In March and April, India’s Unified Payments Interface (UPI) system experienced 3 major outages, affecting transactions on platforms like GPay and PhonePe. One such disruption was due to banks flooding NPCI’s servers with transaction status checks, as per news reports

How the UPI System Works?

UPI is based on the Immediate Payment Service (IMPS) architecture and allows customers to access bank accounts via mobile apps. Although designed as interoperable, almost all transactions are routed through the National Payments Corporation of India (NPCI).

 Srikanth Lakshmanan, a member of the Cashless Consumer project, explained in an interview with The Hindu, “The NPCI is essential in this process,” since it encrypts the PIN information, known only to the bank and sends the payment information forward to a payer’s bank. “So if there’s a downtime in the NPCI, there’s no way your bank would get your PIN. This is where it is a single point of failure.”

What Caused the NPCI Outages?

NPCI is owned by a consortium of banks, mostly public sector entities, which is in compliance with the Payment and Settlement Systems Act, 2007. While banks lead the implementation, recent incidents saw some flood NPCI systems with “check transaction” requests, overburdening the infrastructure.

To reduce reliance on full transaction flows, UPI Lite was introduced, allowing up to ₹2,000 payments without entering a PIN. However, Mr. Lakshmanan noted, “You don’t do a PIN authentication, but other communication still goes through NPCI. This is why even though UPI Lite is light, it still requires NPCI to be in the middle.”

Friction Between Banks and UPI

While UPI has transformed digital payments in India, recording over ₹58 crore transactions worth over ₹73,000 crore in a single day, banks earn little revenue. The RBI estimates ₹0.80 per transaction as a cost to banks, but without charging capabilities, financial pressure persists. They cannot charge a Merchant Discount Rate (MDR), reducing the motivation to maintain consistent uptime.

Mr. Lakshmanan explained that individual bank outages are more frequent than system-wide failures like NPCI’s, unlike global card networks like Visa or Mastercard, which maintain higher reliability through enforced service level agreements.

To compensate banks and encourage better service, the Ministry of Electronics and IT has implemented an incentive program, which penalises low-performing banks. “If you’re at the bottom [in terms of uptime], you get nothing,” Mr. Lakshmanan said.

Conclusion

The recent UPI downtimes highlight operational vulnerabilities within India’s digital payment infrastructure. With limited earnings and rising infrastructure costs, banks lack strong uptime incentives.

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.

कर्मचारी भविष्य निधि संगठन (ईपीएफओ) ने कर्मचारियों के लिए आधार-आधारित चेहरा प्रमाणीकरणका तकनीक (एफएटी) का उपयोग करके अपने सार्वभौमिक खाता संख्या (यूएएन) उत्पन्न और सक्रिय करने के लिए एक नई विधि शुरू की है। यह सुविधा अब उमंग  मोबाइल एप्लिकेशन के माध्यम से उपलब्ध है। 

नियोक्ता के बिना यूएएन उत्पन्न करना अब संभव है 

पहले, यूएएन उत्पन्न करने की प्रक्रियाा नियोक्ताओं द्वारा संभाली जाती थी, जिन्होंने ईपीएफओ को कर्मचारी डेटा प्रस्तुत किया था। हालांकि आधार का उपयोग सत्यापन के लिए किया गया था, लेकिन अन्य क्षेत्रों में त्रुटियां, जैसे कि कर्मचारी के पिता का नाम या मोबाइल नंबर, आम थीं। इन मुद्दों के कारण दावों या अन्य सेवाओं के दौरान देरी और मैनुअल सुधार हुए।

अद्यतन प्रणाली कर्मचारियों को सीधे यूएएन उत्पन्न और सक्रिय करने की अनुमति देता है। यउमंगी और आधारफेसआरडी ऐप का उपयोग करके, कर्मचारी अपने आधार विवरण दर्ज कर सकते हैं, ओटीपी के माध्यम से सत्यापित कर सकते हैं, और प्रक्रिया को पूरा करने के लिए एक लाइव तस्वीर कैप्चर कर सकते हैं। आधार रिकॉर्ड के साथ मिलान होने के बाद, यूएएन स्वचालित रूप से उत्पन्न और सक्रिय हो जाता है। ई-यूएएन कार्ड भी डाउनलोड के लिए उपलब्ध कराया गया है। 

