Economy

The Reserve Bank of India (RBI) has directed Indian commercial banks to operate their ATMs only after updating the machines' software. The RBI directive comes in the wake of the 'WannaCry' cyberattack.

In India, almost 60 percent of the 2.25 lakh ATMs run on Windows XP.

"RBI has asked banks to update specific Windows patches on ATMs urgently and not to operate ATM machines unless updates are in place," the Economic Times quoted a public sector bank official as saying.

The daily cited a statement from Microsoft that said the company has developed and released a special update for Windows XP, though the version used by Indian ATM networks "is no longer serviced by the company."

On Monday, a report by news agency PTI said the government's cybersecurity arm, CERT-In, has alerted the RBI, stock exchanges BSE and NSE, and the National Payment Council of India (NPCI) to take appropriate steps against risks posed by the WannaCry virus that has hit almost 100 countries.

The virus reportedly encrypts files on the infected Windows PCs and then asks users to pay $300 in Bitcoins. The attack was first reported from France, Sweden and the UK.

The Bangalore-based Information Technology's Mega Company Wipro has received a threatening mail. Through this mail, the company has been asked to deposit 500 crore rupees through internet on May 25. In the event of not doing so, the sender has threatened to the biological attack from a toxic chemical through the drone on the company's office.

In this mail received from an unknown person, a link has also been given to pay and it has been said that they will also give a sample of their threat to prove the truth and in the coming days, 2 gram samples of toxic chemicals will also be sent to the Wipro office.

According to reports, the anonymous person who sent the e-mail has written in the mail that if the company does not pay, then a natural poison Ricin will be used to attack the company.

The sender says that he will put this chemical in the company's cafeteria, or to the Wipro campus through the drone. He also threatened that he can put this chemical on the toilet seat. This person has demanded to send the payment through bitcoins. Bitcoins is a currency used for financial transactions through the Internet.

The company has registered a complaint in this case in the police. Wipro's security officials said that after getting the mail, security has been increased at the office complex. This threat has not had any effect on the company's daily operation.

The Bengaluru Police has started investigations after receiving the complaint. Cyber Wing of Bengaluru Police is investigating this case and is investigating where the mail has been written and what is sent through the IP address.

Police say that this fake mail can also be done. Bengaluru's Additional Commissioner S Ravi said that they will try to know through all their means that the threat is genuine or false. In the year 2013, there was a threat to blow up the Wipro office, which later proved to be a fake.

The Supreme Court has given a strong blow to the Sahara Group. The apex court has ordered the auction of property belonging to Pune based Ambi Valley.

The Sahara group failed to get the deposits to its investors, after which the court gave the ruling. The bench of Supreme Court has directed Subrata Roy of Sahara Group to be present in the case on 28th April itself.

The apex court had warned Sahara group in its hearings on March 21 that if it does not deposit the outstanding Rs. 5,092.6 crores till April 17, then its principal property worth 39,000 crores will be auctioned in its Ambi Valley in Pune. Earlier, the Supreme Court had ordered the attachment of this major property of Sahara Group to recover the money.

The apex court had asked the Sahara Group to give a list of properties in two weeks which there is no liability and can be kept for public auction so that the remaining amount of original money returned to the investors Rs 14,000 crore can be raised.

The original amount raised by investors is Rs 24,000 crore which is to be returned. This money has to be deposited in the SEBI-Sahara account.

The court had on November 28 last year asked Sahara group chief Subrata Roy to deposit Rs 600 crore in the SEBI-Sahara refund account till February 6 to stay out of jail.

The court had warned that if he can not do it then he will be sent back to jail.

Parliament has approved four bills related to commodity and service tax, while paving the way for implementing GST in the country's historical tax reform regime.

At the same time, the Government assured that the interests of consumers and states in the new tax system will be fully protected and tax on agriculture will not be levied.

