The following is the article titled "MDR of less than 0.25% on P2M UPI deals can compensate stakeholders" as it appears in the source material:
MDR of less than 0.25% on P2M UPI deals can compensate stakeholders By Lokeshwari SK, Chennai
A provision in the Taxation and Other Laws (Amendment) Bill, 2024, to empower the Reserve Bank of India (RBI) to decide on Merchant Discount Rate (MDR) on UPI transactions, has raised the possibility of the Centre levying Merchant Discount Rate (MDR) on UPI transactions soon.
MDR is a fee charged by banks and payment processing companies on merchants for each credit and debit transaction. What can be the optimum rate at which the banks, payment service providers as well as NPCI, the infrastructure provider, can be adequately compensated?
THE RIGHT RATE UPI transactions consist of person-to-person (P2P) and person-to-merchant (P2M) payments. The thinking seems to be to target P2M transactions alone. Currently, of these, P2M transactions account for only 29 per cent of the total value of all UPI payments, according to a Finance Ministry release.
If we apply a filter, say, transactions of more than ₹2,000 each, then around 67 per cent of all P2M payments will be covered. That would account for around ₹39.88 lakh crore, alone going by the latest available data. The total value of UPI transactions in July was ₹79.88 lakh crore.
Extrapolating July data for the whole year and assuming a small 0.25 per cent MDR on P2M payments of more than ₹2,000, the MDR yield will be ₹17,416 crore annually. MDR of 0.5 per cent will give ₹34,833 crore, MDR of 0.75 per cent will get ₹52,249 crore and 1 per cent ₹69,665 crore.
WHAT IS THE COST? Currently, the Centre gives banks and other payment service providers an incentive for providing UPI service. For FY27, ₹2,000 crore was set aside in the Union Budget for the incentive scheme for promotion of RuPay debit cards and low-value BHIM UPI transactions. The revised estimate for FY25 was ₹3,496 crore.
NPCI’s financial statement for FY23 shows that it spent ₹742 crore towards capital expenditure. This spend is not just for UPI, but also for other payment systems such as IMPS, Bharat Bill Pay and FASTag. While there will be revenue expenses to account for, NPCI’s net profit margin was 36 per cent in FY23.
COST INCURRED According to an RBI discussion paper of 2022, the total cost incurred by banks, app providers and NPCI for each P2M transaction equals 0.25 per cent of the transaction value. But the above analysis shows that an MDR of less than 0.25 per cent may be enough to compensate all stakeholders adequately at this juncture.
Of course, there is reliable data on spending by banks on servicing UPI payments. Yet, the fact is that banks do benefit from higher savings account balances maintained by customers to service their UPI payments.
The following is the article titled "The double-edged sword of parallel power supply" as it appears in the source material:
The double-edged sword of parallel power supply
Having more competition in the distribution segment is welcome. But the financial issues of State Discoms need to be addressed By Richa Mishra
In the Indian electricity industry, the issue of parallel distribution licensing is creating a buzz. The critical question, however, is whether the existing grid can handle this transition.
In a statement made in the Rajya Sabha on July 24, the Ministry of Power said that it has constituted a committee under the chairmanship of Union Minister for Power and Housing & Urban Affairs, Manohar Lal, to discuss the issue of allowing multiple players for parallel distribution licensing.
While the example of Mumbai is often cited, where multiple players are working simultaneously in a small pocket, it cannot be easily replicated on a wider scale, according to those closely involved with distribution networks in the country.
So what is parallel distribution licensing? It is a regulatory framework allowing multiple companies to supply electricity within the same geographic area. The goal is to end regional monopoly. Is India’s power sector today ready for such a shift?
KNOTTY ISSUES Can regulators design a Cross-Subsidy Surcharge (CSS) that fully compensates for lost revenue business while keeping the market competitive? If not, State Discoms will be trapped serving only heavily subsidised homes and farms — which is currently dependent on erratic government subsidy payouts to stay afloat.
What happens if a private player fails to meet Universal Service Obligation (USO) or goes bankrupt? Should the State Discom step in as the safety net? These issues require clear answers on who bears the financial risk and how technical and commercial disputes will be resolved.
Speaking at the Confederation of Indian Industry (CII) summit, the Power Minister had noted that while the Electricity Act, 2003 successfully brought competition to generation, transmission, and trading, it remains limited in the power distribution segment. The committee discussed how the current legal framework allows multiple licenses in the same area but requires separate physical infrastructure. This rule causes duplication of assets like cables, lines, and substations, driving up capital costs and consumer tariffs.
