The Bombay High Court (HC) has restrained a clutch of platforms and individuals from offering AI tools that allow users to convert their voice into Bollywood singer Arijit Singh’s voice.

In an ex-parte order dated July 26, Justice RI Chagla observed that the platforms were emboldening internet users to create counterfeit sound recordings and videos that misuse the Singh’s character and identity.

The directions came in response to a petition filed by the singer seeking protection of his personality rights. Granting the injunction till September 3, the HC has posted the matter for next hearing on September 2.

The plea named platforms such as Codible Ventures LLP, 100x Engineers, Hugging Face Inc., Audimee Me, Go Green Tale, Godehope and Kreate as respondents.

“In my view, creation of new audio or video content/songs/videos in the Plaintiff’s AI name/voice, photograph, image, likeness and persona without his consent and commercially using the same could potentially jeopardise the Plaintiff’s career/livelihood,” noted the HC.

Arguing for the singer, counsel Hiren Kamod and Vaibhav Keni said that the platforms were offering tools to their customers to unauthorisedly create AI-generated voice models of celebrities and popular fictional characters.

“Permitting the defendants (AI platforms) to continue exploiting/violating the Plaintiff’s (Singh) personality/publicity rights, without Plaintiff’s consent also jeopardises the Plaintiff’s career as a performer/singer and his status of a celebrity… The act of creating and disseminating videos… on how to use unauthorised AI models to replicate a celebrity’s voice such as Plaintiff without his consent cannot be shielded under the right of freedom of speech and expression,” argued Singh’s lawyers.

The development comes at a time when generative artificial intelligence (GenAI) has paved the way for easy creation of deepfakes. Unlike previously, the emerging technology allows users to simply input their audio file onto a platform and generate the output in the voice of a popular celebrity. 

However, Arijit Singh is not the first to seek relief in such a matter. Earlier this year, an owner of a Rishikesh-based firm was arrested for allegedly creating several deep fake videos on social media platforms that showed actor Amitabh Bachchan promoting products related to sexual health.

In May, Delhi HC passed an injunction against the unauthorised use of actor Jackie Shroff’s voice, and other personal attributes and prohibited the exploitation of Shroff’s “persona” through deepfakes without his explicit consent.

In September last year, Delhi HC also restrained social media and ecommerce platforms from misusing voice and other attributes of actor Anil Kapoor and barred them from creating AI-generated videos from infringing on the publicity rights of Kapoor.

Last month, the Bombay HC also directed social media platforms to take down deepfakes that featured NSE MD and CEO Ashishkumar Chauhan offering stock recommendations

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In a development that will have a direct bearing on Unified Payments Interface (UPI) payments, the National Payments Corporation of India (NPCI) has said that C-Edge, a technology service provider for banks, has potentially been hit by ransomware attack. 

“It has been brought to NPCI’s notice that C-Edge Technologies Ltd, a technology service provider who caters mostly to cooperative and regional rural banks, has been possibly impacted by a ransomware attack impacting a few of their systems,” the NPCI said in a statement on Wednesday (July 31).

A ransomware attack involves a malware software that encrypts files and denies access to the actual user. Generally, in such cases, cyberattackers demand a ransom from the victims in return for a decryption key to enable the latter to gain access to their servers and files. 

The payments body also said that it has temporarily isolated C-Edge Technologies from accessing the NPCI’s retail payment systems to prevent “larger impact” on the payments ecosystem. 

It also said that the customers of the banks (primarily cooperative and rural banks) serviced by C-Edge will not be able to make UPI payments during the unspecified “period of isolation”.

“Restoration work is underway on a war-footing along with C-Edge Technologies and necessary security review is in process. Connectivity to the affected banks shall be restored at the earliest,” added the NPCI.

While there was no clarity on which banks were impacted, C-Edge’s website mentions Meghalaya Cooperative Apex Bank and Maharashtra Gramin Bank as its new clients. 

For the uninitiated, C-Edge Technologies is a joint venture (JV) between Tata Consultancy Services (TCS) and State bank of India (SBI). It offers SaaS and technology solutions to financial services companies. 

The development comes at a time when ransomware attacks are on the rise against Indian companies and government organisations. As per a report, nearly 64% of surveyed Indian organisations faced such attacks in 2023, with average ransomware demands hovering around $4.8 Mn. The report also noted that the median ransom paid was around $2 Mn.

A separate Kaspersky reported that 2.35 Lakh ransomware incidents hit businesses in India in 2023.

In 2022, All India Institute of Medical Services (AIIMS) Delhi too was hit by a major ransomware attack which saw hackers reportedly demanding INR 200 Cr in cryptocurrencies to provide the decryption key.

The likes of IndusInd Bank, Taj Hotels and RailYatri have also suffered data breaches or major cyber attacks in the recent past.

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The Reserve Bank of India (RBI) has proposed alternate methods of additional factor of authentication (AFA) for digital transactions, including PIN, passwords, cards, and biometrics such as fingerprints, among others.

The central bank’s draft “Framework on Alternative Authentication Mechanisms for Digital Payment Transactions” released on Wednesday (July 31) aims to widen the choice of authentication factors available to payment system operators and users. 

“Over the years, the Reserve Bank of India has prioritised security of digital payments, in particular the requirement of Additional Factor of Authentication (AFA) for making payments. No specific factor was mandated for authentication, but the digital payments ecosystem has primarily adopted SMS-based OTP as AFA. While OTP is working satisfactorily, technological advancements have made available alternative authentication mechanisms,” said the RBI.

An AFA requires the use of more than one factor for authentication of a payment instruction.

The release of the draft framework is in line with the central bank’s announcement in February to adopt a principle-based “Framework for authentication of digital payment transactions” for digital security.

The central bank terms any credential input by the customer that is verified for the purpose of confirming the originator of a payment instruction as the factor of authentication. These factors are broadly categorised as something the user knows (such as password, passphrase, PIN), something the user has (such as card hardware or software token), and something the user is (such as fingerprint or any other form of biometrics).

The central bank has proposed that all digital payment transactions, other than card present transactions, ensure that one of the factors of authentication is created dynamically. This means that the factor should be generated after initiation of payment, be specific to the transaction, and cannot be reused.

It said that the issuers –  bank or non-bank where the customer’s account is maintained – can decide the appropriate AFA for a transaction based on the risk profile of the customer and/ or beneficiary, transaction value, channel of origination, among others.

The following transactions will be exempted from customer authentication: 

• Small value card present transactions for values up to INR 5,000 per transaction in contactless mode at point-of-sale (PoS) terminals. 
• Transactions in respect of subscription to mutual funds, payment of insurance premiums, and credit card bill payments up to certain values 
• Digital toll payments
• Offline payment transactions up to a value of INR 500

The RBI has sought comments and feedback on the draft framework by September 15, 2024.

