Axis Bank becomes third lender to offer block chain service
Private sector Axis Bank has become the third lender in the country to announce usage of block chain solutions for its operations, after its peers ICICI Bank and Yes Bank. The Shikha Sharma-led bank, the third largest private sector lender, will be using the upcoming technology for cross-border remittances.
Block chain technology: A digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.
Citibank launches voice verification for phone banking
Foreign lender Citi India has launched voice biometrics authentication that would replace the current practice of interactive voice response (IVR) for its customers. The new technology allows clients to use their voiceprints for authentication rather than having to remember multiple PINs or respond to questions used for verifying their identities, Citi South Asia Head (Operations & Technology) Anand Chopra said.
World Bank drops India’s growth rate to 7 %
The World Bank has sharply cut its economic growth forecast for India to 7 per cent in 2016-17 after taking into account the impact of demonetisation and the fall in private investments. This growth forecast is lower than the 7.6 per cent growth projected in the middle of last year. The World Bank report said that weak industrial production and manufacturing and services purchasing managers’ indexes suggest a setback to activity in the fourth quarter of 2016-17. The Central Statistics Office had last week pegged the 2016-17 advance real GDP estimate at 7.1 per cent.
Airtel launches its payments bank across India
Airtel Payments Bank (APB), a joint venture between Bharti Airtel Ltd and Kotak Mahindra Bank Ltd, said it will spend Rs3,000 crore to develop a pan-India banking network and digital payments ecosystem. Through their 80:20 joint venture, Bharti and Kotak aim to disrupt a banking system that has gradually woken up to changing technology and yet incurred heavy costs in serving customers.
ICICI blocked transactions on our payments app: PhonePe CEO
ICICI Bank Ltd has blocked transactions on payments app PhonePe in at least the second such instance of a commercial bank trying to protect its turf against non-bank mobile wallet and payment companies. PhonePe is a unified payments interface (UPI) app which works on the ecosystem created by the National Payments Corp. of India (NPCI). Infosys co-founder Nandan Nilekani, who currently serves as an advisor to the NPCI and has overseen the development of the Unified Payments Interface (UPI), declined comment.
Mahindra Asset Management launches Mahindra Mutual Fund Dhan Sanchay Yojna scheme
Mahindra Asset Management Company Pvt. Ltd (MAMCPL) has announced launch of Mahindra Mutual Fund Dhan Sanchay Yojna scheme. The scheme will close on January 24 and will reopen for continuous sale and repurchase from February 8. “The scheme is for those investors who seek to take a calculated exposure in both equity and debt with a long term investment outlook,” said head of sales and distribution of MAMCPL, Jatinder Pal Singh.
Airtel’s Payments Bank Starts Operation with Initial Investment of Rs. 3000 Crore
Country’s largest telecom player Bharti Airtel had said it would make an initial investment of Rs 3,000 crore to build a pan-India banking system and a digital payment eco-system. Airtel Payments Bank became the first among several such niche banks to start operations, after RBI handed over new permits to bring financial services within the reach of millions who still lack access to formal banking.Airtel had last year launched the payments banks initially in Rajasthan, Karnataka and Andhra Pradesh as a pilot project.
SBI-Omanese fund SGRF launches second India-focused Private Equity
The Oman-India Joint Investment Fund (OIJIF), a mid-market India-focused private equity fund, announced the first closure of its second fund, OIJIF Fund II with an initial corpus of USD 220 million. The two investors in the fund State Bank of India and State General Reserve Fund of Oman (SGRF) which have backed the first fund continue to be investors in OIJIF Fund II. The size of the first fund was USD 100 million and closed in 2011.
PNB, India Post Bank team up
Punjab National Bank and India Post Payments Bank have signed a memorandum of understanding, whereby PNB will provide technology platform for pilot launch of IPPB on receipt of regulatory nod from the Reserve Bank of India. IPPB has been incorporated under the Department of Posts with 100 per cent government equity.
2 lakh cr rupees remonetised till date:RBI
The Reserve Bank of India (RBI) has infused around 60 per cent of the total banned currency notes after demonetisation.
• The RBI Governor Urjit Patel told a parliamentary standing committee on finance that the central bank had infused new currency notes worth around Rs 9.2 lakh crore into the system.
