Govt Approves ₹1,500 Crore Incentive for Small Value BHIM-UPI Transactions in FY25

The Union Cabinet has approved a ₹1,500 crore incentive scheme to promote low-value BHIM-UPI peer-to-peer merchant (P2M) transactions for 2024-25. This initiative aims to encourage digital payments and achieve a transaction volume of 200 billion in FY25. However, industry players have raised concerns about the sufficiency of the allocation and the long-term sustainability of the digital payments ecosystem.

Incentives for Small Merchants and Policy Details

For the first time, the Centre has defined small and large merchants concerning BHIM-UPI incentives. The government has set an incentive rate of 0.15% for transaction values up to ₹2,000 made to small merchants, while large merchants in the same bracket will receive no incentive. No incentives will be provided for transactions exceeding ₹2,000.

“The incentive scheme on promoting low value UPI transactions, which has been approved by the Cabinet today (Wednesday) will encourage digital payments and further ‘Ease of Living’,” Prime Minister Narendra Modi said in a post on social media X.

Industry Concerns Over Funding and MDR Policy

Industry players are not satisfied with the allocation, stating that ₹1,500 crore is inadequate to sustain growth. Currently, banks and digital payment firms bear the cost of processing UPI transactions due to the zero merchant discount rate (MDR).

“With a zero MDR of UPI and the government allocating only ₹1,500 crore for processing transactions of ₹246.82 trillion in 2024 to the ecosystem is just not going to be enough. It will choke the entire ecosystem for funds for scaling and growth,” said Vishwas Patel, joint managing director, Infibeam Avenues, and chairman, Payments Council of India (PCI).

According to industry estimates, ₹4,000-5,000 crore in incentives is required to cover processing costs. Patel suggested introducing a controlled MDR of 25 basis points on UPI P2M transactions for merchants with over ₹40 lakh turnover while continuing zero MDR for smaller merchants.

“We welcome the Cabinet decision to incentivise low-value transactions of up to ₹2,000 at the rate of 0.15 per cent for small merchants. We are hopeful that in the future a market-driven sustainable pricing framework (MDR regime) for low-value (P2M) transactions will evolve to incentivise all players,” said Jatinder Handoo, chief executive officer, Digital Lenders Association of India (DLAI).

The scheme outlines that 80% of the admitted claims by acquiring banks will be disbursed unconditionally, while the remaining 20% will be dependent on conditions such as banks maintaining a technical decline rate below 0.75% and system uptime above 99.5%.

Conclusion

The government’s initiative aims to strengthen digital payments, but industry stakeholders argue that the allocated funds fall short of supporting growth. The debate over introducing an MDR regime continues as industry players push for a long-term sustainable pricing framework.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Hyundai Motor India to Raise Car Prices by Up to 3% from April 2025

Automobile manufacturers in India are adjusting their pricing strategies to counter rising input costs and operational expenses. Hyundai Motor India Limited (HMIL) has announced a price hike of up to 3% across its model range, effective April 2025. This move follows similar price revisions by other leading automakers, reflecting an industry-wide trend driven by escalating costs.

Hyundai Announces Price Adjustment Amid Rising Costs

Hyundai Motor India Limited (HMIL) has announced a price increase of up to 3% across its model lineup, effective April 2025. The company attributes this adjustment to escalating input costs, rising commodity prices, and higher operational expenses.

Tarun Garg, Whole-time Director and COO of HMIL, stated, “At Hyundai Motor India Limited, we strive to absorb rising costs to the extent possible, ensuring minimal impact on our customers. However, with the sustained increase in operational expenses, it has now become imperative to pass on a part of this cost escalation through a minor price adjustment.”

While the actual hike will vary based on model and variant, Hyundai’s decision reflects the broader industry trend of manufacturers adjusting prices in response to increasing production expenses.

Industry-Wide Price Hikes Across Automakers

The Indian automotive sector has witnessed a wave of price increases as manufacturers attempt to counter surging costs. On March 17, Maruti Suzuki India Ltd. (MSIL) announced a price hike of up to 4% from April 1, 2025, marking its third increase this year following adjustments in January and February.

