Business
Digital Payments Soar with Over 18,120 Crore Transactions in FY25 Through January, UPI Takes the Lead
The total volume of digital payment transactions has increased from 8,839 crore in FY 2021-22 to 18,737 crore in FY 2023-24, reflecting a compound annual growth rate (CAGR) of 46 percent.
This remarkable expansion is largely attributed to the Unified Payments Interface (UPI), which has achieved a CAGR of 69 percent, rising from 4,597 crore transactions in FY 2021-22 to 13,116 crore transactions in FY 2023-24, as reported by Minister of State for Finance, Pankaj Chaudhary, in a written response to a query in the Rajya Sabha.
UPI now accounts for approximately 70 percent of total digital payment transactions in FY 2023-24. Additionally, the ecosystem for digital payments—including QR codes and POS terminals, the onboarding of new merchants, and the growth of Third Party App Providers (TPAPs)—has also seen significant advancements during this period, as noted by the minister.
To further promote digital payments and enhance the digital payments infrastructure in the country, the government has launched the DIGIDHAN mission. An incentive scheme was initiated in FY 2021-22 to encourage banks and other stakeholders to promote digital payments, especially UPI. Consultations with relevant stakeholders, including banks, were integral to the design of this scheme. A dedicated portal for the Incentive Scheme for Banks (ISB) has been established to facilitate awareness and streamline data collection.
As a consequence, the number of banks providing digital payment services, including UPI, rose from 216 in FY 2021-22 to 572 in FY 2023-24, according to the minister. The “Incentive Scheme for the Promotion of RuPay Debit Cards and Low Value BHIM-UPI Transactions (Person to Merchant or P2M)” has played a significant role in driving the growth of digital payments across the nation.
Business
How India’s Pan Masala Industry Built a Rs.48,000 Crore Market
Business: India’s pan masala industry has grown into a major market, reportedly valued at more than Rs.48,000 crore. Low-cost sachets, extensive retail networks and celebrity-backed advertising have played a significant role in its growth. However, concerns remain over addictive ingredients, public health and the marketing strategies used by major brands.
Affordable pricing is one of the key factors behind the industry’s success. Many products are sold in small sachets priced at Rs.5 to Rs.10, making them easily accessible to consumers. These low-cost packs encourage frequent purchases and help companies generate high sales volumes.
Although the profit on each sachet may be relatively small, repeated purchases across a large customer base can generate substantial revenue.
Pan masala products are widely available across India. Local paan shops, grocery stores, railway stations and bus stands serve as important sales points.
A well-established distribution network ensures that products reach consumers in both urban and rural areas. Their easy availability also helps brands maintain a strong presence in the market.
Celebrity endorsements have also contributed to the industry’s visibility. Popular Bollywood actors, including Shah Rukh Khan, Ajay Devgn and Tiger Shroff, have appeared in campaigns associated with pan masala brands.
Restrictions on direct advertising of tobacco products have led some companies to promote related products, such as cardamom-based mouth fresheners. This practice, known as surrogate advertising, can help maintain brand visibility through familiar names, logos and slogans.
However, such marketing has attracted criticism over concerns that advertisements for related products may also promote the image of tobacco-associated brands.
Restrictions on gutka, which combines tobacco and pan masala, have influenced how some products are sold. In certain markets, companies have used separate packages for pan masala and tobacco products.
This approach has raised concerns about whether separate packaging can undermine restrictions on products that are banned in combined form. The legality of such arrangements depends on the applicable laws and regulations.
The industry’s commercial success has also raised serious public health concerns. Areca nut, commonly known as supari, is an ingredient in many pan masala products and is associated with an increased risk of oral cancer, even without tobacco.
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Products containing tobacco carry additional health risks, including nicotine addiction. Frequent consumption can lead to long-term health problems and increase the risk of serious diseases.
Affordable pricing, extensive distribution and sustained brand promotion have helped India’s pan masala industry expand significantly. However, health experts continue to stress the importance of public awareness, effective regulation and responsible marketing.
As the market grows, ensuring compliance with tobacco-control laws and protecting consumers from harmful products remain important challenges for authorities.
Business
RBI Ends Special Dollar-Rupee Swap Window Early Amid Strong Demand
Mumbai: The Reserve Bank of India (RBI) has decided to close its special forex swap facility for fresh FCNR deposits early.
The facility will now close on August 31, the RBI said on Friday.
The central bank said the decision was taken after receiving an encouraging response. The facility has attracted $52.3 billion through fresh foreign currency deposits.
Banks can continue to undertake swaps with the RBI against FCNR deposits raised under the facility until September 11.
Meanwhile, the schemes for External Commercial Borrowings and Overseas Foreign Currency Borrowings will remain open until December 31, 2026.
The RBI launched the special US dollar-rupee forex swap facility on June 8. It allowed banks to raise fresh three-to-five-year FCNR deposits.
Banks could then swap these deposits with the RBI at a concessional rate. The facility effectively covered the entire hedging cost for banks.
The strong response to the scheme led the RBI to bring the facility to an early close.
Business
Leksa Lighting Technologies Named among India’s Top 100 MSMEs
Moodbidri: A dream that began in the rural area of Niddodi in Moodbidri has now gained national recognition. Leksa Lighting Technologies Pvt. Ltd., founded by Ronald Sylvan D’Souza, has been recognised as one of India’s Top 100 MSME companies.
The prestigious national recognition was presented by the MSME Udyog Foundation at a ceremony held in New Delhi on August 8, 2026.
Ronald Sylvan D’Souza started his entrepreneurial journey from a humble background. Through hard work, discipline and continuous efforts, he built Leksa Lighting Technologies into a recognised lighting technology company.
The company has focused on quality, technological innovation and indigenous manufacturing. Research and development have also played an important role in its growth.
Leksa Lighting has adopted Japanese work practices to improve its manufacturing and operational standards. The company has also worked towards developing quality lighting solutions in India.
What began as a dream in rural Karnataka has now reached different parts of the country. The company is also making its presence felt in international markets.
Speaking about the recognition, Ronald Sylvan D’Souza said the award was not an individual achievement. He credited the entire Leksa team, customers, business partners, family members and everyone who supported the company.
He said he was proud and happy to see a dream that began in Niddodi and Moodbidri receive recognition at the national level.
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The achievement highlights the potential of rural entrepreneurs. It also shows that determination, discipline and consistent hard work can help a business from a rural area achieve success on a national platform.
Leksa Lighting Technologies’ journey stands as an example of how a local dream can grow into a nationally recognised enterprise.
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