“All Payment System Providers and Payment System Participants (banks and non-banks) shall ensure compliance with this framework within three months from the date of issue of these directions,” the central bank said.

The development comes at a time when the number of digital transactions as well as digital frauds are on the rise in the country. A recent report by Amazon Pay said that Indian merchants process 69% of their transactions via digital payments. Meanwhile, the central bank said in its annual report that the number of online frauds in the country surged 334% year-on-year to 29,082 in FY24.

Earlier today, the RBI also proposed tighter norms for Aadhaar-enabled Payment System (AePS) touchpoint operators to curb frauds.

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The peer-to-peer (P2P) lending sector has reportedly written to the Reserve Bank of India (RBI), seeking clarity on certain features around instant liquidity, flow of funds between borrowers and lenders and automatic reinvestment of gains.

As per ET’s report, industry insiders believe that by offering the right products with options for on-demand liquidity and access to secondary market transactions, P2P lending can become an attractive tool for investors looking to diversify into new asset classes.

If approved by the RBI, lenders on P2P platforms would have the option to sell their outstanding loans midway through the term, allowing them to either exit the investment or reinvest the funds.

A spokesperson for the Association of P2P Lending Platforms confirmed they have approached the banking regulator for guidance on secondary market operations, added the report.

Sector participants have requested clarity from the RBI’s Department of Regulation regarding secondary market operations, which have been in practice since the regulations were introduced in 2017, it further said.

This development comes as the Reserve Bank of India has announced new guidelines for digital lending, stipulating that peer-to-peer (P2P) lending platforms are prohibited from entering into default loss guarantee (DLG) agreements with non-banking financial companies (NBFCs). 

RBI data reveals that 26 P2P lending companies are regulated, however, ET reported that only about 10 are currently operational, while the rest are either inactive or considering exiting the sector.

Fintech startups such as Uni, CRED, MobiKwik, BharatPe and RupeeCircle are among some of the platforms that offer P2P lending, allowing individuals to lend to other individuals. 

Meanwhile, crypto exchange Binance has halted the cash payment option for P2P trades in rupees.

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The central government has reportedly finalised the draft rules for the Digital Personal Data Protection (DPDP) Act 2023 and plans to release them for public consultation in the second or third week of August.

As per an ET report, the rules are anticipated to be notified after the current parliamentary session concludes.

“We will have extensive consultations for the rules. Our approach has been very measured and we have kept the text (of the rules) very simple. The idea is not to disrupt anything,” a senior government official told ET.

The DPDP Act classifies users under 18 as children and mandates social media or internet intermediaries, known as data fiduciaries, to obtain explicit parental consent before processing any data from children.

An official mentioned that the final DPDP Act rules “will stay within the walls of the law as passed by the Parliament.” The government aims to ensure the Act provides a robust mechanism for citizens to safeguard their privacy without becoming a place for “frivolous” complaints. The official noted that clear responsibilities would be imposed on how a person can file a complaint.

Another government official added, “Only the issue of age and parental consent verification remains. We had a meeting with experts and industry stakeholders about a fortnight ago. Some of them have sent their solutions to us. We are looking at all the options right now.”

This comes days after the government announced plans to meet with tech executives, startups, and industry bodies to discuss verifying children’s ages and obtaining parental consent under the Digital Personal Data Protection Act 2023.

Earlier, it was reported that social media platforms are exploring methods like QR codes, virtual Aadhaar IDs, or age verification at the app store level to comply with the DPDP Act of 2023. However, this provision encountered pushback from industry executives who were concerned about the privacy implications associated with these tools for establishing children’s ages and verifying parental connections.

In response to incidents of children encountering online predators on social media, the government reportedly developed a strategy, last November. This strategy was designed to provide social media and internet intermediaries with various options for enforcing age restrictions and managing parental consent effectively.

The DPDP Act was enacted after being approved by both the Lok Sabha and the Rajya Sabha last year. President Droupadi Murmu granted her assent to the Bill on August 11, 2023.

The post Centre Likely To Release Final Draft Of DPDP For Public Review In Weeks appeared first on Inc42 Media.

Fintech startup BillDesk, Amazon Pay India, and global payments major Adyen have received the Reserve Bank of India’s (RBI) approval to operate as cross-border payment aggregators.

While BillDesk’s IndiaIdeas.com Limited received the licence for both exports and imports on July 29, the other two received the nod on July 25. Amazon Pay and Adyen India have received the central bank’s approval for import-only cross-border payment aggregator (PA) licence. 

Commenting on the development, a spokesperson of Amazon Pay said, “We are excited to have received RBI approval for operating cross-border payment aggregator – import transactions (PA-CB-I). It reaffirms our commitment to RBI to drive a seamless and inclusive payment ecosystem, and empowering merchants with innovative payment solutions that are secure, convenient, and accessible.”

With this, the trio has joined Cashfree Payments in the list of companies that have cross-border PA licence. 

For the uninitiated, the licence allows fintech and payment solutions companies to offer payment services to users for exports or imports. There are three types of cross border PA licences – export only PA-CB (PA-CB-E), import only PA-CB (PA-CB-I), and export and import PA-CB (PA-CB-E&I). 

The development comes nearly a year after the RBI, in October last year, directed fintech startups to seek PA licence for processing online cross-border transactions for the import and export of goods and services.

Under the current mandates, applicants have to register with the Financial Intelligence Unit-India (FIU-IND) to receive authorisation for processing such payments. Additionally, they are required to maintain a minimum net worth of INR 15 Cr when applying for the licence. This threshold will increase to INR 25 Cr post March 2026.

Fintech startups offering such services will have to discontinue their platform if they fail to comply with these net-worth mandates by July 31, 2024, as per the central bank. 

Earlier this month, Cashfree Payments became the first entity to receive the payment aggregator licence for cross-border payments. 

This comes at a time when the central bank has been on a spree to grant payment aggregator licence to applicants. Since December last year, the central bank has greenlit the PA applications of more than 20 fintech startups including Groww, Juspay, Decentro, CRED, Amazon Pay, among others.

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The average ticket size of personal loans disbursed by fintechs has been on a consistent decline for the past two years, as per a Reserve Bank of India (RBI) report. 

As per the report, title ‘Currency and Finance (RCF) for the year 2023-24’, the average loan size dropped to INR 9,861 in the first half (H1) of the fiscal year 2023-24 (FY24) from INR 10,642 in the entire FY23.

The average size of personal loans disbursed by fintechs stood at INR 10,955 in the fiscal year ended March 2022.

The RBI said that the fall in average ticket size coincided with the rise of young borrowers and more personal loans being disbursed in rural areas. 

