In order to establish guidelines for the ethical and responsible application of AI in the banking and financial industries, the Reserve Bank of India (RBI) has established a committee. In addition to outlining a plan for the long-term integration of AI, the group is responsible for tackling pressing issues including algorithmic bias, data privacy, and the explainability of decisions. According to RBI governor Shaktikanta Das, who spoke after the Monetary Policy Committee meeting, technologies such as cloud computing, artificial intelligence, and tokenisation are fast changing the banking system.
A group of specialists from many domains will be formed to ensure that these technologies are used to their full potential while minimising dangers like algorithmic bias, lack of transparency, and privacy of personal information. He also mentioned that this group will be recommending a framework for the ethical and responsible implementation of artificial intelligence (FREE-AI) in the banking industry.
Robust, Comprehensive, and Adaptable Framework
To meet the specific demands of the financial industry, the proposed committee—which would consist of experts from a range of fields—strives to provide a framework that is strong, thorough, and flexible. Addressing dangers associated with AI should be prioritised through early intervention, according to the RBI. The benefits of AI are undeniable, but the risks, such as algorithmic bias, data privacy problems, and choices that are difficult to justify, are just as great. It is crucial to handle these risks at the early phases of adoption, according to the central bank, in order to fully reap the benefits. Governor Das has already brought attention to the concerns associated with AI, such as the increased likelihood of cyberattacks and data breaches.
Another thing he brought up was how difficult it is to audit and understand the algorithms that support financial decisions due to the opaque nature of AI systems. Along with this statement, the Reserve Bank of India (RBI) also introduced a model dubbed MuleHunter that is powered by artificial intelligence and machine learning. Artificial intelligence (AI) to identify mule bank accounts, which enables small financing banks (SFBs) to provide pre-approved credit lines through the Unified Payments Interface (UPI), among other things.
RBI will Introduce Podcasts
In addition, Das announced that the RBI will be launching podcasts to reach a wider audience as part of its outreach efforts. Cyber fraud cost Indians up to 11,333 crore rupees in the first nine months of 2024, according to official statistics. In particular, during the first half of the current fiscal year 2024-25 (FY25), there were 6.32 lakh instances of UPI fraud totalling INR 485 cr.
The Reserve Bank has improved its communication skills and toolbox throughout the years to increase openness and strengthen ties with the public. During the meeting of the monetary policy committee (MPC), Governor Shaktikanta Das stated that the bank is planning to expand its communication tools to include “podcasts” in order to reach a wider audience with its information. Publishing informational pamphlets in regional languages is one of the many new ways the central bank is reaching out. This change is a component of RBI’s larger plan to increase openness and participation from the public. The Santali language pamphlets were issued in November by the central bank with the goal of promoting financial literacy across various demographics, such as students, farmers, entrepreneurs, and the elderly.
A fraud protection package called “Shield” was unveiled by fintech company BharatPe on 5 December. It provides coverage against digital frauds, including protection against fraudulent Unified Payments Interface (UPI) transactions. Users are now protected up to INR 5,000 from fraudulent digital transactions thanks to the new provision.
To get this protection, users will need to pay INR 19 a month. According to the business, users who use the fintech app for their first UPI transaction will get a complimentary 30-day fraud protection service. Similar fraud protection strategies are offered by other similar players such as Paytm.
What BharatPe Shield Offers?
Risks covered by BharatPe Shield include phishing scams, computer fraud, and unauthorised transactions brought on by lost phones. Through the app, chatbot, or a toll-free hotline, users may file claims and report fraud around the clock. For impacted users, this guarantees prompt response and resolution. In August 2024, BharatPe began its UPI service.
Users can pay utility bills in categories like electricity, gas and DTH, as well as conduct bank transfers, Scan and Pay and pay to UPI ID.
By providing its users with a fraud protection plan that secures their everyday transactions, the company is taking things a step further with BharatPe Shield. According to Nalin Negi, CEO of BharatPe, this endeavour demonstrates the company’s dedication to rethinking the safe UPI experience for its clients and placing security at the centre of its products.
Three months have passed since BharatPe launched its UPI third-party application provider (TPAP) service, marking its entry into the consumer payments market. Android users may use the UPI TPAP service on the Play Store, and BharatPe has teamed up with Unity Bank to make this new service available.