The Rajya Sabha today discussed the Union Goods and Services Tax Bill 2017, the GST Bill, the Integrated Goods and Services Tax Bill 2017, the IGST Bill, the Union Territory of Goods and Services Tax Bill 2017, and the 'Goods and Services Tax to the States' bill 2017. After returning the Lok Sabha with a vow. The Upper House rejected the amendments of the opposition brought on these bills.

Due to the money bill, these four bills had the right to discuss only in the Rajya Sabha. The Lok Sabha has approved these bills on March 29.

Responding to a discussion on the Bill of Goods and Service Tax, Finance Minister Arun Jaitley said that these doubts of the Opposition are inexplicable, that in accordance with these bills, agreement with the rights of Parliament is being done in the matter of taxation.

He said that the first thing is that this Parliament has given the right to recommend the rate of tax to the GST Council by amending the Constitution.

Jaitley said that the GST Council is the first federal decision making body. On the basis of the constitutional amendment, the GST Council was given the right to form Model Law. As far as the law is concerned, it will be on the basis of federal structure, while the supremacy of Parliament and State Legislatures will continue. However, these recommendations will be kept in mind, because different states will set a different rate if there is a chaotic situation. This is a cordial interpretation of it and no other meaning should be drawn.

He said that by amending the Constitution, it has been ensured that it will be the only tax in the country to collect the state and the centre together. Explaining the situation on objections about having several tax rates instead of making a similar tax, the Finance Minister said that there are many food products which are now zero tax and there will be no tax after the GST system is implemented. There are many things that can not be taxed at the same rate. Rates such as tobacco, alcohol etc. are high, whereas clothing has a normal rate.

Jaitley said that during the discussions in the GST Council it was decided that many taxes will be simplified initially. The Finance Minister said that after the deliberations, the GST Council has fixed rates of 0, 5, 12, 18 and 28 per cent in GST system. It has also been said to put additional cess on material, such as luxury cars, bottled drinks, tobacco products and environmental related items like coal.

He said that the cess cost of more than 28 per cent will go to the fund and the states which are being damaged will be given the amount. There was also a suggestion that it should be applied as tax. But by applying as tax, there is an impact on consumers. However, additional taxes will not be levied on consumers.

Jaitley said compensation will be given to those states who are suffering from GST system implementation. It will be for the first five years. He said that Congress-led United Progressive Alliance government could not get a consensus on GST as no loss was given to the loss-making states for compensation. The provision of compensation in GST was 'helpful in the deal' and the state came together

Giving a clarification on the objection of several members after not including the real estate sector in GST, the Finance Minister said that this is an area in which the states get substantial revenue. It has revenue from the Registry and other tariffs, which is why it has not been included in GST on the basis of the opinion of States. He also clarified that the centre's vote is only one-third to take any decision in the GST Council whereas two-thirds of the votes are for the states. Therefore, while making any decision, the Centre is not in favour of imposing its own opinion.

Terming the first federal contract to get the constitutional clearance of goods and services tax, Jaitley said that, without putting any extra tax on consumers, there would be a way to implement a system of 'one nation, one tax' in the country through GST. The Finance Minister said that the GST Council is deciding the tax structure with unanimous consent and so far 12 meetings have been held in this regard. This bill is based on the principle of common sovereignty between the Centre and the State Governments and it is such a first initiative.

Upon the implementation of GST, the excise duty, service tax and value added tax (VAT) in the states will be included in it, along with several others. Jaitley, while clarifying the bills, said that the Centre has the right to tax in the event of the removal of the excise duty, service tax and additional customs duty through the central GST bill. Through the coordinated GST or IGST, there will be the right to tax the Centre on the movement of goods and services in states.

While clarifying the position regarding the provision to prevent profits in respect of tax exemption, the Finance Minister said that if 4.5 percent tax exemption is given, then it does not mean that it should be considered as a personal profit but the benefit should be given to the consumers. This is the intention of this provision.

