convenient as everything will be at one's fingertips. The slew of measures taken by the Government of India has encouraged many payment players and infrastructure developers to build a strong and robust mobility infrastructure. Electronic vehicles, self-driving cars, ride-sharing, contactless ticketing and electronic toll collection are set to frame the future of mobility. Recently, at the 3rd Annual Bloomberg New Economy Forum, Hon'ble Prime Minister Narendra Modi pitched India as an investment destination for Mobility. He also stated that India is building 100 smart cities and projects worth almost Rs 1.4 lakh crore have been completed or nearing completion. The Centre also aims to have 1000 kms of metro rail system in the country by 2022. Such measures and projections bring India closer to the dream of becoming a country with a smart, agile, and futuristic country. The detailed version of this article first appeared on BW Smart Cities.

#online payment solutions #card swipe machine #cashless payment

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planify · 5 years ago

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Paytm IPO

Buy the Pre IPO of the Paytm from us and get all the details and regular updates. Paytm is an Indian e-commerce payment system and financial technology company, based out of Noida, India. Paytm is available in 11 Indian languages and offers online use-cases like mobile recharges, utility bill payments, travel, movies, and events bookings as well as in-store payments at grocery stores, fruits and vegetable shops, restaurants, parking, tolls, pharmacies and educational institutions with the Paytm QR code. California based PayPal had filed a case against Paytm in the Indian trademark office for using a logo similar to its own on 18 November 2016. As of January 2018, Paytm is valued at $10 billion and it is planning to launch its initial public offering (IPO) in 2022.

As per the company, over 7 million merchants across India use this QR code to accept payments directly into their bank account. The company also uses advertisements and paid promotional content to generate revenues.

Paytm was founded in August 2010 with an initial investment of $2 million by its founder Vijay Shekhar Sharma in Noida, a region adjacent to India's capital New Delhi. It started off as a prepaid mobile and DTH recharge platform, and later added data card, postpaid mobile and landline bill payments in 2013.

By January 2014, the company launched the Paytm Wallet, and the Indian Railways and Uber added it as a payment option. It launched into e-commerce with online deals and bus ticketing. In 2015, it unveiled more use-cases like education fees, metro recharges, electricity, gas, and water bill payments. It also started powering the payment gateway for Indian Railways.

In 2016, Paytm launched movies, events and amusement parks ticketing as well as flight ticket bookings and Paytm QR. Later that year, it launched rail bookings and gift cards.

Paytm's registered user base grew from 11.8 million in August 2014 to 104 million in August 2015. Its travel business crossed $500 million in annualised GMV run rate, while booking 2 million tickets per month.

In 2017, Paytm became India's first payment app to cross over 100 million app downloads. The same year, it launched Paytm Gold, a product that allowed users to buy as little as ₹1 of pure gold online. It also launched Paytm Payments Bank and ‘Inbox’, a messaging platform with in-chat payments among other products. By 2018, it started allowing merchants to accept Paytm, UPI and card payments directly into their bank accounts at 0% charge. It also launched the ‘Paytm for Business’ app which is now called Business with Paytm App, allowing merchants to track their payments and day-to-day settlements instantly. This led its merchant base to grow to more than 7 million by March 2018.

The company launched two new wealth management products - Paytm Gold Savings Plan and Gold Gifting to simplify long-term savings. It launched into gaming and investments, partnering with AGTech to launch a mobile games platform Gamepind, and setting up Paytm Money with an investment of ₹9 crore to bring investment and wealth management products for Indians.

In May 2019, Paytm partnered with Citibank to launch credit cards.

In October 2011, Sapphire Ventures (fka SAP Ventures) invested $10 million in One97 Communications Ltd. In March 2015, Paytm received its huge stake from Chinese e-commerce company Alibaba Group based in Hangzhou, China, after Ant Financial Services Group, an Alibaba Group affiliate, took 40% stock in Paytm as part of a strategic agreement. Soon after, it received backing from Ratan Tata, the MD of Tata Sons.

