The minister also promised that inaction on their part may prompt amendment to the IT Rules that will be more “prescriptive”.

In an interview with PTI, Chandrasekhar, who is Minister of State for IT and Electronics, counted the Digital Personal Data Protection (DPDP) legislation, setting up of grievances appellate panels and tighter accountability enforced on digital platforms for user safety as being among the big achievements for 2023.

“…The Digital India Act which we put a lot of effort into…spent almost a year on pre-consultations…we ran out of time…these things happen, but certainly, it’s an unfinished, incomplete agenda,” he said.

As India is awaiting general elections in 2024, the DIA is expected to be rolled out post-elections, the minister said. 

According to him, for a huge country like India, deepfake is a matter of serious concern. It is, he said, “certainly a very, very problematic issue to the conducting of safe and free and fair elections.”

This comes close on the heels when the Ministry of Electronics and Information Technology (MeitY) rolled out a new advisory to all social media platforms to comply with existing IT rules and ensure deepfakes and the misinformation enabled by them are curbed.

The advisory stated that IT ministry directed intermediaries need to ‘clearly and precisely’ inform their respective users about what kind of content is prohibited, especially the ones specified under Rule 3(1)(b) of the IT Rules. 

The new advisory was framed after consultation with Chandrasekhar and the intermediaries during Digital India dialogues.

Also, MeitY recently rolled out yet another advisory to check the advertisement of fraudulent personal loan apps and betting apps on social media. Chandrasekhar said that such apps are not only misleading but also exploitative to people using the internet.

The post Govt Will Keep Eye On Remedial Measures Taken By Platforms: Chandrasekhar On Deepfakes & Misinformation appeared first on Inc42 Media.

The National Payments Corporation of India (NPCI) is set to kick off an Application Supported by Blocked Amount (ASBA)-like facility in the secondary market from January 1.

The Unified Payments Interface (UPI) for the secondary market will start its beta phase next week for the equity cash segment. It will be supported by key stakeholders, including clearing corporations, stock exchanges, depositories, stockbrokers, banks, and UPI app providers.

The facility will enable investors to block funds in their bank accounts for secondary market trading rather than transferring the funds upfront to the trading member. The offering will be rolled out by integrating the UPI mandate service of single block and multiple debits with the secondary market trading.

“ASBA-like facility of ‘trading supported by blocked amount in Secondary Market’ through block mechanism was approved by SEBI, based on the RBI approved facility of single-block-and-multiple-debit in UPI, with the implementation timeline of January 1, 2024,” said NPCI in a statement. 

NPCI added that the ‘beta phase’ of the service will initially be available for a limited set of users. 

During the beta phase, investors can block funds in their bank accounts which will only be debited upon the confirmation of the trade by the Clearing Corporations. NPCI added that these Corporations will directly process payouts to their respective clients on a T+1 basis.

“This Beta launch is facilitated by Groww as the brokerage app, alongside BHIM, Groww, and YES PAY NEXT as UPI apps. Initially, HDFC Bank and ICICI Bank customers will be able to avail this facility. Further, HDFC Bank, HSBC, ICICI Bank, and Yes Bank are acting as sponsor banks for the clearing corporation and exchanges,” added NPCI. 

Meanwhile, applications of homegrown startups such as Zerodha, Paytm and PhonePe are currently in the ‘certification stage’ and, as per NPCI, will be onboarded on to beta launch soon.

This comes six months after the Securities and Exchange Board of India (SEBI) announced this facility in June. 

It is pertinent to note that such a facility is already available in the primary market, or initial public offerings (IPOs) in the form of ASBA. 

The offering is expected to give a major fillip to the use of UPI by retail investors and will leverage UPI’s layer of security to safeguard investor assets from misuse and other capital risks. It will also help the markets regulator to curb defaults by trading and clearing members.

The post NPCI Set To Kick Off UPI For Secondary Market From Next Week appeared first on Inc42 Media.

The Financial Intelligence Unit (FIU) of the Finance Ministry has issued notices to nine overseas crypto platforms, including Binance and Kucoin, for not complying with provisions of the anti-money laundering laws. 

The show cause notices have been issued to the platforms for not registering as reporting entities with the FIU. The unit has also written to the Ministry of Electronics and Information Technology (MeitY) to block the websites of the nine entities. 

Apart from Binance and Kucoin, the platforms under the radar of the authorities include Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfenex.

FIU India is tasked with processing, analysing and disseminating information about questionable financial transactions to enforcement agencies and foreign FIUs.

“Director FIU India has written to (the) Secretary, Ministry of Electronics and Information Technology to block the URLs of said entities that are operating illegally without complying with the provisions of the PML Act in India,” said an official press statement. 

Under existing rules, all onshore and offshore virtual digital asset service providers are mandated by law to register with the FIU as ‘reporting entities’ and comply with provisions of the Prevention of Money Laundering Act (PMLA), 2002. 

The rules entail reporting, record keeping, and other obligations on the platforms and sure they are in line with local laws. Curiously, reporting entities are mandated to file annual statements of financial transactions with the Income Tax Department, which include details of any reportable account maintained by a company during the year.

Crypto exchanges and VDA companies also have to maintain KYC details or records of identity documents of their users and clients as well as account files and business correspondence with its clients.

However, it is pertinent to note that these obligations are ‘activity-based’ and not contingent on physical presence in India, as per the Ministry. 

This comes months after the union government brought VDA platforms under the ambit of the PMLA in March this year. Since then, 31 such platforms have registered with the central nodal agency including names such as CoinDCX, WazirX, Coinswitch, CoinswitchX, Zebpay, among others. 

The move has largely been led by considerations around curbing the usage of cryptocurrencies for money laundering and financing of terrorism. Non-compliance with norms would invite appropriate action under the PMLA, Minister of State for Finance Pankaj Chaudhary said earlier this month.

Apart from regulatory compliances, the government has also opted for a heavy taxation regime towards cryptocurrencies which has hammered the sector. Centre’s decisions to levy 1% tax deducted at source (TDS) on crypto transactions above INR 10,000 and 30% tax on profits last year have hammered the ecosystem and pumelled crypto trade.

Coupled with calls for crypto ban by senior Reserve Bank of India (RBI) officials and the collapse of giants such as FTX, the crypto has dampened the sentiment. This has dried up funding and resulted in crypto platforms such as Pillow and WeTrade shutting operations this year.

The post FIU Issues Notice To Binance, Kucoin & 7 Other Offshore Crypto Platforms, Asks MeitY To Block Websites appeared first on Inc42 Media.

Union commerce minister Piyush Goyal on Thursday (December 28) announced the extension of incentives under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for ecommerce exports. 

“The government will be extending RoDTEP benefits for exports through ecommerce,” said Goyal while addressing an event organised by the Director General of Foreign Trade (DGFT).

He added that the incentives will be notified by the DGFT in the next few weeks. 

The scheme offers refunds on taxes, duties and levies incurred by exporters during the manufacturing and distribution of goods, which are largely not reimbursed under any other mechanism at the central, state, or the local level.

