Cash transactions rule in India. Over two-thirds of the transactions in India are done by cash, as per a report by CLSA. The government’s recent moves seem to be nudging people towards non-cash transactions. And, not all Indians are under the formal financial net yet. On Wednesday, the government appointed a panel to steer the country towards digitalisation. Will Indians be ready to embrace cashless transactions? How quickly can we do that? What about the security concerns?
What is it? The number of members in a panel set up by government think-tank Niti Aayog to promote the use of digital payments.
Why is it important? It’s a part of the government’s efforts to make use of the cash crunch to turn people towards cashless payment options. Digital payments system comes with the advantages of transparency, traceability and accountability besides being faster, less inexpensive and more convenient. However, this also means battling security issues and easing concerns of consumers who may not be comfortable with the new medium. The panel consists of members from different parties, indicating that the government seeks to generate a political consensus in its push for digitalisation of the economy.
Tell me more: Andhra Pradesh chief minister N Chandrababu Naiduis the convenor of the panel, which includes Odisha CM Naveen Patnaik (Biju Janata Dal), Puducherry CM V Narayanasamy (Congress), Sikkim CM Pawan Kumar Chamling (Sikkim Democratic Front), Madhya Pradesh CM Shivraj Singh Chouhan and Maharashtra CM Devendra Fadnavis (both from the ruling BJP). Other panel members include NITI Aayog vice-chairman (Arvind Panagariya) and CEO (Amitabh Kant) and five special invitees including Nandan Nilekani, former chairman of the Unique Identity Authority of India.
What is it? The number of locations at which the Enforcement Directorate (ED) conducted searches on Wednesday to check black money held with currency exchanges, hawala dealers and others.
Why is it important? Indicates the government is pushing for a well-rounded attack on tracking down illegal hoarders of cash and suggests that there are ways in which some circumvent the laws, highlighting the need for their stricter enforcement. The authorities seized Rs 1.2 crore cash. The ED, which is responsible for enforcing the Foreign Exchange Management Act and the Prevention of Money Laundering Act, attached assets worth over Rs 9,000 crore for hawala and money laundering crimes in 2014-15, which is likely to go up this fiscal. However, the high pendency – 4,776 cases pending in terms of number of investigations initiated as on March 31, 2015 – is a cause of concern.
Tell me more: As many as 100 investigators along with police personnel have undertaken the searches across the country.
What is it? India’s economic growth rate in the July-September quarter of 2016-17.
Why is it important? This is marginally higher than the rate recorded in the June ended quarter (7.1%) though slower than the 7.6% growth in the second quarter of 2015-16. It also fell short of 7.5% forecast by a Reuters poll of economists. The increase in acceleration in the second quarter this fiscal over the first was led by agriculture (compared to 1.8% in the first quarter) while manufacturing grew by 7.1% (compared to 9.1% in the previous quarter). Consumer spending, which accounts for 56% of India’s $2 trillion economy, is likely to be hit due to the recent demonetisation announcement and it remains to be seen how this affects India’s economic growth rates in the next few quarters.
Tell me more: India retains the tag of the fastest growing major economy as per the second quarter data. China recorded a growth rate of 6.7% in the quarter ended September.
What is it? The number of barrels of oil the Organization of the Petroleum Exporting Countries (OPEC) would produce per day from January 1. OPEC is a group of 14 major oil-exporting nations that account for a third of global production.
Why is it important? This is a cut by 1.2 million barrels per day, representing about 1% of global production and the first joint decision to reduce production since 2008. The agreement to cut production is to prop up oil prices. Due to an oversupply of oil, prices plunged from about $100 per barrel in 2014 to less than $40 per barrel this year, affecting oil-dependent economies such as Saudi Arabia. OPEC members have said they are looking at levels of $55-60 per barrel; a failure to clinch the deal may have sent oil prices down to $30 per barrel, according to analysts.
Tell me more: After the announcement, Brent crude futures, the global benchmark for oil prices, increased by 10%.
What is it? The number of Google accounts whose security has been breached since August by a new variant of Android malware, according to a report by security firm Check Point Software Services.
Why is it important? This is likely the biggest single theft of Google accounts. The malicious software called Gooligan is disguised as legitimate apps to steal authentication tokens that can be used to access data from Google Play, Gmail, Google photos, Google docs, Google Drive among others. The malware attacks 13,000 devices every day, potentially affecting those on Android 4 (Jelly Bean and KitKat) and Android 5 (Lollipop) – this represents nearly three-fourths of the Android devices in use today. About 57% of such devices are located in Asia, 19% in the Americas, 15% in Africa and 9% in Europe.
Tell me more: A device is infected when the user downloads and installs a Gooligan-infected app (from third-party app stores or malicious links), after which data about the device is sent to the campaign’s Command and Control server. This is followed by the malicious software rooting the device (unlocking the operating system) after which it downloads a module that allows Gooligan to steal information, install apps from Google Play and rate them and install adware to generate revenue.