Similarly, Tata Motors will raise prices on its commercial vehicle range by up to 2% from April 1, 2025, citing higher raw material and input costs.

In the luxury segment, Mercedes-Benz India is also considering a price revision in April if the rupee continues to weaken against the euro. The company had already implemented a price hike in January and anticipates slow luxury car sales for at least two more quarters, according to Managing Director & CEO Santosh Iyer.

Hyundai Share Performance 

As of March 20, 2025, at 11:00 AM, Hyundai Motors share price was trading at ₹1,607.95 per share, reflecting a decline of 0.46% from the previous day’s closing price. 

Conclusion

With leading automakers adjusting their pricing strategies, the impact on consumer sentiment and overall vehicle sales will be closely observed in the coming months. As input costs remain volatile, further revisions across the industry cannot be ruled out.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Ola Electric Faces Scrutiny Over Sales- Registration Mismatch

Ola Electric is facing scrutiny over a gap between its reported sales and actual vehicle registrations. The company announced it had sold 25,000 electric scooters in February, but the government’s Vahan portal, which tracks vehicle registrations, recorded only 8,651 registrations by the end of the month. 

As of March 17, the number stood at 8,230, leaving a difference of over 16,000 unregistered scooters.

Regulatory Requirements and Potential Issues

Under the Motor Vehicles Act, vehicles must be registered with the state transport department within seven days of sale. The Central Motor Vehicles Rules, 1989, prohibit the delivery of vehicles without registration, either temporary or permanent. If Ola Electric has not followed these guidelines, it could face legal consequences, and customers operating unregistered vehicles may also be at risk.

Concerns Over Financial Reporting

Ola Electric’s draft red herring prospectus (DRHP), filed before its IPO, states that the company only recognizes revenue once a scooter is delivered and registered on the same day. However, industry sources suggest that the company may have reported bookings as sales, potentially influencing market perception.

SEBI and Investor Implications

The gap between sales and registrations has raised concerns about transparency. The Securities and Exchange Board of India (SEBI) and stock exchanges may require a clarification from Ola Electric. Failure to explain the discrepancy could result in penalties or further regulatory action.

Conclusion 

Ola Electric recently ended its contract with registration service providers Rosmerta Digital and Shimnit India and has taken registration processes in-house. Rosmerta Digital Services and Rosmerta Safety Systems have filed an insolvency petition against Ola Electric Technologies for ₹24.5 crore in unpaid dues.

Following reports of the sales-registration mismatch, Ola Electric’s stock dropped 7.18% on the BSE, closing at ₹46.91 yesterday. The company has yet to issue an official response.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

TCS and Air New Zealand Sign Five-Year Digital Transformation Deal

Tata Consultancy Services (TCS) has signed a five-year agreement with Air New Zealand to modernise the airline’s digital infrastructure. The partnership is to integrate artificial intelligence (AI) and cloud-based automation to improve operations and customer service. The financial details of the deal have not been disclosed.

As of March 20, 11:39 AM, Tata Consultancy Services Ltd (TCS) was trading at ₹3,568.45, up ₹71.35 (2.04%) today, but down 16.72% over the past six months and 10.13% over the past year.

Digital Infrastructure 

TCS will work on streamlining over 600 applications across various airline functions, including cargo services, disruption management, maintenance systems, and crew operations. The integration of AI-driven automation is expected to optimize these areas. As per the filing, the collaboration will help support improvements in Air New Zealand’s digital retail and loyalty programme.

Leadership Presence at Announcement

The agreement was formally signed at TCS’ Banyan Park Campus in Mumbai. The event was attended by New Zealand Prime Minister Christopher Luxon, Tata Group Chairman Natarajan Chandrasekaran, Air New Zealand CEO Greg Foran, and TCS CEO K Krithivasan.

As part of the partnership, TCS will lead upskilling programmes for Air New Zealand employees in AI, cybersecurity, and digital engineering. The aim is to upgrade digitally within the airline’s workforce to support the technology-driven changes being implemented.