“In India, the personal loan market has seen an accelerated growth phase. Fintechs mainly cater to small value personal loans with 68% of personal loans falling in the category of less than INR 5,000 in 2022-23. The average ticket size of personal loans by fintech was around INR 11,000 in 2023,” added the report. 

The report also noted that the percentage of female borrowers availing digital personal loans has been on the rise, increasing from 12.9% in FY22 to 13.9% in FY23. The number stood at 14.2% in H1 FY24.

A region-wise breakdown of the digital personal data revealed that while 56% of the total borrowers came from “urban/ metropolitan” areas in H1 FY24, rural and semi-urban residents accounted for 33% and 11%, respectively.

The report comes a month after the central bank flagged the high levels of delinquency witnessed by fintech lenders for small loans below INR 50,000, adding that there was a need to closely monitor the unsecured lending category. 

At the time, the RBI had said that the growth rate in personal loans declined to 30% at the end of March 2024 compared to 31% in the year-ago period.

The development holds weight as RBI has been closely scrutinising the sector. For instance, in November last year, the central bank increased the risk weightage for outstanding and new unsecured consumer credit exposure of commercial banks as well as NBFCs by 25 percentage points to 125% from 100% earlier. 

The move increased the lending costs for unsecured consumer loans, forcing many startups like troubled Paytm to “go slow” on sub-INR 50,000 loans and focus on high-ticket personal and commercial loans. Later, Paytm paused its small personal loans business, including the postpaid portfolio, due to a decline in asset quality across industry.

Additionally, the RBI also tightened its noose around the digital lending space as it released a draft framework to oversee aggregation of loan products by lending service providers (LSPs) in April this year. 

The post Average Ticket Size Of Fintechs’ Personal Loans Slumps To INR 9,861 In H1 FY24: RBI appeared first on Inc42 Media.

The Ministry of Electronics and Information Technology (MeitY) has expressed concern about the data privacy risks posed by big tech companies such as Google, Alibaba, Airbnb, Amazon, Uber and Facebook.

These concerns were flagged by MeitY in an internal presentation on the broader theme of the Digital Personal Data Protection Act, Moneycontrol reported.

Inc42 was not able to independently verify the document.

MeitY is especially concerned about how companies collect user data through an individual’s purchases, browsing habits and preferences.

Big tech firms reveal “patterns, trends and associations”, leaving users “vulnerable”, the presentation reportedly highlighted.

Further, MeitY has also voiced concerns about the spike in data usage caused by the tech giants.

The development comes at a time when tech giants like Google, Apple, Meta and Amazon are under scrutiny for abusing their dominant position in multiple markets to limit competition.

Amid the recent feud between Indian startups and Google, the CCI ordered an investigation into the search giant’s contentious choice billing system.

In 2022, the CCI slapped Google India with a fine of INR 1,337 Cr for engaging in unfair business practices in the Indian market.

In a move to crack down on the alleged anti-competitive practices employed by big tech companies, the Ministry of Corporate Affairs released the draft Digital Competition Bill earlier this year.

The bill also entrusts the big tech firms with various obligations, spanning aspects such as prevention of fraud, cybersecurity, prevention of trademark and copyright infringement, compliance to local laws, among others.

While the draft Digital Competition Bill has been welcomed by more than three dozen homegrown startups including the likes of Matrimony.com, TrulyMadly, Innov8, tech giants such as Meta, Amazon and Google have opposed it, arguing that the regulations proposed under the bill are stricter than EU laws.

Last year, the government passed the Digital Personal Data Protection Bill to oversee digital processing of data of Indians. The bill introduced the concept of user consent, meaning that data can only be processed on prior permission of the user and only for lawful and specified legitimate purposes.

The post MeitY Flags Data Privacy Risks Posed By Google, Other Big Tech Players appeared first on Inc42 Media.

The Centre has reportedly invited bids from project management companies and joint venture to oversee operations of the India Semiconductor Mission and its aspects.

As per ET’s report, the ministry of electronics and information technology has said in its bid that the project management company will also be responsible for the estimation of the financial aspects of the project, overall project cost and monitoring the details of the actual expenditure in items such as plant, machinery, clean rooms, equipment and associated units.

On the other hand, the company will also be responsible for “reviewing and providing suggestions to the quality control protocols adopted for the project with respect to the product qualification, reliability of chips, testing and quality of chips, yield benchmark and production target achievement,” the IT ministry was quoted as saying in the report.

Earlier this month, MeitY was said to knock on the doors of the finance ministry and seek more funds for its semiconductor mission. As per The Hindu businessline, it has begun to commit funds to the tune of INR 70,000 Cr (92%) out of the scheme’s total outlay of INR 76,000 Cr.

MeitY is responsible for the execution of the ISM scheme of INR 76,000 Cr. The initiative is a specialised and independent business division within the Digital India Corporation with an aim to build a strong semiconductor and display ecosystem to enable the country’s emergence as a global hub for electronics manufacturing and design.

Earlier this year, Tata group announced setting up a semiconductor ATMP (a combination of assembly, testing, marking and packaging) worth INR 27K Cr in March 2024 Assam.

In February, Tata Electronics (TEPL) also received approval to build India’s first AI-enabled semiconductor fabrication facility in Gujarat’s Dholera.

As per Inc42’s report, the Indian semiconductor market is expected to reach $150 Bn by 2030, up from $33 Bn in 2023, witnessing a 24% CAGR.

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The government has informed the Parliament that an incremental investment of INR 8,803.14 Cr was made under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors as of June 30.

In a written reply to Rajya Sabha, Minister of State (MoS) for Electronics and Information Technology Jitin Prasada said that the scheme has led to production of INR 18,083.55 Cr (over $2.1 Bn) until the end of June.

The scheme was initially notified on April 1, 2020, and has continued to accept applications until March 31.It provides a financial incentive of 25% on capex (capital expenditure) for electronic components, mechanics, solar photovoltaic (SPV) polysilicon and such goods on their production.

Meanwhile, production linked incentive (PLI) scheme for large scale electronics, which offers an incentive of 3% to 6% on incremental sales of electronic goods produced in India for a period of five years, made an investment of INR 8,390 Cr under the scheme, as of June 30, and the initiative has aided the production of INR 5,14,960 Cr, until then.

This PLI scheme came in order to boost domestic manufacturing and attract investment in mobile phones value chain including electronic components and semiconductor packaging and it was notified on April 1, 2020. 

This comes on the heels of the multiple initiatives and schemes introduced by the government to boost the manufacturing sector.

Also, finance minister Nirmala Sitharaman has announced a number of measures during her recent Budget speech to boost the domestic electronics industry.