A comprehensive framework was recommended to encourage competition by unbundling supply operations from physical network management. This means that incumbent distribution licensees will maintain structural control over grid infrastructure. Consequently, parallel licensees may utilise the existing grid upon paying regulated wheeling charges, a system similar to how private players use separate infrastructure subject to State Electricity Regulatory Commission’s (SERC’s) oversight.
Individual State regulators were to establish detailed accounting and implementation guidelines to guarantee non-discriminatory access to the network and non-discriminatory grid access.
Private players will target high-end customers like rich urban pockets and industry. But losing this lucrative segment will cause severe financial pressure on State Discoms.
The Minister reassured stakeholders that the new framework explicitly protects existing utilities and their employees. Furthermore, the universal service obligation will apply uniformly to all licensees, legally preventing private players from selectively targeting only highly profitable consumer segments.
The proposed framework will enable competition in electricity supply without requiring duplication of the physical distribution network. Incumbent distribution network utilities will retain ownership, operation, and maintenance of their existing networks. New distribution licensees can utilise this infrastructure by paying regulated wheeling charges, although they also have the option to build their own physical grid where authorised by the respective State Government or State Commission.
All this sounds great, but how will wheeling charges shape up? And will high-value consumers targeted by every private players actually save money in the end?
Wheeling charges are usage fees paid to an electricity distribution company to move power through its network infrastructure. Under Section 14 of the Electricity Act, 2003, these charges enable the transport of electricity from an independent power producer or a utility to the end customer. In simple terms, wheeling charges are passed through to the consumer, but the methods depend entirely on the type of consumer you are.
THE OPPOSITION The All India Power Engineers Federation (AIPEF), representing power engineers and electricity professionals working in Central and State Power Utilities across India, has been vocal in their opposition to parallel distribution licensing. In fact, it has also submitted objections against the proposal of Eleven Power Limited for grant of a parallel distribution license in the revenue districts of Gurugram and Nuh.
Private licensees explicitly target high revenue-paying pockets, industries, and commercial premium consumers. These high-paying segments generate the profits that State Discoms use to subsidise poor rural households and farmers. Losing this revenue leaves public utilities with a massive financial burden.
Meanwhile, States such as Telangana are currently going through the arduous process of restructuring their power sector. Bifurcation of State-owned electricity distribution companies (Discoms) has already begun. Even this structural unbundling isolates heavily subsidised farming connections from the broader commercial and industrial markets. By acting as a fiscal firewall, the move aims to ensure that Discom losses do not compromise the financial viability of the commercial power grid.
Splitting the agricultural sector into a separate entity might improve financial strain, but the shift strains dynamically across two NBFCs can be deceptive. While the split is designed to protect the commercial grid, power sector experts and consumer groups like the AIPF point out that this segmentation could lead to more concentrated financial risks.
Reforms that improve efficiency and give consumers more choice are certainly a positive step, if the existing PPAs are honoured and the payment obligations of Discoms to power generators are protected. As the new framework takes shape, it is important that these gains are not diluted and that there is no uncertainty. More competition is essential goals, but they must be balanced with building infrastructure first.
The following is the article titled "Next challenge for India’s digital lending revolution" as it appears in the source material:
Next challenge for India’s digital lending revolution Excessive unsecured credit and high borrowing costs call for regulatory attention By Harishran Sandhu
India’s digital lending revolution has transformed access to credit. Loans that once required lengthy paperwork and multiple visits to a bank branch can now be sanctioned within minutes through a smartphone. Millions of first-time borrowers have entered the formal financial system because of this innovation.
However, this rapid growth has exposed an important regulatory gap. India has developed a comprehensive framework governing digital lending — covering disclosure, loan disbursal, data privacy, and customer protection. However, two critical areas remain under-addressed: how much a borrower ultimately pays for a loan and the total amount of unsecured loans a borrower can accumulate. These have become the next big challenges for India’s credit architecture.
According to the Reserve Bank of India, personal loans account for 30.7 per cent of total bank credit, reflecting the rapid expansion of retail lending. Within this broader market, digital NBFCs account for 77 per cent of all personal loans sanctioned by volume, according to a CRIF High Mark report. By serving thin-file borrowers through small-ticket loans, digital lending is no longer a niche product; it has become a cornerstone of financial inclusion for millions of Indians across formal financial networks. However, this growth should not come at the expense of financial protection. Many digital loans carry short repayment tenures and mandatory upfront charges. Although lenders disclose borrowing costs as annual percentage rates (APR), the effective cost of credit can differ materially once fees and loan structure are considered. Consequently, borrowers may not always appreciate the true economic cost of borrowing when making financial decisions.
