Private sector lender RBL Bank on Tuesday said it will provide banking infrastructure for Tide’s India platform, which is focussed on small and medium enterprises.
“This collaboration will enable Tide to bring its platform to the Indian markets with a full-fledged launch,” it said in a statement on the tie-up with Tide India, which is a part of business banking fintech Tide UK.
“Under the tie-up, businesses — especially small- and medium-sized enterprises — have an option to open current and savings accounts at RBL Bank through Tide’s business platform. Depending on customer requirements, the bank can also integrate its payment APIs (application programming interfaces) to enable Tide users to make seamless transactions from Tide’s platform,” it further said.
Apart from supporting the organised SME sector, Tide will also focus on serving companies in the unregistered and unorganised sector. It plans to acquire 25,000 customers in the next financial year and scale up to 20 lakh customers in the next five years.
“With this partnership, we are ready to begin initial testing of Tide India, before entering into similar partnerships with other leading fintech providers to build our platform during the course of 2021,” said Oliver Prill, Tide CEO.
Surinder Chawla, Head – Branch Banking, RBL Bank, said: “RBL Bank has agile technological capabilities and compelling customer offerings to help Tide build a strong foundation in the country and scale up its business.”
NPS is a retirement scheme for which subscriber at the time of enrolling into the scheme need to specify whether he or she wishes to allocate funds across available asset classes or wants to go by the auto choice option. Note in the auto choice option in NPS or National Pension Scheme funds get allocated depending upon the subscribers’ age. Also, the NPS subscriber needs to select the fund manager at the time of account opening.
How To Make Changes To NPS Investment Choice And Fund Manager?
And during the term of the NPS scheme, investors can change the fund manager together with the investment choice via the online route as well as through PoP or Point of Presence.
Here’s the process to change
For initiating any of the changes, NPS subscriber must first log in to his or her account using the link https://cra-nsdl. com/CRA/. For logging in into the account, user ID is NPS holder’s PRAN number.
For changing scheme preference:
In the online route, after you have logged into your NPS account, you need to follow the below steps:
1. Log in superannuation
2. Under the main link for Transaction, you need to click on ‘ Scheme preference change’
3. Select Tier type and opt for scheme preference change as desired by you i.e. choose the desired scheme i.e. Active choice or Auto choice and within the Auto choice select Conservative or moderate or aggressive auto choice.
In a case if the active choice is being made, across asset classes, the asset allocation percentage is also to be pre-specified.
Changing investment choice under NPS through offline route:
And if you are not internet savvy or wish to complete the process physically, you can also submit request form GOS-S3 to your nodal office. This form is easily available on the CRA website and can be downloaded. After the request has been received physically, the Nodal office will update the Scheme Preference in the CRA.
Changing portfolio manager in NPS
Pension fund management company can also be changed once in a financial year. For effecting it online, after you have logged into your NPS account, you need to click on ‘Transact online’ tab and select the “Change PFM” option. After you have selected the pension fund manager, submit your request.
One can go for change in the pension fund manager by comparing and analyzing returns of NPS fund managers across same time horizon and for a particular asset category.
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Private lender HDFC Bank’s netbanking and mobile banking platforms suffered an outage on Tuesday, leading to customers of the bank complaining on various social media platforms. The outage comes amidst the lender being under scrutiny of the Reserve Bank of India (RBI) for repeated digital outages, for which the regulator had barred HDFC Bank from the issuance of new credit cards as well as digital business activities.
HDFC Bank in a tweet confirmed the outage, saying “Some customers are facing intermittent issues accessing our NetBanking/MobileBanking App. We are looking into it on priority for resolution,” The lender further added “We apologize for the inconvenience and request you to try again after sometime. Thank you.”
Some customers are facing intermittent issues accessing our NetBanking/MobileBanking App. We are looking into it on… https://t.co/awNg03csei
— HDFC Bank Cares (@HDFCBank_Cares) 1617089320000
Customers of the bank expressed their anguish with the outage on the lender’s platforms through various social media posts.