“To increase value addition in the domestic electronics industry, I propose to remove the Basic Customs Duty (BCD), subject to conditions, on oxygen-free copper for the manufacture of resistors. I also propose to exempt certain parts used in the manufacture of connectors,” Sitharaman said.

In April, the Ministry of Heavy Industries (MHI) received seven bids for the global tender issued by it for rebidding for production linked incentives (PLI) for 10 GWh advanced chemistry cell (ACC) manufacturing. The Union Cabinet approved the PLI scheme for manufacturing advanced chemistry cell (ACC) batteries in May 2021.

The scheme, with an outlay of INR 18,100 Cr aimed to achieve manufacturing capacity of 50GWh of ACC and 5 GWh of “niche” ACC.

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The government has informed the Parliament that the Indian Computer Emergency Response Team (CERT-In) is in touch with tech giant Apple over the controversial threat notifications sent to various opposition Members of Parliament (MPs) and journalists.

“CERT-In is in touch with Apple and is in the process of getting information from the company about the alerts. Our agencies will act on the information provided,” said Minister of State (MoS) for Electronics and Information Technology Jitin Prasada in Rajya Sabha on Friday (July 26).

He was responding to a question from Aam Aadmi Party (AAP) MP Raghav Chadha, who was one of the recipients of the alleged threat notification. 

“I along with several members of this House, particularly who sit in the opposition benches, are victims of something called state-sponsored spyware attack. Whereby our mobile phones notified us that a state-sponsored cyber attack took place which was attempting to infiltrate our mobile phone devices,” Chadha said while raising the issue in the upper house. 

He asked if the government had taken cognisance of the “attacks”, adding that whether authorities have taken any action in this regard.

“Now members of just not this House including several journalists and eminent people in public life are also victims. Therefore, I ask whether the government has taken cognizance of such attacks. Is there a list of the people who were attacked by such spyware attacks? And thirdly, what action has been taken?” added Chadha.

At the heart of the matter are the threat notifications sent by Apple to alert users who may have become targets of state-sponsored actors. 

In October last year, multiple Indian opposition leaders, including Shashi Tharoor, Pawan Khera and Sitaram Yechury alleged that they had these alerts on their iPhones, sparking political controversy and accusations of government surveillance.

In its message, Apple had said that malicious attackers could remotely access sensitive data, communications as well as camera and microphone of the compromised iPhones. However, the message also noted that it is ‘possible’ that this could be a ‘false alarm’ but advised recipients to take the warning seriously.

The aftermath saw the IT Ministry sending a notice to tech giant Apple concerning the controversial threat notifications received. Afterwards, it was reported that Apple’s cybersecurity executives from the US were planning to meet officials of CERT-In in connection with these alleged threat notifications.

In March this year, the then MoS for IT Rajeev Chandrasekhar said that the Centre had received ambiguous responses from Apple in connection with the questions related to the notifications. 

What followed was the big tech major dropping the word “state-sponsored” from its threat notification policy. In April this year, it warned its users in India and 91 other countries of a “mercenary spyware attack” replacing the term “state-sponsored”.

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The Karnataka assembly has passed a bill that proposes imposing a cess of up to 2% on OTT subscription plans. But questions remain over its implementation. 

“The Karnataka Cinema and Cultural Workers Welfare Bill – 2024 was introduced in the Assembly today… The bill was unanimously passed in the assembly,” state labour minister Santosh Lad said in a post on X earlier this week. 

Meanwhile, state labour department officials told Moneycontrol that they have commenced preparations for drafting rules for the same. 

“We have already started preparations for the rules. The draft rules will be published in the public domain. We are also planning to conduct a stakeholder meeting on the cess collection,” one of the officials reportedly said.

The official refused to offer any details on how the cess would be levied on OTT streaming platforms but said, “We have some framework in mind. We are still working on the modalities.”

The bill is now pending before the Governor for further approval. 

The bill proposes a “cine and cultural activists welfare cess” that will be imposed on movie tickets as well as OTT subscription fees in the state. The charges will range between 1% to 2% and will be revised every three years.

The bill also envisages the creation of ‘The Karnataka Cine and Cultural Activists Social Security and Welfare Fund’ to benefit cine artists in the state.

However, implementing charges on OTT subscriptions wouldn’t be easy as platforms such as JioCinema, Netflix, Amazon Prime have multiple pricing slabs for their customers. 

While the modalities are yet to be decided, the additional cess is expected to increase the costs for streaming platforms, which may eventually pass the price hike to the end customers. This may not bode well for many of these players as most of them operate on thin margins. 

It may also create an additional compliance burden for OTT platforms. However, this is not the first time that streaming platforms have landed in a regulatory soup with authorities. 

The Centre’s Broadcasting Services (Regulation) Bill 2023, introduced in November last year, aims to bring OTT platforms under its ambit. Many critics have opined that the proposed content evaluation committees (CECs) under the bill could pave the way for censorship and add additional compliance burdens for these players. 

Then, there are the anti-tobacco warning rules mandated by the health ministry last year, which require OTT platforms to include anti-tobacco health spots and disclaimers of 20-30 seconds in the beginning and middle of any content depicting tobacco use. 

The OTT platforms have also had run-ins with the law over alleged obscene and pornographic content. Earlier this year, the Ministry of Information and Broadcasting (MIB) blocked access to 18 streaming platforms, including Uncut Adda, Dreams Films and Prime Play, for publishing vulgar content. 

The post Karnataka Assembly Passes Bill To Levy 2% Cess On OTT Subscriptions, Rules To Be Out Soon appeared first on Inc42 Media.

The Centre will make efforts to resolve all the pending angel tax cases to provide relief to startups, finance minister Nirmala Sitharaman said. 

“My approach would be to see how best we can sort this out (pending angel tax cases). Because it can’t be that we’ve removed a tax but those litigations are going to hang fire. That cannot be a fair treatment. We will have to work out something,” the finance minister told ET in an interview.

Earlier this week, Sitharaman announced abolishment of the infamous angel tax during her Budget speech. While the startup ecosystem lauded the move, many raised concerns about the pending angel tax cases being faced by startups. 

Mohandas Pai, the former CFO of Infosys and partner at Aarin Capital, told Inc42 earlier that the Centre must look into aiding people stuck in “the angel tax web”. “The government must now withdraw all cases pending under angel tax in the last five years and state clearly that no angel tax will be levied on any pending assessments,” he said. 

The finance minister, delving into the government’s rationale behind angel tax abolishment, said that the provision was acting as a hindrance for the growth of the startup ecosystem. She highlighted that fears persisted despite the government’s actions to promote India’s startup ecosystem.

“… Fear persisted that this could be one of the trigger points for income-tax to take action. We thought there are no more ways in which we can remove this suspicion from the minds of people. Equally, we were confident that the PMLA (Prevention of Money Laundering Act) and the Black Money Act are adequate to sort this out, so we’ve just removed it,” she told the publication. 

