Issue: 1181
· RBI introduces stricter
digital payment security rules from April 1; OTP alone not sufficient, stronger
authentication required.
· Income Tax Act 2025 implemented
from April 1, replacing the Income Tax Act 1961 and simplifying tax provisions.
· From April 2026, risk-based
deposit insurance premium system for banks implemented.
· Sensex and Nifty surged
sharply, banking stocks led the rally after previous losses.
· RBI tightened forex rules and
restricted banks from offering rupee NDF contracts to curb rupee speculation.
USTR flags barriers as US
trade deficit with India widens 27% in 2025: The US goods trade deficit
with India increased 27 per cent to $58.2 billion in 2025 from $45.8 billion
the previous year while its services trade balance turned into a $5.1 billion deficit compared to a surplus of
$102 million in 2024, per the US Trade Representative’s (USTR) 2026 National Trade Estimate (NTE) report
on foreign trade barriers. The report identifies significant trade barriers in
India, including high tariffs on several farm items, automobiles and alcohol,
non-tariff barriers (NTBs) such as import restrictions and licences, digital
trade restrictions, and unpredictable regulatory changes.
(Moneycontrol)
GST collection exceeds ?2
lakh crore in March: For the first time after rate
rationalisation, collection from Goods & Services Tax (GST) in March
crossed ?2 lakh crore, data on GST portal showed. Also, this number is achieved
without compensation cess. However, experts anticipate cautious trajectory in
April. GST collection in March is related with goods consumed and services
availed in February. According to GST portal, collection was over ?2 lakh crore
as against ?1.83 lakh crore of March 2025. This shows a growth of around 9 per
cent. However, growth from domestic sources was just 6 per cent while that from
import was around 18 per cent. For full fiscal, the growth rate in gross
collection was 8.3 per cent.
(Business Line)
India’s crude imports fall
15% in March; Gulf share shrinks as Russia surges: India’s crude oil imports fell
nearly 15% month-on-month in March to 4,444 thousand barrels per day (tbpd)
from 5,202 tbpd in February, as disruptions in the Strait of Hormuz sharply
altered sourcing patterns, with Gulf suppliers losing share and Russia emerging
as the dominant contributor. The shift in country dynamics
was stark. Russia’s crude supplies surged from 1,041 tbpd in February to 1,969
tbpd in March — an increase of nearly 89% — pushing its share to roughly 44% of
India’s total imports, compared to about 20% in the previous month. This marks
a sharp rebound in Russian flows, which had declined steadily from 2,089 tbpd
in June 2025 to just 1,041 tbpd in February 2026, before spiking again in March
to peak levels.
(Financial Express)
RBI tightens rules
governing FX derivatives to curb wild swings and depreciation of the Rupee: To curb wild swings and
depreciation of the rupee, the RBI has tightened rules governing foreign
exchange derivatives, barring Banks authorised to deal in foreign exchange from
offering non-deliverable derivative contracts involving the rupee to resident
or non-resident users. It also stopped Authorised Dealers (ADs) from rebooking
any foreign exchange (FX) derivative contract involving INR, whether
deliverable or non-deliverable, which is cancelled with immediate effect. RBI
said ADs may, however, continue to offer deliverable FX derivative contracts to
users to meet their hedging requirements, provided that the user does not
undertake offsetting non-deliverable derivative positions.
(Business Line)
Delhi HC declines stay on
PSB incentive scheme: The Delhi High Court has
declined to halt the 2024 performance-linked incentive scheme for senior public
sector bank officials. Bank employee unions challenged the scheme, arguing it
unfairly benefits a small percentage of the workforce and contradicts bipartite
settlements. The court has requested responses from the government and the
Indian Banks Association. The All India Bank Officers'
Confederation, All India Bank Employees' Association and the National
Confederation of Bank Employees have challenged the scheme, alleging arbitrary
action by the government.
(Economic Times)
Banks, telecom companies to
chuck OTPs, adopt silent authentication: Banks and telecom companies
are developing a silent authentication mechanism to combat SIM cloning and eSIM
swaps. This background check verifies mobile number and SIM card matches,
flagging or blocking suspicious transactions in real-time without customer
action. This move enhances security beyond traditional OTPs, aligning with new
RBI mandates for two-factor authentication.
(Economic Times)
Gold loans are
booming in India; loan originations soar 108% in value in December: Gold loans are booming, surging in both
volume and value, driven by rising gold prices and increased originations. This
trend positions gold loans as a major retail product, expanding beyond
traditional areas into new regions. Lenders are focusing on credit-tested
individuals, with women and rural consumers forming a significant base,
indicating a mainstream shift for this lending category.
