Context:
Recently, the Union Cabinet approved an incentive scheme for the promotion of RuPay debit Cards and low value BHIM UPI transactions (person merchant) in FY 2022-23. The scheme has an outlay of ₹ 2,600 crore.
| Probable Question:
Q. What role does the digitization of payments play in the development of India’s economy? Discuss the challenges and opportunities it presents for the financial sector. |
More on News:
Compare and Contrast between NRE and NRO Account:
| Information | NRE Account | NRO Account |
| About | An NRE account is a bank account opened in India in the name of an NRI, to park his foreign earnings | An NRO account is a bank account opened in India in the name of an NRI, to manage the income earned by him in India.
These incomes include rent, dividend, pension, interest, etc. |
| Account type | Used by non-residents to transfer earnings from foreign soil to India | Used to manage income earned in India by non-residents |
| Tax | Exempt from tax. Neither the balance nor the interest earned is taxable | Interest earned is taxable at 30% according to the Income Tax Act 1961 |
| Repatriation | Principal amount and interest accumulated are open to repatriation | Interest amount can be repatriated, principal amount can be remitted only up to USD 1 million in a financial year |
| Joint account | Can be opened with another NRI | Can be opened with one or more NRIs or Indian citizens |
Implications of the policy
| Additional Information:
About MDR:
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News Source: The Hindu
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February 2, 2023