It must be noted that Angel tax, or Section 56(2)(viib), was inserted in the Income Tax Act, 1961 in 2012 to keep shell companies at bay and prevent money laundering. However, over the years, it became a major concern for startups as tax officials began issuing tax notices to startups over their valuation methodology.

Angel tax was payable on capital raised by unlisted companies if the value of the shares issued to investors exceeded their fair market value (FMV). It was a long-standing demand of the startup ecosystem to remove angel tax.

Earlier this week, Central Board of Direct Taxes’ (CBDT) chairman Ravi Agrawal said that the removal of angel tax will boost the country’s startup ecosystem by bringing in more investments. 

The post Will Try To Resolve Pending Angel Tax Cases: FM Nirmala Sitharaman appeared first on Inc42 Media.

Minister of state (MoS) for home affairs Bandi Sanjay Kumar said that the Centre’s ‘Citizen Financial Cyber Fraud Reporting and Management System’ has helped “save” more than INR 2,400 Cr worth of funds from being syphoned off by fraudsters.

In a written answer in the Rajya Sabha on Wednesday (July 24), the MoS said that the amount was saved in response to more than 7.6 Lakh complaints filed on the portal.

“The ‘Citizen Financial Cyber Fraud Reporting and Management System’, under I4C, has been launched for immediate reporting of financial frauds and to stop syphoning off funds by the fraudsters. So far, (a) financial amount of more than INR 2,400 Cr has been saved in more than 7.6 Lakh complaints,” said MoS Kumar.

Indian Cybercrime Coordination Centre, or I4C, under the ambit of the home ministry, is envisaged to act as the nodal point to curb cybercrime in the country.

For the uninitiated, victims can lodge a complaint on the Citizen Financial Cyber Fraud Reporting and Management System in cases involving fraudulent transactions. Thereafter, a police officer is tasked with sending a request to the concerned bank or intermediary to block the said funds. The portal is envisaged with helping financial cyber fraud victims retrieve money and identifying the cyber criminal.

MoS Kumar also said that the government has blocked more than 5.8 Lakh SIM cards and 1.08 Lakh devices reported by police authorities as part of a wide crackdown on financial frauds. 

He added that the National Cyber Forensics Laboratory has provided services such as mobile forensics, memory forensics, CDR (call detail record) analysis to multiple state law enforcement agencies in nearly 10,200 cyber crime cases. 

In response to a separate question, the MoS said that a “report suspect” feature has been added on the National Cyber Crime Reporting Portal to report cybercrime attempts made using suspicious websites. He said that 5,252 suspect URLs have been reported so far. 

Besides this, he also said that I4C has shut down 379 illegal loan and scam applications and 91 phishing/fake websites between October 2023 and May 2024.

In the same span, I4C collaborated with the National Internet Exchange of India (NIXI) to deactivate 310 malicious or phishing “dot.in” domains. 

“I4C has collaborated with National Internet Exchange of India (NIXI) to prevent abuse of ‘dot in’ Domains. Between October 2023 and May 2024, 310 ‘malicious/phishing’ domains have been made non functional with the help of NIXI… Further, 91 phishing/ fake websites and 379 illegal loan/ scam apps hosting websites have been made non functional by I4C with the help of stakeholders concerned,” the MoS added. 

The post More Than INR 2,400 Cr Saved From Being Syphoned Off By Online Fraudsters: MoS Home appeared first on Inc42 Media.

The Centre is set to release a discussion paper on cryptocurrencies before September, economic affairs secretary Ajay Seth said.

The paper will cover regulations for cryptos and seek inputs from industry stakeholders on the outlined ideas, Seth told Moneycontrol in an interview. 

“The policy stance is how does one consult relevant stakeholders, so it is to come out in the open and say here is a discussion paper, these are the issues and then stakeholders will give their views,” the publication quoted him as saying. 

Seth said that an inter-ministerial group is currently working on a broader policy for cryptocurrencies. The group also includes representatives from the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).

The paper will also contain suggestions on the scope of regulations for cryptocurrencies in India. “In India it (cryptocurrencies) is being regulated from the perspective of AML (anti-money laundering) and EFT (electronics funds transfer) alone. Regulation starts and ends there, it cannot be beyond that, so should the remit be more? What should be the policy stance? All that will come out in the discussion paper,” the secretary said.

The move to release a discussion paper follows the endorsement of guidelines set by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) by G20 member countries during India’s presidency last year. 

The development comes at a time when the crypto industry in India has been under stress due to policy uncertainty. The RBI has been a staunch opponent of cryptos, saying they pose macroeconomic risks. The central bank has also pushed for a ban on cryptos.

Meanwhile, SEBI has said that several regulators should oversee crypto trade. Amid all these, the Centre hasn’t clearly spelled out its stance on the digital assets.

However, the government introduced a 30% tax on crypto earnings and a 1% TDS on crypto transactions in 2022, significantly impacting trading volumes on Indian exchanges. Prime Minister Narendra Modi and finance minister Nirmala Sitharaman have in the past called for a global framework to regulate cryptos.

Amid these uncertainties, the funding for crypto startups has plunged and a number of startups like WeTrade and Pillow even shut down.

The post Centre To Release Cryptocurrency Discussion Paper Before September appeared first on Inc42 Media.

In a bid to address the rising money scamming and frauds issue, the Reserve Bank of India has reportedly asked banks and all payment system operators to keep track of domestic money transactions made by customers.

As per the Economic Times report, the regulator has asked remitter banks to keep a record of the basic details such as name and address of beneficiaries of all cash pay-out services.

For cash pay-in services, remitting banks and business correspondents (BCs) will have to register the customer based on a verified cell phone number and a self-certified ‘Officially Valid Document (OVD)’ as set out in the Know Your Customer rules, the report added.

The news report also revealed that every transaction by a remitter will have to be validated by an Additional Factor of Authentication (AFA).

Reserve Bank of India governor Shaktikanta Das has urged banks to step up efforts against mule accounts and asked them to intensify efforts to curb digital frauds, based on the report.

The RBI previously set up a committee, comprising industry experts, to develop a digital public infrastructure platform led by Abhaya Hota, the first CEO of the National Payments Corporation of India (NPCI) to combat payment frauds, in June.

Meanwhile, in June, the central bank also organised its third global hackathon to develop tech-based solutions to address financial frauds called ‘HaRBInger 2024 – Innovation for Transformation’.

This new regulation from the RBI is expected to bring a significant impact on the growing online frauds in the country which has surged by 334% year-on-year (YoY) to 29,082 in the financial year 2023-24 (FY24), where the amount involved in these cases surged to INR 1,457 Cr in FY24 from INR 227 Cr in the previous year. 