An official also said that the union commerce ministry would soon institute the necessary IT framework and other enablers for the extension of the scheme for the exporters.

The move is expected to boost ecommerce exports as well as offer incentives and sops to homegrown micro, small and medium enterprises (MSMEs) to facilitate the government’s target of $1 Tn worth of merchandise exports by 2030.

During the event, a Memorandum of Understanding (MoU) was also signed between the DGFT and logistics startup Shiprocket for ‘holding capacity building and handholding sessions’ under the DGFT’s ecommerce outreach programme. 

Speaking about the upcoming ecommerce policy, Goyal said that the proposed rules are at the final stages of discussion. He added that the government is hopeful of bringing out the policy very soon.

The RoDTEP sops come at a time when the DGFT and the Centre have taken a slew of steps to spur ecommerce exports in the country. In November, the government said the foreign trade agency was working with the Department of Revenue to develop an initiative on the lines of ‘composition levy scheme’ to waive GST for smaller MSME players.

The DGFT has also partnered with the Department of Post to strengthen and expand Dak Niryat Kendras and foreign post offices (FPOs) to shore up ecommerce exports. On the global scale, the government is also working with postal services of multiple countries to build a full stack online tracking mechanism for export consignments.

Back home, the DGFT has tied up with ecommerce platform Amazon to pilot an initiative which will train ecommerce exporters in 20 districts. The ecommerce major is also bullish on ecommerce exports out of India and is looking to ramp up the number to $20 Bn by 2025. 

The post Govt To Extend RoTDEP Sops To Ecommerce Exports: Piyush Goyal appeared first on Inc42 Media.

The Centre may require online platforms to permanently delete personal data of users who have been inactive on their accounts for at least three years in a row.

The yet-to-be-released data protection rules suggest mandating permanent deletion of user data on various online platforms, as per media reports.

These rules, once released, are expected to extend to ecommerce companies, online marketplaces, gaming intermediaries and social media platforms, irrespective of the number of users they have in India.

The draft rules are expected to recommend permitting allied healthcare professionals, clinical establishments, medical educational institutes, healthcare professionals, health services, and mental healthcare establishments to utilise certain publicly available personal and non-personal data for purposes such as public health, evidence-based research, archiving, and statistical analysis.

The draft also proposes granting an exemption to educational institutes under the jurisdiction of the central government, state government, or any local authority, as well as those dedicated to “higher education,” research, scientific, and technical education, allowing them to process such data for research purposes.

In the event of a personal data breach, the draft rules may stipulate that the intermediary managing the data must promptly, within 72 hours of detecting the incident, notify the Data Protection Board (DPB) of the details, circumstances, and reasons surrounding the breach.

Reports indicate that the government is expected to release administrative rules for the Digital Personal Data Protection (DPDP) Rules soon, with the final version of the Bill expected to be notified by the end of the next month.

Last week, executives from social media and internet intermediaries engaged in discussions with senior officials from the Ministry of Electronics and Information Technology. Key topics addressed included child gating, the establishment of consent architecture, and the definition of rights and obligations for data principals.

After years of anticipation, India saw the enactment of its data protection law earlier this year. The DPDP Bill successfully passed in the Lok Sabha on August 7 and the Rajya Sabha two days later. Subsequently, on August 11, President Droupadi Murmu granted her assent to the Bill, officially transforming it into an Act.

The DPDP Act mandates the establishment of a Data Protection Board of India to oversee its implementation. In the event of a personal data breach, the board will play a pivotal role in investigating the matter and imposing penalties as deemed necessary.
The Act seeks to protect the privacy of Indian citizens. In case of any breach for misusing citizens’ data or failing to protect the digital data of individuals, the Act proposes a penalty of up to INR 250 Cr on entities.

The post Online Platforms Could Be Obligated To Erase Data Of Users Inactive For 3 Years appeared first on Inc42 Media.

The government has directed social media and other digital platforms to not carry advertisements of fraudulent loan apps. 

Minister of state for electronics and information technology Rajeev Chandrasekhar said that such apps are not only misleading but also exploitative to people using the internet, news agency PTI reported. 

He said the ministry has issued an advisory to social media platforms asking them to take additional measures to not permit any advertisements of illegal loan and betting apps that have the potential to scam and mislead the users.

“One of the areas we are now cracking down on is advertising of fraudulent loan apps that many platforms are carrying and we have, through yesterday’s advisory, made it clear that no intermediary can carry advertisements of fraudulent loan apps because it will be misleading and exploits people who are using the internet,” Chandrasekhar was quoted as saying.

It must be noted that the IT ministry on Tuesday issued an advisory to social media platforms, asking them to comply with the provisions of the Information Technology (IT) Rules and promptly remove misinformation, false or misleading content, and material impersonating others.

Meanwhile, a report by the Indian Express said that the government is working on amendments to the IT Rules to ensure that social media platforms don’t host advertisements of fraudulent apps. Once the new amendments are rolled out, the platforms hosting such advertisements may lose their legal immunity.

It must be noted that the last few years have seen the emergence of a number of fraudulent digital lending apps, which have raised concerns within the government. Last year, finance minister Nirmala Sitharaman asked MeitY and the Reserve Bank of India (RBI) to create a whitelist of legal loan apps following the RBI guidelines and regulations. Following this, the two were also tasked to ensure that only the RBI approved loan apps are available for download on the Google Play Store and the Apple App Store.

Earlier this year, Google rolled out a new policy for the personal loan apps. It said that such apps would have to  disclose a privacy policy that comprehensively discloses the access, collection, use, and sharing of personal and sensitive user data.

Earlier this month, Sitharaman informed the Parliament that Google delisted more than 2,500 fraudulent digital lending apps from Play Store between April 2021 and July 2022. She further added that the tech giant also reviewed around 3,500 to 4,000 digital lending apps during the same period.

The post Centre Asks Digital Platforms To Not Carry Advertisements Of Fraudulent Loan Apps appeared first on Inc42 Media.

The central government has reportedly sought proposals from academic institutions and research organisations to build indigenously developed “tools and frameworks” that advocate for artificial intelligence’s fair and ethical advancement. 

These tools will address various themes, including machine unlearning, synthetic data generation, fairness tools, bias mitigating strategies and others, ET reported.

For instance, one of the tools focuses on machine unlearning, aiming to rectify inaccuracies, biases, and outdated information that may unintentionally become embedded in machine learning models.

“By facilitating the removal of undesirable learned behaviours, machine unlearning algorithms contribute to the development of more accurate, reliable, and fair AI systems across diverse domains,” the proposal document read as cited by ET.

The proposal also seeks the development of tools and frameworks for synthetic data generation, ensuring algorithmic fairness, mitigating bias, fostering ethical AI practices and conducting governance testing. The emphasis is on addressing data gaps, alleviating privacy concerns and promoting fair and inclusive representation.

Government-run institutions, including Indian Institute of Technology (IIT), National Institute of Technology (NIT) Indian Institutes of Information Technology (IIIT), along with R&D and private academic organisations possessing pre-existing lab infrastructure, workstations, servers and dedicated staff, are eligible to apply. 