(Economic Times)
Axis Bank
launches Aadhaar Face Authentication for mobile number update: Axis Bank has launched a new digital
feature that allows customers to update their registered mobile numbers through
Aadhaar-based face authentication on its mobile banking app, eliminating the
need to visit a branch. The process involves three simple steps:
entering your new number, completing face verification, and confirming with an
OTP. The bank said it is the first among major
lenders to roll out a do-it-yourself (DIY) journey using Unique Identification
Authority of India’s Aadhaar Face Authentication service for this process.
(Economic Times)
Amazon cloud operations in
Bahrain damaged as Iran targets Batelco, home to AWS infrastructure: Amazon's cloud computing operation in Bahrain
after an Iranian strike hit the headquarters of Bahrain Telecommunications
Company (Batelco) in Hamala, escalating its targeting of US-linked
infrastructure in the Gulf, reported The Financial Times. Batelco is the
country’s largest telecom operator and hosts Amazon Web Services
infrastructure.
(Moneycontrol)
India Inc steps up CSR
spend:
Corporate
Social Responsibility (CSR) spending by eligible listed companies surged to
?19,208 crore in FY24, marking the sharpest rise in five years, according to
Crisil’s CSR Yearbook 2025. The number of companies reporting CSR expenditure
climbed to a record 1,678. A majority of companies continue to go beyond the
mandated requirement of 2% of their average net profit from past 3 years,
signalling CSR is increasingly treated as a strategic commitment rather than a
regulatory obligation.
(Business Line)
Sensex, Nifty surge as Donald
Trump hints at timeline to end Iran war: Domestic equities recovered on Wednesday, in
line with global markets, after the US hinted at a potential timeline for
ending the conflict in Iran, easing concerns over crude oil prices and reviving
risk appetite. Brent crude briefly slipped below the $100-a-barrel mark
following the remarks, while global bond prices rallied, further supporting
demand for riskier assets. US President Donald Trump on Tuesday said American
forces could withdraw from Iran within “two or three weeks”, adding that the US
would end its involvement in the war “whether we have a deal or not”. Asian and
European markets climbed over 2 per cent, tracking overnight gains on Wall
Street.
(Business Standard)
Government notifies
Conditional Concessional Customs Duty for SEZ to Domestic Tariff Area sales to
boost manufacturing capacity: In line with the Budget announcement 2026,
conditional customs duty concessions have been notified on clearance of goods
manufactured in Special Economic Zones (SEZs) to the Domestic Tariff Area (DTA)
to improve capacity utilisation of manufacturing units impacted by global trade
disruptionsThe measure allows eligible SEZ manufacturing units to clear goods
to the DTA at concessional duty rates, subject to a limit of 30 per cent of the
highest annual Free on Board export value achieved in any of the three
immediately preceding financial years. Export benefits such as duty drawback on
inputs are not permitted for such clearances to prevent double benefits. The
notification prescribes key eligibility conditions, including a minimum 20 per
cent value addition within the SEZ, calculated using a defined formula based on
assessable value and input costs..
(PiB)
RBI says banks
cannot offer NDF contracts as its tightens forex norms: The Reserve Bank of India has tightened
foreign exchange rules. Banks can no longer offer non-deliverable forward
contracts involving the rupee to clients. This move aims to curb the rupee's
decline. The central bank also stopped banks from rebooking cancelled
derivative contracts. These new regulations are effective immediately. Bankers
believe this makes it harder for banks to manage losses.
(Economic Times)
PARETO EFFICIENCY
§
Pareto
efficiency, also known as Pareto optimality, describes a situation in which
resources are distributed in such a way that improving one person's well-being
would inevitably reduce someone else's.
§ Pareto efficiency implies that resources are
allocated in the most economically efficient manner, but does not imply
equality or fairness. An economy is said to be in a Pareto optimum state when
no economic changes can make one individual better off without making at least
one other individual worse off.
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 94.6543
INR
/ 1 GBP : 125.6347
INR
/ 1 EUR : 109.0064
INR
/100 JPY: 59.2500
EQUITY INDEX
Sensex:
73134.32 (+1186.77)
NIFTY:
22679.40 (+348.00)
Bnk NIFTY: 51448.65 (+1173.30)
World Autism
Awareness Day: 2 April is globally recognized as World Autism
Awareness Day, officially established by the United Nations to raise awareness,
promote acceptance, and support research, diagnosis, and better living conditions
for individuals with autism spectrum disorders. It is one of only seven
official health-specific UN Days, often marked by lighting landmarks blue.
Historical
events: April 2nd holds
major significance in Indian and world history, most notably marked by India's
2011 Cricket World Cup victory, the establishment of the RBI, and the globally
observed World Autism Awareness Day. It has also seen historical milestones
like the 1926 Calcutta riots, key inventions, and significant political shifts
across the world.
****Have a nice Day****
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