सक्रियण दरें और तकनीकी विवरण 

श्रम और रोजगार मंत्रालय के अनुसार, वित्तीय वर्ष 2024-25 में, ईपीएफओ द्वारा 1.26 करोड़ से अधिक यूएएन आवंटित किए गए थे। हालांकि, उनमें से केवल 35.3%, लगभग 4.5 मिलियन, सदस्यों द्वारा सक्रिय किए गए थे। कम सक्रियण दर का एक कारण सदस्यों के लिए आधार-ओटीपी सत्यापन को अलग से पूरा करने की आवश्यकता थी, जिससे अक्सर भ्रम होता था। 

नई प्रक्रिया के तहत, सक्रियण उत्पन्न के साथ होता है, और मोबाइल नंबर आधार के साथ स्वतः सत्यापन होते हैं। नई विधि का उद्देश्य त्रुटियों को कम करना और प्रक्रिया को सुव्यवस्थित करना है। 

भविष्य के उपयोग के मामले और विस्तार 

मंत्रालय ने रिपोर्टों के अनुसार, पेंशनभोगियों के लिए चेहरा प्रमाणीकरण सेवाओं का विस्तार करने की योजनाओं की पुष्टि की है। मेरा भारत के तहत युवा स्वयंसेवक जीवन प्रमाण प्लेटफॉर्म का उपयोग करके डिजिटल जीवन प्रमाण पत्र जमा करने में पेंशनभोगियों की सहायता करेंगे। 

निजी भविष्य निधि ट्रस्टों के लिए अंकेक्षण 

ईपीएफओ निजी भविष्य निधि ट्रस्टों का अंकेक्षण भी शुरू करेगा जिन्हें अनियमितताओं या कुप्रबंधन के बारे में शिकायतें मिलती हैं। यह कदम श्रम मंत्री द्वारा कदाचार की रिपोर्ट प्राप्त होने के बाद आया है। मंत्रालय ने कुछ निजी पीएफ ट्रस्टों के अपारदर्शी कामकाज के बारे में चिंता जताई है। 

निष्कर्ष 

नई प्रणाली यूएएन जनरेशन में सटीकता में सुधार करने और मौजूदा प्रक्रियाओं में अंतराल को दूर करने के लिए डिज़ाइन की गई है, साथ ही निजी पीएफ ट्रस्टों की निगरानी को भी उन्नत किया गया है। 

अस्वीकरण: यह ब्लॉग केवल शैक्षिक उद्देश्यों के लिए लिखा गया है। उल्लिखित प्रतिभूतियां केवल उदाहरण हैं और सिफारिशें नहीं हैं। यह व्यक्तिगत सिफारिश/निवेश सलाह नहीं है। इसका उद्देश्य किसी व्यक्ति या संस्था को निवेश निर्णय लेने के लिए प्रभावित करना नहीं है। प्राप्तकर्ताओं को निवेश निर्णय लेने के लिए अपना शोध और आकलन करना चाहिए। 

प्रतिभूति बाजार में निवेश बाजार जोखिमों के अधीन हैं, निवेश करने से पहले सभी संबंधित दस्तावेजों को ध्यान से पढ़ें। 

In the wake of the COVID-19 pandemic, investors across the world were jolted into rethinking their asset allocation. For the Indian investor, 2 favourites often take centre stage: equity (via the Nifty 50 index) and gold. Both are considered wealth-builders, but their behaviour during volatile periods often differs dramatically.

The attached chart compares the growth of ₹1,000 invested in Nifty 50 and gold from March 2020 to April 2025. And the results are closer than one might expect.

The Performance Scorecard: Stocks vs Gold

• Gold: ₹1,000 invested in gold is now worth ₹2,089 — a gain of +108.96% 
• Nifty 50: ₹1,000 invested in India’s benchmark index is now worth ₹2,039 — a gain of +103.97%

While gold edges out equities by a small margin over the five-year period, the journey hasn’t been as smooth.

