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After a long wait, the Reserve Bank of India (RBI) on Wednesday released the digital lending guidelines based on the principle that lending business can be carried out only by entities that are either regulated by the central bank or entities permitted to do so under any other law.

The central bank has classified the universe of digital lenders into three groups – entities regulated by the RBI and permitted to carry out lending business; entities authorised to carry out lending as per other statutory/regulatory provisions but not regulated by RBI; and entities lending outside the purview of any statutory/ regulatory provisions.

The regulatory framework brought in by the RBI is directed at the first category, essentially entities that are regulated by the central bank and the lending service providers (LSPs) engaged by them.

“As regards entities falling in the second category, the respective regulator/ controlling authority may consider formulating or enacting appropriate rules/regulations on digital lending based on the recommendations of the working group of digital lenders," the RBI said.

“For the entities in the third category, the working group has suggested specific legislative and institutional interventions for consideration by the Central Government to curb the illegitimate lending activity being carried out by such entities," it said.

For the regulated entities, RBI has said all loan disbursals and repayments are required to be executed only between the bank accounts of borrower and the RE without any pass through/ pool account of the LSP or any third party.

Further, any fees, charges, etc., payable to LSPs in the credit intermediation process has to be paid directly by the regulated entity and not by the borrower. Also, the all-inclusive cost of digital loans in the form of Annual Percentage Rate (APR) is required to be disclosed to the borrowers. The central bank has said that there cannot be an automatic increase in the credit limit without explicit consent of the borrower.

On the data privacy front, RBI has said the data collected by digital lending apps (DLAs) has to be need based, they should have clear audit trails and should be only done with prior explicit consent of the borrower.

Further, these apps have to provide an option to borrowers to accept or deny consent for use of specific data, including the option to revoke previously granted consent, besides the option to delete the data collected from borrowers by the DLAs/ LSPs.

The central bank has also mandated that any lending sourced through DLAs have to be reported to Credit Information Companies (CICs) by regulated entities irrespective of its nature or tenor. “All new digital lending products extended by regulated entities over merchant platforms involving short term credit or deferred payments are required to be reported to CICs by the regulated entities," the RBI said.

This is particularly important given a number of 'buy now, pay later' players were not reporting the loans they were offering to CICs.

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India's retail inflation likely eased in July due to a fall in food and fuel prices yet stayed well above the Reserve Bank of India's upper tolerance limit for a seventh consecutive month, a Reuters poll found.

Food prices, which account for nearly half of the consumer price index basket, softened last month. But the bulk of the slowdown came from an easing in international prices and the lagged effect of government interventions to reduce import duties and restrictions on wheat exports.

The near-term inflation outlook remains highly uncertain as the uneven nature of this year's monsoon and a weak rupee currency may dull the effectiveness of those government efforts to tame consumer price rises.

The Aug. 2-9 Reuters poll of 48 economists showed inflation, as measured by the consumer price index (CPI) likely fell to an annual 6.78% in July, a five-month low, from 7.01% in June.

Forecasts ranged from 6.40% to 7.10% for the data, which is due at 1200 GMT on Aug. 12.

Food and energy prices are essentially easing quite marginally, even as the rupee hit historic lows in recent weeks," said Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics.

"It (inflation) could remain sticky over the next few months, but it's not going to be much worse than where we are at currently."

Wholesale price inflation was seen moderating to 14.20% in July from 15.18% in June, the poll showed.

While the lagged effect from a cut in fuel taxes helped restrain price pressures somewhat, consumer price rises are expected to persist at a strong pace in the months ahead.

India's central bank, a relative laggard in the global tightening cycle, raised interest rates on Friday by 50 basis points to 5.40%, taking it above where it was before the pandemic, with more rate rises expected to come.

Governor Shaktikanta Das has warned that persistently elevated cost of living conditions could translate into higher wages and inflation, which is unlikely to fall within the top end of the mandated target band until December.

That is roughly in line with a separate Reuters poll that has inflation staying above target until early next year.

"We think the RBI will continue to hike rates over the next few months. We expect at least a 25bp hike in September, followed by another 25bp hike in December 2022," said Mitul Kotecha, head of emerging markets strategy at TD Securities, noting risks cited by Das including inflation remaining above the target band for a few more months.

WhatsApp users will be able to choose who can see if they are online, leave group chats without notifying other members, and prevent screenshots of 'view once' messages, the Meta-owned platform said on Tuesday.