TCS’ Presence in New Zealand

TCS has operated in New Zealand for over 37 years, providing digital solutions across multiple industries, including banking, retail, construction, manufacturing, and local government. It has an office in Auckland and a team of 460 professionals, serving more than 20 clients in the region.

Air New Zealand

Air New Zealand operates flights to 49 domestic and international destinations. The airline transports over 15 million passengers annually through more than 3,400 weekly flights. The partnership with TCS is to impact key areas such as fleet management, crew scheduling, and ground services.

Conclusion

TCS collaborates with New Zealand universities through its Co-Innovation Network (COIN) to support research in cybersecurity, sustainability, and AI. It was also involved in developing the Asia Pacific Digital Sustainability Index in 2022.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Nippon India Mutual Fund Announces Scheme Merger Effective April 2025

Nippon India Mutual Fund has announced the merger of 2 fixed maturity schemes into an existing liquid fund. The changes will take effect from April 22, 2025.

Schemes Being Merged

The following schemes will be merged into Nippon India Liquid Fund:

After the merger, these schemes will cease to exist, and investors holding units in them will become unitholders of Nippon India Liquid Fund.

Exit Window for Investors

Unitholders who do not wish to continue with the new fund structure have the option to exit or switch their investments without any exit load. The exit window will be open from March 24, 2025, to April 22, 2025. After this period, the units will be transferred to the Nippon India Liquid Fund as part of the merger process.

Important Dates 

  • March 24, 2025 – April 22, 2025: Investors can exit or switch without an exit load.
  • April 22, 2025: The merger takes effect, and the 2 schemes will be absorbed into Nippon India Liquid Fund.

Impact on Investors

Once merged, all existing investors in the two interval series funds will have their holdings transferred to Nippon India Liquid Fund. This means their investments will be subject to the features and performance of the liquid fund instead of the original fixed maturity structure. Investors should review the scheme details before the merger date.

Conclusion

The fund house has issued official notices regarding this merger, outlining the details and informing investors about their options. Those looking for further clarification can refer to the official communication from Nippon India Mutual Fund.

Curious about your SBI SIP returns? Get accurate estimates of your investment growth using our SBI SIP Calculator and stay ahead of your financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

ICICI Prudential and Mirae Asset Mutual Funds Announce Income Distribution

Mutual fund investors looking for periodic income distributions have fresh updates from ICICI Prudential Mutual Fund and Mirae Asset Mutual Fund. Both fund houses have declared income distribution under the Income Distribution cum Capital Withdrawal (IDCW) option across select schemes. The record date for these distributions is March 20, 2025.

Mirae Asset Mutual Fund

Mirae Asset Mutual Fund has announced income distribution across multiple categories, including ELSS, midcap, and large and midcap funds. The highest payout comes from the Mirae Asset Large & Midcap Direct-IDCW, offering ₹6.40 per unit, while its regular counterpart offers ₹3.70 per unit.

For investors in tax-saving schemes, Mirae Asset ELSS Tax Saver Direct-IDCW is distributing ₹2.30 per unit, and the regular plan will offer ₹1.95 per unit. Mirae Assets Midcap fund investors will see a payout of ₹2.00 per unit under the direct plan and ₹1.85 per unit under the regular plan.

ICICI Prudential Mutual Fund 

ICICI Prudential Mutual Fund has also announced income distribution under its IDCW option across three funds. The ICICI Pru Value Discovery Fund leads the list with ₹4 per unit for both direct and IDCW plans.

Meanwhile, the ICICI Pru India Opportunities Fund will distribute ₹2.20 per unit, and the ICICI Pru Manufacturing Fund will offer ₹2 per unit under both direct and IDCW options.

Conclusion 

  • Record Date: Only investors holding units as of March 20, 2025, will be eligible for these payouts.
  • Taxation Impact: IDCW payouts are subject to taxation as per an investor’s income tax slab.
  • Fund NAV Adjustment: Since IDCW distributions are paid from a fund’s Net Asset Value (NAV), the NAV will reduce post-distribution.