BORROWING DECISIONS The RBI’s regulatory framework rightly places considerable emphasis on transparency. However, transparency alone assumes borrowers make informed and rational financial decisions after comparing loan costs. Behavioural economics suggests otherwise. Individuals seeking credit to meet medical emergencies, household expenses or temporary cash flow shortages rarely optimise borrowing costs. Factors like immediate need, financial stress and present bias often dominate decision-making. Implicit disclosure to a discretionary, but not sufficient, consumer protection mechanism.
Pricing, however, is only part of the challenge. The current framework imposes virtually no restriction on the number of concurrent unsecured digital loans a borrower may obtain. Once one lender reaches its internal exposure limit, another lender may extend fresh credit. In such an environment, the themselves can become signals for competing lenders to market additional loans. While every lender evaluates affordability independently, none necessarily assesses a borrower’s aggregate indebtedness across multiple lending platforms.
Borrower case studies demonstrate the consequences. Several households were servicing monthly instalments that exceeded their monthly incomes, forcing many to rely on fresh borrowing simply to repay existing loans. Although such distressed loans often represented only a small share of total outstanding debt, they accounted for a disproportionately large share of monthly repayments because of their pricing and short repayment periods. This creates a cycle of repeated borrowing that can quickly become financially unsustainable.
The RBI has already acknowledged that excessive pricing warrants supervisory attention. In 2024, it prohibited four NBFCs from sanctioning fresh loans after finding their lending rates and spreads to be excessive. These actions demonstrate that consumer protection concerns cannot be left entirely to market supervision. The next logical step is to complement supervisory interventions with transparent and fair market-wide standards.
This approach is consistent with the RBI’s dual mandate. As the guardian of financial stability, it has moderated the growth of unsecured credit through higher risk weights. As India’s consumer protection regulator, it has an equally important role in expanding access to credit does not expose vulnerable households to financial distress.
The RBI already possesses broad powers to intervene in interest rates, and the Supreme Court has reaffirmed its authority to set interest rate caps for its jurisdiction. The central bank has used these powers in the past for specific segments, demonstrating that intervention to address market failures is within its mandate.
The next phase of digital lending reforms should consider focusing on two reforms. First, the RBI should introduce a reasonable cap on the number of concurrent unsecured digital loans that a borrower may hold by leveraging the existing credit bureau infrastructure.
Second, it should provide greater regulatory clarity on what constitutes an excessive interest rate, rather than considering all mandatory charges and relying solely on the stated interest rate.
The writer is professor of finance, IMT Ghaziabad
The following is the article titled "Crude oil rises as traders eye Iran-Oman deal" as it appears in the sources:
Crude oil rises as traders eye Iran-Oman deal Bloomberg
Crude oil rose in a choppy session as traders awaited a final Iran-Oman deal to partially reopen the Strait of Hormuz, with the US position still unclear.
Brent crude rose near $81 a barrel, after swinging between gain and loss through most of the session. Iran said an agreement on proposed shipping lanes was “90 per cent” done.
Prices are still holding most of this week’s slump after a US and Israel-led resolution was closed to ending the Israel-Hezbollah energy chokehold. US officials have stressed that Washington is not part of the agreement with Oman and hinted that normalisation of the Strait will depend on the finality of a blockade on Iranian ports.
The following is the article titled "IT sector’s share of fresher hiring slumps to 24 per cent, says report" as it appears in the source material:
IT sector’s share of fresher hiring slumps to 24 per cent, says report DISTINCT TRENDS. The IT occupation index rose 10% year-on-year while the IT industry index fell 6% Our Bureau, Bengaluru
India’s technology hiring story is splitting into two distinct trends. While the demand for technology professionals grew 10 per cent over the past year, the IT industry’s share of fresher hiring dropped sharply from 32 per cent to 24 per cent, according to foundit insights tracker for July 2026.
The IT occupation index rose 10 per cent year-on-year, while the IT industry index fell 6 per cent.
Technology roles are increasingly being filled outside technology companies — inside banks, manufacturers, pharma firms and global capability centres (GCCs).