The disclosures were part of the central bank’s annual report for the fiscal year ended March 2024 and covered instances involving cards and the internet. In contrast, online frauds in the country stood at 6,699 in FY23.

The post RBI Asks Banks To Keep Track Of Domestic Money Transfers To Limit Frauds appeared first on Inc42 Media.

The Enforcement Directorate (ED) has reportedly conducted searches at several locations connected to the online forex trading app OctaFx, which is under investigation for allegedly defrauding investors of several crores.

According to an India Today report, the ED’s Mumbai Zone carried out searches in Mumbai, Kolkata, Delhi and Gurugram under the Prevention of Money Laundering Act (PMLA).

The ED began its investigation into the platform following an FIR filed in Pune, which accused several individuals of defrauding investors by promising high returns through the OctaFx trading platform.

The OctaFx app and website are not authorised by the RBI for forex trading. The investigation uncovered that the company’s Indian operations and associated entities defrauded investors by falsely representing forex trading, amassing over INR 1,000 Cr from India.

A portion of these funds was laundered through intricate transactions involving shell companies and was remitted abroad to affiliated entities under false pretenses such as bogus freight services and import of services, sources told India Today.

The illegally acquired funds were also channeled into SEBI-registered Alternative Investment Funds (AIFs) to legitimise them. Furthermore, it was discovered that OctaFx used entities based in the British Virgin Islands and Estonia to transfer funds for its promotional activities to attract investors.

The report added that investigations also found that these operations were overseen by the owner of the OctaFx group, who is based in Russia, Spain, Georgia, and Dubai.

The ED has so far attached assets worth approximately INR 38 Cr in the form of cryptocurrencies, bank balances, and gold coins in connection with the case.

According to the report, during the search operations, movable assets, including bank funds and Demat account holdings worth approximately INR 80.43 Cr, were frozen. Incriminating documents and digital devices were also recovered and seized. To date, the total amount attached or frozen in this case stands at around INR 118 Cr, with further investigation continuing.

In September 2022, the ED froze assets worth INR 21.14 Cr belonging to the online forex trading app OctaFX for FEMA violation.

This comes at a time when the ED seized crypto assets worth INR 90 Cr from Binance, ZebPay, and WazirX in connection with a money laundering case involving online gaming app E-Nugget. The app was accused of luring users with promises of high returns.

In total, law enforcement actions have led to the seizure, attachment, or freezing of assets amounting to INR 163 Cr, including cash, cryptocurrencies, bank balances, and office space.

This development also comes days after WazirX experienced a major security breach. Following this, the cryptocurrency exchange has announced a prize of $23 Mn as a part of its bounty programme to recover the $230 Mn assets stolen during the attack.

The post OctaFX Case: ED Raids Four Cities, Freezes Assets Worth INR 80 Cr appeared first on Inc42 Media.

The Centre has said that 5G services have now been launched across all the districts of Himachal Pradesh.

Responding to a question, minister of state (MoS) for communications Pemmasani Chandra Sekhar informed the Parliament that 5G networks have been rolled out in all states and union territories across the country, with these services currently available in over 750 districts and 8,000 towns and cities. 

To date, more than 4.4 lakh 5G Base Transceiver Stations (BTSs) have been installed, including 4,101 BTSs in Himachal Pradesh.

It is pertinent to note that the benefits of 5G include significantly higher peak data rates, reduced latency, and greater spectrum efficiency, surpassing those of the previous 4G networks. 

BSNL/MTNL plans to introduce 5G services after completing the rollout of its 4G network. 

The government has taken several initiatives to proliferate 5G services which include assigning sufficient spectrum for mobile services through auctions and implementing a series of financial reforms to rationalise adjusted gross revenue (AGR), bank guarantees, interest rates, and penalties. 

Additionally, spectrum sharing, trading, and surrender have been permitted according to the extant Notice Inviting Application (NIA) terms and guidelines issued from time to time. 

The procedure for SACFA (Standing Advisory Committee on Radio Frequency Allocations) clearance has been simplified. The notification of Right of Way (RoW) Rules and the launch of the PM GatiShakti Sanchar portal have streamlined RoW permissions and expedited clearance for installing telecom infrastructure, the minister said.

Since the launch of 5G services on October 1, 2022, approximately 17 Cr wireless data subscribers in India have started using 5G. Telecom Service Providers (TSPs) have expanded 5G services beyond the minimum rollout obligations prescribed in the NIA for spectrum auction.

Besides this, the Centre for Development of Telematics (C-DOT), a premier Telecom R&D centre of the Department of Telecommunications (DoT) signed an agreement with the Indian Institute of Technology Roorkee (IIT Roorkee) and the Indian Institute of Technology Mandi (IIT Mandi) for the development of ‘Cell-Free’ 6G Access Points.

The agreement is designed to provide funding support to domestic companies, Indian startups, academia, and R&D institutions involved in the design, development, and commercialisation of telecommunication products and solutions. This scheme aims to enable affordable broadband and mobile services, playing a significant role in bridging the digital divide across India.

Traditional mobile networks rely on cell towers to service specific areas, like 4G and 5G. In contrast, ‘Cell-Free’ Massive MIMO uses multiple access points spread over a large area to serve many users simultaneously, improving connectivity, eliminating dead zones, and boosting data speeds for a better experience, even in crowded places.

This 6G project aims to develop access points (APs) for future 6G networks and will also contribute to 6G standardisation, commercialisation, and intellectual property generation.

As telecom service providers continue to expand 5G networks across the country, Prime Minister Narendra Modi has emphasised that India is also striving to lead the global 6G technology frontier.

In March 2023, the government introduced India’s first 6G test bed and released the ‘Bharat 6G Mission’ document, outlining a roadmap for the deployment of 6G services in the coming years.

This comes at a time when telecom operator Reliance Jio reported onboarding over 10.8 Cr subscribers to its 5G network.

The post Govt Says 5G Services Made Functional Across All States And UTs appeared first on Inc42 Media.

The Rajasthan government, in the state’s Budget for 2024-25, announced a range of youth-centric policies and initiatives aimed at upskilling the youth, offering job opportunities and supporting a vibrant environment for entrepreneurship in the state. 

The Budget aligns with the state’s ongoing efforts to foster entrepreneurship and introduces several policies that complement the iStart initiative — Rajasthan’s flagship programme launched in 2017 to support startups through funding, mentoring and incubation. To date, iStart has supported over 4,600 startups, provided INR 901 Cr in funding and created more than 32K jobs.

A key highlight of the Budget is the launch of the Atal Entrepreneurship Programme, aimed at empowering aspiring entrepreneurs by providing valuable mentorship from successful CXOs and offering access to funding opportunities of up to INR 10 Cr through the iStart Fund. It also proposes a dedicated INR 100 Cr ‘Fund of Funds’ to offer financial assistance to startups through equity funding. 