In August 2016, Paytm raised funding from Mountain Capital, one of Taiwan-based MediaTek's investment funds at a valuation of over $5 billion.

In May 2017, Paytm received its biggest round of stake by a single investor – SoftBank which also has a large stake in Alibaba, thus bringing the company's valuation to an estimated $10 billion. In August 2018, Berkshire Hathaway invested $356 million for 3%- 4% stake in Paytm, although Berkshire Hathaway confirmed that Warren Buffett was not involved in the transaction.

On November 25 2019, Paytm raised $1 billion in a funding round led by US asset manager T Rowe Price along with existing investors Ant Financial and SoftBank Vision Fund.

In 2013, Paytm acquired Plustxt for around less than $2 million. Plustxt was started by IIT graduates Pratyush Prasanna, Parag Arora, Lokesh Chauhan and Lohit V that allowed fast text messaging in any Indian Language.

In 2015, Paytm invested $5 million in auto-rickshaw aggregator and hyperlocal delivery firm Jugnoo. The funds were meant to enable Jugnoo to scale up its operations across the country, and improve its driver efficiency. It also acquired Delhi-based consumer behaviour prediction platform Shifu and local services startup Near.in.

In 2016, Paytm invested in logistics startups LogiNext and XpressBees.

In April 2017, Paytm invested in healthcare startup QorQL which uses artificial intelligence (AI) and big data to help doctors improve their productivity and quality of care, and enable patients to manage their health better. In July 2017, it acquired a majority stake in online ticketing and events platform Insider.in, backed by event management company Only Much Louder (OML) and mobile loyalty startup MobiQuest. The same year, Paytm acquired Little & Nearbuy, and merged both.

In June 2018, the company acquired the startup Cube26.

In July 2015, One97 Communications, the firm that owns the brand Paytm, acquired the title sponsorship rights for India's domestic and international cricket matches at home for a period of four years starting in August 2015. The rights include sponsor branding of series with the title sponsor logo, designation as the title sponsor of the series, visibility at the stadium, and broadcast sponsorship rights. This also includes all BCCI domestic (Ranji Trophy, Duleep Trophy, etc.) matches in India.

Previously, Paytm had acquired sponsorship rights during the 8th season of Indian Premier League. It has also served as an associate sponsor on Sony TV network (which has the telecast rights for IPL) and was the official partner of the IPL team Mumbai Indians. In March 2018, Paytm became the Umpire Partner of the IPL for five years.

On August 2015, Paytm received a license from Reserve Bank of India to launch the payments bank. The Paytm Payments Bank is a separate entity in which founder Vijay Shekhar Sharma will hold 51% share, One97 Communications holds 39% and 10% will be held by a subsidiary of One97 and Sharma. The bank was officially inaugurated in November 2017 by the Indian Finance Minister, Arun Jaitley. The inauguration ceremony featured prominent banking personalities including former RBI Executive Director PV Bhaskar, Saama Capital Director Ash Lilani and former Shriram Group Director GS Sundarajan.

It was set to launch over 100,000 banking outlets across India by end of 2018. However, the bank's branches are yet to touch double digits.

Paytm Payments Bank has appointed veteran banker Satish Kumar Gupta as its new Managing Director and CEO.

In February 2017, Paytm launched its Paytm Mall app, which allows consumers to shop from 1.4 lakh registered sellers. Paytm Mall is B2C model inspired by model of China's largest B2C retail platform TMall. For 1.4 lakh sellers registered, products have to pass through Paytm-certified warehouses and channels to ensure consumer trust. Paytm Mall has set up 17 fulfilment centers across India andpartnered with 40+ couriers. Paytm Mall raised $200 million from Alibaba Group and SAIF Partners in March, 2018. In May 2018, it posted a loss of approximately Rs 1,800 crore with a revenue of Rs 774 crore for financial year 2018. Additionally, the market share of Paytm Mall dropped to 3 percent in 2018 from 5.6 percent in 2017.

