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Vodafone Decline in Revenue due to Note ban and Reliance Jio

Vodafone decline

Reliance Jio creates a hurricane in the telecom sector. Most of the famous telecom companies facing problems with increasing the popularity of Reliance Jio. The British multinational telecommunication company Vodafone is confronted with a decline in its India revenue at Rs 10,556 crore during October-December 2016. Vodafone recorded 4.7 per cent decline in India Revenue.

Demonetization and entry of Reliance Jio may be the reason for the Vodafone decline in India revenue. The Teleco company has reported the revenue of same period a year ago is Rs 11,077.63 crore. Nonetheless, the mentioned decline in euro for the period was 5.5 percent at 1,452 million euro compared to 1,536 million euro during the period under review.

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 Vittorio Colao, Vodafone Group Chief Executive, said that “In AMAP (Africa, Middle East & Asia Pacific), our strong organic performance in South Africa and Turkey was partially offset by India, where the sector is affected by free services from the new entrant.”

He also added that intense competitive pressure is expected in India in the fourth quarter for which Vodafone is taking some serious actions like a series of commercial actions, including the extension of 4G services to 17 circles.

There was an unfavourable impact on prepaid top-up volumes during the quarter because of demonetization, said Vodafone.

“This drove a quarter-on-quarter decline in our active data customer base to 65 million (from 69.6 million in second quarter), mainly reflecting fewer 2G users. Our 3G and 4G customer base declined slightly quarter-on-quarter to 35 million, and smartphone penetration is 35 per cent,” Vodafone said.

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The browsing revenue growth of Vodafone in India is slowed from 16% in second quarter of the current financial year to 0.6% in the third quarter due to the free services from the new entrant.

The average revenue of Vodafone decline per user is 10 percent to Rs 158 in the third quarter ended Dec 31, 2016, from Rs 174 a year ago. Overall the Vodafone revenue declined by 3.9 percent, 13,687 million euros from 14,247 million euros during the period under review.

Economic Survey 2017 Tabled in Parliament: Key Points to Know

economic survey 2017 by jaitley and arvind

During the Parliament, Budget Session Central had tabled the Economic Survey 2016-2017. Finance Minister Arun Jaitley had presented the reports which were prepared by Arvind Subramanian, chief economic adviser to the finance ministry.

According to the Economic Survey 2017, it projects that Indian economy to grow in the range of 6.75% to 7.25% during the year 2017-18.

Mr. Subramanian opined that the demonetization had a huge negative impact on India’s economic growth. But it will surely be doing good for the country in the upcoming days.

Here are the highlights from the Economic Survey 2016-17:
  • The Aggregated demand and supply were profoundly affected by the demonetization
  • Gross domestic product (GDP) growth in 2016-17 to dip to 6.5%, down from 7.6% in last fiscal.
  • Predicts Cuts in Stamp duties and Individual I-T Rates
  • Economic growth to fall to 6.75 from 7.5% in 2017-18.
  • Farming sector to grow at 4.1% in the current financial year from 1.2% in 2015-16
  • Economic Survey sees a fiscal windfall from Pradhan Mantri Garib Kalyan Yojana, low oil prices.
  • Financial gains from Goods and Services Tax (GST) will take some time to realize.
  • Indirect tax collection has seen a dip
  • The Growth rate of industrial sector estimated to moderate to 5.2% in 2016-17 from 7.4% last fiscal.
  • Workers to decide if they want to make their share of contribution towards Employees’ Provident Fund (EPF).

The Economic Survey 2016-17 has advocated the concept of Universal Basic Income (UBI) as an alternative to the various social welfare schemes in an effort to reduce poverty.

Source: IANS

No Extra Charge For Card Payment at Petrol Pumps

petrol pumps

Consumers and petrol pump dealers from today onwards no need to pay the transaction cost. The central government announced that there would be no extra charge added for the card payments at petrol pumps.

“Petrol pumps will continue to accept card payments post-January 13. Oil companies and banks are discussing who is to bear Merchant Discount Rate charges,” said Petroleum Minister Dharmendra Pradhan.

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According to the reports, petrol pump owners threatened to stop accepting Debit and Credit cards against one percent transaction fee by various banks. The banks and oil firms discussed the extra cost charged on card payments on fuel.

“The All-India Petroleum Dealers Association received an official communication from oil marketing companies (OMCs) that with the invasion of petroleum minister the transaction fee charges have been deferred until January 13, 2017. AIPDA also decided to defer the agitation until January 13, 2017,” said the association in a late night statement.

After the government had made an announcement regarding demonetisation, many implemented digital transaction facility. To promote cashless transactions after the notes ban on 8th November, the government insisted the Merchant Discount Rate on fuel.

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Close sources in the petroleum ministry said, “We are trying to negotiate with the banks so that they postpone taxing the transaction fee. On Monday, all parties can discuss and resolve the issue,” the source said.