• Currency notes estimated around Rs 15.4 lakh crore were withdrawn when the Centre announced demonetisation on November 8, 2016.
Flipkart ranked amongst India’s most trusted e-tailing brands
Electronic Commerce Company Flipkart continues to retain its apex position as India’s most trusted e-commerce brand, in a nationwide consumer study titled the ‘The Indian E-tailing Leadership Index’. Flipkart, for the fourth time in a row, is ranked overall number one in the study, scoring the highest among all e-commerce platforms in India in areas like product selection, customer support, ease of return, refund and reverse pick up speed.
FreeCharge announces Mutual Funds in partnership with Reliance
FreeCharge, India’s leading digital payments platform has announced the launch of Mutual Funds on its platform in partnership with Reliance Mutual Fund.With the launch of the facility, users can seamlessly invest in a Money Market Mutual Fund that targets higher returns than those available on savings bank accounts. FreeCharge, known for its 10-second payments, is offering instant redemption of mutual funds at the click of a button.Customers also benefit from zero transaction charges and zero charges at redemption.
• The advantages are:
• Completely paperless
• Investments from Rs 100 onwards
• Instant Redemption
• Zero transaction, Zero redemption charges
• Online KYC
Punjab National Bank Launches Contactless Credit Card
Punjab National Bank (PNB) has launched a Contactless Credit Card. This new credit card, which has been named PNB Wave N Pay Contactless Card, was launched by Usha Ananthasubramanian, Managing Director & Chief Executive Officer. This card could be used by just waving it across the terminal and the transaction will be through. There is no need to enter any PIN for transactions up to Rs 2,000. The cardholder has full charge back rights on the misuse,
Apple named most innovative company in 2016
Boston Consulting Group has named technology giant Apple as the most innovative company in 2016 in its annual list of the world’s 50 “Most Innovative Companies.” Following Apple is the internet search-giant Google, ranked second, and the electric carmaker Tesla in third place. Meanwhile, ride-hailing service Uber and home rental platform Airbnb made it to the list for the first time.
119 banks connected with Aadhaar-enabled payment system: Minister
The government has said 119 banks are connected with the Aadhaar-enabled payment system and 33.87 crore transactions have taken place through Aadhaar-enabled payment systems.
• The government will soon roll out the Aadhaar Pay service. “With this, people can visit any merchant, share their Aadhaar numbers and verify themselves using biometrics to pay and receive money.
• The government has linked the BHIM app with Aadhaar so that transactions through the app happen in a transparent manner.
SBI Launches Wealth Management Product SBI Exclusif in Kochi
State Bank of India (SBI) has launched ‘SBI Exclusif,’ its wealth management offering, in Kochi. It will be rolled out in other cities in the state during the course of the year. Launching the product, S Venkataraman, Chief General Manager, SBI, Kerala Circle, said that wealth management has been one of the strategic priorities of the bank.
• The bank has introduced an ‘open platform’ where customers will also have access to the best products across categories from market-leading institutions.
• SBI has tied up with leading technology and product partners to provide an extensive suite of privileged products and lifestyle benefits. These include top-tier credit and debit cards and concessions/waivers in charges, among others.
Digi Dhan Mela launched in Andaman & Nicobar Islands
In order to promote cashless transaction, the first ‘Digi Dhan’ mela has organised in Gurugram on December 26 where customers will be able to purchase items only by making digital payment. Haryana Chief Minister Manohar Lal Khattar will inaugurate the mela. This is the first such fair in the country since demonetisation for educating masses on how to use mobile phones for making purchases
RBI Prohibits FDI in Non-Cooperative Countries
Reserve Bank has prohibited Indian entities from making direct investments in any entity located in ‘non co-operative countries and territories’, as identified by the inter-governmental body FATF. The Financial Action Task Force (FATF) currently comprises two regional organisations and 35 member jurisdictions, including India, US, UK, China and the European Commission.
FATF was established in 1989. Its objectives are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
Karnataka Bank inks pact with Tirth Agro Technology
Karnataka Bank Ltd has signed a memorandum of understanding (MoU) with the Rajkot-based Tirth Agro Technology Pvt Ltd (manufacturer of agricultural equipment and implements) for financing agricultural mechanisation.