However, these institutions must justify completing the project within the next two years and align it with the overarching objective of promoting fair and ethical AI utilisation. The deadline for submitting proposals to the Ministry of Electronics and Information Technology is January 12.

The development comes at a time when generative AI has taken the world by storm following the launch of ChatGPT. Over the last year or so, a number of Indian startups have also started leveraging the technology to improve their offerings and user experience.

Most recently, Ola boss Bhavish Aggarwal unveiled AI models of his new startup Krutrim AI. He called the startup’s offerings “India’s first full-stack AI”.

The Centre and state governments are also looking to use AI for various use cases. The Uttar Pradesh government is planning to build India’s first AI city in Lucknow to house and promote the AI ecosystem.

As per Inc42 data, India is home to more than 70 GenAI startups that have raised capital in excess of $440 Mn between 2019 and Q3 2023. The homegrown GenAI market is expected to grow to a market size of $17 Bn by 2030 from $1.1 Bn in 2023.

The post Govt Seeks Proposals From Academic & Research Hubs To Develop Responsible AI appeared first on Inc42 Media.

Amid the ongoing debate around deepfakes, the Ministry of Electronics and Information Technology (MeitY) on Tuesday (December 26) issued an advisory to all social media platforms to comply with existing IT rules and ensure deepfakes and the misinformation enabled by them are curbed.

The advisory by the IT ministry directed intermediaries to inform their respective users ‘clearly and precisely’ about what kind of content is prohibited, especially the ones specified under Rule 3(1)(b) of the IT Rules. Rule 3(1)(b) of the IT Rules aims to ensure platforms identify and promptly remove misinformation, false or misleading content, and material impersonating others, including deepfakes.

The advisory was formulated after discussions between Minister of State (MoS) for Electronics and IT Rajeev Chandrasekhar and intermediaries during Digital India dialogues.

“The content not permitted under the IT Rules, in particular, those listed under Rule 3(1)(b) must be communicated to the users in clear and precise language including through its terms of service and user agreements and the same must be expressly informed to the user at the time of first-registration and also as regular reminders, in particular, at every instance of login and while uploading/sharing information onto the platform,” read the advisory.

The MeitY advisory also stressed that digital intermediaries ought to communicate information about penal provisions, including those in the IPC and the IT Act of 2000 to users. It added that digital platforms are legally obligated to report legal violations to enforcement agencies under existing laws.

The IT ministry added that Chandrasekhar, during his meetings with stakeholders on the deepfake issue, highlighted the urgency for all platforms and intermediaries to strictly adhere to the current laws and regulations.

Commenting on the issue, Chandrasekhar said, “… the ministry had two Digital India Dialogues with all the stakeholders of the Indian internet to alert them about the provisions of the IT Rules notified in October 2022, and amended in April 2023 that lays out 11 specific prohibited types of content on all social media intermediaries & platforms.”

The minister also asked all the intermediaries to conduct due diligence and remove AI-powered deepfakes from their platforms and remain compliant with the IT Rules. Chandrasekhar also warned of legal consequences for flouting the rules.

“MeitY will closely observe the compliance of intermediaries in the coming weeks and follow this up with further amendments to the IT Rules and/or the law if and when required,” he added.

The development comes as the government has clamped down on deepfakes, following several high-profile cases targeting celebrities and politicians. Earlier this month, YouTube India director Ishan John Chatterjee said deepfakes were not in the Google-owned video-sharing platform’s interest at all as viewers, creators and advertisers want to steer clear of platforms that allow fake news or misinformation.

The government also plans to appoint a Rule Seven officer soon to oversee the establishment of a mechanism to enable users to file complaints regarding deepfakes.

The post MeitY’s Advisory On Deepfakes: Comply With IT Rules Or Face The Music appeared first on Inc42 Media.

Amid the ongoing uproar over the Telecommunications Bill, President Droupadi Murmu on Sunday (December 24) gave her assent to the proposed legislation. 

The approval comes a week after the Bill was tabled in Parliament on December 18 and was passed by Lok Sabha on December 20 and Rajya Sabha on December 21. 

As per reports, the approval was accorded on Saturday (December 23). With this, the Bill has now become a law. 

However, there seems to be more clarity on when the new legislation will be notified. While the official gazette order mentioned the President’s assent, it also noted that the Act will be notified separately by the Centre on a different date.

“It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision,” the gazette added. 

Simply put, the government may set separate dates for the enactment of different provisions of the law. 

The hotly contested new law replaces three archaic laws: the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933, and the Telegraph Wires (Unlawful Possession) Act, 1950. The newly promulgated legislation aims to bring the country’s regulatory framework up to speed with technology and repeal century-old rules. 

The tabling of the Bill had invited a volley of criticism from internet activists who flagged the vague and expansive definition of the term ‘telecommunications’ in the Bill. Many had even flagged that the new law would also encompass internet services and unleash a ‘surveillance’ regime.

Raising concerns, a group of 61 global digital companies and organisations, including Mozilla, Proton and Signal, even wrote to IT minister Ashwini Vaishnaw and called for the revocation of the proposed legislation. They even termed the Bill a threat to Indian democracy and the internet. 

The biggest issue, however, pertained to OTT communication apps, which were brought under the purview of the government in a previous draft of the Bill. 

As concerns mounted that the newly tabled law, with its expansive definitions, would also cover messaging apps, Vaishnaw clarified that such platforms would be exempted from the new law and would continue to be regulated by the Information Technology Act, 2000.

The post President Murmu Grants Assent To The Telecom Bill; Law To Be Notified Separately appeared first on Inc42 Media.

Telecom minister Ashwini Vaishnaw has said over-the-top (OTT) players or applications won’t fall under the purview of the new telecom bill and will continue to be regulated by the Information Technology Act of 2000. 

This statement addresses concerns raised by certain app makers and activists that the broad definition of ‘telecommunications’ can be interpreted to cover any internet-based communication, as per a report by the Economic Times.

“OTT has been regulated by the IT Act of 2000 and continues to be regulated by the IT Act. There is no coverage of OTT in the new telecom bill passed by the Parliament,” Vaishnaw told ET.

The clarifications are issued in response to concerns raised by internet activists regarding the expansive definition of telecommunications in the Telecom Bill. This Bill, which was passed by both the Houses is currently awaiting presidential assent.

In a recent development, a coalition of 61 global digital companies and organisations, including Mozilla, Proton and Signal, has labelled the new Telecommunications Bill as a significant threat to democracy and the internet. Addressing Vaishnaw in a letter, the group has urged the Centre to promptly revoke the Telecom Bill.

Some lawyers had also argued that due to a general definition, it can’t be said with certainty that OTT players – especially those who provide communication services, such as WhatsApp (owned by Meta), Telegram and Signal – won’t be covered under the bill.

Not only this, the introduction of the proposed rules in Parliament raised alarms at Meta’s offices too. Shivnath Thukral, India policy head for the Mark Zuckerberg-led company, reportedly voiced internal concerns that the new Bill might encompass OTT communication apps. 