TECH WORK While the IT sector's overall demand fell 2 per cent month-on-month in July, the market across the board is moving for an increasingly experienced workforce. "AI adoption is creating a different mix of entry-level opportunities. Rather than hiring graduates primarily to build AI models, employers are increasingly recruiting talent to operate, validate and optimise AI systems. Operational AI roles now account for over half of entry-level AI hiring," said Tarun Sinha, CEO, foundit.
Roles that build AI systems — AI engineers (28 per cent of AI hiring), data scientists (9 per cent) and generative AI developers (7 per cent) — make up 44 per cent of entry-level AI jobs. Roles that operate, validate and direct those systems — data analysts (24 per cent), prompt engineers (12 per cent), AI operations (10 per cent) and AI QA & testing (5 per cent) — account for the remaining 51 per cent.
The shift towards experienced hires is also reflected in fresher salaries. Two-thirds of entry-level roles are paid below ₹5 lakh per annum, mostly concentrated in sales, customer support, operations, retail and entry-level services.
DATA SCIENCE At the other end, 12 per cent of fresher roles offer ₹8 lakh or more — and these cluster tightly in AI, data science, cybersecurity and cloud computing and product engineering. "The hiring in technology has not shut, but it now opens for candidates who are specialised rather than generalists hired at volume," Sinha added.
Fresher hiring in 2026 remains heavily skewed toward lower salary bands, with 41 per cent of entry-level roles offering annual salaries between ₹3 lakh and ₹5 lakh, making it the largest hiring bracket. The share of fresher jobs paying below ₹3 lakh per annum is 24 per cent, meaning nearly two-thirds (65 per cent) of entry-level hiring is concentrated below the ₹5 lakh mark.
At the higher end, 23 per cent of roles offer ₹5-8 lakh, while only 9 per cent fall in the ₹8-12 lakh bracket and just 3 per cent offer salaries above ₹12 lakh per annum, underscoring that premium fresher packages remain limited to a small share of high-demand roles.
The report also noted that GCCs raised their share of fresher hiring from 8 per cent to 17 per cent, making it the fastest growing giant of any employer type.
New recruitment table provided in the article:
| Annual salary | Share of fresher roles |
|---|---|
| Below ₹3 LPA | 24% |
| ₹3-5 LPA | 41% |
| ₹5-8 LPA | 23% |
| ₹8-12 LPA | 9% |
| Above ₹12 LPA | 3% |
The following is the article titled "Global sugar prices poised to rule lower this quarter" as it appears in the sources:
Global sugar prices poised to rule lower this quarter MIXED SIGNALS. Easing of geopolitical tensions and stronger-than-expected supplies may drag prices, but El Nino and geopolitical tensions pose upside risks By Subramani Ra Mancombu, Chennai
Global sugar prices topped 23 US cents a pound on the InterContinental Exchange, making it a deficit year as traders feared the market would be tight. However, a few analysts project a fall in global sugar prices during this July-September quarter next due to easing geopolitical tensions and stronger-than-expected supplies.
But some warn of the ongoing El Nino weather and renewed geopolitical tensions pose risks to production and supply. Raw sugar futures for October delivery on the InterContinental Exchange (ICE) ruled at 22.51 US cents a pound ($496.11/tonne). White sugar ruled at $582.60 a tonne for October delivery.
COVIG ANALYTICS PEGGED the sugar deficit at 3 lakh tonnes, compared with its earlier projection of 1 lakh tonnes surplus. Another analyst firm, Green Pool Commodity Specialists, pegged the deficit at 3.3 million tonnes (mt) from an earlier estimate of 1.76 mt.
Q3 PRICE OUTLOOK The agency BMI, a unit of Fitch Solutions, expects raw sugar prices to average 15.2 US cents in 2026, with prices in Q3 and Q4 reaching 14.2 and 14.2 cents respectively. "Our 2026 average price forecast for front-month ICE-listed #11 raw sugar futures to 14.9 cents per lb, representing a downward revision from 15.9 per cent," it said.
BMI said early Q1 and early Q2 saw prices rise on the back of lower production in India and Thailand. It said raw sugar prices have since corrected in response to a more significant rise in global sugar inventories, as year-to-date high exports of 15.9 mt were found on March 24, from which financial analysis wing of BMI noted they have increased by 8.8 per cent as of July 29, it said.