The new WhatsApp features "provide users more privacy, more protection, and more control," said Mark Zuckerberg, chairman and chief executive officer (CEO) of Meta Platforms, which also owns Facebook. The features start rolling out to all users this month.

"We'll keep building new ways to protect your messages and keep them as private and secure as face-to-face conversations," Zuckerberg said in a Facebook post.

“Seeing when friends or family are online helps users feel connected to one another, but everyone has had times when they wanted to check their WhatsApp privately. For the times you want to keep your online presence private, WhatsApp is introducing the ability to select who can and can’t see when you’re online,” the company said in a statement.

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The messaging app said a privacy study found the majority of users prefer to stay hidden online. “72% of people said they value being able to speak in an honest, unfiltered way — but more than 47% are only comfortable doing this in a safe, private space,” the study found.

It added that around 72 per cent of people said they value being able to speak in an honest, unfiltered way — but more than 47% per cent are only comfortable doing this in a safe, private space. “They are particularly cautious online, ranking privacy in their private messages as most important — compared to emails, texts or social media."

To address these concerns, WhatsApp will enable screenshot blocking for 'view once messages' adding a layer of protection. Users will be able to exit a group privately without having to notify everyone. Instead of notifying the full group when leaving, only the admins will be notified when a member leaves the group.

“At WhatsApp, we’re focused on building product features that empower people to have more control and privacy over their messages,” said Ami Vora, head of product at WhatsApp.

“To spread the word about these new features, we’re also kicking off a global campaign, starting with the UK and India, to educate people about how we work to protect their private conversations on WhatsApp,” Vora said.

Bihar Chief Minister and Janata Dal (United) supremo Nitish Kumar ended his party's alliance with Bharatiya Janata Party in Bihar. Nitish Kumar has sought an appointment with Governor Phagu Chauhan at 4 pm, sources close to the development said.

JD(U) sources said Nitish Kumar is unlikely to resign from the chief ministership and may simply seek to replace BJP ministers with those of other parties, which may support his party in continuing the government.

A parallel meeting of the Rashtriya Janata Dal (RJD) legislators convened by party leader Tejashwi Yadav at his mother Rabri Devi's Circular Road bungalow, a stone's throw from the CM's residence, is likely to endorse joining the JD(U)-led coalition.

Earlier, the Congress and Left parties handed over the lists of their legislators to Tejashwi Yadav.

Mandan Mohan Singh, the state president of Congress said: "We will support Nitish Kumar if he leaves the BJP and forms a new government with the help of Mahagathbandhan. We have also given the list of all 19 MLAs of our party to RJD leader Tejashwi Yadav."

Mahboob Alam, the MLA of CPI (ML) said: "We have also given the list to Tejashwi Yadav. We will uproot the BJP from power. We are giving support to Nitish Kumar for the formation of a new government."

Currently, BJP holds 77 seats in the Bihar Assembly. JD(U) holds 45, the Congress 19, the Left led by CPIML(L) has 16 and the RJD 79.

Rising internal consumption and hoarding have kept Indian black pepper prices at a higher level, encouraging illegal imports.

Black pepper prices touched Rs 500 per kg in November last year after a gap of several years, following the easing of COVID-19 restrictions and a rebound in demand. It reached a high of Rs 532 per kg on November 24 on fears of a lower crop.

But production this year, estimated to be around 65,000 tonnes, is said to be normal. The arrival of a new pepper crop, however, has not pushed down prices, which are currently hovering in the range of Rs 485-505 per kg.

“There is good demand in the domestic markets as restaurants have opened. Indian production has not kept pace with the mounting domestic consumption,” said Cherian Xavier, chairman of All India Spices Exporters Forum.

Higher black pepper prices in India have spurred illegal imports. While Indian variety rules around Rs 500 per kg, pepper from other major producing countries like Vietnam, Brazil, Indonesia, and Sri Lanka hover in the range of Rs 300-400 per kg.

“Large quantities of Vietnamese and Brazilian pepper have reached the consuming markets of Delhi, Mumbai, Kanpur, Ahmedabad, and Indore, after being misdeclared as scrap iron, scrap plastic waste and paper waste as well as waste clothes, and are being sold in the domestic market. These lots evade GST and import duty of above 50 percent from Vietnam and 70 percent duty from Brazil,’’ said Kishor Shamji, pepper exporter and Kerala coordinator of Indian Spice Traders, Growers and Planters Consortium.

Pepper is also being imported from Sri Lanka by circumventing the import price restrictions through Chennai, Nava Sheva and Mundra ports and inland container depots in Kanpur and Ludhiana. Despite an import duty of 8 percent, social welfare cess of 2 percent and minimum import duty charge of Rs 500 per kg, imports from Sri Lanka touched 513 tonnes in June this year, he said.