On May 2018, the Indian investigative news agency Cobrapost released a video of an undercover reporter meeting with Paytm's vice president, Ajay Shekhar Sharma who is brother of Vijay Shekhar Sharma. During the meeting, he reportedly said the company provided the Indian government with the personal data of paytm users in the Indian state of Jammu and Kashmir by violating user's privacy and policies. This went viral through internet, throughout the day. Later, Buzzfeed reported that, Sharma has close ties with India's ruling party Bhartiya Janata Party. Meanwhile, in response, the company tweeted that, it never shared user's data with third parties in which it again denied the contents of the video and stated that it never received requests from law enforcement on twitter. Paytm also stated that any person claiming otherwise “is not aware of the policy and is not authorised to speak on behalf of the company”.

#Paytm #Paytm Pre IPO #Paytm IPO #paytm payments bank #paytm money

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iasshikshalove · 5 years ago

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Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019

GS-1 Fire in Amazon Why in news? Fires across the Brazilian Amazon have sparked an international outcry for preservation of the world's largest rainforest. Here's a look at the role the Amazon plays in regulating the world's climate: Amazon fires: Is the world's oxygen supply at risk?  No.  While it's commonly said that the Amazon produces 20% of the world's oxygen, climate scientists say that figure is wrong and the oxygen supply is not directly at risk in any case.  That's because forests, including the Amazon, absorb roughly the same amount of oxygen they produce. Plants do produce oxygen through photosynthesis, but they also absorb it to grow, as do animals and microbes.  That doesn't mean the fires aren't a problem for the planet. The Amazon is a critical absorber of carbon of carbon dioxide, a greenhouse gas produced by burning fossil fuels, like oil and coal. Is the Amazon rainforest the "lungs of the planet"?  The Amazon rainforest is frequently referred to as the "lungs of the planet," but it may not be the most accurate analogy for the forest's role.  Carlos Nobre, a University of Sao Paulo climate scientist, says a better way to picture the Amazon's role is as a sink, draining heat-trapping carbon dioxide from the atmosphere.  Currently, the world is emitting around 40 billion tons of CO2 into the atmosphere every year. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019  The Amazon absorbs 2 billion tons of CO2 per year (or 5% of annual emissions), making it a vital part of preventing climate change. What do the fires in the Amazon mean for the world's climate?  Fires in the Amazon not only mean the carbon-absorbing forest is disappearing, but the flames themselves are emitting millions of tons of carbon every day.  Nobre says we're close to a "tipping point" that would turn the thick jungle into a tropical savannah.  The rainforest recycles its own water to produce a portion of the region's rain, so deforestation makes rains less frequent, extending the dry season.  Nobre estimates that if 20% to 25% of the forest is destroyed, the dry season will expand enough that it will no longer be a forest, but a savannah. What is causing the Amazon fires?  The current fires in the Amazon are not wildfires.  They are manmade and are mostly set illegally by landgrabbers who are clearing the forest for cattle ranching and crops.  Deforesting the Amazon is a long, slow process.  People clear the land by cutting down the vegetation during the rainy season, letting the trees dry out and burning them during the dry season.  Fully clearing the dense forest for agricultural use can take several years of slashing and burning. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019 GS-3 Union HRD Minister launches Integrated Online junction for School Education ‘Shagun’ Union Human Resource Development Minister Shri Ramesh Pokhriyal ‘Nishank’ launched one of world’s largest Integrated Online Junction for – School Education ‘Shagun’ in New Delhi today. Aboutl SHAGUN  School Education Shagun (URL: htpp://shagun.govt.in/) is an over-arching initiative to improve school education system by creating a junction for all online portals and websites relating to various activities of the Department of School Education and Literacy in the Government of India and all States and Union Territories.  Minister informed that websites of 1200 KendriyaVidyalayas, 600 NavodayaVidyalayas, 18000 other CBSE affiliated schools, 30 SCERTs, 19000 organisations affiliated with NTCE among others are integrated with Shagun.  Report cards of 15 lakh schools all over the country will be available on the newly created junction, the Minister explained.  The portal seeks to connect approximately 92 lakh teachers and 26 crore students.  