@HDFC_Bank Whats going on? One simple address update taking more than 2 weeks, now site is down !!!!… https://t.co/WWg2YJCLSm
The RBI had in December asked HDFC Bank to stop all digital launches, as well as source new credit card customers. The order came in light of numerous outages across the lender’s electronic banking services, for which the regulator had asked the management to examine lapses. Between 2018 and 2020, HDFC Bank suffered three outages across its platforms, with the most recent outage, attributed to a power outage at the lender’s primary data centre, taking place in November 2020.
HDFC Bank in February 2021 had submitted a plan to the RBI to stop its glitches across its technology platforms, according to a report by The Economic Times (ET). The plan included various short term and long term measures – which would take upto three months to implement.
The cost of your home loan is calculated by the interest rate charged by banks and non-financial institutions on home loans. The interest rate levied defines how much you have to pay your lender on your loan per month as you pay your home loan in EMI (equated monthly installment). Interest rates are typically linked to the repo rate, but they can differ from one lender to the next. A home loan is one of the most affordable loans available, and it is also the only option for an individual to purchase a home. Although interest rates provided by banks can change at any time, Kotak Mahindra Bank is currently offering its customers the lowest home loan interest rate starting from 6.65 percent per annum. The top ten banks that are currently offering the best home loan interest rates are listed below.
Factors that influence home loan interest rates
A home loan allows you to purchase your dream home anytime and anywhere. The Equated Monthly Installments (EMI) that you will have to reimburse decide the loan’s viability. EMI allows you to repay the principal and interest in a manner that does not put more strain on your personal finance. That being said, the interest rate will have a major impact on this. The interest rate is influenced by a number of variables that differ from one lender to the next. Some of these variables are as follows:
Type of interest rates: You have the option of a fixed, floating, or mixed interest rate. Floating interest rates fluctuate in response to the adjustments made by Reserve Bank of India (RBI). Your EMIs will be lowered if the current RBI guidelines result in lower interest rates, and conversely. A fixed interest rate means you’ll pay the same rate of interest for the entire period of your loan. The rates you are provided with are often determined by the type of home loan you have applied for.
Loan to value ratio (LTV): The loan-to-value (LTV) ratio determines the value of a loan you want to take out to the measured value of the house you want to purchase. LTVs are used by lenders to decide how unsafe a loan is and whether or not to accept it. It will even help you figure out whether you’ll need a mortgage benefit or not. A loan-to-value ratio determines how much of a property you currently own and how much you owe on the loan you used to buy it.
Credit Score: Your credit score is thoroughly scrutinised during the loan processing. It entails credit checks from the past and present. You’re more likely to get a decent deal if you’re active on your payments and have a strong credit score. A strong credit record also gives you the right to face for a cheaper rate. Your loan interest rates will be affected significantly as a result of this.
Income: Along with the income aspect, the sector you work in and the employer both have an influence. A reasonable interest rate will be offered to those who have a steady and strong salary, which is necessary to repay the loan. Due to the uncertainties involved, salaried employees are likely to receive a marginally lower rate than self-employed applicants. Separate slabs are maintained by banks for salaried and self-employed employees.
Loan tenure and loan amount: When the bank agrees on the interest rate to be given to you, the loan tenure you select plays an important role. If you’re able to commit to a longer period, the interest rate provided is likely to be lower. The loan amount proposed has the potential to stabilise the rate. The general concept is that the higher the loan amount, the lower the interest rate.
Tax benefits on home loans
Here is a list of all the tax advantages that a taxpayer can get on home loan EMI payments if they choose the old tax regime. Note that for the current fiscal year, a person will continue to use the old tax system and claim tax exemptions such as HRA and various deductions under sections 80C, 80D, and so on. Individuals can still choose to operate under the new tax regime, which includes a reduced tax rate with no tax exemptions:
Exemption for repaying the principal loan amount
The EMI you pay is made up of two parts: principal amount and interest charged. For self-occupied property, the amount repaid as principal part in the EMI can be counted as a deduction under section 80C of the Income Tax Act, 1961. Please remember that if you have another home that is either vacant or where your parents live, that home will be called a self-occupied residence. The stamp duty and registration fees charged after purchasing a home can also be deducted under Section 80C.
