1. Objectives of Payment Banks
2. Nature of payment bank
3. Objective of GST
4. Nature of GST
Objectives of Payment Banks
- Banking Services in Remote Areas: Payment bank aims at providing banking services in rural and unorganized sectors. These banks serve the requirements of migrant staff, little businesses, and low-income households in remote areas.
- Savings among Low-Income Earners: These banks encourage saving habits among low-income earners by accepting little amounts of deposits. Payment banks give the power to customers of gap accounts even with zero balance.
- Higher come on Deposits: Payment banks give the next quantity of interest on deposits compared to alternative business banks. These banks ante up to seven.25% interest on people’s deposits that help them in earning higher returns.
- Simple Transfer of Funds: The Introduction of payment banks has expedited the simple movement of funds among folks’ happiness to the undeveloped sector. These banks establish most of their branches in unbanked rural areas.
- Removes Regional Disparities: Payment banks have junction rectifiers to reducing regional imbalances across the country. They’re providing all banking services to folks of rural areas wherever alternative business banks don’t operate.
Nature of payment bank
Payments banks are a replacement sort of bank introduced by the banking concern of Asian nations. These banks perform as a kind of like alternative standard banks with some additional restrictions. Payment banks are allowed to simply accept a deposit from customers solely up to the most limit of Rs.1, 00,000. They are doing not give any credit facility, in contrast to alternative banks.
Payments banks aim at providing banking facilities to low-income earners, little businesses, and therefore the unorganized sector. By introducing payments banks, run aims at increasing monetary services in remote areas of the state. These payments banks provide services like ATM cards, online banking, mobile banking, and fund transfers. At present, there are six payment banks operational in the Asian nations Payment
- Settle for Deposits: Payment banks settle for deposits from customers like all alternative banking companies. However, there’s a hard and fast limit of Rs.1, 00,000 set by a run for acceptive deposits by these banks.
- Open Zero Balance Accounts: they supply the power of the gap checking account to low-income earners with zero balance. Folks don’t seem to be needed to take care of any minimum quantity in their accounts with payment banks, in contrast to alternative banks.
- Issue Debit Cards: Payment banks issue each virtual yet physical debit card to their customers. These cards are used for online payments or money withdrawal from ATM machines.
- Settle for or Sent Remittances: Payments bank provides facility to its customers of acceptive and causing remittances from multiple banks. These banks use approved payment mechanisms like NEFT, RTGS, and IMPS.
- Provides Utility Bill Payments: These banks perform of paying utility bills like water, electricity, and gas bills. Banks create all payments on their customer’s behalf mechanically on time.
- Act as Business Representative of alternative Banks: Payment banks will work as a partner with alternative business banks through the approval of run. They’ll involve in merchandising insurance product, mutual funds, and pension product
Objective of GST
GST (Goods and repair Tax) is Associate in Nursing taxation that was launched by Prime Minister Modi on first Gregorian calendar month 2017. It’s a tax that is levied by the government on the offer of products and services. This tax has brought the greatest reform in the Indian taxation system by exchange all indirect taxes that were levied earlier with one taxation.
- To Eliminate the Cascading Effect: Cascading result means that once is that the tax on tax levied on a product at each step of the sale till it’s sold-out to the ultimate shopper. GST would be levied solely to information superhighway price further on the merchandise, to not the total price of the merchandise.
- Uniform Tax Structure: ONE NATION ONE TAX before the GST the charge per unit is completely different for the various elements of the Country on different products and services.
- Ease of Doing Business: once GST, the issues in taxation are reduced. Earlier corporations featured several issues for registration of excise customs, VAT, addressing tax authorities, etc.
- Regulation of Unorganized Sector: In the Asian nation, there’s loads of Sector that still Unorganized. The government tries to place those corporations into the most contour.
- Increase in Revenue: GST will increase the revenues of the central government and state governments. Evasion is extremely onerous thus each firm must pay taxes (GST).
- Online Procedure: the whole method beneath the GST regime ranging from registration to come filling is online. Filling the GST is less complicated than the previous Tax as a result of we have a tendency to fill just one come beneath GST and before GST we want to fill come to each tax to tax departments.
- Product Competitiveness: GST is meeting the Asian nation’s legal system with international tax standards. Once GST the assembly value can decrease as there’s no additional Cascading result within the legal system.
Nature of GST
- Multi-stage: GST may be a multi-stage tax that is levied at each purpose of the sale of products or services. Product before reaching its final shopper passes through several stages. This tax is levied at every one of the stages.
- Destination-based: it’s a tax that’s levied on the consumption of products and services by shoppers.
- Price Addition: GST is collected at price addition in every process stage whereas producing a final product.