Common people can directly give their feedback about schools which will further increase the public participation and will ensure accountability and transparency. The main focus will be on the following areas:  Reinforcing and cleaning the data of the Integrated Online Junction through feedback from Stakeholders  Ensuring full inter-operability among the websites, portals and applications which are already hosted in the junction  Creating high quality e-contents, including quizzes and puzzles to enhance learning and also for teachers in aiding classroom transactions  Using artificial intelligence and deep machine learning in a variety of ways to enhance the quality of school education including for designing evidence based inventions.  A booklet giving features and benefits of Shagun was also released on the occasion. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019 QR code Delhi Lieutenant Governor Anil Baijlal last week launched the "QR Code" scheme, which will be delivered through Delhi Police's "Himmat Plus" app meant to ensure the safety of women. The QR codes will be put on public transport vehicles such as auto-rickshaws and non-app (black-andyellow) cabs; passengers, especially women, will be able to verify the details of drivers, and send a distress signal in an emergency. About The QR Code scheme  The QR Code will be put on a banner or card at the back of the driver's seat in all registered taxis and autos.  The code can be scanned by using the Himmat Plus app.  If a user chooses to report the journey using the 'Report Journey' button, the app will send the passenger’s location and the driver’s unique ID to the police.  In case the driver is not registered, the passenger can call the police control room in case of an emergency, or tap the 'SOS' button on the app. The Himmat Plus app  The Himmat Plus app itself was launched in 2015 to allow users to make a distress call or send an emergency message to Delhi Police and the emergency contact.  While the Himmat Plus app is targeted at women’s safety, both men and women can register themselves. The interface is available in English and Hindi.  Users in distress can tap either the 'SOS' button or the 'power' button, or use the 'shake to alert' feature, to send a message to Delhi Police and the listed emergency contact. Activating the distress button also enables automatic video recording on the user's phone. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019  For users in Delhi, the Central Police Control Room, ITO, will respond to the emergency call, and PCR vans will be activated. For users outside Delhi, support will be extended by the respective control rooms by hotline or wireless communication. GS-3 RBI transfers Why in news? On Monday, the RBI Central Board decided to transfer a record surplus — Rs 1.76 lakh crore — to the government. The RBI transfers its surplus to the government every year. So what is special about the pay out this time?  Yes, the RBI does transfer its surplus annually to the government, the owner of the institution, after making adequate provisions for contingencies or potential losses.  The profit that is distributed has varied, averaging over Rs 50,000 crore over the last few years.  On Monday, the RBI Board accepted the recommendations of a committee headed by former Governor Bimal Jalan on transfer of excess capital. Based on the panel’s report, the Central Board decided to transfer a surplus of Rs 1.23 lakh crore and Rs 52,637 crore of excess provisions made over the years.  This marks the first time the RBI will be paying out such a huge amount, a one-off transfer. Earlier, the government had budgeted for Rs 90,000 crore from the RBI as dividend for this fiscal year. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019 On what rationale was such a huge payout approved?  The level of surplus or profits the RBI pays to the government has been an issue of conflict two for long.  Over the last decade or more, the government had sought higher payouts saying the RBI was maintaining reserves or capital buffers that were much higher than many other global central banks’ buffers.  The government has argued that such relatively lower transfers crimped public spending for infrastructure projects and social sector programmes, considering the pressure to meet deficit targets and to provide space for private firms to borrow.  With the government amplifying its demand for a higher transfer, the Jalan committee reviewed the capital structure, statutory provisions and other issues relating to the RBI balance sheet.  After making a distinction on the RBI’s capital structure especially on unrealised gains (which are essentially gains not booked) and taking into account the role of the central bank in ensuring financial stability, potential risks and global standards, the committee suggested a total transfer of Rs.1.76 lakh crore. How does the RBI generate surplus?  A significant part comes from RBI’s operations in financial markets, when it intervenes for instance to buy or sell foreign exchange; Open Market operations, when it attempts to prevent the rupee from appreciating; as income from government securities it holds; as returns from its foreign currency assets that are investments in the bonds of foreign central banks or top-rated securities; from deposits with other central banks or the Bank for International Settlement or BIS; besides lending to banks for very short tenures and management commission on handling the borrowings of state governments and the central government.  