BBC Income tax raid India

BBC Income tax raid India

BBC is back in the news on not for a new documentary but for an income tax rade.

BBC offices have been raided by the Indian Income tax department the rades were conducted in Delhi in Mumbai the authorities is not calling them raids they says it's  just service 

what for to investigate taxi vision a team of 15 official search the offices in Delhi in Mumbai they are looking for documents related to the BBC business operations in India there are alligations of irregularities this relates to international taxation and transfer pricing.

Reports says the mobile phones of employees seaside those in office what told to return home those at home told not to come to office the reports to get a storm on social media remember this action comes days after the BBC broadcast documentary it relates to the 2002 Gujarat rites and implicates prime minister Narendra Modi who was then the chief minister of Gujarat the documentary came in for a lot of criticism the prime minister the UK said he did not agree with the characterization of Modi The Us Government dismissed it and India Blocked it documentary came in for a lot of criticism the prime minister of the UK said he did not agree with the characterization of Modi the US government dismisted in India blocked it today's it survey comes in the wake up this route and opposition parties are criticizing it they say the government is being vindicated which is not surprising this is what the opposition is meant to do.

But here something the Opposition Leader may not bring up the BBC had a trouble history with India it was launched as a mouth piece of colonial British and long after the British left the broadcaster perpetuated the biasis the BBC has been repeatedly expel from India every time it has the Congress was in power in 1970 they broadcast 2 documentaries Calcutta and Phantom India both by French film maker they showed India in a bad light then Congress government banned the documentaries and expelled the BBC from India for 2 years then in 1975 in Indira Gandhi imposes Emergency a statement signed by 41 Congress MP's accused the BBC for Broadcasting anti India stories they are the government to not allow the BBC to report again from Indian soil This time BBC is on the documentary investigation.

Wait for the full story to emerge and read some history in the meantime.

Digital Currency vs Cryptocurrency

 Background:

 A digital currency is a type of electronic money that can be used in contactless transactions. Union Budget 2022 announced that the Reserve Bank of India (RBI) would soon launch its digital currency, the Central Bank Digital Currency (CBDC), in 2023. 

What is Central Bank Digital Currency (CBDC)?

• 
  CBDC is a digital or virtual currency, but it differs from the private virtual currencies and cryptocurrencies that have exploded in popularity over the last decade. 
• Because there is no issuer, private virtual currencies do not represent any person's debt or liabilities. They aren't money, and they aren't even close to being currency. 
• The Reserve Bank of India has been a vocal opponent of private cryptocurrencies, claiming that they could jeopardize national security and financial stability. 
• The Reserve Bank of India (RBI) will issue Central Bank Digital Currency (CBDC), which will be a digital form of legal tender. 

Difference between digital rupee and cryptocurrency 

• The fundamental difference between the digital rupee and cryptocurrency is that the digital rupee, which will be issued by the RBI, will almost certainly be centralized. Cryptocurrencies, on the other hand, are decentralized and cannot be controlled by a single entity. 

Significance of CBDC

• CBDC is the sovereign currency in electronic form, and it would appear on a central bank's balance sheet as a liability (currency in circulation). 
• In addition, the digital currency will result in a more efficient and cost-effective currency management system. As a result, it is proposed that the Reserve Bank of India would issue a digital rupee beginning in 2022-23, based on blockchain and other technologies. 
• Players all over the world have the technology to use cryptocurrency as a form of payment for goods and services.
• Coin base, a cryptocurrency exchange based in the United States, allows merchants to accept cryptos.

Quality Education Sustainable Development Goals

Quality Education

Background: 

India has made tremendous educational progress, with a primary school enrollment rate of 99 percent. The Sustainable Development Goals have now shifted their focus to improving educational quality in order to ensure that children are actually learning in school. 