Read More: Nifty 50 vs Gold: Investment Returns Revealed. 

Volatility: The Investor’s Silent Enemy

A deeper look at the chart reveals gold had sharper, more jagged ups and downs, especially in the early part of 2020 and again during global macroeconomic events. Nifty 50, on the other hand, displayed a more consistent upward trend, though it did witness notable drawdowns in 2022 and early 2023.

This tells us something crucial — gold may win slightly in returns, but Nifty may have been less stressful to hold over the long haul, particularly for investors with systematic investing habits like SIPs.

What This Means for Investors Today

Had you chosen either asset in 2020, you would have doubled your money. But the choice between them depends on your risk appetite and investment goal:

• Gold acts as a hedge in times of crisis and is often inversely related to equities. 
• Equities (Nifty 50) represent growth and economic expansion — volatile in the short run but rewarding in the long term.

Both play important roles in a diversified portfolio. This comparison reinforces the value of balance — a blend of growth (Nifty) and stability (gold).

Conclusion

The takeaway isn’t to pick one over the other, but to ask — how much of each should you hold? As the market evolves and geopolitical risks remain, having a foot in both camps might just be the most prudent strategy for wealth creation and preservation.

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.

According to the NDTV Profit report, in a first-of-its-kind initiative, the Central Board of Direct Taxes (CBDT) has rolled out an aggressive action plan for the fiscal year 2025–26. Setting an ambitious target of unearthing ₹2.4 lakh crore in undisclosed income, the move underscores the government’s renewed commitment to tackling black money and systemic tax evasion. According to reports, this internal directive aims not only at curbing malpractices but also at deepening the formalisation of India’s economic ecosystem.

Key Components of the Action Plan

The CBDT’s internal strategy outlines a structured approach to achieving its ambitious goal. Each jurisdiction has been assigned specific undisclosed income recovery targets and operational milestones. Notably, 60% of the target must be achieved through intrusive methods such as search and seizure operations, while the remaining 40% is expected to come through non-intrusive means, including data analysis and financial intelligence.

The timeline is strict: each jurisdiction must carry out at least one major search operation by 31 July 2025, and two additional operations between August and March 2026.

Sector-Specific Focus: High-Risk Domains Under Scrutiny

Recognising the opacity prevalent in certain sectors, the CBDT has asked its Investigation Wing to identify high-risk sectors by May-end. The sectoral analysis will be finalised at the Directorate General of Income Tax (DGIT) level by December 2025, with final reports to be submitted by February 2026.

The sectors under consideration span manufacturing, services, agriculture, mining, local liquor trade, international trade, hawala transactions, healthcare, accommodation, scrap dealing, and other ancillary or unregulated domains. Each DGIT is expected to select sectors based on the potential for large-scale evasion and structural loopholes.

Jurisdiction-Wise Targets: Mumbai Leads the Chart

The CBDT has adopted a granular approach by setting jurisdiction-wise targets:

• Mumbai: ₹60,000 crore

• Delhi: ₹45,000 crore

• Bengaluru: ₹20,000 crore

• Ahmedabad: ₹20,000 crore

This distribution reflects the economic heft and historical trends of informal sector activity in these cities. It also signals a geographically diversified enforcement mechanism to ensure comprehensive coverage.

Bridging the Gap: Integrating the Informal Economy

A central objective behind the crackdown is to bring sectors with high evasion risks into the formal tax net. The CBDT has highlighted the pressing need to study domains where underreporting or non-reporting is prevalent. By focusing on formalisation, the Board seeks to bolster tax compliance and improve transparency across critical sectors of the economy.

The strategy also involves designing specific compliance frameworks suited to the operational realities of each sector, rather than adopting a one-size-fits-all approach.

Read More: The Ultimate Guide to Income Tax

Conclusion

The CBDT’s FY26 action plan marks a significant shift in India’s approach towards unearthing black money and integrating informal economic activities into the mainstream. By combining intrusive enforcement actions with sophisticated data-backed intelligence, the Board is setting a precedent for rigorous tax administration. The coming months will be critical in determining how successfully these targets are achieved and what lasting impact they will have on India’s fiscal landscape.