Financial Dynamics of BharatPe
BharatPe’s consolidated revenue from operations increased by 39% in October, from INR 1,029 Cr in FY23 to INR 1,426 Cr in FY24. BharatPe recently reached a settlement with its previous managing director, Ashneer Grover, ending the two-year legal struggle. So far, it has raised over $830 million in investment, with investors including Beenext, Ribbit Capital, and Peak XV.
Online Frauds are on the Rise in India
During the current fiscal year (2024-25/FY25) to September, 632,000 incidences of UPI fraud have resulted in losses for Indians totalling INR 485 crore.
A total of INR 2,145 crore has been lost as a result of UPI-related frauds from 2022–2023, with 2.7 million occurrences reported. 1.34 million fraud cases of INR 1,087 crore in losses were reported in 2023–24 (FY24) alone.
As the number of users and total transactions handled on the real-time payments system increase, so does the number of frauds involving UPI.
HDFC Securities, a broking firm, downgraded Swiggy from “add” to “reduce”; however, it raised its target price from INR 430 per share to INR 470. This would indicate a 9.2% decline from the stock’s last closing price. Swiggy’s stock closed on 4 December’s trading session on the BSE at INR 518.10 per share. During 5 December’s intraday trading session, the stock continued to rise, rising more than 11% to INR 576.95 on the BSE.
Although Swiggy’s key performance indicators in the quick commerce and food delivery areas are improving, the company still trails Zomato, according to a recent report from analysts at HDFC Securities. According to the broking, Swiggy recorded a 4.8% quarterly increase in monthly transacting customers in the food delivery segment in Q2 FY25, while gross order value increased 5.6% on a quarter-over-quarter basis to INR 7,190 Cr. The company’s vigorous promotion of its subscription service, Swiggy One, was primarily responsible for this.
Zomato is Still Leading the Race
According to HDFC Securities, Swiggy continued to lag behind Zomato in the food delivery sector across all KPIs in H1 FY25. In H1, Zomato’s GOV increased by 24%, but Swiggy recorded a 14% growth in the food delivery market. Furthermore, the broking claims that Instamart, Swiggy’s rapid commerce division, is still trailing its Zomato rival Blinkit in terms of growth and unit economics.
HDFC Securities emphasised that although Swiggy’s dark shop network has seen an improvement in order density, Blinkit has made more progress in terms of unit economics at a comparable scale. The broking stated that although the increase in client acquisition is positive, the present market pricing indicates that the path to convergence in rapid commerce with Blinkit is inevitable.
Current Financial Structure of Swiggy
Swiggy was downgraded by HDFC Securities after the Sriharsha Majety-led company’s operating revenue increased 12% QoQ to INR 3,601.45 Cr, but its net loss worsened sequentially by more than 2% to INR 625 Cr in Q2 FY25. Swiggy stated in its Q2 FY25 investor presentation that it aimed to achieve a consolidated adjusted EBITDA profitability by Q3 FY26. Additionally, a new subsidiary that will function in the “sports activities and amusement and recreation activities” section is being established by the foodtech company.
Even if the food delivery market is more established and less competitive, Swiggy’s poor performance highlights the difficulties it faces, according to another broking business, HSBC Securities and Capital Markets (India). Swiggy was valued at $16 billion by HSBC, which included $1.3 billion in cash and investments, $10 billion for rapid commerce, and $5 billion for food delivery. Nevertheless, it does not anticipate that the overall business will achieve EBITDA breakeven before the fiscal year of 2028.
The Bhavish Aggarwal-led company has been asked to provide more information by the Central Consumer Protection Authority (CCPA), which is looking into consumer complaints against Ola Electric. Ola Electric stated in an exchange filing that the consumer protection agency had asked the business for more information and documents. Ola Electric received a show-cause notice from the CCPA in October of this year due to claims of poor customer service, misbehaviour, delayed service and delivery, defective car sales, and numerous other consumer complaints. Ola Electric has confirmed that it will comply with the agency’s 15-day deadline for submitting its response.
Ola Electric Claimed of Resolving 99.1% Cases
On October 21, Ola Electric responded to the notification by stating that 99.1% of the complaints it had received had been handled. But according to a report last month, the Authority discovered that 80% of the purported resolutions were never put into practice. It is important to note that for a significant portion of this year, complaints on social media regarding the functionality of Ola Electric scooters have kept mounting.