The Finance Minister said that the situation was similar to liquor and petroleum products just like real estate. After discussions with the states, petroleum products have been brought under its purview, but it has now been kept under zero rate. The GST Council will consider it. Alcohol is still out of its scope.

The Finance Minister said that the first person had to go to many evaluation agencies for business. To pursue economic activities, it had to go through excise duty, service tax, state VAT, entertainment tax, entrance fees, luxury tax and many other taxes.

The Finance Minister said that there was no smooth flow of goods and services in the country. In this way, the GST system was further extended. Do such a tax where there is an evaluation officer. Most self-assessments and only limited appraisal except for audit matters.

Jaitley said that tax is taxed, which increases the trend of inflation. Therefore, the idea of making a market for the whole country. It came to be that simple arrangements should be brought inside the country. Describing agriculture to be brought under the purview of GST, the Finance Minister said that agriculture and farmers do not require registration. Under section 23, exemption is granted to farmers and agriculture. Therefore, it is kept in definition for interpretation of this exemption. There should be no confusion about this. Jaitley said that there should be no confusion about agricultural product when it is zero rate.

Dismissing Congress's objections about this, Jaitley said that 29 states, two union territories and the Centre considered this, including eight finance ministers of the Congress-ruled state. "Then did all these conspired against a particular class?" After dismissing the fears of an increase in the prices of commodity and commodities after the GST was imposed, the Finance Minister said that the rate of tax will be kept at the present level. It has no impact on inflation.

Jaitley said that the Jammu and Kashmir Legislative Assembly will bring a legislation about GST. He said that the Finance Minister of Jammu and Kashmir participated in all the meetings of the GST Council.

The Upper House rejected the draft of Trinamool Congress' Derek O'Brien, it said that all decisions of the GST Council should be approved by the Parliament.

In India, prices of petrol and diesel have come down from Friday midnight. Petrol is cheaper by Rs 3.77 per litre and diesel is 2.91 rupees per litre.

Public oil companies have announced this reduction in the prices of petroleum products. At present, the price of petrol in Delhi is Rs 71.14 per litre and diesel is priced at Rs 59.02 per litre.

Indian Oil Corporation says that the price of petrol has been cut by Rs 3.77 per litre. It does not include state levy. That is, the deduction on the inclusion of the local levy will be high.

Similarly, diesel price has been cut by Rs 2.91 per litre. This deduction does not include state levy. Earlier, the prices were revised on January 16.

Mukesh Ambani-led Reliance Jio said on Friday that so far 7.2 million subscribers have received their prime membership. Along with that, the company has announced to extend the offer till April 15.

The company has said that seeing the unexpected demand, it has extended the Jio Prime Offer period. Customers can now become prime members by April 15.

Along with this, the company has announced a compilation offer of upto 303 rupees or more for up to three months till April 15. The period for becoming a prime member of the company was to end today.

It has been stated in the statement of the company that its customers who can not subscribe for Jio Prime till March 31, they can be subscribed by paying 99 rupees by April 15 and can purchase a plan worth 303 rupees or other.

Along with this, the company has announced the Jio Summar Surprise to the Jio-Prime members. The company's chairman Mukesh Ambani has said in the letter to the customers that prior to April 15, the first three months of service for the prime customers who will recharge 303 rupees or more, will be given on a computational basis. The fee plan for them will be applicable only in July, after the completion of the compiler service.

It is worth mentioning that the company started the formal launch of its services in September last year.

Retail inflation in India rose to 3.65 percent in February 2017, marginally higher than a month ago, showed data released by the government on Tuesday.

The increase in the consumer price index was in line with a poll of economists conducted by Bloomberg, which pegged inflation at 3.6 percent in February compared to 3.17 percent in January.

Retail inflation has been heading lower and hit a series-low in January. The decline stemmed mainly from the moderation in food inflation, especially in perishables, which were impacted by demonetisation. However, inflation excluding food and fuel (also known as core inflation) has remained sticky.