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.

India and France have signed a significant defence agreement valued at approximately ₹63,000 crore for the acquisition of 26 naval variants of Rafale fighter jets. These jets, manufactured by French aerospace major Dassault Aviation, will be deployed aboard India’s indigenous aircraft carrier, INS Vikrant, enhancing the Indian Navy’s operational readiness.

Key Features of the Procurement

Under the government-to-government deal, India will procure 22 single-seat Rafale M fighters and 4 twin-seat trainer aircraft. This procurement package also includes an array of associated equipment such as weapons, simulators, spare parts, ancillary gear, as well as crew training and comprehensive logistics support.

The deal was formally approved earlier this month by the Cabinet Committee on Security (CCS), chaired by Prime Minister Narendra Modi.

Strategic Importance for the Indian Navy

The acquisition of Rafale M jets addresses an urgent operational requirement for the Indian Navy. Until India develops its own twin-engine deck-based fighter (TEDBF), these jets will serve as a critical interim capability.

The Rafale M, known for its robustness, is specially designed to perform in challenging aircraft carrier environments. These operations often involve exposure to corrosive maritime conditions, demanding resilient design and superior operational flexibility.

Read More: Defence Ministry Signs ₹6,900 Crore Deal for Artillery Systems and Vehicles With Bharat Forge and Tata Advanced Systems

Background and Approval Timeline

In July 2023, India’s Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved the proposal to purchase 26 Rafale M fighters. This decision aimed to sharpen the Navy’s combat capabilities by equipping it with technologically advanced fighter jets suitable for carrier-based operations.

The Rafale M currently serves aboard the French Navy’s flagship, the Charles de Gaulle aircraft carrier, underscoring its proven operational credentials in similar naval environments.

Conclusion

The finalisation of this deal marks another milestone in India-France defence cooperation. With this strategic acquisition, the Indian Navy is set to strengthen its maritime air power, securing its position in the region while progressing towards self-reliance in advanced fighter development.

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.

Overseas remittances by Indian residents under the Liberalised Remittance Scheme (LRS) witnessed a significant decline in February 2025. According to data released by the Reserve Bank of India (RBI), outward remittances dropped by 29% to $1,964.21 million compared to $2,768.89 million recorded in January. A closer examination reveals multiple factors contributing to this sharp fall, including subdued travel demand, reduced student migration, and broader economic volatility.

Sharp Decline in Travel and Education Remittances

A major contributor to the overall fall in remittances was the decline in funds sent abroad for travel and education. RBI data indicates that remittances for travel purposes plummeted by 33.77%, from $1,646.74 million in January to $1,090.61 million in February. Similarly, remittances for studies abroad halved, registering a 50.52% drop to $182.17 million.

This trend coincides with a significant drop in the number of Indian students travelling to foreign universities. For the first time in 4 years, study permits issued to Indian students in Canada, the United States, and the United Kingdom declined by at least 25% in 2024. The combination of reduced educational migration and hesitant travel due to global uncertainties sharply impacted remittance volumes.

Global Volatility and Postponed Travel Plans

Travel industry sources have highlighted that a notable segment of Indian travellers either postponed or cancelled their trips during this period. The global economy faced volatile movements, influencing consumer sentiment and prompting individuals to delay discretionary spending on international travel. This cautious approach was visible in the February remittance figures.

Investment Remittances Witness a Surge

Interestingly, even as travel and education-related remittances declined, investments in foreign equity and debt saw a marked increase. RBI data shows that remittances for investment purposes surged to $173.84 million in February, up from $104.98 million in January. This suggests that some Indian residents shifted their focus towards overseas investment opportunities amidst global market corrections.

Impact of TCS Changes Announced in Union Budget 2025

Another development during the period was the Union Budget announcement in February 2025, which revised the threshold for collecting Tax Collected at Source (TCS) on LRS transactions from ₹7 lakh to ₹10 lakh. This move was aimed at providing relief to outbound tourism, education, and the foreign exchange sectors. While the new threshold was expected to encourage higher remittance activity in the coming months, the immediate effect on February’s figures appears muted.