Customers complained about unresolved hardware and software problems, poor service, and concerns with the company’s staff on social media platform X. Ola Electric promised to provide a one-day repair guarantee and a backup scooter if the problems are not fixed within a day in order to address this problem earlier this year. The business announced earlier this week that it intends to double its network of corporate-owned stores to 4,000 by December 20 as part of this strategy. According to the company, Ola Electric will run India’s largest EV distribution network, spanning every pin code in the nation, with more than 3,200 new stores scheduled to open.
Gig and S1 Z Range by Ola Electric
Given that India’s gig economy is expected to treble in size and employ over 10 million people in the next years, Ola Electric unveiled a new line of reasonably priced e-scooters last month, with pricing starting at less than INR 40,000. Ola Electric’s stock rose 5.67% and closed the day at INR 73.47 on the BSE, reflecting the positive market reaction.
The new range includes the Ola Gig, which costs INR 39,999 and is designed for gig workers who travel shorter distances. The S1 Z series offers an affordable alternative to the original S1 model, with a starting price of INR 59,999. However, going by current allegations and investigations, Ola Electric needs to battle really hard to attract customers towards these launch products. But in the midst of all of this, Ola Electric’s stock has recently surged on the exchanges. The stock has rebounded in recent weeks after plunging to all-time lows in November. On the BSE, shares of Ola Electric closed the trading session on 5 December 2024 up 0.11% at INR 98.50.
One97 Communications, the parent company of Paytm, has distributed 2.44 lakh equity shares to qualified workers through its different employee stock ownership programmes (ESOPs). During its meeting on December 5, 2024, the company’s nomination and remuneration committee approved the distribution of 244,801 equity shares with a face value of INR 1 each, fully paid up, to eligible employees upon exercise of vested options, according to a filing made by Paytm. Of these, 2,006 shares were distributed under ESOP 2008, while 242,795 shares were awarded under the ESOP 2019 programme. The company’s issued and paid-up equity share capital has increased from INR 63.71 Cr to INR 63.73 Cr (or INR 63,73,82,630 to be exact) as a result of this allocation. The newly allotted shares are worth INR 23.41 Cr based on the stock’s most recent closing price on 5 December 2024.
Giving ESOPs in Massive Capacities
Paytm has been giving out ESOPs in large quantities at the moment. The fintech giant gave its staff members 4 lakh stock options in November. Before that, in October, it granted 4.81 lakh stock options, increasing the size of its ESOP pool. Shares of Paytm have been rising recently. Several broking firms praised the company for reducing losses and increasing income, and a few days ago, the stock reached a new 52-week high of INR 951.90 per share.
Bernstein also boosted its price objective for Paytm from INR 750 per share to INR 1,000, while UBS lifted its price goal from INR 490 per share to INR 1,000. Paytm has unveiled UPI Lite, a new Unified Payments Interface (UPI) product that enables users to set up pin-free automated top-ups for daily payments under INR 500.
Current Financial Dynamics of Paytm
In contrast to the INR 292 Cr loss reported in the same period last year, Paytm declared a consolidated profit after tax (PAT) of INR 930 Cr in the September quarter (Q2) of the fiscal year ending March 2025 (FY25). However, a one-time exceptional gain of INR 1,345 Cr from the sale of its entertainment ticketing business was the reason for the profit. From INR 2,519 Cr in Q2 FY24 to INR 1,660 Cr during the quarter, revenue from operations fell 34% year over year (YoY). On December 5, Paytm’s stock ended the day 1.8% higher on the BSE at INR 956.5.
ESOP’s Popularity is Rising in India’s Startup Sector
As part of their initiatives to reward staff, several modern internet businesses have issued ESOPs this year, including Delhivery, Nykaa, ixigo, and ideaForge, among others. The travel tech business ixigo gave 17.57 lakh stock options last month, while logistics giant Delhivery increased its ESOP pool by allocating 73K stock options. Only a few days after raising INR 8,500 Cr through the placement of eligible institutions—its first significant fundraising effort since its 2021 IPO—Zomato announced its ESOP.
New Delhi [India], December 06: Hafele India is set to make a significant impact at Acetech 2024, reaffirming its dedication to delivering solutions that enhance the value of everyday spaces. With a long legacy of excellence and an ongoing commitment to transforming living and work environments, Hafele empowers customers with versatile, efficient solutions tailored to the evolving needs of modern living. After the grand success of Acetech Mumbai, Hafele continues to lead the way in shaping innovative spaces for the future.
