Economy

Furthermore, the annual median GDP growth forecast for 2019-20 has been pegged at 6.9 per cent, with a minimum and maximum estimate of 6.7 per cent and 7.2 per cent, respectively.

CII also said that removal of the surcharge on FPIs and amendments to the FPI regulations is expected to boost investor sentiments.

According to the report, more measures might be needed to give a fresh start to the lending cycle of non-banking financial companies (NBFCs).

The RBI follows July-June financial year and the dividend is usually distributed in August after annual accounts are finalised. For FY20, the government has pegged a Rs 9,000 crore dividend from the RBI.

RuPay card scheme was launched in 2012 to fulfil the Reserve Bank of India's vision to have a domestic, open and multilateral system of payments.

The decision to roll-back surcharge came weeks after FPIs turned net sellers of stocks after levy of surcharge in the Union budget.

Mr Jaitley, 66, a senior leader of the Bharatiya Janata Party (BJP), stepped down as finance minister in January due to ill health, just months before elections.

Finance Minister Nirmala Sitharaman on Friday announced a slew of measures, including the rollback of big ticket budget announcements, to revive the economy, which clocked its lowest rate of growth in nearly five years in the March quarter and is struggling with lakhs of job cuts across sectors. The Finance Minister said the government would withdraw higher taxes on foreign portfolio investors, as announced in the Budget, and also withdraw the surcharge on long- and short-term capital gains. In a presentation divided into 32 slides and six sections, Nirmala Sitharaman also said the government will provide Rs 70,000 crore worth of recapitalisation to public sector banks upfront, instead of spreading it throughout the year.

Finance Ministry also decided to withdraw enhanced surcharge on short and long term capital gains arising from transfer of equity shares.

The Finance Minister said the government will lift the ban on its bodies from replacing the old vehicles.

The Moody's Investor Service report also cut India's gross domestic product (GDP) growth rate for 2020 by a similar 0.6 percentage points to 6.7 per cent.

"Global GDP growth is projected at 3.2 per cent and is probably going to be revised downwards," Ms Sitharaman said.

The government will continue to take bold steps to accelerate the economy, NITI Aayog Vice Chairman Rajiv Kumar said on Friday.

Several businessmen say the Prime Minister Narendra Modi-led government needs to take swift action on the economy, as the economic growth in January-March slid to a near five-year low of 5.8 per cent. Most analysts expect data due later this month to show that growth in April-June faltered even further.

Finance Minister Nirmala Sitharaman had proposed increasing the effective tax rate on individuals with taxable annual income of above Rs 2 crore($283,000) by about 3 per cent, and for those earning above Rs 5 croreby 7 per cent.