Concerns with Quality Education in India 

• 
  From a young age, our educational system fails our children. According to Pratham's Annual Survey of Education Report 2019, only about 51% of our children in Std III can read the Std I text. This means that half of all students in third grade are already two years behind where they should be. 
• Private schools are becoming increasingly popular among Indian parents, and demand for private education tends to rise in tandem with income levels. 
• For example, while nearly 90% of children in Bihar, India's poorest state, attended government schools in 2018-19, the same figure is less than 38% in Tamil Nadu, one of India's wealthiest states. 
• Due to a lack of opportunities and financial resources, the majority of rural youth skip school. They take menial jobs and relocate to other states, contributing significantly to a vicious cycle of poor educational quality

Digital Education: 

• While technology and online education are becoming more prevalent, there is no substitute for face-to-face education if no child is to be left behind.
• Access to complementary goods and services, such as smartphones and reliable internet access, is required for e-learning. 
• According to Pratham's 2020 survey for rural India, 38 percent of children's families do not have a smartphone, and another 45 percent have only one smartphone to which a child does not have exclusive access.
• In any case, the development of cognitive and interpersonal skills is critical during a child's formative years, and these can primarily be fostered through face-to-face learning methods. 

New Education Policy, 2020: 

• The goal of the New Education Policy, 2020 is to increase public investment in education to 6% of GDP.
• Multiple regulators in the education sector are causing conflict and increasing the compliance burden on educational institutions, according to NEP 2020. 
• This would increase private and foreign funding in India's traditional education system, similar to what has happened in the E-education sector in recent years, which has been less regulated. 

Key initiatives to achieve the aim of the New Education Policy 2020

Conclusion: 

Harnessing India's demographic dividend is largely dependent on the country's educational ecosystem. Almost a quarter of India's population is in the age group (6-23 years) that is expected to attend educational facilities and contribute to the country's human capital base. Furthermore, due to the Indian people's financial constraints, public education is critical. At a time when budget outlays for implementing the SDGs are limited, maximizing financial resources for educational infrastructure is critical.

Inclusive Growth

Inclusive Infrastructure

Background: 

Due to a stable and democratic political landscape, favourable demographics, a large captive domestic market, and sustainable external debt, the country's economic growth prospects are still viable. The Indian economy, on the other hand, is not without its flaws. The Indian government has introduced laudable policy initiatives such as the Production Linked Incentive (PLI) Scheme, PM Gati Shakti National-Master Plan, and the Atmanirbhar Bharat Mission to transform the economy and boost its longterm potential. 

Build Infrastructure, Enable Growth

• Infrastructure will essentially pave the way for a $5 trillion economy and beyond. From physical infrastructure to social infrastructure to digital infrastructure involving telecommunications and broadband to transportation networks, infrastructure creation and upgrade must be comprehensive. 
• 
  All of these require significant investments, and given the recent lull in private investment, the funds will essentially have to come from the government. 
• The government unveiled the National Infrastructure Pipeline (NIP) in 2019, which set targets for infrastructure building across various sectors and regions over the next six years (until FY25) by the government in collaboration with the private sector.
•  The central and state governments are proposed to fund the majority of this investment (approximately 80%). However, due to the continued slowdown and resulting lower revenues, their ability to do so effectively and in a financially prudent manner remains a challenge.

Focus: Manufacturing and Exports 

• Along with infrastructure development, key policy reforms and measures aimed at boosting the manufacturing sector, such as the PLI scheme, are expected to boost economic output in the coming years. 
• The PLI scheme will not only change the manufacturing landscape, but will also make India more competitive in terms of global supply chain integration. 
• As a result, the country's exports, job creation, and aid demand could all benefit.
• The Gati Shakti programme, which promotes multimodal infrastructure connectivity, has the potential to boost local manufacturing and facilitate exports.
• The success of these programmes, however, is contingent on the creation of enabling infrastructure and structural reforms. 

Digital Drive 

• The digitization of the Indian economy is one of the major transitions accelerated by the pandemic. In the coming years, technology and digitization are expected to dominate the Indian economy's narrative.
• Despite the rapid and widespread adoption of digital technology over the last two years, there are still gaps and challenges in terms of accessibility and ability to use it. 
• Though the government has been working on programmes to close the gap, the most pressing need is for the country's telecom and broadband infrastructure to be improved, as well as its digital literacy. 
• Know more about the Big Push for Infrastructure Development in the Country.

Rural Banking and Financial Services

What is Rural Banking? 

• The term "rural banking" refers to the provision of banking services to people who live in rural areas. 
• With the majority of the Indian population living in rural or semi-urban areas, rural banking has become an important part of the Indian financial markets. 
• Rural Bank: A rural bank can be defined as a rural financial institution/cooperative/community bank or deposit-taking financial institution that provides customized financial services to rural communities. 

