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Paytm Appoints Ex-RBI Deputy Governor R Gandhi As Advisor

20Jun By Gauri SinghNo Comments

News

Paytm Appoints Ex-RBI Deputy Governor R Gandhi As Advisor

The leading Indian digital payment platform Paytm which is owned by One97 Communications has appointed Rama Subramaniam Gandhi as an advisor to the company. He will be primarily advising the corporate on fee techniques, company governance, compliance and regulations. Gandhi has been the former Deputy Governor of the Reserve Bank of India between 2014 and 2017 working under both Raghuram Rajan and Urjit Patel. The career central banker was a part of the first monetary policy committee. Gandhi, in this regard, said, I have dedicated my whole life to formulate policy and strengthen institutions in the financial services space. I will be happy to share my insights and guide Paytm in the creation of innovative financial services. Along with this, he has also held a place as the head of two...

Government Banks’ Losses Crossed Rs 87,000 This Year

11Jun By Gauri SinghNo Comments

INDIA

Government Banks’ Losses Crossed Rs 87,000 This Year

The fiscal 2017-18 showed losses for the public sector banks crossing a tremendous amount of Rs 87,300 crore, with Punjab National Bank on the top with a fraud contaminated amount of nearly Rs 12,283 crore. Our country consists of over 21 public sector banks and among them, only two banks have shown profitability during the financial year 2017-18, namely Indian Bank and Vijaya Bank. Indian Bank showed the highest profit of Rs 1,258.99 crore and on the other hand, Vijaya Bank’s profit was Rs 727.02 crore. The Delhi-based Punjab National Bank is losing its balance under a fraud amounting around Rs 14,000 crore, reportedly being carried out by Nirav Modi and associates, and has shown a net loss of Rs 12,282.82 crore in the previous financial year. The bank had posted a profit of Rs 1,3...

RBI to Introduce Mobile Wallet Interoperability Soon

11Jun By Lavina TolaniNo Comments

News

RBI to Introduce Mobile Wallet Interoperability Soon

While the mobile wallet industry is emerging at an impressive pace in India, it now is looking actively for the Reserve Bank of India to release interoperability guidelines for the industry. Notably, RBI's master directions on Mandatory KYC compliance (Issuance and Operation of Pre-paid Payment Instruments) that came in October 2017 had proposed digital wallets to become interoperable within six months. However, the following discussions with stakeholders had postponed the decision. If sources are to be belived RBI is now determined to bring wallet interoperability rules in a month with a delay of two months after the deadline A report quoting bankers published by ET said, The National Payments Corporation of India (NPCI) has already cleared the safety security aspects of taking wal...

RBI hikes Repo rate for first time in 4 years under BJP Regime

6Jun By Lavina TolaniNo Comments

INDIA

RBI hikes Repo rate for first time in 4 years under BJP Regime

India's Apex Bank Reserve Bank of India has raised repo rate for the first time in four years amidst inflation concerns surprising market analysts by keeping its policy stance "neutral". The six-member monetary policy committee of RBI headed by governor Urjit Patel has hiked the repo rate by 25 basis points to 6.25 percent. While the reverse repo rate has been adjusted to 6 percent. Notably, this is a first-time hike in policy rate done by the central bank since Narendra Modi led BJP government has come into office in may 2014. Meanwhile, RBI has allowed 2 percent more SLR (Statutory liquidity ratio) to meet liquidity coverage ratio. In its official statement, RBI said that "it reiterates its commitment to achieving the medium-term target for headline inflation of 4 percent on ...

5Jun By AdityaNo Comments

BUSINESS

Infibeam Looking to Raise 2000 Crore To Start Payment Bank Business

India's first profitable E-commerce company Infibeam will seek shareholders approval on June 28 to expand business in IT industry and also to launch a payments bank. The Gujrat based company said in its official statement, "We are looking to enter into payment bank business and to raise Rs 2,000 crore". The company has also proposed to change the name from Infibeam Incorporation Limited to "Infibeam Avenues Limited". Infibeam business profit in 2018 was more than doubled after tax to Rs 88.1 crore from Rs 43.5 crore a year ago. The e-commerce venture is also mulling to explore the business opportunity in the manufacturing of IT hardware. The company seeking RBI permit to issue all kind of prepaid payment instruments e-wallets, co-branded wallets, and any other pre-paid payme...

IT Ministry Questions NPCI for details on WhatsApp Pay

1Jun By Lavina TolaniNo Comments

INDIA

IT Ministry Questions NPCI for details on WhatsApp Pay

The Ministry of Electronics and IT (MeitY) has issued a fresh letter to National Payments Corporation of India (NPCI) seeking details about the digital payment service of Facebook-owned platform WhatsApp that is due to be formally launched in India this month. The government body which had earlier sought clarifications from the NPCI on WhatsApp Payment service issued a fresh letter this week asking details on data storage policy of US-based service and how data will be shared with its parent company. MeitY, in particular, has raised objections over WhatsApp not complying with two-factor authentication laid by India's Apex Bank RBI in addition to expressing concerns over the management of user's data. A copy of the letter has also been sent to RBI. Lack of a two-factor authenticati...