Further, to simplify government procurement, the Budget allocates a corpus fund of INR 25 Cr under the iStart Fund. This initiative is already showing positive results on the e-bazaar, according to a state government representative. As of today, 371 startups have registered as iStart sellers, leading to 72 work orders with an estimated total cost of INR 11.85 Cr. Additionally, the option of directly assigning work to startups through subcontracting will be provided, the Budget read. 

The state government seeks to give youth a positive push by placing them at the forefront of all initiatives. Further, the state representative noted these youth-centric initiatives have been catalysed by Rajvardhan Rathore, the state minister of information technology & communications.

Fostering A Culture Of Innovation

To nurture young talent in cutting-edge technologies, the government has announced plans to establish Atal Innovation Studios and Accelerators in key cities such as Jaipur, Bharatpur, Bikaner and Udaipur. These centres will focus on sectors like coding, robotics and VFX. To support this initiative, the government has allocated INR 1,000 Cr to foster a vibrant innovation ecosystem.

Further, the government has also announced the Agriculture Accelerator Mission to empower and support startups in the agritech sector — a sunrise sector in India’s startup ecosystem. Additionally, the budget unveiled the launch of the AVGC-XR Policy (Animation, Visual Effects,Gaming, Comics-Extended Reality Policy) to incentivise innovation and create approximately 50,000 jobs in the creative and technology sectors over the next five years.

Recognising the immense potential for innovation among the state’s youth, but acknowledging the need to bridge the gap in startup knowledge, the Budget introduces the Learn, Earn & Progress Programme (LEAP) within iStart to enhance the skills of both startup founders and aspiring young individuals. An allocation of INR 25 Cr has been proposed for this endeavour.

Education, Skilling & Job Opportunities

With a focus on driving innovation and entrepreneurship, the government announced the launch of the ‘Business Innovation Programme’ for schools and colleges to equip students with valuable business acumen and nurture an entrepreneurial mindset from a young age. The programme is expected to benefit over 1 Lakh students and a corpus of INR 20 Cr has been allocated for this.

To further guide career paths, the state government will implement apprenticeship/internship programs and utilise AI-based career counselling — a step towards merging technology with real-world application.

The Budget announcements are in line with Rajasthan’s focus on promoting innovation and skill development. Beyond its rich cultural heritage, Rajasthan has established itself as a state where education and entrepreneurship have become focus areas to enable economic growth. 

In January 2024, Rajasthan earned recognition as a ‘top-performing state’ in the DPIIT’s ‘States’ Startup Ranking 2022’. 

As per an Inc42 report, there are over 3,700 DPIIT-registered startups in the state and over 45 accelerators and incubators. The new Budget, with its focus on technology and innovation, is all set to further provide a push to the entrepreneurial landscape of the state.

The post From AVGC Policy To Skilling: Rajasthan Budget 2024 Doubles Down Focus On Youth, Startups appeared first on Inc42 Media.

At a time when companies have adopted ‘China plus one strategy’, India should look to increase the foreign direct investment (FDI) from China in the country to benefit from the global shift and increase the country’s exports, especially to the US, the Economic Survey 2023-24 said.

The Survey highlighted that there is a global shift in terms of manufacturing dynamics, with multinational companies adopting a ‘China Plus One’ (C+1) strategy to curtail their dependencies on the country amid mounting global tensions. 

The Survey, tabled by finance minister Nirmala Sitharaman in the Parliament today, said that India has two choices to make the most of this trend – it can integrate into China’s supply chain or promote FDI from China. It added that focusing on Chinese FDI is a more promising prospect. 

“… choosing FDI as a strategy to benefit from China plus one approach appears more advantageous than relying on trade. This is because China is India’s top import partner, and the trade deficit with China has been growing. As the US and Europe shift their immediate sourcing away from China, it is more effective to have Chinese companies invest in India and then export the products to these markets rather than importing from China, adding minimal value, and then re-exporting them,” the Survey added.

The Economic Survey said that India can benefit from the shift away from China and cited the growth in India’s manufacturing exports.

“The appeal of India lies in its large domestic consumer market, which makes it attractive for companies to set up operations there. In the electronics sector, there is a focus on smartphone manufacturing and assembly. The government’s PLI scheme, including tax breaks and subsidies, plays a significant role in attracting companies,” it said.

It is pertinent to note that Apple has moved a part of its production to India over the last few years, which has made the country an important producer of iPhones. Apple assembled $14 Bn worth of iPhones in India during FY24, constituting 14% of its global iPhone production.

Overall, the Survey said that India has seen a boost in its electronic exports, particularly in mobile phones. Exports to the US alone surged from $2.2 Bn in FY23 to $5.7 Bn in FY24. 

Similar to Apple, other tech majors are also looking to boost their productions in India. In February, it was reported that tech giant Google is looking to begin production of its Pixel smartphones in India. Further, Chinese Original equipment manufacturer (OEM) Xiaomi India recently revealed its plan to further expand its manufacturing partnerships in India.   

The post China Plus One: Economic Survey Bats For Increasing FDI From China In India appeared first on Inc42 Media.

The Karnataka government is reportedly considering a proposal to impose a 2% cess on movie tickets and OTT subscription fees to support film and cultural artists.

The Karnataka Cine and Cultural Activists (Welfare) Bill, 2024 was tabled in the assembly on July 19, as per the Moneycontrol report.

According to the bill, a ‘Cine and Cultural Activists Welfare Cess’ will be imposed on cinema tickets, subscription fees, and related establishment revenue in the state. The cess (tax) will range between 1% to 2%, as notified by the government and the rates are subjected to revision every three years, the report said. 

Earlier this month, the Karnataka government released a draft bill aimed at protecting the rights of gig workers in the state, while also offering them social and income security. It proposes various welfare measures for gig workers and mandates the app-based delivery and ride-hailing platforms to provide them with social security benefits.

Following the announcement, Karnataka’s job quota bill attracted widespread criticism and the state government put the bill on hold, a week ago.

“The cess will be levied at rates which will be notified by the government and shall not exceed 2 percent but shall not be less than 1 percent on cinema tickets, subscription fees, and all revenue generated from the related establishments,”, the report said, citing the bill.

“Cine and cultural activists include any person employed in the cinema field as an artist (such as an actor, musician, or dancer) or in any skilled, unskilled, manual, supervisory, technical, or artistic role. This also includes individuals engaged in activities declared by the government for this Act”, according to the bill.

The government has been bringing in initiatives to aid the livelihood of the people hailing from its region. Earlier in March, the Karnataka government withdrew the e-bike taxi scheme due to the protests of auto-rickshaw unions in Bengaluru, citing its blatant misuse.