For investors seeking regular cash flows, IDCW options can be beneficial, but it’s crucial to assess their overall investment strategy.

Curious about your SBI SIP returns? Get accurate estimates of your investment growth using our SBI SIP Calculator and stay ahead of your financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Edelweiss Bharat Bond FOF – April 2025 to Merge with Bharat Bond FOF – April 2030

Edelweiss Mutual Fund has announced that Bharat Bond FOF – April 2025 will merge into Bharat Bond FOF – April 2030, effective April 16, 2025. Following the merger, Bharat Bond FOF – April 2025 will no longer exist, and its investors will become unitholders of Bharat Bond FOF – April 2030.

Impact on Investors

As a result of this merger, unitholders of Bharat Bond FOF – April 2025 will automatically have their holdings transferred to Bharat Bond FOF – April 2030. This will extend the maturity period of their investment by five years, shifting the investment horizon from 2025 to 2030.

Exit Option Available

Investors who do not wish to continue with the new scheme have the option to exit. They can redeem or switch their units without any exit load during the exit window, which will be open from March 12, 2025, to April 11, 2025. After this period, the merger will proceed, and investments will be moved to the new fund.

Merger Details and Rationale

Bharat Bond FOFs invest in Bharat Bond ETFs, which track fixed-maturity PSU bond indices. The merger is part of a restructuring process, consolidating funds to manage investments more efficiently. Investors who remain in the scheme will now be part of a fund maturing in 2030 instead of 2025.

Conclusion 

  • March 12 – April 11, 2025: Exit window for investors
  • April 16, 2025: Merger takes effect

Unitholders who do not take any action before April 11, 2025, will automatically have their investments transferred to Bharat Bond FOF – April 2030.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

RBI Appoints Indranil Bhattacharyya as Executive Director, Effective March 19, 2025

The Reserve Bank of India (RBI) has announced the appointment of Indranil Bhattacharyya as Executive Director (ED), effective March 19, 2025. In this role, he will look after the Department of Economic and Policy Research (DEPR), which is responsible for economic research and policy formulation within the central bank.

Responsibilities as Executive Director

As Executive Director, Bhattacharyya will lead the Department of Economic and Policy Research at the RBI. His role includes overseeing research on economic trends, evaluating monetary and fiscal policies, and supporting policy decisions with data-driven insights. The department plays a central role in analysing macroeconomic developments and their impact on financial stability.

Professional Background

Bhattacharyya has been with the RBI for nearly 3 decades, working in areas such as monetary policy, fiscal policy, banking regulations, and international economic relations. His experience includes time in the Monetary Policy Department, the Department of Economic and Policy Research, and the International Department.

From 2009 to 2014, he worked as an Economic Expert in the Technical Office of the Governor at Qatar Central Bank, Doha. His role there involved providing economic insights and contributing to policy discussions.

Education and Research Interests

Bhattacharyya holds a postgraduate degree in Economics from Jawaharlal Nehru University (JNU), New Delhi. His research focuses on monetary theory and policy, financial markets, market microstructure, and fiscal policy.

Recent Executive Appointments at RBI

Earlier in the month, the RBI had appointed Ajit Ratnakar Joshi as Executive Director. Joshi was assigned to the Department of Statistics and Information Management and the Financial Stability Department.

Conclusion 

Bhattacharyya’s appointment comes as the RBI continues to focus on economic research and monetary policy amid changing global financial conditions. The DEPR’s role in assessing economic developments and providing policy recommendations remains crucial as the central bank monitors inflation, growth, and financial markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

NFO: ICICI Prudential Nifty EV & New Age Automotive ETF Opens for Subscription on Mar 21

ICICI Prudential Mutual Fund has announced the launch of the ICICI Prudential Nifty EV & New Age Automotive ETF, an open-ended exchange-traded fund (ETF) designed to track the performance of the Nifty EV & New Age Automotive Index. For investors who do not have a Demat account, the fund house is also introducing the ICICI Prudential Nifty EV & New Age Automotive ETF Fund of Funds (FOF), enabling wider participation in this emerging sector.