The clarification by the government will help settle the confusion around the issue, said a Meta spokesperson. 

“We welcome the clarification on the exclusion of OTTs from the telecom bill. We believe this will further boost the country’s digital ecosystem and the internet economy,” the spokesperson told ET.

Industry body Broadband India Forum (BIF), representing members like Amazon, Google, Meta, Netflix and OneWeb, emphasised that clear definitions of telecommunication services and the exclusion of OTTs from telecom regulations would accelerate internet/broadband penetration and significantly boost the growth of the digital economy.

In September, the Department of Telecommunications (DoT) decided not to classify OTT platforms as telecommunications services in the Telecom Bill. This decision exempted them from specific telecom regulations. The DoT’s shift in stance followed TRAI’s earlier recommendation to regulate OTT communication apps and consider selective bans on certain OTT services in a consultation paper.

The new Bill seeks to replace three current laws – the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933 and the Telegraph Wires (Unlawful Possession) Act, 1950 – to bring regulation up to speed with technology.

The 2023 Telecommunication Bill is a big win for foreign players like Elon Musk’s Starlink and Amazon’s Kuiper, as it chooses to allocate satellite communication licenses administratively.  

The telecom sector in India is undergoing a remarkable transformation. As of July 2023, the country registered a subscriber base of 1.17 Bn, with a staggering 881.26 Mn internet subscribers, as per DoT.

The post Telecom Bill 2023 Excludes OTT, Confirms Ashwini Vaishnaw appeared first on Inc42 Media.

The Reserve Bank of India (RBI) has expanded the scope of card tokenisation for both debit and credit cards. Formerly limited to merchant applications or websites, individuals can now tokenise their cards via internet and mobile banking services.

In an effort to make digital payments more secure, safe and sound, RBI has now enabled card-on-file tokenisation (CoFT) through card issuing banks and institutions.

“It has been decided to enable card-on-file tokenisation directly through card-issuing banks/institutions also. This will provide cardholders with an additional choice to tokenise their cards for multiple merchant sites through a single process,” the RBI said in a circular.

The circular further said CoFT generation should be done only on explicit customer consent, and with Additional Factor of Authentication (AFA) validation.

“If the cardholder selects multiple merchants for which to tokenise his/her card, AFA validation may be combined for all these merchants,” the RBI said.

In addition, the card issuer will need to provide a complete list of merchants for whom it can provide tokenisation services.

Currently, the creation of a Card-on-File (CoF) token is exclusively possible through the merchant’s application or webpage. The storage of card details by merchants is referred to as CoF.

Earlier, it was a prevalent practice for merchants to retain card information, and in certain cases, users were often compelled to store their card details on the merchant’s app or webpage before completing a transaction. However, this practice of freely storing such sensitive information posed a significant threat to the security of users’ financial data.

To mitigate the risk of data breaches and leaks, RBI implemented the rule of tokenisation in September 2021. Under this regulation, rather than storing actual card details, a unique token, specially generated for each transaction, is securely saved with the merchant.

Eventually, the RBI rolled out CoFT from Oct 1, 2022. India has issued around 560 Mn card tokens since October last year, following the RBI’s directive to tokenise cards for ecommerce transactions, global payments operator Visa said in its new report.

The post RBI Extends Card-On-File Tokenisation Scope To Include Card Issuing Banks appeared first on Inc42 Media.

A consortium of 61 global digital companies and organisations, comprising Mozilla, Proton and Signal, has called the new Telecommunications Bill a grave threat to democracy and the internet.

In a letter written to the union information technology minister Ashwini Vaishnaw, the group urged the Centre to immediately rescind the Telecom Bill. 

This came on the same day as the Rajya Sabha gave its assent to the Bill, which aims to overhaul the archaic Indian Telegraph Act of 1885 and other allied legislations.

Training the guns at the Centre, the signatories termed the new Bill a major threat to fundamental rights and democracy in the country. The group claimed that the proposed legislation imperils encryption, amplifies unchecked powers of the government to impose internet shutdowns, and enhances surveillance.

“… We respectfully call on the government to withdraw the Telecommunications Bill, 2023, and initiate inclusive, sustained consultation on the new draft, to incorporate rights-respecting amendments to protect encryption, privacy and security, and unimpeded access to an open, secure, and free internet,” read the letter. 

Citing the ‘immeasurable impact’ of the Bill on fundamental rights and the Indian economy,  the signatories called the introduction of the legislation in the Parliament without further consultation as ‘alarming’.

The letter also claimed that the new version of the Bill fails to incorporate provisions that were criticised in the draft, adding that it introduces new changes that ‘deepen the damage’.

Flagging provisions in the Bill that, as per the letter, authorise the interception of messages and disclosure ‘in intelligible format’, the signatories said that Bill ‘threatens’ end-to-end encryption. 

It also claimed that any change in the encryption architecture to enable data access could result in vulnerabilities that could lead to indiscriminate surveillance. 

“Any notion suggesting that decryption/access abilities can be limited to select actors is wishful thinking. The inevitable ramification is weakening of online safety and cyber resilience overall, for individuals, businesses and governments,” added the letter. 

It also claimed that empowering the Centre to notify standards on encryption could create uncertainties around the ‘ability of service providers to offer strong encryption and develop privacy-respecting innovations’.

The biggest bone of contention appears to be the provisions of the Bill that, as per the companies and organisations, grant expansive surveillance and interception powers to the government without meaningful independent and judicial oversight. 

“Further, with requirements such as the one for telecommunication services to use “verifiable biometric based identification”, the Bill facilitates incursions on fundamental rights without any reasonable limitations and safeguards, against principles of necessity and proportionality,” added the letter. 

It also claimed that the new Bill ‘entrenches existing powers’ to suspend internet services without any checks and balances. 

The letter was also signed by names such as Internet Freedom Foundation (IFF), SFLC India, Digipub News India Foundation (which counts names such as The Wire, Scroll, The News Minute and Newsclick among its founding members) as well as individuals such as the Centre for Internet and Society’s Divyank Katira and Nikhil Pahwa of Medianama. 

The signatories are not alone in raising concerns over the new Bill. The tabling of the proposed rules in the Parliament sent alarm bells ringing at the offices of social media giant Meta. 

The Mark Zuckerberg-led company’s India policy head Shivnath Thukral reportedly raised concerns internally that the new Bill could bring OTT communication apps under its ambit. He also said that the Centre could, at a later date, choose to extend the proposed legislation to OTT services as well, according to a report by Moneycontrol.

While there is no specific term ‘OTT’ used in the Bill, many experts claim that the provisions in the legislation have broad definitions and allow the government to intercept messages, set standards of encryption and take control of telecom networks.

The new Bill classifies ‘message’ as a ‘sign, signal, writing, text, image, sound, video, data stream, intelligence or information sent through telecommunication’. This could bring OTT services, which are centred around text and media, under the purview of the proposed law. 

The post Signal, Mozilla, Proton Term Telecom Bill A Threat To The Internet & Democracy appeared first on Inc42 Media.