It is important to note that TCS is not an additional tax burden. Taxpayers can claim a refund or adjust it against their tax liability while filing income tax returns.

Read More: TCS on Foreign Remittances: What Changes from April 1 for Education and Travel

An Overview of LRS and Recent Trends

Under the Liberalised Remittance Scheme, resident individuals, including minors, can freely remit up to $2,50,000 per financial year for permissible current or capital account transactions. These include purposes such as education, medical treatment abroad, purchase of immovable property, and investments in foreign securities.

For the year ended March 2024, outward remittances under LRS amounted to $31.735 billion. Travel emerged as the largest contributor, accounting for over 50% of total outward remittances at $17 billion. In contrast, student-related remittances stood at $3.47 billion during the same period. This marks a significant transformation when compared to FY14, when travel constituted just 1.5% of outward flows.

Conclusion

The 29% decline in overseas remittances under LRS in February 2025 reflects a confluence of factors — a decrease in international student migration, postponed travel plans amidst global uncertainty, and policy changes related to taxation. While investment-related remittances have grown, the broader picture highlights evolving patterns in how Indian residents engage with the global economy.

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.

In an effort to fast-track the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGMBY), the Union Finance Ministry has instructed banks to rely exclusively on the National Portal for all consumer validation, installation verification, and site feasibility assessments. According to a recent report, physical verification, often cited as time-consuming, will be phased out in favour of a streamlined, digital-only process.

Key Features of the PMSGMBY Scheme

The PMSGMBY initiative targets the installation of rooftop solar systems for both rural and urban households across India. The scheme aims to reach 10 million homes, providing affordable access to renewable energy solutions. A collateral-free standard loan product is available under the programme, offering financing linked to the repo rate plus 50 basis points (Repo + 50 bps) for amounts up to ₹2 lakh.

Progress and Current Status

As per the latest figures, approximately 4.1 million applications have been received under the scheme. Of these, around 1.1 million installations have been successfully completed. On the financial side, roughly 375,000 loan applications have been submitted, leading to the sanctioning of about 2 lakh loans. Over ₹4,600 crore has been sanctioned, with more than 75% of loan applications relating to amounts up to ₹2 lakh.

Vendor Support and Financial Innovations

The report also highlights the need for new financial products tailored for vendors. A working capital instrument specifically designed for vendors is being proposed, with encouragement for private sector banks to support its adoption. Additionally, there is an emphasis on aiding applicants without a Credit Information Bureau (India) Limited (CIBIL) score, thus making the scheme more inclusive.

Read More: Uttar Pradesh Government Sets Ambitious Rooftop Solar Target Under PM Surya Ghar Yojana. 

Strengthening Ground-Level Activities

To further support the rollout, banks are being encouraged to strengthen field activities. This includes technical and product training at the branch level, consumer awareness programmes, the setting of branch-specific targets, and continuous monitoring through State Level Bankers’ Committees (SLBCs) and District Level Bankers’ Committees (DLBCs).

Integrating Renewable Finance Obligations

The Finance Ministry report also suggests that renewable finance obligations be explored and integrated into the banking system, alongside the expansion of Priority Sector Lending (PSL) to bolster support for renewable energy initiatives.

Enhancements to Application Processing

Recognising the need for greater flexibility in the application process, the report proposes introducing a functionality allowing applicants to modify their bank name prior to final submission. Furthermore, a confirmation popup verifying the selected bank and branch details before proceeding will be incorporated to minimise errors.

Conclusion

Under the current model, the consumer’s average contribution is estimated at around ₹15,000. Vendors receive the government subsidy in two tranches — 70% initially and 30% upon completion. Despite digital integration through the National Portal and the Jan Samarth platform, the process still entails multiple compliance steps such as branch visits, site verification, and document submission.

Importantly, the financing potential of the scheme is valued at ₹2 trillion, presenting a significant opportunity for the banking and financial sectors.

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.