Exemption for repaying the interest of a home loan
A taxpayer can claim a deduction on the interest accrued on a home loan in addition to the principal amount repaid on the loan. In the case of a self-occupied house, a deduction on interest paid on a home loan is applicable under section 24 for a limit of Rs 2 lakh in a specified fiscal year. In the case of self-occupied property, interest payments above Rs 2 lakh will not be taken forward or offset against any other income heading such as capital gains, salary, and so on. If you own two homes and one of them is vacant or owned by your parents, interest on the second house’s home loan is also included under section 24. Please remember that in a given financial year, the overall deduction for interest paid on a home loan on both houses cannot surpass Rs 2 lakh.
Additional exemption on purchasing an affordable home
If you have purchased a property in the subsidised housing category, you can exempt the interest paid on the home loan you used to purchase it. This exemption can be claimed up to Rs 1.5 lakh per financial year under section 80EEA. It is available in addition to the section 24 deduction for a limit of Rs 2 lakh. Thus, if a taxpayer purchases an affordable home, he or she can claim a deduction of up to Rs 3.5 lakh in a fiscal year. Please remember that you cannot claim the same amount under two different sections. To qualify for this deduction, you must apply for a housing loan from a financial institution such as a bank or a housing finance company for the purpose of purchasing a residential home, the home loan must be undertaken between April 1, 2019 and March 31, 2021, with a stamp duty of not more than Rs 45 lakh on the house property. Budget 2021 has extended the timeline for receiving a home loan by another year, from March 31, 2021, to March 31, 2022, in order to seek an additional deduction for interest paid on a home loan.
Exemption under section 80EE
For first-time home buyers who availed home loans, this benefit was reinstated in FY 2016-17. Section 80EE enabled taxpayers who took out a home loan in FY 2016-17 to seek an additional tax deduction of up to Rs 50,000. Under Section 24, a home loan borrower who pays interest on the loan can exempt the interest paid from his or her gross income up to a limit of Rs 2 lakh per year. To be eligible for this deduction, the house for which the loan is taken must be worth more than Rs 50 lakh, the loan amount must be less than Rs 35 lakh, and the loan must have been approved between April 1, 2016 and March 31, 2017.
Home Loan Interest Rates
Below are the top 10 banks which are currently providing the cheapest rates on home loans. Please keep in mind that the interest rates are considered for a loan amount of Rs 30 lakhs with a tenure of 20 years.
Sr No.
Banks
ROI in %
1
Kotak Mahindra Bank
6.65 to 7.3
2
HDFC Bank
6.7 to 7.2
3
ICICI Bank
6.7 to 8.05
4
State Bank of India
6.75 to 8.2
5
Punjab National Bank
6.8 to 8.9
6
Union Bank of India
6.8 to 8.4
7
Bank of Baroda
6.85 to 8.7
8
Central Bank of India
6.85 to 9.05
9
Punjab & Sind Bank
6.85 to 7.35
10
Bank of Maharashtra
6.9 to 9.65
Source: Bank Websites
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The forced liquidation of more than $20 billion in holdings linked to Bill Hwang’s investment arm is drawing attention to the covert financial instruments he used to build large stakes in companies.
Much of the leverage used by Hwang’s Archegos Capital Management was provided by banks including Nomura Holdings and Credit Suisse Group through swaps or so-called contracts-fordierence (CFDs), according to people with direct knowledge of the deals. It means Archegos may never actually have owned most of the underlying securities — if any at all.
Archegos troubles
While investors who build a stake of more than 5 per cent in a US-listed company usually have to disclose their position and future transactions, that’s not the case with stakes built through the type of derivatives apparently used by Archegos. The products, which are made to exchanges, allow managers like Hwang to amass stakes in publicly traded companies without having to declare their holdings.