The Centre may release the administrative rules under the Digital Personal Data Protection (DPDP) Rules within two weeks and likely notify the final version of the Bill by the end of next month.

On Wednesday (December 20), executives from social media and internet intermediaries met with senior officials from the Ministry of Electronics and Information Technology. The discussions focused on crucial topics including child gating, the formulation of consent architecture, and the delineation of rights and obligations for data principals, ET reported.

After several years of waiting, India got its data protection law earlier this year. The DPDP Bill was passed in the Lok Sabha on August 7 and in the Rajya Sabha two days later. On August 11, President Droupadi Murmu finally granted her assent to the Bill to become an Act.

The DPDP Act directs setting up a Data Protection Board of India to ensure its implementation. In case of any personal data breach, the board will be responsible for looking into the matter, inquiring into the breach and imposing penalties.

The DPDP Act seeks to protect the privacy of Indian citizens. In case of any breach for misusing citizens’ data or failing to protect the digital data of individuals, the Act proposes a penalty of up to INR 250 Cr on entities.

The Act not only offers transparency to users regarding how corporations can utilise their data but also provides clear guidelines for companies, including startups, on how they should handle users’ personal data and obtain consent.

Earlier Inc42 reported that the government was looking at a phased implementation of the act. Minister of State for Electronics and IT Rajeev Chandrasekhar said that certain government entities, such as those at the panchayat level, micro, small, and medium enterprises (MSMEs), and early-stage startups, might be eligible for exemptions and won’t fall under the scope of the DPDP Act right away.

Meanwhile, the central government has also started the process of preparing regulations for artificial intelligence (AI) to support its growth, safeguard interests and encourage innovation in this evolving technology in India.

The post Government Likely To Unveil Personal Data Bill Rules In Two Weeks appeared first on Inc42 Media.

The Reserve Bank of India (RBI) has issued guidelines to all regulated entities including banks and non-banking financial companies (NBFCs) to not make investments in any alternative investment funds (AIFs) that have invested in a borrower or investee of that lender.

In November last year, the Securities and Exchange Board of India (SEBI) informed RBI about instances of non-bank financiers evergreening loans through the AIF route.

Reportedly SEBI has detected at least a dozen cases involving $1.8 Bn to $2.4 Bn where AIFs have been misused to circumvent rules of other financial regulators including the RBI.

In October this year, Ananth Narayan G, a whole-time member of SEBI, said the regulator had come across multiple instances of entities using alternative investment funds to circumvent financial norms and urged the industry to form a quasi-self-regulatory body. SEBI has also seek commitment from fund managers to make sure that AIFs will not be misused.

The guidelines have been issued in order to curb such misuse of AIF funds.

What Are Evergreen Loans?

In simple terms, evergreen loans are the loans which never end. This means that to repay the earlier unpaid loan, the regulated entity offers the borrower another loan through AIF as an investment vehicle. AIF, being a  private credit fund, looks for such deals with the belief that with a small investment these companies could bounce back.

Banks and NBFCs resort to such loans to showcase low percentage of non-performing assets (NPAs) in their books.

“In some cases, non-bank lenders have sold non-performing loans (NPLs) to AIFs that they have partially set up themselves. The fresh funds received by the AIFs are then used to repay the original debt, preventing the loans from being classified as bad loans. This practice is seen as a classic example of evergreening,” said Mayank Mehra, managing partner, SphitiCap.

Key Guidelines Issued By RBI

To address concerns relating to possible evergreening through this route, it is advised as under:

Regulated entities (REs) shall not make investments in any scheme of AIFs which has downstream investments either directly or indirectly in a debtor company of the RE to which the RE currently has or previously had a loan or investment exposure anytime during the preceding 12 months.

If an AIF scheme, in which RE is already an investor, makes a downstream investment in any such debtor company, then the RE shall liquidate its investment in the scheme within 30 days from the date of such downstream investment by the AIF. 

If REs have already invested into such schemes having downstream investment in their debtor companies as on date, the 30-day period for liquidation shall be counted from the date of issuance of this circular. REs shall forthwith arrange to advise the AIFs suitably in the matter.

In case REs are not able to liquidate their investments within the above-prescribed time limit, they shall make 100% provision on such investments.

In addition, investment by REs in the subordinated units of any AIF scheme with a ‘priority distribution model’ shall be subject to full deduction from RE’s capital funds.

This move by the RBI has been seen in the right direction by some. According to reports, the credit exposure of banks to NBFCs stood at INR 14.8 Lakh Cr in October 2023, indicating a 22.1% year-on-year (y-o-y) growth. Further, there are currently more than 1200 registered alternative investment funds in the country as of December 2023. If remain unregulated, this poses a significant risk to the economy considering that bad NPAs may lead to a liquidity crisis in the banks, thereby triggering the ripple effect. 

However, there is a flip side to this coin as well. According to Punit Shah, Partner, Dhruva Advisors, the intention of the move by RBI is to prevent evergreening of loans by Banks, NBFCs etc. However, the circular prohibits any exposure by these entities to specified AIFs, which can be extremely damaging and can have unintended negative impact on the AIF industry, especially sponsored by financial services players.

The post RBI Tightens Norms For Banks, NBFCs Investing In AIFs appeared first on Inc42 Media.

The central government has started the process of preparing regulations for artificial intelligence (AI) to support its growth, safeguard interests and encourage innovation in this evolving technology in India, said IT Secretary S Krishnan.

Addressing a conference by the Centre for Development of Advanced Computing (C-DAC) in Kolkata on Tuesday (December 19), Krishnan said that the government has been working on the preparation of the regulations on AI and it is also evaluating global inputs, as per reports.

He also hinted that discussions are underway on whether a separate act of AI should be introduced or if regulations can be introduced in existing acts.

“The government is already engaged in working on AI data and regulation. There are ongoing discussions within the government about AI data and its regulation,” he said.

The government is considering a policy approach akin to the Digital Personal Data Protection (DPDP) Act. This strategy aims not only to safeguard data but also to foster development and innovation, avoiding any hindrance to the growth of emerging technology.

With AI taking centre stage globally, the government is increasing its focus on the segment. Recently, Minister of State (MoS) for Information Technology Rajeev Chandrasekhar said that the centre is planning to fund and support AI startups in the country.

Modelled on the lines of a similar framework for the semiconductor industry, Chandrasekhar said that funding and incentives will be rolled out to scale the burgeoning ecosystem.

The government will also deploy ‘financial resources’ to build foundational AI models, large language models (LLMs) and various use cases for the emerging technology.

Chandrasekhar added that the Centre would explore synergies between AI and semiconductor industries in areas such as the development of AI chips.

These discussions come at a time when generative AI (Gen AI) has become a buzzword among Indian entrepreneurs. This has given rise to many new Indian startups in the segment.

As per Inc42 data, India is home to more than 70 GenAI startups that have raised capital in excess of $440 Mn between 2019 and Q3 2023. The homegrown GenAI market is expected to grow to a market size of $17 Bn by 2030 from $1.1 Bn in 2023.