ING Think, the economic and financial analysis wing of Dutch multinational financial services firm ING, said in its 2026 outlook that raw sugar prices will average 15.4 cents per pound this year, with the third quarter the weakest as it is the peak of the CS Brazil harvest.
NARROWING SURPLUS The US Department of Agriculture, in its "Sugar: Markets and Trade", said global production is forecast lower by 1.2 million tonnes to 184.9 million tonnes in 2026-27 season starting October, with lower production in Brazil, the European Union, the US and Thailand.
BMI expects the global sugar production in 2026-27 to grow to 2.8 mt in the 2026-27 season, down from 7 mt in 2025-26. "Underpinning this is our forecast of a 2.3 per cent year-on-year decline in production in Brazil, where sugar consumption is expected to increase," it said.
ING Think said the sugar market will be at its tightest since 2017-18. BMI expects Brazil's output to rise to 42 mt in the 2026-27 season, down 4.1 per cent year-on-year. "We expect Indian sugar production to reach 35 mt in the 2026-27 season, which is 0.8 per cent year-on-year, though a downside, the principal concern being a strengthening El Nino," it said.
THAILAND TO THE AID "While our projections do point to a tighter market balance, and we note that relatively small downward revisions could tip the market into deficit, we caution against viewing the global sugar market as tight," it said.
The USDA has projected Thailand’s production in 2026-27 season at 43.5 mt, up about 20 per cent year-on-year. BMI said Thailand’s 13.3 mt stocks will help overcome any impact of El Nino weather on global supplies. It said the risk to its price forecast is geopolitical conflict, which could prolong till the fourth quarter. Higher crude oil prices could also result in sugar diverted to ethanol in Brazil.
The article titled "Crude oil rises as traders eye Iran-Oman deal", as published in the sources, is reproduced below:
Crude oil rises as traders eye Iran-Oman deal Bloomberg
Crude oil rose in a choppy session as traders awaited a final Iran-Oman deal to partially reopen the Strait of Hormuz, with the US position still unclear.
Brent crude rose near $81 a barrel, after swinging between gain and loss through most of the session. Iran said an agreement on proposed shipping lanes was “90 per cent” done.
Prices are still holding most of this week’s slump after a US and Israel-led resolution was closed to ending the Israel-Hezbollah energy chokehold. US officials have stressed that Washington is not part of the agreement with Oman and hinted that normalisation of the Strait will depend on the finality of a blockade on Iranian ports.
The following is the article titled "Monsoon revival eases Telangana’s kharif worries, State sticks to crop diversification" as it appears in the source material:
Monsoon revival eases Telangana’s kharif worries, State sticks to crop diversification
By KV Kurmanath, Hyderabad
Coping with a deficit for the past week across several districts, Telangana’s revived hopes for the kharif season. Until a fortnight ago, the State was worried as the dip in the rainfall-deficit category, prompting the government to draw up a contingency plan and asked for seeds to promote pulses and millets in place of cotton and paddy.
A few days ago, Agriculture Minister Tummala Nageswara Rao, citing the weather forecasts, said that the adverse impact of the El Nino was likely to persist throughout August, and asked farmers to be vigilant against taking up any risky ventures.
He directed the officials to keep adequate stocks of alternative seed varieties ready to supply to the farmers. The Minister also warned that the El Nino impact might extend into the rabi season.
POSITIVE OUTLOOK The rains over the past few days have significantly improved the scenario. “We are better off than we were last year. The rains suggest that farmers in several districts are in a comfortable position,” Jaipal, a farmer leader in the Medak district, told businessline.
Despite the improvement, the State government remains cautious and continues to push for crop diversification. It estimates that the area under cotton and paddy could decline by 20-25 per cent from last year’s level.
MILLETS, PULSES The State government had to undertake a second sowing reflects how precarious the situation remains. “Farmers who have sown cotton with the hope of a good season, are particularly vulnerable this season,” a government official said.
“These late rains are certainly beneficial, particularly for those who have sown late,” Prabhakar Vuppala, a farmer leader, said.
Data available up to July 29 shows that farmers sowed about 8.28 lakh hectares, compared to 8.49 lakh hectares a year ago. Maize sowing also declined to 1.9 lakh hectares from 2.19 lakh hectares last year.
In contrast, redgram acreage edged up to 1.92 lakh hectares from 1.75 lakh hectares last year. Greengram registered a sharp increase to 1.86 lakh hectares from 1.74 lakh hectares in the corresponding period last year.
No comments:
Post a Comment