The ETF will be available for subscription from March 21, 2025, to April 2, 2025, while the FOF will be open for investment from March 28, 2025, to April 10, 2025.

Both schemes seek to offer exposure to India’s growing electric vehicle (EV) ecosystem and new-age automotive sector, encompassing electric 2-wheelers, 3-wheelers, passenger and commercial vehicles, battery manufacturers, component suppliers, raw material providers, and automotive technology companies.

Investment Focus and Benchmark

This new fund is designed to offer exposure to companies operating in the electric vehicle (EV) and new-age automotive ecosystem. The portfolio comprises electric two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, battery manufacturers, component suppliers, raw material providers, and automotive technology firms. The scheme follows the Nifty EV & New Age Automotive TRI as its benchmark index.

Minimum Investment Requirements:

  • ETF: ₹1,000 (plus in multiples of ₹1) during the NFO
  • FOF: ₹1,000 (plus in multiples of ₹1) during both the NFO and ongoing offer period

About the Nifty EV & New Age Automotive Index

The Nifty EV & New Age Automotive Index includes a selection of companies that are actively contributing to the EV transition in India. The top 10 stocks in the index represent a balanced mix of key players in EV manufacturing, hybrid automobile production, and advanced automotive technology.

Final Thoughts

The launch of the ICICI Prudential Nifty EV & New Age Automotive ETF and FOF provides an investment avenue for those looking to participate in the rapidly growing EV sector. While the fund offers diversified exposure to the new-age automotive industry, potential investors should carefully assess their risk appetite before making investment decisions.

Want to plan regular withdrawals? Our SWP Calculator helps you calculate how much you can withdraw while keeping your investments intact. Try it now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

IREDA Issues First-Ever Perpetual Bonds Worth ₹1,247 Crore and Secures ₹24.48 Crore Tax Refund

The Indian Renewable Energy Development Agency Limited (IREDA) has made a significant financial move by launching its first-ever issuance of Perpetual Bonds worth ₹1,247 crore, offering an annual coupon rate of 8.40%. This initiative is aimed at optimising the company’s capital structure and reinforcing its financial position to support India’s expanding renewable energy sector.

Why Perpetual Bonds?

Perpetual bonds, often referred to as “perps”, have no maturity date, meaning they provide long-term capital without requiring repayment of the principal. This issuance will boost IREDA’s Tier-I capital, ensuring financial stability and an enhanced capacity to fund clean energy projects. The decision aligns with the organisation’s broader strategy to scale up green energy investments amid favourable market conditions.

Tax Refund of ₹24.48 Crore: Financial Relief for IREDA

In addition to its bond issuance, IREDA has received a tax refund of ₹24.48 crore from the Income Tax Department. The refund pertains to partial relief granted by the Commissioner of Income Tax (Appeals) for Assessment Year (AY) 2011-12, following disputes related to disallowances.

Furthermore, the company is anticipating an additional refund of approximately ₹195 crore for similar cases spanning Assessment Years 2010-11, 2012-13, 2013-14, and 2015-16 to 2018-19. The pending refunds, once received, will provide further financial flexibility to the organisation.

IREDA’s Vision for India’s Renewable Energy Sector

IREDA’s Chairman and Managing Director, Shri Pradip Kumar Das, described this move as a historic milestone. He said “This is a historic milestone for IREDA. We extend our gratitude to investors for their enthusiastic response. Strengthening our capital base through Perpetual Bonds will enable us to scale up financing for renewable energy projects, accelerating India’s transition to a cleaner and more sustainable future.” 

Conclusion

The issuance of perpetual bonds and the tax refund marks a pivotal moment for IREDA, ensuring long-term financial strength while reinforcing its commitment to green energy development. With capital optimisation and an expanding funding base, IREDA is poised to play a crucial role in India’s renewable energy transition.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.