This year, Hafele’s booth centres around the brand purpose,“Maximising the Value of Space. Together,”that was introduced last year. This purpose guides Hafele in creating functional, intelligent, atmospheric, and organised environments that adapt to the unique needs of today’s lifestyles. The purpose has been thoughtfully curated to highlight the shared value of maximising potential, a philosophy championed by Hafele’s brand ambassador, Mr. Sachin Tendulkar. Visitors to the booth will embark on an inviting journey through distinct spaces, designed to create an immersive experience that captures Hafele’s seamless blend of innovation, functionality, and style where they will explore how the company’s solutions cater to every room/space.
Mr. Frank Schloeder, Managing Director of Hafele South Asia, stated, “India is a highly promising and dynamic market brimming with opportunity. Year after year, Hafele has achieved outstanding growth here, and we are excited about expanding further. Being part of Acetech 2024 will also give Hafele an opportunity to showcase multiple products including our curtain raisers and emerging innovations as well as highlight our holistic capability as a brand.”
Here’s a short preview of Hafele’s latest advancements in premium appliances, kitchen systems and fittings, lighting systems, surfaces, and water solutions showcased at Acetech 2024:
Appliances
Luxury Appliances
ASKO Style Series Laundry Solution: Attention to detail and providing innovative solutions for modern living is what sets ASKO appliances apart. The Style series from ASKO encompasses the entire range of laundry care solutions which includes washing machines, tumble dryers, drying cabinets,cook and hidden helpers. These appliances have a full-size front panel made from a single piece of solid steel that surrounds the stylish horizontally brushed aluminium panel.
Falmec’s Shelf 120 cookerhood incorporates a very thin suction element in a shelf structure of only 100 mm thickness, equipped with a removable vane to increase smoke suction capacity. This element with hood function can be enhanced with additional modules to create a versatile hanging furniture system on the wall. Winner of the 2023 Germany Design award, this innovative cookerhood is the icon of concept, high quality of design, innovation and accessibility.
Premium Appliances
Teresa Cookerhoods: First ever cookerhoods with the Filter-Free technology, Teresa cookerhoods offer convenience and a hassle-free experience like never before. Designed with the Indian household in mind, these cookerhoods are efficient, operate with low noise, and are a sustainable solution for seamlessly maintaining clean and comfortable cooking environments.
Cronus Digi-Step Hob: Sporting Digital Multi Timers that can be set separately for each burner, and the Graduated Flame Technology which offers multiple flame level options, Cronus Digi-Step Hobs are very convenient to use and deliver precise cooking results.
Small Kitchen Appliances
Magnus Cold Pressed Juicer: It is designed to work at a much slower pace as compared to a regular juicer and is hence able to extract fruit and vegetable juices without applying heat, the absence of which helps retain a maximum number of nutrients.
U-Kaffee Plus Coffee Machine: It can brew you the most delectable shot of espresso, a rich cappuccino, or a creamy latte – all in the comfort of your own home. So, whileyou sit back and turn on your favourite music, U-Kaffee Plus adeptly works to bring out the best coffee with the perfect aroma versus taste balance.
Lighting Solutions
One Cable: It is a unique furniture lighting solution that offers easy installation into your cabinets. Powered by the Loox 5 drivers, this solution provides a seamless lighting experience across your furniture.
R One Architectural Light: These plug-n-play lights offer a glare-free light output, thanks to the innovative design of the reflector. Featuring multi-white LEDs and integrated Bluetooth Mesh networking, these lights offer a seamless and convenient lighting experience.
Retail Lights: Equipped with high-quality LEDs and narrow refraction angle, Hafele’s Retail lights deliver a focused light output for clear accentuation. With a 360-degree rotation angle and 180-degree vertical pan angle, these lights are most suited for shops and museums.
KitchenFittings
MatrixBox Premium and Premium+ Drawer Systems: This is a robust, functionally efficient, andseamlessly aesthetic solution, the Push-to-open technology for handle-less drawers is enabled by this solution.
MatrixBox Slim Drawer System: With 13 mm thin drawer sides, this solution features simple assembly as well as unrivalled design and flexibility in application. It is suitable for installation in kitchens, bedrooms and bathrooms. MatrixBox Slim comes with 3 height options, 2 side design options (Solid & Décor) and 2 weight carrying capacities (40 & 60 kg); giving you the widest choice for a host of applications.