Sudha Balakrishnan To Take Charge as RBI’s First CFO

28May By Lavina TolaniNo Comments

INDIA

Sudha Balakrishnan To Take Charge as RBI’s First CFO

The Reserve Bank of India has appointed NSDL Executive Sudha Balakrishnan as its first chief financial officer (CFO) who will take in charge from 15 May, according to a news report. This is being considered as one of the biggest organisational change since Urjit Patel took over central bank in September 2016. Sudha Balakrishnan, a chartered accountant serving at India's first and largest depository NSDL will be the 12th executive director at RBI and will hold a three-year term. As per the report, RBI was looking out for a CFO since May 2017 when it had first advertised for the post. A foreign bank executive was selected too to serve the role, however, he backed out due to differences in remuneration. The recruitment notice issued in October 2017 states that the new CFO will be res...

21 PSBs Witness Loss of Rs. 25,775 Cr due to Bank Frauds in FY 2018

28May By Gauri SinghNo Comments

News

21 PSBs Witness Loss of Rs. 25,775 Cr due to Bank Frauds in FY 2018

Twenty-one government banks have witnessed a big loss which amounted to Rs. 25,775 crore due to frauds in the banking sector during the financial year 2017-18. The highest amount of loss has been incurred by Punjab National Bank (PNB) totaling Rs 6461.13 crore during the fiscal that ended on the 31st March this year. This was told by Chandrasekhar Gaud to the Press Trust of India, who had filed the RTI with the Reserve Bank of India. The reply which was sent to him did not mention any details regarding any particular case of banking fraud. At present, the Central Bureau of Investigation is scrutinizing one of the biggest baking frauds presumably involving Nirav Modi and Mehul Choksi (diamond merchants) and PNB officials. The investigating agency has filed two charge sheets in the spe...

Mobile Body IAMAI Files petition Against RBI’s Cryptocurrency Ban

17May By Lavina TolaniNo Comments

INDIA

Mobile Body IAMAI Files petition Against RBI’s Cryptocurrency Ban

The Internet and Mobile Association of India( IAMAI) has filed a written petition in the Supreme Court requesting a stay against the RBI’s order to not allow banks to provide services to cryptocurrency trading platforms. IAMAI 's president Subho Ray has confirmed the filing of petition though he was not available to comment on the matter. It is interesting to note that this marks the fifth petition to be filed against Apex Bank on its order dated 6 April that disallowed entities from dealing in virtual currencies. RBI had given banks a deadline of 6 July to adhere to the new rule. Last year, several cryptocurrency exchanges had come together to form a collective industry body called Digital and Blockchain Foundation of India. However, in November 2017 the association got merged with ...

29Apr By Lavina TolaniNo Comments

INDIA

Reserve Bank of India Ease Rules For Overseas Funding

In an attempt to facilitate access of overseas fund without any hassel, Reserve Bank of India (RBI) liberalized External Commercial Borrowings Policy by adding more sectors in the window. In a late night notification that released yesterday. It has been decided to increase the ECB Liability to Equity Ratio for ECB raised from direct foreign equity holder under the automatic route to 7:1. This ratio will not be applicable if a total of all ECBs raised by an entity is up to USD 5 million or equivalent. A uniform all-in-cost ceiling of 450 basis points over the benchmark rate will be stipulated to harmonize the provisions of Foreign Currency and Rupee ECBs and Rupee Denominated Bonds. Moreover, Housing Finance Companies and port trust are eligible to avail ECB's under all tracks, provide...

RBI Issues Two New Policies to Payment Operators

7Apr By Sheldan RungasamyNo Comments

News

RBI Issues Two New Policies to Payment Operators

The RBI ordered all payment system operators in the territory of India to stop exporting their financial data outside the country. While announcing its bi-monthly monetary policy statement, the RBI also pointed out that in order to facilitate their access to all payment data for supervisory purposes, payment system operators are bound to keep all related data collected they possess stored exclusively within the territory of India. The RBI further announced that it is granting six months to all payment system operators to transition to this new policy and make necessary amendments to their systems. Additionally, all regulated financial institutions, including banks will not be allowed to provide any financial services to businesses dealing with virtual currencies (VCs) such as bitcoin...

3Apr By Sheldan RungasamyNo Comments

News

Paytm App Undergoes Major Makeover!

Paytm, the Indian payment gateway mammoth, has redesigned its app to make it more user friendly and spontaneous. The application update allows users to personalize the app and provide a better overall experience to the user by displaying the most used ways of customizing the app. Transferring money is also something that the Paytm engineers worked heavily upon by making it easier, simpler and faster. Furthermore, now Paytm will also offer instant transfers from a user’s Paytm Payments Bank account or Paytm wallet to any other bank without charge. The major feature of this new look is the possibility to make bank-to-bank transactions under the section of ‘Money Transfers.’ The payment gateway app provisioned a budget of Rs 250 crore to endorse money transfers and presumes that this new o...