The post Govt Actively Working On AI Regulations: MeitY Secretary S Krishnan appeared first on Inc42 Media.

Reiterating her stance on 28% GST on the online gaming sector, Finance Minister Nirmala Sitharaman on Tuesday (December 19) said that the valuation rules for levying the tax on entry level bets are prospective in nature. 

“28% is the tax and as to who it will apply to and on whom the incidence will fall is clearly explained…The valuation rule to exclude winnings is prospective. So, I hope there is no confusion on that,” said Sitharaman during a discussion on the CGST (Second Amendment) Bill in Lok Sabha.

The FM made the comments in response  to a query from Biju Janata Dal Member of Parliament (MP) Sarmistha Sethi.

Citing an example, the FM said that if a user places a bet of INR 1,000, a GST of 28% would be levied. However, if the user wins INR 300 and then places another bet of INR 1,300, including the winning amount, then the GST would not be levied on the INR 300 winning amount which has been redeployed.

On the other hand, if a user loses the original INR 1,000 amount and places a new bet, then the new amount would be considered a fresh bet and would attract 28% GST.

At the centre of this row is the GST Council’s decision, in August this year, that said that 28% GST is applicable on online gaming. 

Eventually, the government notified amendments in law and the new changes came into effect on October 1. But the bone of contention appears to be the tug of war over the supposed retrospective effect of the rule. 

Since the promulgation of the new law pertaining to GST on online gaming, enforcement agencies have sent a flurry of notices to online gaming platforms for alleged tax evasion. 

The Centre recently informed the Parliament that the Directorate General of GST Intelligence has issued notices to the tune of INR 1.12 Lakh Cr to multiple online gaming companies for alleged short payment of taxes.

Meanwhile, the 28% GST has triggered an adverse domino effect on the homegrown ecosystem. When the new tax was levied, industry stakeholders had warned that the move could lead to job losses and put a spanner in the works for the budding ecosystem. 

Since then, startups such as Fantok, Quizzy, OWN have temporarily shut operations while big names such Mobile Premier League and Hike have laid off employees in droves. There have also been a barrage of legal cases filed by online gaming firms such as Games24x7 and Head Digital Works challenging the respective GST notices issued to them by the enforcement agencies. 

The regulatory flux has also resulted in the drying up of capital for online gaming firms, leading to layoffs and shutting down of ailing verticals to extend runway and conserve cash. Amid the tussle, the Indian government is mulling extending an olive branch to the ecosystem and is considering setting up a Group of Ministers (GoM) to address issues related to the industry.

The post Valuation Rules For Levying 28% GST On Online Gaming Prospective In Nature: FM Sitharaman appeared first on Inc42 Media.

Fintech startups Razorpay and Cashfree Payments, and neobank Open have received final approval from the Reserve Bank of India (RBI) to operate as payment aggregators. 

“…. Razorpay has received the final authorisation from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA) under the Payment Settlements Act, 2007… We welcome this new development and are delighted to be one of the first Payment Gateways to have received the final PA license from RBI,” said Razorpay in a statement. 

The Harshil Mathur-led company also said that it has restarted onboarding new customers after receiving the said nod. 

Meanwhile, Cashfree said that the approval will enable it to drive exponential growth and add new clients to its kitty. 

“Securing the Payment Aggregator (PA) license from the RBI is a pivotal moment for Cashfree Payments, affirming our focus on compliance and highlighting the significance of a well-regulated payments landscape… We are now onboarding new merchants on our payment gateway…,” said a Cashfree spokesperson. 

For neobank Open, the final approval has come more than a year after it received in-principle approval from the RBI for the PA licence. As per the company, it was working closely with the central bank since then to complete the necessary requirements, such as System Audit Report and CA certificate, for the licence. 

“We are elated to receive the Payment Aggregator/Payment Gateway licence from the RBI…. The enhanced capabilities will bolster our financial automation platforms, providing SMEs with advanced tools to streamline their financial operations and thrive in the digital era. We are grateful to the RBI for their evaluation and recognition of our contribution,” said Open’s cofounder and chief executive officer (CEO) Anish Achuthan.

The approval was granted to the companies under the provisions of Payments Settlements Act, 2007. For the uninitiated, the payments aggregator licence was introduced by the central bank in 2020 to bring all payment aggregators as regulated entities under the Act and to streamline the operations of the entire segment. 

The development comes as a major respite for Razorpay and Cashfree Payments as the Reserve Bank of India (RBI) had barred them from onboarding new merchants late last year. This came right after the Enforcement Directorate (ED) raided the premises of multiple online PAs as part of its crackdown on illegal Chinese lending apps. 

The central bank was also said to have tightened its screening process to ensure that only the ‘right companies’ get the final approval for the payment aggregator licence.

As a result, the merchant onboarding process was frozen and subsequently revenues flatlined even as competitors with licences began to race ahead. While Cashfree and Razorpay reportedly built alternative revenue streams, the core business continued to stagnate. 

But, with the new licences in place, all decks have been cleared for the two fintech startups to onboard new merchants and scale up revenues even as competition continues to mount from competing PAs such as PhonePe, Juspay and PayU. 

As per latest RBI data, as many as 45 applicants have been granted in-principle authorisation to operate as a payment aggregator including the likes of Zomato, Infibeam Avenues, EaseMyTrip, among others. On the other hand, 71 applications have been returned by the central bank.

The post Razorpay, Cashfree, Open Get Final Approval From RBI To Operate As Payment Aggregators appeared first on Inc42 Media.

The government has reconstituted the National Startup Advisory Council (NSAC) with the nomination of 31 non-official members, which include Abhiraj Singh Bhal from Urban Company; Kunal Bahl, Snapdeal and Sanjeev Bikhchandani, Info Edge.

The list also includes Ramesh Byrapaneni, Endiya Partners; Prashanth Prakash, Accel; Rajan Anandan, Peak XV Partners and Nithin Kamath, Zerodha, among others.

In January 2020, the Department for Promotion of Industry and Internal Trade (DPIIT) constituted the council with the purpose of advising the government on initiatives essential for fostering innovation and supporting startups in the country.

The term of the non-official members of the council is for two years.

“Upon completion of two-year term of the NSAC, the central government has nominated the non-official members on the National Startup Advisory Council representing various stakeholders such as founders of successful startups, veterans who have grown and scaled companies in India, persons capable of representing the interest of investors into startups, persons capable of representing interests of incubators and accelerators, representatives of associations of stakeholders of startups and representatives of industry associations,” Ministry of Commerce & Industry, said.

The eighth NSAC meeting is slated for Tuesday (December 19) in New Delhi, which will be chaired by Union Minister Piyush Goyal.

The council meets on a regular basis to suggest measures such as fostering a culture of innovation among citizens and students in particular; and promote innovation in all sectors of the economy across the country, support creative and innovative ideas through incubation and research, among others.

The council is part of the government’s increasing focus on promoting startups for technological innovations, creating jobs and faster economic growth. The government aims to make India a $1 Tn digital economy by 2025.