While local Sri Lankan pepper prices are at $5,300 per tonne, Indian prices are around $6,700 per tonne.

Vietnamese and Brazilian pepper are also being smuggled from Myanmar to India. These pepper consignments are being sold in the North Indian market, traders pointed out.

But the arrival of Indian-origin pepper to the local market has thinned in the last few weeks though the harvest season is over. “Farmers could be holding stock in anticipation of higher prices,’’ said Jojan Malayil, CEO of Bafna Enterprises.

Demand is expected to go up with the onset of festival season in India by October.

Percentage of Indian pepper in exports down

In the last few years, the percentage of Indian pepper in exports has come down sharply as prices are higher in the international market. “Nearly 95 percent of the black pepper exports from India is imported pepper after value-addition,” Malayil said.

Indian black pepper exports touched 21,882 tonnes in FY22, reaching above 20,000 tonnes after five years. Higher shipments were made possible by the slump in pepper prices in Vietnam, the biggest producer, in the first few months of last year. But in 2022, a slightly lower crop in Vietnam has pushed up prices.

“Higher prices of imported pepper with a huge increase in freight costs have made Indian black pepper export uncompetitive,’’ Xavier said. As a result, shipments have been sluggish in the last few weeks.

Shamji said it must be specifically mentioned in each consignment that imported pepper is being re-exported to make it clear to the authorities of the importing country that it is not Indian pepper. The matter was represented to the Commerce Minister during his recent visit to the Spices Board, he said.

Nedspice, a Netherlands-based spice processing and distribution company with branches worldwide, including in Vietnam and India, pegs the global pepper production at 509,000 tonnes in 2022. But with carry-over stock, it comes to 576,000 tonnes above the global demand of 520,000 tonnes.

Lower crop in Vietnam due to unfavourable weather is balanced with good crop in other origins. It further said that the potential slowing of demand on account of sufficient stocks in consuming countries could also offset lower crop in Vietnam. Consequently, the market is fragile and price volatility can be expected, it said.

According to Nedspice, Vietnam pepper production will be down by over 6 percent to 188,000 tonnes while that of Brazil, the second-biggest producer, will be up by 10 percent to 98,000 tonnes this year, while pepper output in India, the next largest producer, will increase marginally to 68,000 tonnes.

The government is not considering setting up 8th Pay Commission for central government employees, Minister of State for Finance Pankaj Chaudhary informed Lok Sabha on Monday.

"No such proposal is under consideration with the government for constitution of 8th Central Pay Commission for the central government employees," Chaudhary said in a written reply to a question if the government proposes to ensure timely constitution of Pay Commission for central government employees so that it could be implemented on January 1, 2026.

ln order to compensate central government employees for erosion in the real value of their salaries on account of inflation, dearness allowances (DA) is paid to them and the rate of DA is revised periodically every six months on the basis of rate of inflation as per All lndia Consumer Price lndex for Industrial Workers released by Labour Bureau under the Ministry of Labour & Employment, he said.

The government had set up 7th Pay Commission in February, 2014. The recommendations of the panel were effective from January 1, 2016.

What is a Pay Commission?

A Pay Commission is a body set up by the government to recommend changes to the salary structure of government employees. It was first constituted in January 1946 and submitted its report in May 1947, under the chairmanship of Srinivasa Varadachariar.

The Commission is usually given 18 months to submit its recommendations. It reviews and makes suggestions for the pay structure of civil as well as military divisions of the government of India. It is headquartered in New Delhi.

The recommendations are based on several factors including inflation. The dearness allowance (DA), fitment factor as well as basic pay are discussed in the commission's report.

In 2013, then finance minister P Chidambaram announced the setting up of the 7th Pay Commission. Justice AK Mathur was chosen to head the commission.

On June 29, 2016, the Narendra Moda government accepted the recommendations of the commission to hike the salary of its employees by 14 per cent.

Further on November 9, 2017, the maximum limit for borrowing for the purpose of buying a house was raised to Rs 2.5 million from Rs 7.5 lakh earlier, for government employees. The rate of interest for the borrowed amount was set at 8.5 per cent.

For armed forces, the 7th Pay Commission had recommended separate pay matrices and allowance systems for armed forces and civil defence forces.