Free Space: The new Free Space by Hafele offers an innovative stay flap fitting which, with its strong features and universal aesthetics, can be used in furniture across interior spaces. It immediately provides added value and more efficiency when working. Inspired by the requirements of the market of tomorrow, Free space fulfils all demands for creative freedom and choice of material, design, ease of installation, and convenient operation on a whole new level.
Project 2 Aluminium Profiles: A unique modular Aluminium profile system, Project 2 offers both structural stability and seamless aesthetics for your kitchen islands. Crafted in line with the latest design trends, this Aluminium profile system comprises of multiple components that enable a flexible installation experience along with various design possibilities, elevating your kitchen aesthetics.
Vauth Sagel Flex Larder System: It offers a flexible, modular storage solution for organizing cabinet interiors. Whether in the kitchen or utility room, it enables customized storage arrangements to meet typical needs around the hob, oven, sink, or washing machine areas.
Surfaces and Water Solutions
Terra Surfaces: The Terra Range, a Quartz dominated, Hafele’s In-house surface range is composed of colour pigments and binding agents to form a solution that is immensely strong, versatile and creatively workable for a wide array of home applications. It comes with 27 elegant yet contemporary colours that add to the versatility of this range. Cemento, Carbonite, Nebula White, Olympia Gold, Crema Dolce, Bianco Misterio, Crema Champaigne and Pebble are some of its colour options. Each colour has a soul and unique characteristic of its own.
Blanco Range: Long gone are the times when a kitchen was merely used for function, these days it can be the architectural nucleus of your home. Putting this into perspective, Hafele’s range of Silgranit kitchen sinks and faucets by Blanco backed by 60 years of experience and research in market knowledge, engineering proficiency and latest technologies is one of their highlight product ranges. This was conceptualised and created in line with emerging interior trends, engineered for seamless design integration and superior performance in kitchens. Among the standout offerings in this range are the ADIRA, Axia, and Linus S, each showcasing exceptional design and functionality.
The Hafele Booth at Acetech, New Delhi, 2024 promises an interactive experience that will bring visitors closer to our solutions. This approachable setup encourages relatability at all levels, be it a homeowner, a designer or an architect.
Hafele remains committed to enriching living spaces by staying at the forefront of the constantly evolving consumer needs and design trends. Commitment has always been reflected at Hafele’s Acetech Booth, and this year we encourage you to join us at our booth at Acetech 2024 and discover products that embody our dedication to quality, innovation and design excellence.
Hafele India invites you to experience their booth as well as our purpose – Maximising the Value of Space. Together.
Visit them:
On: 12th to 15th December 2024
At: Hafele Booth, Hall 4, Booth no. A4 3,4,5,6, Pragati Maidan, New Delhi.
Log onto hafeleindia.com/en/info/service/contact-us to find the nearest Hafele showroom or design centre. Website: hafeleindia.com
For more than INR 450 Cr, Amazon India has purchased a 38.18-acre plot of land in Palava, close to Mumbai, from Lodha Group, a company known as Macrotech Developers, with plans to construct a hyperscale data centre.
According to a media report, the previously approved floor space index, which has a development potential of around 4.16 million square feet, will be made available to Amazon Data Services India, a division of Amazon India.The report also stated that when the sale agreement was executed and registered, Amazon Data Services India paid Macrotech Developers more than INR 396 Cr of the entire agreed sum. Once a few requirements are met, the remaining amount of more than INR 54 Cr will be paid.
Amazon Expanding its Data Centres Globally
According to data analytics firm Propstack, which was quoted in the story, the corporation also paid INR 27 Cr in stamp duty for the deal’s November 12 registration. This development coincides with Amazon‘s plans to build more data centres worldwide. In order to modernise and expand cloud infrastructure in India to match the increasing demand, Amazon Web Services (AWS), the company’s cloud division, announced more than a year ago that it will invest $12.7 billion in data centre infrastructure by 2030.
In light of this, in September, AWS was in talks to invest $2 billion in Telangana to increase the state’s capacity for data centres. Two data centre infrastructures have been opened by AWS thus far, one in the Hyderabad region and one in the Mumbai region.