Data released on Tuesday showed that the decline in food prices is starting to reverse, pushing up headline inflation.

 - Food prices rose 2.01 percent in February vs 0.61 percent in January
- Food and beverage prices rose 2.46 percent
- Fuel and lighting inflation increased 3.9 percent
- Clothing and footwear prices increased 4.3 percent

While retail inflation remains in check, wholesale prices surged in February due to higher commodity prices. Wholesale price index (WPI) based inflation rose 6.55 percent in February to its highest level in over three years. The divergence in the WPI and CPI indices widened to nearly 300 basis points in February.

The RBI warned of an increase in inflation pressures, partly due to an unfavourable base effect in a report on the macroeconomic impact of demonetisation released on Friday. The RBI saw upside risks to inflation as demand recovers in the latter part of the fourth quarter of fiscal 2017.

It added that the outcome of headline inflation in the near term will depend on “how food price dynamics evolve.”

The central bank had also raised concerns about core inflation at its last policy review in February, when it kept interest rates steady. This was cited as a key reason for the shift in the central bank’s stance from accommodative to neutral. While the RBI will likely meet its target of bringing down retail inflation to below 5 percent by March 2017, its medium term objective of 4 percent inflation remains in doubt.

The International Monetary Fund expects inflation to be at around 4.75 percent, “due to temporary demand disruptions and increased monsoon-driven food supplies” in early 2017. The multinational agency cited “supply-side reforms, particularly in agriculture, continued fiscal consolidation, and relieving impediments to monetary transmission” as factors crucial to keeping inflation in check, in its Article IV consultation paper on India released last month.

Reliance Industries Ltd Chairman and Managing Director Mukesh Ambani on Wednesday said the company's newly-launched telecom venture Reliance Jio stands for affordability and data is the new oil in the industry.

"Jio was conceived at a time when the world was fast digitising. What the Jio platform offers is partner with the next generation to solve problems for India to make sure our industries are more productive," Ambani said.

"To my mind, data is the new natural resource. In that sense, India is blessed with 1.3 billion people, for it to have real value it has to be processed into intelligence. Data is the new oil and its benefit is immense to society. India with its young population will have a competitive advantage," he added.

He was speaking at an interactive session at the Nasscom India Leadership Forum 2017 in Mumbai.

Reliance Jio has disrupted the Indian telecom industry with its free data offer till March.

"With the investment in Jio and concurrent action spurred in the industry, India can be among the top 10 in broadband access. Data is the oxygen of this digital life and no Indian should have this in scarcity," he added.

Ambani said human race is at the doorstep of fourth industrial revolution of convergence of digital and biological science. "At the foundation of fourth industrial revolution is connectivity and data, the convergence of all the sciences has been brought about."

Ambani said Aadhaar has enabled Reliance Jio to have millions of customers within few months.

Talking about digital payments, he said: "After the Aadhaar, you consider the digital payments system that is fast developing. Earlier, loans and financial resources were only available to a few people at high value. Now, I see that changing on the basis of technology. Now based on data, you can get a loan on your mobile phone."

"We are at the doorsteps of change in adapting technology to change the lives of people."

"In this new world in terms of digitisation it is important to be open. Whatever the world trends may be, we have to make sure we are always open, always connected. The goal of improving the lives of hundreds of millions of people is the opportunity that we have," he added.

Talking about digitisation, Ambani said: "We have opportunity to adapt artificial intelligence, natural language processing, drones in terms of our logistics. Opportunities are immense. Now we have infrastructure to do it in our own market and make India one of the biggest software markets"of the world."

Counselling a five-point tip-sheet for budding entrepreneurs and potential start-up founders, Ambani said it is essential to find a passion for solving a problem without focusing primarily on financial returns.

"As an entrepreneur, you find a solution to the problem you are passionate about. It is not solving problems but first finding problems and then solving it. Financial results are actually a by-product. Failures are normal. Learn from them.