The government has not abandoned the target of increasing its non-fossil energy capacity to 500 gigawatts (GW) by 2030 while revising its commitment to the United Nations Framework Convention on Climate Change (UNFCCC), and the Energy Conservation (Amendment) Bill 2022 aims to help achieve these goals, Power Minister RK Singh said in the parliament. 

The Energy Conservation (Amendment) Bill 2022 was passed by the Lok Sabha on August 8. The bill aims to boost clean energy and help in achieving India’s commitments towards climate change.

On August 3, the Union Cabinet chaired by Prime Minister Narendra Modi approved India’s updated Nationally Determined Contribution (NDC) to be communicated to UNFCCC. According to the updated NDC, India now aims to reduce the emission intensity of its GDP by 45 percent by 2030 from 2005 levels, and source 50 percent of electricity from non-fossil sources. The NDC did not mention the commitment of adding 500 GW in absolute terms, which made the opposition question if the target was dropped. 

“The Prime Minister had made a pledge that by 2030, 500GW of non-fossil fuel-based capacity will be added. We stand by the commitment,” Singh said.

India’s non-fossil fuel-based capacity stands at 167 GW, which accounts for 41 percent of its total installed capacity.

Telecom major Bharti Airtel on Monday reported 466% surge in consolidated net profit (attributable to owners of the parent) at Rs 1,607 crore for the quarter ending June 30, 2022, boosted by subscriber additions. It reported net profit of Rs 284 crore in the year-ago period.

The company's consolidated revenue from operations rose 21% to Rs 32,805 crore in Q1FY23 as compared to Rs 27,064 crore in Q1FY22. Bharti Airtel's mobile services revenue in India grew 27% year-on-year to Rs 18,220 crore for the first quarter from Rs 14,305.6 crore.

The company's average revenue per user (ARPU) increased to Rs 183 in Q1FY23 as against Rs 146 in Q1FY22. ARPU of rivals Reliance Jio and Vodafone Idea for the same period was Rs 175.7 and Rs 128, respectively.

The company said in November, when it announced tariff hikes, that mobile ARPU needed to be at Rs 200 and ultimately at Rs 300, for a financially healthy business model.

On Monday, the company's scrip on BSE closed nearly flat at Rs 704.35.

Gopal Vittal, MD and CEO, said: “This has been another solid quarter. We continue to deliver strong and sustained growth at 4.5% sequentially. EBITDA margins are now at 50.6%. Our enterprise and homes business has strong momentum and delivered strong double digit growth, improving the diversity of the overall portfolio. Airtel’s strategy of winning with quality customers continues to yield good results with an industry beating ARPU at Rs 183.

"As India gets ready to launch 5G, we are well positioned to raise the bar on innovation. We are also confident of meeting the emerging needs of discerning customers looking for speed, coverage and latency. Our astute spectrum strategy over the last few years as we bolstered mid band spectrum is designed to deliver the best experience at the lowest total cost of ownership.”

The firm said its 4G customers rose by 20.8 million on an annual basis and by 4.5 million on a sequential basis.

Mobile data consumption rose by 16.6% YoY, consumption per mobile data customer at 19.5 GB per month, said Airtel.

"Airtel to lead India’s 5G revolution with acquisition of ideal spectrum bank at least cost for best 5Gexperience and 100x capacity enhancement; procured 19,867.8 MHz spectrum for Rs 43,040 crore in the recently concluded 5G spectrum," the company said in a stock exchange filing.

The company has been raising money to fund its digital ambitions, including developing home broadband, data centres, cloud adoption as it prepares to launch its next-generation 5G services in the country.

Indians are more optimistic than ever on the prospects of their country’s economic growth than they were six months ago but they are far from opening up their purses and spending as they did before the pandemic.

A look at the Reserve Bank of India’s consumer sentiment survey shows that optimism about the current situation as well as future outlook has increased over the past six months. That said, if we scratch the surface and look into sub-categories that form the headline indices, this optimism gives way to caution. Consumers may be more hopeful about employment and incomes but they are not ready yet to indulge in discretionary spending. That means India is yet to get her spenders that would boost the economic growth through demand. The following five charts lay out the good and the non-so-good parts of consumer sentiment:

The current situation index is now at its highest level since March 2020 when the COVID-19 pandemic hit. The future expectations index though is still below pre-pandemic levels but it is getting there. Economic growth has recovered smartly over the past one year from the impact of the pandemic. In fact, most high frequency indicators are well above their pre-pandemic levels. Consumption demand has revived, visible through the rebound in consumer durables, services and even personal loans of banks. This has led to consumers being hopeful about future employment prospects as well.