RBI buys these financial assets against its fixed liabilities such as currency held by the public and deposits issued to commercial banks on which it does not pay interest.  The RBI’s expenditure is mainly on printing of currency notes, on staff, besides commission to banks for undertaking transactions on behalf of the government and to primary dealers that include banks for underwriting some of these borrowings.  The central bank’s total costs, which includes expenditure on printing and commissions forms, is only about 1/7th of its total net interest income. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019 Why are these called transfers to the government, rather than dividends?  That is because the RBI is not a commercial organisation like banks and other companies owned or controlled by the government to pay a dividend to the owner out of the profit generated.  Though it was promoted as a private shareholders’ bank in 1935 with a paid-up capital of Rs 5 crore, the government nationalised it in January 1949, making the sovereign the “owner”.  What the RBI does is transfer the surplus — excess of income over expenditure —to the government.  Under Section 47 of the RBI Act, “after making provision for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation funds and for all other matters for which provision is to be made by or under this Act or which are usually provided for by bankers, the balance of the profits shall be paid to the Central government”.  This is done in early August by the Central Board. Globally, what are the rules relating to payment of dividends by central banks?  In many top central banks — US Federal Reserve, Bank of England, German Bundesbank, Bank of Japan— the laws make it clear that profits have to be transferred to the government or the treasury.  The quantum of profits or percentage to be distributed is also specified in the laws.  The RBI’s expenditure is mainly on printing of currency notes, on staff, besides commission to banks for undertaking transactions on behalf of the government. So, what is the difference in India now and compared to the past?  The quantum is discussed and decided between the government and RBI.  Periodically, this has been guided by policies set out internally, as last time when a committee headed by Y H Malegam recommended distributing 100% of the profits made during Raghuram Rajan’s time.  The difference now is that the Jalan committee’s recommendation on a profit distribution policy has been endorsed by the Central Board. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019  That will mean a more transparent and rule-based payout from next year, as in many other central banks, which could help narrow differences between the government and RBI. What can the government do with this huge surplus?  Normally, the money is transferred to the Consolidated Fund of India from which salaries and pensions to government employees are paid and interest payments done, besides spending on government programmes.  The large payout can help the government cut back on planned borrowings and keep interest rates relatively low.  Besides, it will provide space for private companies to raise money from markets.  And if it manages to meet its revenue targets, the windfall gain can lead to a lower fiscal deficit.  The other option is to earmark these funds for public spending or specific projects, which could lead to a revival in demand in certain sectors and boost economic activity. What are the potential issues relating to a higher payout?  That has been articulated by former Governor Rajan.  According to him, much of the surplus the RBI generates comes from the interest on government assets (securities or bonds) or from capital gains made off other market participants.  When this is paid to the government, the RBI is putting back into the system the money it made from it; there is no additional money-printing or reserve creation involved, he says.  But when the RBI pays additional dividend, it has to create additional permanent reserves or, more colloquially, print money.  So, to accommodate the special dividend, the RBI will have to withdraw an equivalent amount of money from the public by selling government bonds in its portfolio, he says. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019 Why do central banks hold back on transferring large amounts?  Especially after the global financial crisis when central banks had to resort to unconventional means to revive their economies, the approach has been to build adequate buffers in the form of higher capital, reserves and other funds as a potential insurance against future risks or losses.  A higher buffer enhances the credibility of a central bank during a crisis and helps avoid approaching the government for fresh capital and thus maintain financial autonomy. G-7 Why in news? Prime Minister Narendra Modi has met US President Donald Trump on the sidelines of the G7 Summit in Biarritz in southwestern France. Modi was invited to attend the Summit as a special guest of French President Emmanuel Macron. What is the G7, and why was Prime Minister Modi invited this year? The Group of 7  The G7 or 'Group of Seven' are Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.  