Earlier this year, the DPIIT launched the first edition of the ‘National Incubator Capacity Building Program’, a hands-on training programme to help startup incubators grow sustainably, under the government’s ‘Startup India’ initiative.

India is currently home to more than 1.14 Lakh startups recognised by the DPIIT, as of October 2023. Capital to the tune of INR 13,832.91 was invested in as many as 718 startups via alternative investment funds (AIFs) under the Centre’s FFS scheme between 2018 and 2022.

The post National Startup Advisory Council Reconstituted, Rajan Anandan, Nithin Kamath, Prashanth Prakash Named Non-Official Members appeared first on Inc42 Media.

In what appears to be a major win for foreign players, including the likes of Elon Musk’s Starlink and Amazon’s Kuiper, the new Telecommunication Bill, 2023 has opted for allocation of satellite communication (satcom) licences via administrative route.

Toeing the global line and snubbing recommendations made by Mukesh Ambani-led Reliance Jio, the new draft exempts satcom players from bidding for the licence. 

“Assignment of spectrum through administrative process: Certain satellite-based services such as:… Digital Satellite News Gathering, Very Small Aperture Terminal, Global Mobile Personal Communication by Satellites, National Long Distance, International Long Distance, Mobile Satellite Service in L and S bands,” read the Bill. 

The new Bill aims to replace the more than century-old Indian Telegraph Act, 1885 as well as the Indian Wireless Telegraphy Act, 1933, and the Telegraph Wires (Unlawful Possession). The bill was tabled by the Union Information Technology Minister Ashwini Vaishnaw in Parliament on Monday (December 18). 

The development comes as a major boost for foreign players such as Elon Musk-led Starlink, Amazon’s Project Kuiper, and the British government and Bharti Airtel-backed OneWeb that had previously pitched for a licensing regime. On the other hand, the new proposal is a setback for Jio, which had backed an auction-based approach.

The contention of these overseas players has partly been led by cost overruns that could be triggered if the government opts for an auction-based approach. To put things in perspective, the last 5G spectrum auctions brought in INR 1.5 Lakh Cr in government coffers and saw participation from just four players. 

On top of that, companies would have to make hefty investments in setting up the allied infrastructure that could have cost these companies dearly. 

This comes a few months after the players fought pitched verbal battles with each other after the Telecom Regulatory Authority of India (TRAI) floated a consultation paper on spectrum assignment for space-based communication. 

Curiously enough, 47 of the 64 submissions made to TRAI called for a non-auction route for the spectrum allocation. However, Jio was one of the few dissenting voices saying that ‘free and fair auctions’ were the ‘most’ transparent method for maximising public good and serving the greatest number of people via spectrum auction. 

The administrative route now sets the stage for companies to acquire licences by complying with prospective local rules. Currently, only two companies have satcom licences namely Bharti Group-backed OneWeb and Jio Satellite Communications, which operates in a joint venture with Luxembourg-based SES. 

The move has also opened the door for more global players to enter the competitive and niche sector. It is expected to intensify a price war with the tariffs largely expected to hover in the range of INR 8,000 to INR 10,000 per month, as per industry experts. 

While the service is largely suited for residents in remote parts of the country, it remains to be seen how these companies tailor these offerings to consumers in the hinterlands where purchasing power is less. On top of that, there is saturation in urban areas, which already boast of 5G services and broadband services in the range of 100-200 Mbps, at sub-INR 500 rates. 

But, at the heart of this fight between billionaires is the lucrative Indian satcom market, which is expected to grow to a market size of $5.71 Bn by 2028.  

The post Big Win For Musk’s Starlink As Telecom Bill Mandates Licensing Regime For Satcom appeared first on Inc42 Media.

Finance Minister Nirmala Sitharaman on Monday (December 18) informed the Parliament that tech giant Google delisted more than 2,500 fraudulent digital lending apps from Play Store between April 2021 and July 2022.

Responding to a question from Gana Suraksha Party MP Naba Kumar Sarania, Sitharaman said that the platform also reviewed around 3,500 to 4,000 digital lending apps during the same period. 

“Between April 2021 and July 2022, Google also reviewed approximately 3,500 to 4,000 loan lending apps and suspended or removed over 2500 fraudulent loan apps from its Play Store,” said the minister. 

Among other steps taken to crack the whip on illegal digital lending apps, the FM also reiterated that the Reserve Bank of India (RBI) has shared a ‘whitelist’ of legal apps with the Ministry of Electronics and Information Technology (MeitY). This list, in turn, has been sent to Google to delist illegitimate apps from its app marketplace. 

Meanwhile, the Centre also informed the Parliament that the Indian Cyber Crime Coordination Centre (I4C) and the Ministry of Home Affairs (MHA) proactively analyse digital lending apps on various parameters to block suspicious apps. 

The comments come weeks after reports surfaced that the Centre was mulling a regulatory framework that would prohibit digital lending by unauthorised entities. Meanwhile, the proactive approach has largely been led by an uptick in deaths by suicide of individuals after harrasment from digital loan sharks. 

While these apps are easily accessible, many such platforms use unethical practices to recover money and charge exorbitant rates of interest. With steps such as formulating digital lending guidelines and gatekeeping, authorities have been looking to crack the whip on the proliferation of illegal online lending platforms and safeguard customers from the rising menace. 

While the policies have yielded some results, reports continue to pour in of tragic incidents involving digital lending apps. Last month, a Kozhikode housewife attempted suicide after being threatened by online loan operators. 

Despite the spurt in negative news surrounding the space, digital lending continues to be an attractive proposition with a bevy of regulated and legitimate players such as Google Pay, KreditBee, Dhani, Navi, among others.

As per Inc42, the Indian digital consumer lending market is projected to grow to an addressable market size of $720 Bn by 2030 led by favourable socioeconomic factors and timely regulatory measures.

The post Google Delisted 2,500 Fraudulent Digital Lending Apps: FM Sitharaman appeared first on Inc42 Media.

Union minister Smriti Irani took a dig at the venture capital (VC) funds for not backing enough women-led innovative startups, and instead focussing more on entities founded by men.

At an event on Friday (December 16), the minister said that there are many women-led startups in science and technology but they are not getting translated into commercial ventures.

“Even today, risk taking by VCs for women-led initiatives which are based on innovation is far lower as compared to those by men,” PTI reported Irani as saying. 

The union minister for women and child development acknowledged that her recent statement in Parliament opposing period leaves for women has caused an “uproar” but stuck to her stance, saying allowing so will have deep concerns on privacy.

Irani also suggested business schools impart negotiating skills to their students, especially girls. 

The minister’s statement is in line with the findings of Inc42’s funding report. Amid the funding winter, the women-led startups saw an 88% YoY decline in funding during H1 2023. 

The Indian Tech Startup Funding Report H1 2023 points out that Indian startups with at least one woman founder raised $290 Mn between January and June 2023 versus $2.4 Bn raised in the same period a year ago. In terms of the deal count, the women-led startups saw a 55% YoY decline to 62 during H1 2023 from 140 during the same period of 2022. 