Digital Payment Procedure in Rural India 

• By integrating more than half a million volunteers, also known as banking correspondents (BCs), job seekers in various rural schemes have achieved a new goal.
  
• By providing effective training based on cashless transactions, the new goal is to enrol shops and people in the e-economy.
• The National Payment Corporation of India has simplified the two payment systems, UPI and USSD. 
• Furthermore, villagers are much more at ease with fingerprints than with other security features. It would, however, help to increase enrollment rates.

Phygital Banking 

• Phygital Banking: Phygital banking is a combination of the words physical and digital banking. It's a type of banking that combines the convenience of a physical bank branch with the benefits of digitalization. 
• Need for Phygital Banking: The banking industry has advanced in terms of technology, and as a result, all digital customers expect real-time solutions to their problems. Digital is the driving force behind this expectation. However, it is important to note that the digital approach alone may not be sufficient to meet the needs of customers. 
• Impact of Covid-19 on Phygital Experiences 
• People have shifted to the digital landscape as a result of Covid-19 and social distancing norms being followed across the country. 
• During the lockdown, there was a significant increase in the use of digital banking. 
• Many customers have begun to use digital banking, which they were previously hesitant to do. 
• In this way, phygital has emerged as a reform to create an engaging customer journey; user experience is assisting in online banking transactions. 
• As a result, it is anticipated that Covid-19 will hasten Phygital experiences.

Challenges in Rural Areas for Digital Banking

• Digital illiteracy: The digital world and computers/smartphones are less familiar to the rural population. They don't even have a basic understanding of how to use a smartphone or a computer. The situation is also being exacerbated by a poor internet connection.
• Vulnerable system and the mistrust: The misconception is that if money is parked in a bank, it can be cheated or kept from being withdrawn, making people even more wary of digital transactions. Furthermore, the frauds that occur aggravate the situation. 
• Selective to non-acceptance of digital payments: Due to the limited number of entities willing to commit transactions in rural areas, non-acceptance by any of these limited entities may soon result in a non-digital payment mode, regardless of willingness to pay.
• Limited number of transactions: When a person makes a large number of transactions with the same merchant, he or she may be pushed to focus on payment convenience. People may be less willing to conduct transactions through the digital mode if there are a limited number of transactions, especially at the end of the month.
• Inadequate infrastructure: Smartphone adoption, internet access, electricity, and banking services are all insufficient. Even India's largest nationalized banks are struggling to provide basic banking services to the rural population. 

Way Forward:

• The Indian government should decouple the regulation of digital payments from central banking functions. As a result, this law allows payment regulation to be independent of central banking. 
• The digital payment function should be independent of the RBI's central banking utility. 
• In addition, SHGs may be able to assist individuals involved in the rural area's digital banking system campaign.
• Another way is to partner with various educational organizations and non-governmental organizations to raise awareness about digital transactions and financial literacy among rural people.

Artificial Intelligence in the Financial Sector

Why Artificial Intelligence in the Banking Sector? 

• The banking industry's quality of products and services is changing as a result of artificial intelligence. 
• It has improved customer experience by providing better data handling methods.
• It has also improved the efficiency of traditional processes by simplifying, speeding up, and redefining them.
• Data has become the most valuable asset in a financial services organization, thanks to the availability of technologies like AI. 

What are the drivers of AI disruption in banking? 

• The explosion of Data (Big Data): Because of changing customer expectations, the explosion of the big data market has had a significant impact on the banking industry. Banks are now able to provide more personalized services thanks to big data.
• Availability of infrastructure (Fast computers, hardware, software, Cloud): The rapid advancement of cloud technology allows for the processing of large amounts of data at lower costs and with greater scalability.
• Regulatory requirements: By automating data collection processes, improving the speed and quality of decisions, and enhancing the organization's readiness to meet regulatory compliance obligations, AI-driven solutions offer a chance to address some of the challenges in today's financial systems. 
• Competition: Banks are always competing with their industry peers, and more recently with FinTechs, to provide the best services to their customers. Banks are employing artificial intelligence to improve current service offerings, launch new ones, and provide a more personalized experience for their customers. 

Significance of AI in banking: 

• Continuous monitoring of user behaviour: Continuous monitoring of user behaviour through AI can help banks identify anomalies more quickly and efficiently, letting them take remedial action before end users are impacted and regulators spring into action.