"Two non-negotiables for me is treat investors' money even more carefully than your own money. You cannot do anything without the right team, align it passionately to your own mission. An entrepreneur is always optimist," he added.

Supreme Court on Monday asked Sahara to provide a list of all its unencumbered properties so that they could be put up for public auction. The apex court also ordered attachment of Aamby Valley properties near Lonavala which are worth close to Rs 39,000 crore. Sahara told the top court that they had to pay Rs 14,000 crore as principal money to SEBI and Rs 11,000 crore has already been paid. The next hearing in the case is scheduled for February 20.

The Supreme Court on Monday directed attachment of Sahara Group’s prime property worth Rs 39,000 crore at Aamby Valley near Pune for realisation of money to be paid to its investors.

A special Bench headed by Justice Dipak Misra said the drastic step was needed to force Sahara and Roy to expedite the payment of the balance Rs 14,779 crore.

The court also asked the Sahara Group to provide to it within two weeks, the list of unencumbered properties which can be put on public auction to realise the remaining over Rs 14,000 crore of the principal amount of around Rs 24,000 crore that has to be deposited in the SEBI-Sahara account for refunding money to the investors.

The court noted that out of the principal amount, the group has deposited around Rs 11,000 crore and it has to deposit over Rs 14,000 crore more. The Securities and Exchange Board of India (SEBI) told the Bench that the interest on the principal amount until October 31, 2016, would lead to a liability of Rs 47,669 crore on the Sahara Group.

Meanwhile, Sahara on Monday deposited over Rs 600 crore in accordance with the January 12 order by which extension of time beyond February 6 was refused.

During the hearing, the court did not buy the contention put forth by Sahara’s counsel and senior advocate Kapil Sibal that the amount should be realised in accordance with the roadmap provided by the group, which suggested that the deadline of July 2019 will be adhered to.

“No small token amounts,” the Bench observed, adding that the balance amount of over Rs 14,000 crore can be realised by public auction of Sahara’s unencumbered properties which are free from litigation, mortgage and any charge. The court has slated the matter for further hearing on February 20.

“The fundamental question is that the court (Supreme Court) found that the money collected by you from XYZ etc was in violation of the rule,” the Bench observed while not accepting Sibal’s plea that he should be given at least a minimum of two hours to explain that the apex court judgment against Sahara was “ex-facie erroneous”.

Ousted Tata Sons Chairman Cyrus Mistry was today removed as director of the company with shareholders voting in favour of his removal with “requisite majority”. “The shareholders of Tata Sons Ltd, at the extraordinary general meeting held today, passed, with the requisite majority, a resolution to remove Cyrus P Mistry as a Director of Tata Sons Ltd,” the Tata Group’s holding firm said in a statement.

Last month, Tata Sons had called for an extraordinary general meeting (EGM) to remove Mistry from its board. However, Mistry had legally challenged the move. Last week, the National Company Law Appellate Tribunal (NCLAT) had dismissed petitions by two investment firms, backed by Mistry family, against holding the EGM.

Mistry camp had moved the NCLAT after the Mumbai bench of National Company Law Tribunal (NCLT) had on January 31 refused to grant any relief.

Tata Sons had abruptly removed Mistry as its Chairman on October 24 last year and sought his ouster from operating companies like Tata Motors and TCS. Mistry subsequently resigned from the board of six companies but dragged Tata Sons and his interim successor Ratan Tata to the NCLT.

After the board meeting of October 24, 2016, Tata Sons had resolved that Mistry shall, notwithstanding his ceasing to be the Chairman, continue as a director of the company.

But his conduct thereafter in levelling “unsubstantiated” allegations and causing “enormous harm” to Tata Group had made his continuation as a Director of Tata Sons “untenable” and therefore, he should be removed, Tata Sons had said in a notice seeking Extraordinary General Meeting on February 6. Mistry’s family owns 18.5 per cent stake in Tata Sons.