RBI Extends PIDF Scheme to Uplift Point of Sale Infrastructure
The plan aims to support street vendors in Tier-1 and Tier-2 centres who are part of the PM SVANidhi programme
To improve digital penetration in the economy, RBI has extended the scheme for encouraging the deployment of Point of Sale (PoS) infrastructure to street vendors covered under the PM SVANidhi programme in Tier-1 and Tier-2 centres. Previously, it was available for Tier 3-Tier 6 centres only. The Payments Infrastructure Development Fund (PIDF) was created with a corpus of Rs 3.45 billion for digital payments facilitating the beneficiaries under PM SVANidhi.
US GDP growth was revised up to 6.6 per cent in Q2CY21 from an initial estimate of 6.5 per cent and 6.3 per cent in Q1CY21. This was led by upward revisions to non-residential fixed investment and exports. However, private inventory investment and government spending were revised downwards. Separately, US jobless claims for the week ended 21 Aug 2021 rose for the first time in 5 weeks to 353,000 (est. 350,000) from 349,000. Despite this, claims remain at a pre-pandemic low. The 4-week moving average of claims fell to 367,000, a new pandemic low.
China’s industrial profits moderated to 16.4 per cent in July 2021, from 20 per cent in June 2021. While this was partly owing to the base effect, elevated commodity prices and supply chain bottlenecks also contributed to slowing profit growth. Shortage of computer chips has led to 4th consecutive decline in automobile production. However, profits of pharmaceuticals, mining, and raw material manufacturing were robust. The unevenness in recovery has raised hopes for government stimulus in the near term.
Bonds: Germany’s 10Y yield rose by 2bps (-0.41 per cent) as ECB Chief Economist downplayed the economic impact from the Delta variant. US 10Y yield rose by 1bps (1.35 per cent) amidst hawkish comments from St. Louis Fed President. The UK and Japan’s 10Y yield closed flat. Crude prices fell by 1.6 per cent (US dollars 71/bbl) as virus concerns persist. India’s 10Y yield rose by 1bps (6.25 per cent) as investors were disappointed by auction results.
Currency: Except Rupee (flat), other global currencies closed lower. After falling for 4-straight sessions, DXY rose by 0.3 per cent awaiting comments from Fed Chair. EUR depreciated by 0.2 per cent as Germany’s GfK consumer sentiment index fell. The rupee is trading higher today while other Asian currencies are trading mixed.
Equity: Barring Nikkei and Sensex, other global indices ended lower ahead of Fed Chair’s remarks at the Jackson Hole symposium. The drop in the consumer sentiment index in Germany also impacted investor sentiments. Sensex ended flat. Gains in power, oil, and gas sectors were countered by losses in metal and tech stocks. It is trading lower today while other Asian stocks are trading mixed.