Mobile wallets in search of newer ways to accelerate the KYC process. Government considers reducing GST on EVs. US and China to discuss trade at the G-20 Summit in Japan next week. Facebook announces its own digital currency. ED to question Founder Naresh Goyal in the Jet Airways privilege case.
Moving on to the top Business news today:
Mobile wallets in search of newer ways to accelerate the KYC process. Government considers reducing GST on EVs. Expert Committee suggests doubling of collateral-free loans for MSMEs, Mudra and SHGs.
Finding Greener Pastures: Mobile wallet firms are reportedly in search of newer ways to accelerate the KYC process, ahead of RBI’s August 31 deadline when the full Know Your Customer (KYC) mandate kicks in.
August 31 has been set as the deadline by the Central Bank for mobile wallets to capture the complete details of the customers.
The Burden of Increasing Costs: Newer ways, including the provision of a video KYC, are being sought by mobile wallet companies in an attempt to avoid physical collection of documents, which cost these companies as much as INR250 per customer.
In cases of companies with large wallet bases, the cost shoots up enormously. Paytm has estimated a cost of INR2,500cr for its 10 crore user base.
Towards a Greener Tomorrow: The Indian government is mulling slashing the Goods and Services Tax (GST) levied on the sale of electric vehicles to 5% from the existing 12%, in the upcoming 35th GST Council meeting.
The move comes shortly after government think-tank NITI Aayog’s proposal that only electric vehicles should be sold in India by 2030.
A Helping Hand: An expert committee of the RBI on Micro, Small and Medium Enterprises (MSMEs) has suggested doubling collateral-free loans for these units.
The suggestion should also be applicable to Micro Units Development and Refinance Agency (Mudra) and Self-Help Groups (SHGs).
The committee, headed by former SEBI Chairman UK Sinha has suggested hiking the ceiling of collateral-free loans for MSME units to INR20L from INr10L presently.