🤖 Ethical AI

Good morning. A fun fact from history (and your high school lessons): Mahatma Gandhi's iconic Salt March, or Dandi March, started on March 12, 1930.

It was during this march that Gandhi led a group of followers on a 240-mile journey to Dandi, where they produced salt to defy British colonial laws that monopolised its production and sale, sparking a powerful movement for Indian independence.

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 💳️ India considers bringing back MDR on UPI and RuPay

• 🤖 India proposes AI governance board to oversee ethical AI implementation

• 🗞️ Bite-sized summaries

  • 📉 Trumps impact on Indian markets

  • 🚀 NASA layoffs

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Stock markets closed mixed. Banking stocks, led by IndusInd Bank's 27% plunge, dragged indices lower. However, gains in realty, telecom, and oil & gas sectors provided support. Global recession fears and US tariff uncertainties kept investor sentiment cautious.

🌍️ International

• US markets closed lower, extending recent losses. Declines were driven by escalating US-Canada trade tensions after President Trump proposed doubling tariffs on steel and aluminium imports, further unsettling investor sentiment.

PAYMENTS

🏥 India considers bringing back MDR on UPI and RuPay

The Indian government is considering reintroducing the Merchant Discount Rate (MDR) on UPI and RuPay debit card transactions for large merchants. This move, if implemented, could reshape the country’s digital payments landscape.

What is MDR:

• MDR, or Merchant Discount Rate, is a fee that businesses pay to banks and payment service providers for processing digital transactions.

• It is typically a small percentage of the transaction amount, covering infrastructure costs and operational expenses.

So what’s the backstory?

• Until FY22, businesses paid a small MDR fee (under 1%) on digital transactions, but the government removed it to encourage digital adoption.

• This policy led to massive UPI growth but also eliminated a key revenue stream for banks and payment service providers.

• To compensate, the government provided a subsidy—initially Rs 3,500 crore—but recent budget cuts have reduced it to just Rs 437 crore.

• With diminishing financial support, banks and fintech firms are pushing for MDR to be reinstated, at least for large merchants (with an annual turnover above Rs 40 lakh).

UPI transformed India’s payment ecosystem. Its share of total digital transactions rose from 34% in 2019 to 83% by the end of 2024. In 2018, India recorded 2,057 crore digital transactions, with UPI contributing 375 crore.

By 2024, UPI transaction volumes soared to 17,221 crore, making it the dominant payment method over credit and debit cards. The total transaction value jumped from Rs 5.86 lakh crore in 2018 to Rs 246.83 lakh crore in 2024.

What could the introduction of MDR mean?

• Reintroducing MDR could stabilize revenue for banks and payment firms, leading to more investment in digital infrastructure.

• However, for large merchants, this could mean additional transaction costs, which might be passed on to consumers.

• Smaller businesses would likely remain exempt, ensuring continued accessibility to digital payments.

Overall: India’s fintech success has been built on cost-free digital transactions, fostering financial inclusion. While MDR could support sustainable growth in the payments sector, it must be carefully structured to avoid hampering digital adoption.

Striking the right balance between business interests and financial inclusion will be crucial in shaping India’s digital economy’s next phase.

Read more: Economic Times

MARKETS

🇪🇺 India proposes AI governance board to oversee ethical AI implementation

In a move towards responsible AI adoption, the Indian government has proposed the establishment of a dedicated AI Governance Board.

This board will oversee AI application approvals, ensuring compliance with legal frameworks and ethical guidelines. Announced alongside the AI Competency Framework for Public Sector Officials, this initiative aims to enhance AI literacy and encourage responsible integration of AI in public administration.

Why is a board needed?

• As AI becomes increasingly embedded in government services and decision-making, concerns about bias, security, and misuse have grown.

• The AI Governance Board will provide oversight throughout the AI lifecycle, ensuring that projects meet not only technical benchmarks but also broader ethical and societal considerations.

• By aligning AI initiatives with both domestic and international legal guidelines, this board aims to prevent misuse while promoting transparency and accountability.

The framework:

The government’s AI Competency Framework complements this governance initiative by addressing skill gaps in AI literacy. Reports such as the AI Readiness Index 2023 and the World Bank’s GovTech Maturity Index 2022 have highlighted deficiencies in AI knowledge among public officials, particularly in lower-income countries and South Asia.

The framework seeks to:

• Provide a foundational understanding of AI

• Define necessary competencies for public sector officials

• Enhance awareness of emerging AI technologies

• Identify integration opportunities for better service delivery

• Develop targeted training programs

• Establish career progression pathways in AI governance

By equipping officials with AI knowledge, the government aims to drive innovation while ensuring AI technologies serve public interest ethically and effectively.

Overall: The AI Governance Board has the potential to position India as a global leader in ethical AI governance.

With AI’s growing role in sectors like healthcare, finance, and public infrastructure, a structured regulatory framework will help mitigate risks while fostering innovation.

Additionally, this initiative aligns with India’s broader ambition to become a hub for AI-driven solutions, attracting investments and boosting AI-driven economic growth.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

📉 Trumps impact on Indian markets - The looming "Trumpcession"—a US recession linked to Donald Trump's tariff policies—is causing global market volatility, impacting India’s Sensex, Nifty, and the rupee. Reciprocal tariffs set for April 2 threaten India's economic stability, as exports (22% of GDP) face risks. IT stocks have already declined, and concerns over reduced remittances, job losses, and capital outflows persist. While India is negotiating with the US, uncertainty remains. However, experts suggest India’s resilience and a potential recovery in corporate earnings could mitigate risks. A US recession could further pressure the rupee and Indian markets, increasing economic uncertainty in the months ahead.

🚀 NASA layoffs - NASA has begun layoffs under President Trump’s executive order, eliminating the Chief Scientist role and shutting down key offices, including the Office of Technology, Policy, and Strategy. The restructuring, linked to Elon Musk’s Department of Government Efficiency (DOGE), aims to streamline federal agencies but raises concerns over scientific research and diversity efforts. The move comes amid NASA’s ambitious Artemis and Mars missions, with experts fearing it may hinder long-term innovation. While initial mass layoffs were paused, further workforce reductions are expected as NASA submits plans to the Office of Personnel Management, leaving the agency’s future direction uncertain.

🔥 Tanker collision - On March 10, 2025, a cargo ship collided with an oil tanker in the North Sea off the coast of England, resulting in a missing crew member presumed dead and over 30 people rescued. The crash occurred near Hull, with visibility issues suspected due to fog. The collision caused fires on both ships, with one still burning. The tanker was transporting jet fuel for the US military, and there are concerns about environmental damage due to fuel leaks. The cargo ship's captain has been arrested on suspicion of gross negligence manslaughter.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• Adani Group wins Rs 36,000 crore Motital Nagar redevelopment project in Mumbai.

• Sakthi Aircraft Industry to make 150 trainer planes in India.

• Dividend payout from non-financial CPSEs may hit record Rs 67,000 cr.

• Rising hospitality trends: Tier-3 cities in India see surge in hotel openings.

• Four kilometre stretch of Yamuna to be developed for cruise tourism.

• Indian sugar output to fall below consumption, says trade body.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Bam Bam Bhole: Salman Khan and Rashmika Mandanna Shine bright in Sikandar's new track.

• Hacks season 4 to release on April 10th; trailer out now!