Expansion is Aligned with India’s Growing Digital Economy
According to sources, the business has made significant investments to expand its data centres in Saudi Arabia, the UK, Italy, and other nations. The rapid growth of India’s digital economy, where the majority of people have access to digital learning platforms, social media, e-commerce, digital transactions, online gaming, and streaming services, is driving up demand for dependable data processing and storage capabilities, which explains the growing interest in data centres.
Global tech companies have made significant investments in data centres, and both Google and Microsoft are interested in purchasing land in India. In addition, the data centre market in India is anticipated to rise steadily at a compound annual growth rate (CAGR) of 5.84%, reaching an estimated $9.27 billion by 2027.
The property registration documents obtained by CRE Matrix show that in November 2024, Equinix India Pvt Ltd, a US-based data centre company, paid INR 155 crore for 5,597 sq m (1.38 acres) of land in the Chandivali neighbourhood of Mumbai. According to the records, the land lot and the building, which has a total built-up area of 5,386 square meters, have been purchased.
In the first half of the year, the nation’s overall data centre stock increased by 21%, according to a report by Savills India. With a commanding 54.9% of the total capacity, Mumbai was in first place, followed by Chennai (12.3%), Bengaluru (8.2%), and Pune (7.2%).
A Memorandum of Understanding (MoU) has been inked by the Commerce Ministry’s Department for Promotion of Industry and Internal Trade (DPIIT) and B2B e-commerce platform Moglix to offer manufacturing firms 12-month incubation support. More than 25 growth-stage firms in the automotive, green energy, chemicals, and infrastructure industries will receive help from the program.
Via Credlix, its NBFC arm, startups will have access to Moglix’s mentor network, supply chain infrastructure, and financial support. DPIIT will expand the programme’s reach through its Startup India ecosystem, which will make it easier for startups to adopt, share resources, and reach a national audience.
The Collaboration Aims To Nurture and Guide Manufacturing Startups
Sanjiv Singh, Joint Secretary, DPIIT, discussed the partnership and stated that startups are driving India’s technological and economic advancement. This Memorandum of Understanding with Moglix demonstrates DPIIT’s dedication to promoting entrepreneurship, innovation, and the development of a robust manufacturing environment in line with India’s goal of independence.
According to a statement from Moglix, the programme will also give businesses access to resources, funding possibilities, and partnerships so they may develop globally competitive goods.
This partnership is a game-changer for India’s manufacturing industry. Rahul Garg, founder and CEO of Moglix, stated that the partnership seeks to create a sustainable, innovation-driven manufacturing economy that empowers entrepreneurs and supports India’s goal of becoming a global manufacturing hub by fusing Moglix’s technological know-how with DPIIT’s strategic direction.
Moglix Focuses on Solving Issues Related to Supply Chain and Manufacturing Sector
With a current valuation of $2.6 billion, Moglix supports 3,000 industries and more than 1,000 major manufacturers while providing over 7 lakh industrial commodities. Moglix’s commitment to improving supply chains and resolving issues faced by manufacturing companies in their growth stages is demonstrated by this partnership. It aligns with India’s national goals of becoming a global industrial leader and boosting the GDP contribution of the manufacturing sector.
The development occurs at a time when several businesses are setting up accelerators and incubators to support the nation’s startups. Two new firms were added to the first cohort of the KRAFTON India Gaming Incubator last month by the South Korean game company KRAFTON’s India division. Before that, Vivek Raina, a cofounder of internet service provider Excitel, started an incubator to support businesses in Jammu & Kashmir.
The vibrant Indian startup scene, which has generated over $154 billion in funding between 2014 and September 2024, is at the centre of it all. There are 112 soonicorns and 118 unicorns in the nation. Up to 31 Indian startups have listed on the bourses, with a thriving ecosystem that includes almost 10,000 investors.
The Reserve Bank of India (RBI) raised the UPI Lite wallet limit from INR 2,000 to INR 5,000 in an effort to further boost the nation’s adoption of digital payments. On December 4, the central bank also declared that the offline transaction limit for the UPI Lite service would be raised from the existing INR 500 to INR 1,000 per transaction. The new restrictions will take effect right away.