However, the startup landscape of India is witnessing a shift never seen before. Even amid the crisis, women founders and investors are gradually seeing an increase in their share in the Indian startup ecosystem. 

Anjali Bansal, Deepika Padukone, Aarti Gupta, Bhawna Bhatnagar, Debjani Ghosh, Namita Thapar, and Padmaja Ruparel are among the leading women investors and entrepreneurs who are frequently talked about in the startup ecosystem.

The post VCs Betting On Fewer Women Startups Than Men-Led Ones, Says Minister Smriti Irani appeared first on Inc42 Media.

The Supreme Court has refused to grant an interim relief against Goods and Services Tax (GST) demand notices to e-gaming companies Games24x7 and Head Digital Works.

As per Monecontrol’s report, the court, however, indicated that it will consider a case on the constitutional validity of the government’s decision to impose 28% GST on online gaming companies retrospectively on the full value of the bets placed, and not on the gross gaming revenue, from October 1.

Harish Salve, senior advocate for online gaming companies, urged the court to direct the government not to take action on the demand notices until the Supreme Court reviews the case. He informed the court about the constant probes by the GST department, putting pressure on the companies. 

Salve told the court that while they are providing the requisite details, any adverse order will put these companies under further pressure.

Additional Solicitor General (ASG) Venkatraman, representing the government, requested a deferral of the case hearing, citing a lack of proper instructions. Consequently, the court postponed the hearing to January 8.

This comes at a time when the online gaming space has been reeling under the impact of the recent GST changes, as per which a 28% tax would be levied on the full value of bets placed in online games, regardless of whether it involves games of skill or chance.

The online gaming industry in India is currently facing a multitude of challenges. In addition to ongoing concerns related to the Goods and Services Tax (GST) in the real money gaming sector, online gaming companies have reportedly received show-cause notices for suspected tax evasion amounting to a significant sum of INR 1 Lakh Cr.

In light of the evolving tax and regulatory environment, several online gaming platforms have taken the step to temporarily suspend their operations. Platforms such as Quizzy, OWN, and Fantok have opted to halt their operations in response to these changing dynamics.

Meanwhile, Bengaluru-based Gameskraft made a similar strategic decision by shelving its fantasy gaming offering, Gamezy Fantasy, in September.

Earlier, the parent entity of Games24x7 also received a notice amounting to INR 21,000 Cr from tax authorities.

It is pertinent to note that besides facing financial and other troubles after the implementation of the new GST regime for real money gaming in October, online gaming firms have also been receiving show-cause notices from the tax authorities for alleged GST evasion.

Further, the Indian government is thinking about creating a Group of Ministers (GoM) to set up rules for the online gaming industry and address related issues.

The post SC Refuses Interim Relief To Games24x7 & Head Digital Works On Tax Notices appeared first on Inc42 Media.

Union minister of science and technology Jitendra Singh has said that  the number of Indian spacetech startups have gone up from just 1 in 2014 to 189 in 2023.

Citing data of the department for promotion of industry and internal trade (DPIIT), Singh informed the Parliament that the investment in spacetech startups has climbed to $124.7 Mn. 

Singh told the Rajya Sabha that the government has set up a space technology incubation centre (S-TIC) to nurture and attract young students with innovative ideas and enable them to carry out research and set up new startups in the space segment. 

Elaborating on the significance of the Indian Space Policy 2023, Singh said that it will enable end-to-end participation of privately owned spacetech companies in all domains of space-related activities. 

He said that the incentives offered by the government under the space policies have enabled some privately owned spacetech companies to launch their own satellites. 

According to a report by Inc42 titled ‘Indian Spacetech Startup Landscape and Market Opportunity, 2023’, more than 150 spacetech startups secured $285 Mn+ in funding between 2014 and 2023. Most of them are backed by a diverse array of active investors, including prominent names such as Pi Ventures, Speciale Invest, Peak XV (formerly Sequoia Capital India and Southeast Asia), Mumbai Angels, Artha India Ventures and 9Unicorns, among others.

Earlier this year, Skyroot secured INR 225 Cr (approximately $27.5 Mn) in a Pre-Series C funding round led by Temasek to drive the next phase of growth through increased investments in infrastructure, reinforcement of its technology leadership, attraction of top-tier talent, and the enhancement of its launch frequency and capabilities

It is pertinent to note that in October this year, Skyroot also unveiled its indigenously built rocket Vikram-I at its new headquarters.

Another spacetech startup Agnikul, which owns the first private launchpad within the ISRO campus, secured INR 200 Cr ($26.7 Mn) in October to accelerate the commercialisation of its existing technologies and invest more in key facilities such as mobile launchpads and other test rigs to cater to growing customer requirements.

The post India Now Home To 189 Spacetech Startups: Union Minister Jitendra Singh appeared first on Inc42 Media.

The Karnataka government is likely to launch a ride-hailing app, similar to Ola and Uber, by February 2024.

“Our app for auto and taxi drivers will be launched by February 2024, and it is currently in the process,” the state transport minister Ramalinga Reddy told Moneycontrol on Thursday (November 14).

The transport minister added that the drivers working for vehicle aggregators such as Ola and Uber receive only about 50% of total earnings, with the rest going to aggregators in the form of commission and other charges. “We plan to collect a nominal charge for the maintenance of the app and operations, with the rest of the earnings going to auto or taxi drivers,” Reddy added.

Reddy said the state government has received many complaints from drivers about aggregators harassing them. The new app will not be focussed on profit, he was cited as saying. 

The Karnataka government aims to hold a meeting with stakeholders and transport unions to decide the nitty-gritty, including if the ride-hailing app should be managed by the transport department or a private firm.

“Ola and Uber do not own any vehicles. Their investment lies solely in their app and software. The government is committed to creating its app to address these issues and ensure fair treatment and compensation for drivers,” Reddy told the publication. 

The development comes as Namma Yatri, supported by Bengaluru’s Auto Rickshaw Drivers Union (ARDU), initially promoted as an app for and by the driver community, has now severed ties with the Union.

Meanwhile, the ARDU has launched Metro Mitra for last-mile connectivity to and from metro stations in Bengaluru. Commuters can scan a QR code to book an auto-rickshaw for last-mile connectivity. Metro Mitra drivers currently operate at four stations — Jayanagar, RV Road, Vijayanagar, and Hosahalli. 

There are 180 drivers, and the initiative is planning to introduce a WhatsApp chatbot. Unlike Namma Yatri, Metro Mitra requires no app, and passengers can simply scan a QR code to book.

However, Namma Yatri clarified that it is not affiliated with Metro Mitra.

This is not the first time that a state government has launched an app for cab and auto-rickshaw drivers. 

In August 2022, the Kerala government launched the Kerala Savaari app. GoaMiles, supported by the Goa government, and Yatri Sathi, backed by the West Bengal government, and Assam State Transport Corporation’s ASTC city cab service are other government initiatives offering drivers rides with lower commission rates.

The post Karnataka To Launch Ride-Hailing App By February 2024 To Take On Ola, Uber appeared first on Inc42 Media.