The post Karnataka Govt Mulls 2% Cess On OTT Platforms, Movie Tickets appeared first on Inc42 Media.

The Bombay High Court (HC) has directed social media platforms to take down deepfakes that feature NSE’s managing director (MD) and CEO Ashishkumar Chauhan offering stock recommendations. 

In an order issued on July 16, a single judge bench comprising Justice RI Chagla also directed digital intermediaries such as Facebook, WhatsApp, Instagram and Telegram to remove all accounts and posts that infringe upon NSE’s trademark. 

“The plaintiff (NSE) has made out a strong prima facie case for grant of ad-interim relief sought… for infringing the Plaintiff’s (NSE) rights…. The balance of convenience also lies in favour of the plaintiff and irreparable loss and / or harm will be caused to the plaintiff, unless the ad-interim relief sought for is granted,” read the HC order. 

The HC also directed the social media platforms to remove the content or deepfakes flagged by the NSE within 10 hours (not exceeding 14 hours) of receiving a complaint from the stock exchange. 

In its order, the HC also affirmed that the social media platforms are bound by the Information Technology Rules to promptly act on content that violates the petitioner’s trademarks and rights on online groups or “dubious web pages”.

Arguing before the HC, NSE counsel Birendra Saraf said that the social media platforms failed to prevent the continued circulation of the content infringing upon NSE’s trademark. He also contended that “no prompt action” was taken by the social media platforms despite multiple complaints by the NSE. 

“The videos further assure full reimbursement by Plaintiff of losses caused to investors executing the suggested trades with diligence. This deceptive behavior of the violators is capable of manipulating the markets and thereby resulting in unfair trade practices as well as violation of various SEBI regulations enacted from time to time,” argued Saraf. 

Agreeing with the contention, Justice Chagla granted interim relief to the NSE and restrained all persons from infringing the plaintiff’s registered trademark. The HC also directed social media platforms to file affidavits within three weeks, submitting the details of the accounts and their handlers involved in publishing such deepfakes. 

The HC has listed the matter for next hearing on August 19.

At the heart of the matter are the deepfakes that featured NSE CEO Chauhan offering stock recommendations to users. As the fabricated videos went viral online, the stock exchange warned investors against the videos and moved the HC in April to take down and remove the unauthorised videos.

However, NSE is not alone in this. In the past, BSE too issued a circular expressing alarm over fake videos and audio impersonating its MD and CEO, Sundararaman Ramamurthy. Earlier this year, actor Ranveer Singh also lodged an FIR against an AI-generated deepfake video that featured him criticising Prime Minister Narendra Modi ahead of the general elections.

Meanwhile, the Centre has tightened its noose around such synthetic content and directed social media platforms to take proactive action against deepfakes. PM Modi even called for building a global framework to crack the whip on such fake videos and safeguard the AI space. 

The post Bombay HC Directs Social Media Platforms To Take Down Deepfakes Of NSE MD appeared first on Inc42 Media.

International trade association World Gold Council (WGC) has urged the union finance ministry and the Reserve Bank of India to establish appropriate guidelines and regulatory frameworks for the digital gold business in India.

As per ET’s report, the council asked the authorities to introduce checks and balances to ensure the gold bought digitally by the customers is protected.

Inc42 has reached out to WGC’s India CEO Sachin Jain for comments on the development. The story will be updated based on the response.

The council, as per report, has also asked to bring in a transparent way to buy and hold gold digitally. According to WGC, over 120 Mn customers have bought digital gold so far, with nearly 40 Mn customers holding it currently.

Earlier in May, the sharp spike in gold prices reduced the country’s consumption to 562.2 tonnes in 2023, a 6.39% dip from 600.6 tonnes of gold as jewellery in 2022, according to the World Gold Council.

“There is a need to facilitate orderly growth of the digital gold market to protect and promote micro savings in gold through transparent digital gold channels and to deter any unscrupulous fly-by-night operators from misusing the emerging opportunity,” Jain was quoted as saying in the report.

He also said, “Government should consider bringing out appropriate guidelines and regulatory oversight for a digital gold business aligned with the broader economic agenda on digitalisation of assets.”

For the uninitiated, Bengaluru-based Plus Gold is one of the very few fintechs that offers users to purchase digital gold. Besides, a 2024 survey indicates that 14% of Indian women still prefer gold as an investment option over real estate and equities. 

All gold assets, physical and digital, are insured and securely stored with Augmont, a digital gold provider and the technology arm of RiddiSiddhi Bullions (RSBL).

The post WGC Urges Finance Ministry, RBI To Draft Guidelines For Digital Gold Biz In India appeared first on Inc42 Media.

The Supreme Court has adjourned till July 31 pleas challenging retrospective goods and services tax notices to online gaming and casino firms.

During the session, the court ordered the segregation of some anti-profiteering matters that were mistakenly included with the gaming cases, a source told Inc42.

Moreover, the court has also directed the petitioners to jot down notes to get a clarity of arguments, a lawyer present at the hearing said.

The government had submitted a comprehensive counter-affidavit on the gaming issue only recently, on Monday. The petitioners requested additional time to respond, which the court granted, allowing them until July 31, 2024, to file their rejoinders.

Additionally, any petitioner from cases transferred from various High Courts can submit their written statements by the same date. Both sides’ lead counsels were also given until July 31, 2024, to finalise their common compilations.

As of December, real-money gaming companies had received 71 show-cause notices for alleged GST evasion amounting to INR 1.12 Lakh Cr in 2022-23 and the first seven months of 2023-24, excluding interest and penalties.

On Wednesday, gaming major Nazara Technologies subsidiaries, Openplay Technologies Pvt Ltd and Halaplay Technologies Pvt Ltd, received substantial tax notices from the Director General of GST Intelligence, Kolkata.

Openplay Technologies was served a show cause notice under Section 74(1) of the CGST Act, 2017, and the State SGST Act, 2017, with a proposed liability amounting to INR 845.72 Cr for the period from 2017-18 to 2022-23, Nazara said in an exchange filing.

Last year, the GST Council decided to impose a 28% GST on online real-money gaming on the full face value of the bets. Several online gaming startups, including Gameskraft, Delta Corp and others received notices to pay INR 1.12 Lakh Cr GST, following which many have moved courts challenging the tax notices.

More than 50% of online gaming companies in India witnessed stagnant or declining revenues after the government imposed 28% GST, a recent report released jointly by EY and US-India Strategic Partnership Forum (USISPF) said, based on the latter’s survey of 12 such companies.

The post SC Adjourns Pleas Challenging Retrospective GST Notices To RMG Firms Till July 31 appeared first on Inc42 Media.