300 Banks’ Payment Systems Shut After Ransomware Attack; US Fed Hints At Interest Cuts In September

Ransomware Attack Has NPCI Shut Payments Systems For 300 Small Banks

A ransomware attack on a technology service provider has forced payment systems across nearly 300 small Indian local banks to shut down temporarily, Moneycontrol.com reported quoting sources.

The attack affected C-Edge Technologies, a provider of banking technology systems to small banks across the country, they said. The National Payment Corporation of India (NPCI), an authority that oversees payment systems, in a public advisory issued late on Wednesday said that it had "temporarily isolated C-Edge Technologies from accessing the retail payments system operated by NPCI." Nearly 300 small banks, cooperative and regional, have been isolated from the country’s broader payment network to prevent any wider impact, sources said. More here 

US Fed Holds Interest Rates Steady But Hints At Rate Cut In September

The US Federal Reserve held interest rates steady but opened the door to reducing borrowing costs as soon as its next meeting in September as inflation continues coming into line with the US central bank's 2 per cent target, the Economic Times reported.

"There has been some further progress towards the Committee's 2 per cent objective," the central bank's Federal Open Market Committee said in a statement at the end of a two-day policy meeting in which it kept its benchmark overnight interest rate in the 5.25 per cent-5.50 per cent range, but also set the stage for a rate cut at its Sept 17-18 meeting, just seven weeks shy of the Nov 5 US elections. The steady drop in inflation in recent months prompted a broad consensus that the inflation battle was near its end. More here 

RBI Wants Digital Payments To Be Authenticated In Two Modes, Not Just OTP 

The Reserve Bank of India has issued a draft framework for alternative authentication mechanism for digital payments, wherein it has mandated that all digital payment transactions would have to be authenticated with an additional factor of authentication (AFA), Business Standard reported.

It has said that all digital payment transactions, other than card present transactions, have to ensure that one of the factors of authentication is dynamically created, i.e., the factor is generated after initiation of payment; is specific to the transaction; and cannot be reused. AFA essentially means use of more than one factor for authentication of a payment instruction. Currently, the SMS-based OTP is the AFA. But soon, the RBI stated, the first factor of authentication and the AFA would be from different categories. More here

Budget Eliminated Rs 15,000 Crore Grant In Fighting Refinery Emissions 

India’s energy transition is at stake after the government in the final Budget for 2024-25 eliminated a Rs 15,000 crore grant for oil companies to invest in cleaner fuels, and gave no indications of continuing with a programme to subsidise electric vehicles (EVs), Business Standard reported.  

Withdrawing funds for energy transition for one of the most polluting industries, oil refining, is a cause for concern, industry officials said. The fund, earmarked for state oil refiners to transition to cleaner fuels, has a chequered history. Finance Minister Nirmala Sitharaman allocated Rs 35,000 crore in February 2023 for energy transition, an initiative to jumpstart clean energy initiatives at state oil companies, which were then reeling from billions of dollars in losses from selling transport fuels at below market prices. More here

Infosys Gets Karnataka GST Notice For Rs 32,403 Crore For 2017-2022

Bengaluru-based IT services company Infosys said that it has received a pre-show cause notice from Karnataka State Goods and Services Tax (GST) authorities for the payment of GST amounting to Rs 32,403 crore, Business Standard reported.

The company, in a regulatory filing, said that the demand was towards the expenses incurred by its overseas brand offices from July 2017 to March 2022. “Infosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter,” it said. “The company has responded to the pre-show cause notice. Subsequent to the publication of the news articles, the company has also received a pre-show cause notice from the Director General of GST Intelligence on the same matter, and the company is in the process of responding to the same,” it said. More here

On Last Day Of Income Tax Return Filing, Over 70 Million ITRs Filed Till 7 PM

Over 70 million Income Tax returns were filed till 7 pm on July 31, Wednesday, the last day for filing ITRs for income earned in 2023-24 fiscal, Business Standard reported.

"More than 70 million ITRs have been filed so far (31st July), out of which over 5 million ITRs have been filed today till 7 pm!," the I-T department posted on X. July 31 is the last date for filing income tax returns for taxpayers who do not have to get their accounts audited. The total number of ITRs for AY 2023-24 (fiscal year 2022-23) filed till July 31, 2023 were more than 67.7 million, with over 6.433 million ITRs being filed on July 31, 2023. More here