The bank has a network of 740 branches in 21 states and two Union Territories. Tirth Agro Technology Pvt Ltd manufactures agricultural implements under the brand name ‘Shaktiman’.
India Post Payments Bank starts pilot services
India Post Payments Bank (IPPB) has kicked off its operations by rolling out pilot services in Raipur and Ranchi. The bank will offer an interest rate of 4.5% on deposits up to Rs.25,000; 5% on deposits of Rs.25,000-50,000 and 5.5% on Rs.50,000-1,00,000, its Chief Executive Officer A.P. Singh said. The paid up equity of the new bank is ₹800 crore, of which the government has already infused Rs.275 crore.
FGII Enters Into Bancassurance Tie-Up with Bank Of Maharashtra
Future Generali India Insurance Company Ltd (FGIL) has entered into a corporate agency tie-up for its products with Bank of Maharashtra (BOM), a public sector bank.
• With this tie-up, BOM’s customers will be able to avail of motor, home, shopkeeper and rural insurance products at any of the 1,896 branches of the bank.
• Anurag Sinha, Senior Vice President -Bancassurance and Zonal Manager-West, FGIL, exchanged the corporate agency agreement with Ravindra Prabhakar Marathe, Managing Director & Chief Executive Officer, Bank of Maharashtra.
India’s economy should grow between 6.75 percent and 7.5 percent in the financial year beginning on April 1. The Economic Survey, which sets the scene for Finance Minister Arun Jaitley’s fourth annual budget, forecast that Asia’s third-largest economy should steady after a hit from the government’s shock decision in November to scrap most cash in circulation. The survey was prepared by the finance ministry’s chief economic adviser Arvind Subramanian.
GROWTH
• 2017/18 GDP growth seen between 6.75 and 7.5 percent year on year
• GDP growth rate at constant market prices for the current year 2016/17 is placed at 7.1 percent
• The federal statistics office’s estimate of 7.1 percent growth for 2016/17 likely to be revised downwards
• Service sector is estimated to grow at 8.9 percent in 2016/17
• Industrial growth rate expected to moderate to 5.2 percent in 2016/17 from 7.4 percent in 2015/16
• The agriculture sector is estimated to grow at 4.1 percent in 2016/17 as opposed to 1.2 percent in 2015/16
FISCAL DEFICIT
• Implementation of wage hike, muted tax receipts to put pressure on fiscal deficit in 2017/18
• Need for fiscal prudence for both centre and states for fiscal health of the economy
• Fiscal windfall from low oil prices to disappear in 2017/18 – TV channels
INFLATION
• The average consumer price index (CPI) inflation rate declined to 4.9 percent in 2015/16 from 5.9 percent in 2014/15
• CPI-based core inflation has remained sticky in the current fiscal year averaging around 5 percent
• Oil prices, seen rising by one-sixth in 2017/18 over 2016/17 prices, could dampen India’s economic growth
DEMONETISATION
• Remonetisation will ensure that the cash squeeze is eliminated by April 2017
• Supply of currency should follow actual demand and not be dictated by official estimate of desirable demand
• Government windfall arising from unreturned notes should be deployed towards capital spending
MONETARY POLICY
• Sharp rise in prices in 2017/18 may cap monetary easing headroom – ET NOW on Twitter
• Market interest rates seen lower in 2017/18 due to demonetisation – ET NOW on Twitter
GOVERNMENT DEBT
• Government debt to GDP ratio in 2016 seen at 68.5 percent down from 69.1 percent in 2015
BANKING
• Suggests setting up public sector asset rehabilitation agency to take charge of large bad loans in banks
• Central agency with government backing could overcome coordination and political issues on bad loans
TAXATION
• Income tax rates and real estate stamp duties could be reduced
• Timetable for reducing corporate tax rate could be accelerated
UNIVERSAL BASIC INCOME
• Universal Basic Income (UBI) proposal a powerful idea, but not ready for implementation.
• UBI an alternative to plethora of state subsidies for poverty alleviation; UBI would cost between 4 and 5 percent of GDP.