Paytm – Google
- Google Android Play Store – temporary takedown of Paytm
- App’s founder Vijay Shekhar Sharma – “against Prime Minister Narendra Modi’s vision of Atmanirbhar Bharat.”
- Paytm Cricket League – a new UPI cashback feature
- Federal Communications Commission Ajit Pai said 5G security issues needed to be addressed upfront, keeping the long term in mind.
- Short-term considerations could result in choices that are penny wise, but pound foolish.
- US has barred the Chinese company from participating in 5G trials.
- Pai said he was encouraged when Reliance Jio announced it would not be using Huawei equipment in its 5G networks.
- Huawei had claimed that it had been targeted because western firms were falling behind in 5G technology.
- MoS for communications Sanjay Dhotre told the Rajya Sabha that the telecom ministry had directed telcos to do a network audit for any security lapses.
- The government is believed to have also nudged private telcos to gradually cut their dependence on Chinese vendors.
- But there is no official communication on barring these companies.
- Pai: hidden backdoors in telecom networks, routers, and switches
FPIs – Dividend Income
- Finance minister Nirmala Sitharaman introduced the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020, in the Lok Sabha on Friday to replace the ordinance promulgated to provide relief to taxpayers due to the Covid-19 pandemic.
- The legislation also included relief measures for FPIs and AIFs.
- Last year: super-rich tax
- India has proposed to cap the surcharge levied on the dividend income of foreign portfolio investors (FPIs) that use a trust structure at 15%
- At present 25-37% levy is charged
- This had led to criticism that it would discourage FPIs from investing in India.
- The government has also proposed tax exemption on the income of category III Alternate Investment Funds in the International Financial Services Centre from masala bonds, derivatives or overseas investments.
- About 45% of FPIs have invested in the country as trusts.
- They will be eligible for refunds as the provision will be retrospectively applicable from April 1, 2020.
- The Lok Sabha later passed the supplementary demand, which allows the government additional spending of ₹1.67 lakh crore, by voice vote.
- Finance Minister Nirmala Sitharaman said the Centre is not reneging on its promise to compensate states for any revenue loss due to the transition to the goods and services tax regime and had “gone much beyond” to protect them.
- Sitharaman said compensation to states is given from the cess collection and there is no provision to provide it from the Consolidated Fund of India.
- Sitharaman said the government had taken measures to ensure money goes into the hands of people.
- From the net outgo, the government planned to infuse ₹40,000 crore into the rural employment guarantee scheme MGNREGA, according to announcements made in the Atma Nirbhar Bharat package.
ADB’s 53rd annual meeting
- The Asian Development Bank (ADB) should expand its quantum of lending, finance minister Nirmala Sitharaman said, adding that India had an absorptive capacity to receive annually about $4 billion from the bank’s sovereign operations and $1.5 billion from its private sector financing window.
- “The need of the hour is to also increase private sector operations with a view to leverage the limited ADB funds, thereby stimulating a development multiplier, including employment generation,” the finance minister said.