• Risk management and compliance: AI-assisted underwriting gives banks a more detailed picture of a borrower, allowing them to make more informed loan decisions. To improve the accuracy of credit card fraud detection, AI and analytics-aided techniques can detect anomalous behaviour, provide multivariate forecasting, and improve risk control.

• Anti-money-laundering screening: Government systems and large financial institutions can benefit from machine learning (ML) combined with deep learning to monitor for potentially fraudulent activity. These technologies aid in the improvement of alert quality.
• Effective forecasting of cash flows: Users will find forecasting to be simple and accurate thanks to artificial intelligence. When an organization uses AI, it learns the cash flow patterns over time and provides an accurate forecast that is unique to that company. 
• Customer Support and Helpdesk: Humanoid Chatbot interfaces can be used to improve customer interaction efficiency and lower costs. 
• Wealth management for masses: Bot Advisors can manage individualized portfolios for clients based on their lifestyle, risk appetite, and expected returns on investment, among other factors. 

Challenges

• Large-scale implementation of high-end technology like AI in India will be difficult. 
• Experts believe that a number of challenges exist for the Indian banking sector using AI, ranging from a lack of credible and quality data to India's diverse language set. 
• The availability of relevant data is a significant challenge.
• Any AI work that banks do revolve around data access and privacy. Banks in India will have to design AI systems that comply with GDPR and other privacy regulations. 
• More skilled engineers are also needed to drive the segment, according to experts.
• The most significant challenge is a lack of qualified human resources; the current workforce is unfamiliar with the most up-to-date tools and applications. 
• Artificial intelligence (AI) poses a significant threat to bank employees who would be laid off. The widespread adoption of AI could result in a serious labour shortage in the industry. 

Fintech Growth

Fintech Revolution

What is FinTech? 

• FinTech refers to new digital technology that aims to improve and automate the delivery and use of financial services. 
• FinTech is a combination of "financial technology" and "finance." 
• In the twenty-first century, the term FinTech was coined to describe the technology used in the back-end systems of established financial institutions. 

The Rise of FinTech in India 

• India's payments infrastructure has improved significantly in recent years, thanks to the introduction of new payment mechanisms and interfaces like the Immediate Payments Service (IMPS), Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), and others. 
  
• The government's "Make in India" and "Digital India" initiatives also played a key role in accelerating Fintech adoption.
• The Reserve Bank of India (RBI) has pushed the growing use of electronic payments to establish a truly cashless society in recent years, which is commendable.
• Furthermore, government initiatives such as demonetization and the GST have created a significant growth opportunity for fintech projects across the country. 
• Digital payment systems have undeniably been the flag bearers of the Indian FinTech market, with the introduction of breakthrough platforms such as PayTM, PhonePe, MobiKwik, and others.
• Furthermore, the global partnership between Facebook and Reliance Jio is expected to have a significant impact on India's digital payments sector, with a particular focus on hyperlocal digital commerce that will reach tier 2 and 3 cities as well as rural areas. 

FinTech Trends for 2022 

In 2022, this growth is defined by several prevailing trends: 

Digital banking continues to grow: Digital banking is easier to access than ever before. Many consumers already manage their money, request and pay loans, and purchase insurance through digital-first banks. 

Blockchain: Blockchain technology that allows for decentralized transactions is likely to continue this trend in 2022 as more industries turn to advanced data encryption.

Artificial Intelligence (AI) and Machine Learning (ML): Client services have been redefined as a result of AI and machine learning technologies. AI and machine learning can help businesses cut costs, improve client value, and detect fraud

Covid-19 and Digital Payments 

• The Reserve Bank of India noted in its Annual Report 2020-21 that the Covid-19 pandemic fueled the proliferation of digital modes of payment. 
• FinTech's prospects in India's financial system in 2021-22 will be determined by the extent to which digital usage has become entrenched. 
• As a result of Covid's recent trend of remote working, the world has become smaller and financial as well as geographical borders have been broken. 
• In a world where boundaries are dissolving and the scope is vast, there are many opportunities for international expansion post-Covid. 

Way Forward: 

• In India, a large portion of the country remains unbanked, underserved and subject to a constantly changing regulatory environment. The Indian FinTech industry has received a much-needed boost as a result of the growing awareness of financial technology. All of these developments point to a positive shift toward FinTech, which has huge growth potential as the country moves toward widespread adoption.