Government considers raising deposit limit for payment banks, reviews financial inclusion roadmap

An important meeting between payment banks and the Finance Ministry was held today to discuss increasing the deposit limit, which currently stands at Rs 2 lakh. The Financial Services Secretary chaired the meeting at the department, where the financial health of all payment banks was reviewed.

The government also sought a roadmap from the banks regarding financial inclusion, emphasising its commitment to expanding banking access. Additionally, discussions were held on the licensing framework for Small Finance Banks. The meeting was attended by top officials from six payment banks and representatives from the Reserve Bank of India (RBI).

GST department plans to bring e-waste, battery scrap under reverse charge mechanism

The Goods and Services Tax (GST) department is considering bringing electronic waste and battery scrap under the reverse charge mechanism and Tax Deducted at Source (TDS). The Ministry of Mines has also recommended that the Finance Ministry implement this policy, citing concerns over the large-scale informal trade of electronic waste.

E-waste worth Rs 25,000 crore is sold annually

According to the ministry, e-waste worth Rs 25,000 crore is sold annually in the informal sector. If taxed under the reverse charge mechanism, the extracted metals could be formally utilized. Similarly, battery scrap, valued at Rs 10,000 crore, is also largely sold informally, prompting the MRAI Association to push for its inclusion under the same taxation framework.

Last year, the government brought metal scrap under the purview of the reverse charge mechanism and TDS. The Fitment Committee is expected to discuss this proposal soon, potentially expanding the tax net over the informal recycling sector.