Morning Brief: UPI Turns Mobiles Into Banks; China Concerned About BrahMos; Syria Guilty Of Chemical Attacks

Smartphones As Banks

In a move that will turn one’s smartphone into a bank, four banks (Axis Bank Ltd, Union Bank of India, Federal Bank Ltd and Bank of Maharashtra) introduced unified payments interface-based (UPI) apps yesterday. 19 more are expected to launch their apps in the next 2-3 days.

With the help of UPI-Based apps, transferring funds or paying bills will be as easy as sending a text message. The transfers will be done instantaneously using a single identifier, say, a virtual address such as name@bankname.com or mobilenumber@bankname.com.

One wouldn’t need to fill in their bank account, IFSC code or credit card details every time they want to make a financial transaction. The UPI system will give a fillip to high-frequency and low-value transactions.

Rajan’s Reform

Indian economy is too much bank-dependent. A big reason for this is the lack of depth in Indian corporate bond market. Investors usually complain that there is a dearth of quality credit. Issuers say they can’t find investors.

To solve this problem, the RBI announced yesterday it will move to cap exposure of banks to large borrowers while also taking steps to deepen the corporate bond market.

This move by the central bank is aimed at limiting the concentration of bank funds in a handful of corporate houses. If those who have outstanding loans from the banks want to go for another round of borrowing next year, they will attract additional provisions and higher risk weights.

The idea is to wean larger borrowers from banks and force them towards market borrowings. The RBI also announced a number of steps to strengthen the corporate bond markets. Read here to know more.

China’s Worry

China has expressed concerns over India’s plans to deploy BrahMos missiles at its border. India has decided to do so as part of its ongoing efforts to build up military and civilian infrastructure capabilities there.

“We hope that the Indian side can do more to benefit peace and stability along the border and in the region, rather than the opposite,” Chinese defence ministry spokesman Wu Qian said when asked about India’s missile deployment plans.

Modi government is not just planning to deploy BrahMos at the border but has also asked BrahMos Aerospace, which produces the missiles, to accelerate sales to China’s arch-rival Vietnam.

GM Mustard

The environment ministry declared yesterday that it would soon make public safety details obtained from trials on the genetically modified (GM) mustard.

The GM mustard crop—DMH-11—has been developed by the Centre for Genetic Manipulation of Crop Plants, Delhi University. So, anti-GM activists are finding it hard to blame Monsanto as this variety is home-grown.

If it gets the go-ahead from the green ministry, it will become the first GM food crop to be commercially cultivated in India. Currently, only GM cotton is cultivated in the country.

Syria Found Guilty

A joint investigative team from the UN and the Organisation for the Prohibition of Chemical Weapons (OPCW), established by UN security council, has found both Syria and ISIS guilty of carrying out chemical attacks during 2013 and 2014.

The team examined nine cases in seven towns where chemical weapons were believed to have been used. It concluded that the evidence was solid in three cases while in three others, it was not conclusive. In the rest, its findings were inconclusive.

The security council will meet on 30 August to discuss the report.

MUST READ OP-EDS

SC Is Party To Delaying Justice [R Jagannathan]: Vajpayee govt tried multiple times to speed up the delivery of justice by introducing timebound procedures. But the judiciary thwarted all such attempts.

Challenges Before The New RBI Governor [Montek Singh Ahluwalia]: These are balancing monetary policy, fixing PSU banks, and handling the transformation of the banking industry by new technology.

Regulating The Disruptors [Mint]: A harsh approach can impede the ‘Schumpeterian waves’ of innovation.

How To Win Medals In Olympics [Shekar Swamy]: Across India, clusters of excellence by sport can be developed based on natural inclinations and heritage that are visible, such as boxing in Haryana and badminton in Hyderabad

SWARAJYA SPECIAL

Kashmiriyat Is Dead, ISIS-Isation Of The Valley Means Insanity Trumps Insaniyat: Kashmir’s problem is radical Islam. Period. Here are five ways the Indian state should deal with it.

Dahi Handi & Jallikattu - SC’s Meddling In Hindu Rituals Is Direct Attack On Freedom Of Religion: Courts are shrinking the boundaries of Hinduism by striking down one ritual after another citing this or that ritual is not ‘essential’. What is ‘essential’ is not defined in Hinduism. Justices should stop applying ‘Abrahamic’ test to Hindu rituals.

We hope you enjoyed reading our morning brief. Have a great day ahead!

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