Transforming india : A cashless life spread soon all over india

India is going to change, rural India is adopting cost effective convenient technologies. Get your mobile banking service soon, be registered for mobile payments and be sure you are not a financially illiterate in front of your Panwala or a Vegetable Seller. Now let us see how you can pay that Panwala. It is possible immediately within 30 seconds through Inter bank Mobile Payment Service (IMPS), a unique concept of mobile based account to account funds transfer, which is the brain child of National Payment Corporation of India- NCPI. Inter bank Mobile Payment Service enables one to send money to another bank account using the mobile number and MMID of the receiver. MMID is a unique number called Mobile Money Identifier given to every account holder having IMPS. So what you need to do is just open your mobile banking application, select fund transfer, then IMPS, enter the amount to be transferred, the payee's mobile number and his MMID. Confirm the payment using your PIN, within 30 seconds payee gets and SMS telling stating that he has got the credit in the account from you. The payments completed and you can walk away without arguing for changes of soiled noted.

The PoS payments in the rural areas could not penetrate much due to the cost involved in it. There are 225 million ATM cards are issued, where 90 million cards are issued by SBI alone. But the availability of PoS merchants is as less as 0.55 million. Merchant need to install a machine, and then he has to pay commission for every payment which ranges between Rs 1.20 to Rs 2.50. But the mobile payment system is absolutely free of charge. It can be even used for usual fund transfers. Advantages of IMPS are availability at 24x7x365 days irrespective of a bank holiday, no need to share your bank accounts with the person who sends the money, confirmation of the transaction to both the parties, hence fool proof. Many bank accounts can be linked to single mobile number using different MMIDs. MMID helps the error free transfer of money by matching with the mobile number. You can do a lot with IMPS viz mobile to mobile money transfer (don't get confused, both the parties should have a bank account), ATM to mobile money transfer, Merchant payments etc. This is the fastest inter bank fund transfer service available at present.

Visit National payments corporation of india(NPCI)  to know more . To Register to mobile banking and MMID contact to your bank.

Rupay : India`s Own payment brand card

There are 225 Million ATM cards in India, of which 90 Million are from a single Bank- State Bank of India, 0.55 Million merchants have PoS machines, Rs 3000 Crore is being dispensed every day from ATM machines. We are using American Branded Visa and Master Cards for all these. How much money they are making from giving their technology and brand name? What is the volume of personal financial data is getting transferred to US every day? So there comes an idea of India’s own card brand- RuPay.

NPCI- National Payment Corporation of India is a section 25 non profit organization formed by RBI and other Indian Banks. To bring the competition in cards, reduce the cost of card payments and card issuance and most importantly to secure the data within the nation NPCI has brought its own brand of card called RuPay. Already 12 co-operative banks and Regional Rural Banks are using the RuPay ATM cards, which can be used to withdraw cash from ATMs. By the end of March 2012, debit card will be launched using the flat form of Axis Bank and SBI as acquirer (bank to which PoS machines belongs to) and issuer of cards and Union Bank of India and Bank of India as card issuer. RuPay card holder can do shopping by April 2012. It will be ready for online transactions i.e. ecommerce by June 2012.

Apart from the main stream card business RuPay is also concentrating on financial inclusion. Adhar enabled biometric cards are being issued in Jarkhand by Axis Bank, Bank of India and SBI. RBI has given permission to 18 prepaid card service provider to issue prepaid cards with easy KYC to non bank customers and migrant labours.

RuPay will not be just an domestic card. RuPay has tie up with Discover Cards which is a neutral player for Indian market and 3rd largest card issuer (Visa and Master occupy first two positions and Amex occupy the position next to Discover. RuPay cost is 50% lesser than the Visa and Master cards which are dominating Indian market.

Brief on Goods and service tax (GST)

So finally council of states approved GST bill ( A big reform in tax system after independence 1947 )

Here i am sharing you in brief about this  122 constitutional amendment act. 

What is Goods and Service Tax (GST)

GST is a destination based tax levied on supply of goods and services

Proposed Dual GST in India is to be levied concurrently by states and central government on a common tax base

It will be levied on all stages of the supply chain till the final sale to consumers, providing ITC benefits on the basis of invoices issued at the previous stage of the supply chain

Definitions

CGST stands for Central Goods and Service Tax and SGST stands for State Goods and Service Tax both shall be on Intra – State supplies of goods or services in India.

IGST stands for Integrated Goods and Service Tax shall be on Inter State supplies of goods or services in India‐ levied and collected by the Centre. (IGST shall be sum of CSGT and SGST)

Destination Based Consumption Tax

Destination based consumption tax means that state and central taxes levied at different stages of the supply chain will be totally shifted to the final destination, consumers, and the destination state will get the full SGST paid by its residents

Exports are zero rated

If credit of IGST levied on interstate movement of goods is set off against state GST by dealers in the consuming states, such credited IGST will be refunded to the consuming states

Similarly if SGST credit is utilized for payment of IGST, the concerned state which has collected the SGST should remit such credit to IGST account managed by Central Government.

Design of the Proposed GST

Center and States will levy CGST and SGST on the same tax base

CGST will replace all central indirect taxes ( Excise duty and Service Tax) on domestic goods/services excepting excise duty on tobacco products, motor fuels, and luxury goods

SGST is likely to replace the following state taxes: sales tax/VAT; entertainment taxes; entry tax; luxury tax; purchase tax; taxes on lottery, betting and gambling; cesses and surcharges

IGST to be levied on inter‐state supply

IGST will be levied on imports

Benefits of GST

Government:

Consolidation of multiple Centre & State taxes

Increased tax collection on wider tax base

Improved tax GDP ratio –revenue aligned to the economy

Better and effective administration

Business:

Ease of compliance

Reduction in effective tax rate on goods & services

Reduction in cascading effect of tax

Efficient deployment of resources

Consumer:

Reduction in incidence of tax on goods / services

Reduce double taxation

Bihar's Jungle Raj is back in form: Youth killed for overtaking JD(U) leader's son's vehicle

Imagine. You are driving your car on a highway in Bihar. You overtake an SUV. The people in SUV questions you for driving your vehicle faster than their vehicle. As a punishment for your superfast driving and overtaking them, you are shooted and killed.

This is happening in Bihar. JD(U) and RJ(D) alliance has brought the Jungle Raj back in Bihar. The politicians are acting as if they are the kings in the Jungle Raj.

"The Hindu" news clipping on this incident:

"The incident happened when the son of a prominent businessman of the town, Aditya Sachdeva, a plus-two examinee, was traveling in his Swift car with his friends and allegedly overtook the SUV (Sports Utility Vehicle) driven by Rocky Singh Yadav, son of JD(U) MLC Manorama Devi under Rampur police station of the district. Rocky was travelling in his car along with a security guard provided by the Bihar Police for the politician.

“We’re returning from Bodh Gaya and soon after we overtook the SUV they started firing in the air and made us stop. Then they forced us to get out of the car and started punching us. When we tried to leave the spot, someone fired and my friend got hit”, said friend of Aditya Sachdeva who was accompanying him in the car."

This is not a stray incendent. These kind of news are frequently being reported from Bihar after JD(U) and RJD coallition assumed power.