But after introducing cashless payments, customers are exempted from paying these charges at petrol pumps. After the demonetisation, the state-run petrol dealers offered the cash-back on transactions.

The state-run petrol companies, Hindustan Petroleum, Indian Oil and Bharat Petroleum that operate petrol pumps asked banks to extend the date of 13th January.

Australia Follows India to Restrict Black Money, May ban $100 notes

Australia ban $100 notes

Government of India bold move on the ban of Rs 500 and Rs 1000 notes to catch black money holders and reduce terror funds had made a huge impact on Australia. Following the same strategy of India, Australia Government is also looking to ban $ 100 notes to crackdown black money. Moreover, ban on cash payments beyond a certain limit is also under consideration.

The Prime Minster of Australia Malcolm Turnbull has decided to set up a special task force to be headed by former KPMG global chairman Michael Andrew. The Government will review experience of France where Government is banning cash payments of over AU$1,400.

“There is nothing wrong with cash, the issue is when people don’t declare it. The whole point of this crackdown on the black money is to make sure we close down any possible dodges,” said financial services minister Kelly O’Dwyer.

She said, “The black money that goes oral amounts 1.5 percent of GDP ($21 billion).  If we can get a percentage of that, it’s revenue unsettled to the Australian people. It is very critical for those people who are honest, decent people who are actually doing the right thing and paying their share of tax.”

Demonetisation: RBI Increases Digital Wallets Balance Limit to Rs 20,000 per month

On being asked about ban of $100 notes, Kelly said “I am not going to put a limit on what taskforce can look at.”

As per reports, currently nearly 300 million $100 notes are in rotation in Australia. The circulation of $100 notes have increased by more than 100 percent in over 20 years and 9 percent in the past year. While the long-term growth rate of $100 notes is 7 percent and it is 6 percent for $50 notes and 2 percent for $20 notes.

India’s Demonetisation status

As we know, on November 8, Prime Minister of India Narendra Modi announced the demonetisation of Rs 500 and Rs 1000 notes which extents nearly 85 percent of the notes in rotation. The Govt of India under Modi decision announced the ban of high denomination notes without any prior intimation. He didn’t give any time to black money holders to find any other solutions to turn the cash.

However, the overnight ceasing of Rs 500 and Rs 1000 notes put the people in more troubles, especially the poor and middle class people. Most of the citizens in India accepted the bold move took by Modi and standing in long queues at ATMs, Banks to deposit or withdraw their money. Few people and opposition parties blamed the Government by the sudden demonetization.

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Now, Australia will also follow same strategy what India did and the Reserve bank official Peter Mair has also suggested the ban of $100 notes, giving a use-by date so that public can hand them over within the specified period of time or else they get nothing in return. He also stated that $100 notes are used in bulk for illegal activities and to avoid tax.

New Rs. 20 and Rs. 50 Currency Notes about to issue by RBI: Existing Old notes are valid too

New Rs. 20 and Rs. 50 Currency Notes about to issue by RBI

The Government of India and RBI has recently announced regarding the demonetization of the notes Rs 500 and Rs 1000 in India. The organisation has come up with the refurbishment for the smaller denominations as well.

Now this is not entirely related to the demonetization, and rather than making the design upgrade with the 2005 created bank notes, RBI is going to issue new Rs. 20 and Rs. 50 notes. The older notes are still acceptable and valid. The notes come with ‘2016’ as the manufacturing year.

As you all knew the consequences people are facing right now with the effect of demonetization. And now with the release of these new notes, there is no reason people need to panic about the old notes. To avoid the terms like, “the old notes are useless” etc. RBI has come up with the official statement. “All the banknotes in the denomination of Rs. 50 and Rs. 20 issued by the Bank in the past will continue to be legal tender.”

Exchange Your Rs 500 and Rs 1000 Notes Via Mobile Purchase: Indian Handset Makers asks Government

As of now, the government hasn’t released the official photos or anything else regarding the new notes. The RBI does not mention the release date of these notes and circulation. As per the sources, we can expect this to release in this week.

The prior reason behind the release of these new notes is still unclear. The public is still struggling to get the hands on new Rs 2000 and Rs 500 notes.

RBI will issue the new Rs 50 bank notes in less time with Mahatma Gandhi series- 2005, without inset letter in both the number panels bearing the signature of RBI Governor Dr Urjit Patel with the year of printing ‘ 2016’ on the reverse of the banknote.

Demonetisation: In 23 Places You Can Now Use your Old Rs 500 Notes

Rs 50 denomination notes will carry an ascending font of numerals on both number panels. They don’t have the intaglio print which has earlier issued in Mahatma Gandhi 2005 series. The overall design of the note mostly remains same.

Another denomination of Rs 20 comes with the same upgrades seen on Rs 50 note. But this note additionally has an inset letter ‘L’ in both the number panels. These are the only differentiations observed on these two new updated bank notes.

Source:

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=38782

https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=38781