It is an intergovernmental organisation that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.  Canada joined the group in 1976, and the European Union began attending since 1977.  The G7 was known as the 'G8' for several years after the original seven were joined by Russia in 1997.  The Group returned to being called G7 after Russia was expelled as a member in 2014 following the latter's annexation of the Crimea region of Ukraine.  G7 nations meet at annual Summits that are presided over by leaders of member countries on a rotational basis. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019  The current G7 Summit being held in France is the 45th, and the next one will be held in the United States in 2020.  The host country typically gets to invite dignitaries from outside the G7 to attend the Summit. What the G7 does  The G7 Summit is an informal gathering that lasts two days, in which leaders of member countries discuss a wide range of global issues.  The groundwork for the Summit, including matters to be discussed and follow-up meetings, is done by the "sherpas", who are generally personal representatives or members of diplomatic staff such as ambassadors.  The Group was initially formed as an effort by the US and its allies to discuss economic issues, which in the late 1970s included battling a global oil crisis.  Since then, the G7 has discussed issues affecting every decade, such as financial crises, and has aimed to tackle specific challenges, such as the economic changeover of ex-Soviet bloc nations, terrorism, arms control, and drug trafficking, among others.  The G7 does not have a formal constitution or a fixed headquarters.  The decisions taken by leaders during annual Summits are non-binding.  The rise of India, China, and Brazil over the past few decades has reduced the G7's relevance, whose share in global GDP has now fallen to around 40%. G7 and G20  The G20 is a larger group of countries, which also includes G7 members.  The G20 was formed in 1999, in response to a felt need to bring more countries on board to address global economic concerns.  Apart from the G7 countries, the G20 comprises Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey.  Together, the G20 countries make up around 80% of the world's economy. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019  As opposed to the G7, which discusses a broad range of issues, deliberations at the G20 are confined to those concerning the global economy and financial markets.  India is slated to host a G20 summit in 2022. India at the G7 Summit  The invite to India to be a Biarritz Partner and to Prime Minister Modi to be a special guest at the Summit was extended by President Macron keeping in mind the common interests of India and France, such as tackling climate change and the development of renewable energy.  Prime Minister Modi collaborated closely with President Macron's predecessor, President François Hollande, in the creation of the International Solar Alliance in 2015. CITES agreement Why in news? Over a hundred nations, acting within the framework of an inter-governmental agreement, approved a proposal by India, Nepal, and Bangladesh Sunday to prohibit commercial international trade in a species of otter native to the subcontinent and some other parts of Asia. One hundred and two votes were cast in favour and 15 against, with 11 abstentions, at the ongoing Eighteenth Conference of the Parties (CoP18) of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) in Geneva. The vote must be confirmed at the Plenary of the meeting, which concludes Wednesday. Other proposals  The Conference also accepted a separate proposal by India, moved together with the EU, the US and the Philippines, for inclusion of a species of gecko lizard found widely in South and Southeast Asia, the US, and Madagascar for protection as a “species not necessarily threatened with extinction, but in which trade must be controlled in order to avoid utilisation incompatible with their survival”. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019 Animals and appendices  Members at the Conference have voted to move the smooth-coated otter (Lutrogale perspicillata) from CITES Appendix II to CITES Appendix I “because it is considered to be facing a high risk of extinction and is detrimentally affected by international trade, as well as habitat loss and degradation and persecution associated with conflict with people (and fisheries)”.  The other proposal that was passed was to include the Tokay gecko (Gekko gecko) in CITES Appendix II.  Appendix I includes species “threatened with extinction”; according to the CITES website, “trade in specimens of these species is permitted only in exceptional circumstances”.  Appendix II provides a lower level of protection.  There is also an Appendix III, which “contains species that are protected in at least one country, which has asked other CITES Parties for assistance in controlling the trade”.  