RBI Amends its Framework
As a result of the RBI’s amendment to its framework for facilitating minor value digital payments in offline mode, the new changes were implemented. The framework stipulates, among other things, that a payment instrument may not exceed INR 2,000 in total at any given moment and that the maximum amount for offline digital payment transactions is INR 500. According to the notification, the offline framework has been modified, and the increased limitations for UPI Lite are INR 1,000 per transaction, with INR 5,000 being the maximum limit at any given time.
Launched in 2022, UPI Lite allows customers to conduct small-value transactions online without a PIN or internet connection. The solution allows offline debit for payments but only allows credits to be made once the user is online, avoiding the need for a bank’s basic banking systems in real-time. This comes a few months after the central bank announced plans to raise the UPI Lite transaction ceiling to INR 1,000 following the October meeting of its Monetary Policy Committee.
Next to Increase Per Transaction Limit of UPI123 Pay
Additionally, the RBI had stated that the existing INR 5,000 per transaction restriction for UPI123 Pay would be raised to INR 10,000. In an effort to increase the use of UPI payments throughout the nation, the RBI has been aggressively testing out new UPI products at the same time. RBI governor Shaktikanta Das introduced UPI Circle in August 2024, enabling users to connect with reliable secondary users on the UPI app for partial or complete payment delegation.
UPI Tap & Pay and Hello UPI!
UPI Tap & Pay, which allows users to make payments by tapping their phone on a contactless reader, and Hello UPI, a conversational UPI payment solution, were both introduced by the National Payments Corporation of India (NPCI) last year. Digital payments are still growing throughout the nation because of rising internet and smartphone usage.
In November 2024, UPI recorded INR 1,548 Cr transactions, a 38% increase over the INR 1,100 Cr transactions recorded during the same period last year. In the meantime, the value of transactions on the payments infrastructure increased from INR 17.4 Lakh Cr in November 2023 to INR 21.55 Lakh Cr last month, a 24% increase.
NXP, a Dutch design and semiconductor manufacturing business, plans to increase its research and development (R&D) expenditures in Bengaluru. Over the following five years, the corporation intends to invest a sizeable amount of INR 8,400 crores, or almost $1 billion, in the state.
The news was made while Karnataka’s minister of large and medium-sized industries, MB Patil, was on a roadshow in the Netherlands to solicit investments for the state in advance of Invest Karnataka 2025, the state’s premier event.
Karnataka a Preferred Destination for International R&D Centres
In a discussion with the company’s executive director, Maurice Geraets, Patil highlighted Karnataka’s critical role in developing worldwide R&D capabilities. “Maurice Geraets, executive director of NXP, the third-largest semiconductor manufacturing and design business in Europe, and I had a productive meeting. Maurice revealed that over the next five years, our state will receive a sizable amount of NXP’s $1 billion R&D investment,” Patil wrote on X.
There were also interactions with other international players during the roadshow. The Bengaluru Innovation Campus, which recently received an investment of INR 445 crore (€50 million), was the focus of the minister’s discussion with senior executives of Phillips.
Inviting Phillips to Establish a Manufacturing Unit in Karnataka
Philips should set up a manufacturing plant in Karnataka, Patil urged. While the state encouraged Signify, formerly Philips Lighting, to invest in Karnataka under the China plus one plan, the company showcased its projects in the state.
According to a statement from the department, Heineken, a multinational beer and cider corporation, talked about policy changes meant to increase its manufacturing investments in Karnataka. Minister Patil emphasised that the purpose of the roadshow was to establish Karnataka as a top location for foreign investors by showcasing the state’s worldwide attractiveness in industries like advanced manufacturing, renewable energy, and semiconductors.
China-Plus-One Strategy
A strategy known as “China-Plus-One,” or simply “Plus One,” involves corporations diversifying their operations to other countries rather than solely investing in China.Western businesses have made significant investments in China over the past three decades, drawn by the country’s low labour and manufacturing costs as well as the enormous and expanding local consumer market.
A blueprint for creating long-term, robust, collective supply networks was released in July 2022 by a consortium of 18 economies, including the US, India, and the EU. Steps to address supply chain vulnerabilities and dependencies were also included in the roadmap. One could consider this to be a component of the broader China-plus-one plan.
As early as 2008, U.S. and Japanese officials and businesses were considering diversifying away from China. But China-plus-one only became popular as a different approach for MNCs at the close of the past decade, when trade tensions between the US and China were at their highest. The main causes include the recent decline in China’s cost advantage and the escalating geopolitical mistrust between China and the West.
Nitin Konde