An AFP report said smooth-coated otter numbers in the wild had fallen by at least 30% over the past 30 years, and in Japan, where keeping otters as “cute” pets is a fad, otter cafes offer baby otters for up to $10,000 (almost Rs 7.2 lakh) each.  Apart from the smooth-coated otter, India had proposed Appendix I status for the small-clawed otter, mako shark (Isurus oxyrinchus), the Indian star tortoise (Geochelone elegans) and the Tokay gecko. The International Convention  The CITES website describes it as an international agreement aimed at ensuring "that international trade in specimens of wild animals and plants does not threaten their survival".  CITES was drafted after a resolution was adopted at a meeting of the members of the International Union for Conservation of Nature (IUCN) in 1963.  The text of the Convention was agreed at a meeting of the representatives of 80 countries in Washington, DC, on March 3, 1973; the Convention is, therefore, sometimes referred to as the Washington Convention. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019  CITES entered into force on July 1, 1975, and now has 183 parties. States and regional economic integration organisations adhere voluntarily to CITES.  The Convention is legally binding on the Parties in the sense that they are committed to implementing it; however, it does not take the place of national laws.  In effect, CITES provides a framework for Parties to make domestic legislation to ensure that the Convention is implemented effectively in their national jurisdictions. Cabinet approves Establishment of an International Coalition for Disaster Resilient Infrastructure The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given ex-post facto approval for the Establishment of an International Coalition for Disaster Resilient Infrastructure (CDRI) along with its supporting Secretariat Office in New Delhi. About CDRI  The CDRI is proposed to be launched at the UN Climate Action Summit in New York, USA on 23rd September 2019.  Organized by the UN Secretary General, this event will bring together the largest number of Heads of States to generate commitments for combating the effects of climate change and resulting disasters, and will provide the high-level visibility required for the CDRI. The approval, inter-alia, is for the following initiatives:  Establishment of the International ‘C.D.R.I.’ along with its supporting Secretariat office in New Delhi;  Establishment of the Secretariat of the CDRI as a Society under The Societies Registration Act,1860 in New Delhi as ‘CDRI Society’ or similar name as per availability.  The memorandum of association and by-laws of the ‘CDRI Society’ will be prepared and finalized by the National Disaster Management Authority (NDMA), in due course; Major Impact:  The CDRI will serve as a platform where knowledge is generated and exchanged on different aspects of disaster and climate resilience of infrastructure.  It will bring together technical expertise from a multitude of stakeholders. Daily Current Affairs Dated From 27-Aug-2019 To 29-Aug-2019  In doing so, it will create a mechanism to assist countries to upgrade their capacities and practices, with regard to infrastructure development in accordance with their risk context and economic needs.  This initiative will benefit all sections of society.  Economically weaker sections of society, women and children, are the most vulnerable to the impacts of disasters and hence, will be benefitted from the improvement of knowledge and practice in creating disaster resilient infrastructure.  It will also benefit all areas with high disaster risk. In India, the north-eastern and Himalayan regions are prone to earthquakes, coastal areas to cyclones and tsunamis and central peninsular region to droughts. Innovation:  There are many initiatives on different aspects of disaster risk reduction and many initiatives on infrastructure development in different in a range of countries with different disaster risk and development contexts.  A global coalition for disaster resilient infrastructure would address concerns that are common to developing and developed countries, small and large economies, countries at early and advanced stages of infrastructure development, and countries that have moderate or high disaster risk.  Few concrete initiatives work at the intersection of Sendai Framework, Sustainable Development Goals (SDGs) and Climate Change Adaptation with a focus on infrastructure. Focus on disaster resilient infrastructure would simultaneously address the loss reduction targets under the Sendai Framework, address a number of SDGs and also contribute to climate change adaptation.  Hence, there is a clear niche for a Global Coalition for Disaster Resilient Infrastructure.  Publication of natural hazard risk information about the different regions in India will allow the public to understand the risk in their regions and demand for risk mitigation and preparedness measures from their local and State Governments.

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