The swift unwinding of Archegos has reverberated across the globe, after banks such as Goldman Sachs Group and Morgan Stanley forced Hwang’s arm to sell billions of dollars in investments accumulated through highly leveraged bets. The selloff roiled stocks from Baidu to ViacomCBS, and prompted Nomura and Credit Suisse to disclose that they face potentially significant losses on their exposure. One reason for the widening fallout is the borrowed funds that investors use to magnify their bets: a margin call occurs when the market goes against a large, leveraged position, forcing the hedge fund to deposit more cash or securities with its broker to cover any losses. Archegos was probably required to deposit only a small percentage of the total value of trades. Massive unwinding
The chain of events set off by this massive unwinding is yet another reminder of the role that hedge funds play in the global capital markets. A hedge fund short squeeze during a Reddit-fueled frenzy for Gamestop Corp. shares earlier this year spurred a $6 billion loss for Gabe Plotkin’s Melvin Capital and sparked scrutiny from US regulators and politicians.
The idea that one firm can quietly amass outsized positions through the use of derivatives could set o another wave of criticism directed against loosely regulated firms that have the power to destabilize markets. While the margin calls on Friday triggered losses of as much as 40 per cent in some shares, there was no sign of contagion in markets broadly on Monday. Rescues galore
Contrast that with 2008, when Ireland’s then-richest man used derivatives to build a position so large in Anglo Irish Bank it eventually contributed to the country’s international bailout. In 2015, New York-based FXCM Inc. needed rescuing because of losses at its UK ailiate resulting from the unexpected depegging of the Swiss franc. Much about Hwang’s trades remains unclear, but market participants estimate his assets had grown to anywhere from $5 billion to $10 billion in recent years and total positions may have topped $50 billion.
CFDs and swaps are among bespoke derivatives that investors trade privately between themselves, or over-the-counter, instead of through public exchanges. Such opacity helped to worsen the 2008 financial crisis and regulators have introduced a vast new body of rules governing the assets since then.
Eight PSU Banks namely Vijaya Bank, Corporation Bank, Andhra Bank, Syndicate Bank, Oriental Bank of Commerce, United Bank of India,Allahabad Bank and Dena Bank will see merger coming into effect from April 1, 2021. Customers of any of the above listed banks should know about the following changes and the steps they will have to take for the same.
1. Account number: In case of the past bank mergers there was no change in the account number for the bank customers say for in the case of Union Bank of India, only the IFSC code changed. Also, there have been known instances where the bank has checked with the entity with which you have set the electronic clearing settlement (ECS) such as for SIP, utility bill payment etc. for change in the ECS i.e. matched their ECS for the old ECS.
The transition in the case of Bank of Baroda has resulted in a change in the account number for customers. What you need to do in respect of bank account number, IFSC and MICR: Here the onus shall be on the bank customer to modify or update previously given ECS mandates and also update such details with various entities including tax department, EPFO, insurers or brokers for that matter.
2. Cheque books: From 1 April, the cheque books of the banks getting merged will not be valid. New cheque books from the anchor banks will be provided. For example, the cheque books of Oriental Bank of Commerce and United Bank of India will be valid only until 31 March. The two banks are merged with Punjab National Bank.
Some banks could also offer more time to customers as the RBI has allowed some banks to continue with the old cheque books for another quarter or two. For example, Syndicate Bank customers can use their cheque books until 30 June. Customers will need to track their banks’ developments to know when they can continue using the cheque books.
3. Fixed Deposits & Loans: These deposits are in fact contracts for some predefined period and any change in structure of the bank will not result in any interest change for you. Likewise, you can continue with the deposit until maturity at the same rate, irrespective of whether the deposit rate at the merged entity is lower or higher.
Similar to FD contracts, home loan is also an agreement between the borrower and lender and in the event of bank merger there shall be no change on the previously stipulated terms. Over the past one year, the rates of the merging bank and the anchor bank have converged to a common ‘external benchmark lending rate’ (EBLR). In case there is a review clause in loan term then the rate of interest of the acquiring or anchor bank may apply.
4. Money transfer: The Indian Financial System Code (IFSC) and Magnetic Ink Character Recognition Code (MICR) will change for some banks and will remain the same for others. For instance, Union Bank of India, the account number has not changed Only the IFSC code has changed. Every bank migration is different.
Customers will again need to check with their bank on what has changed and what has not. Accordingly, they will need to change their ECS instructions for loans and other payments such as life insurance and mutual fund investments
GIC Housing Finance on Tuesday said it has raised ₹195 crore through issuance of non-convertible debentures (NCDs) to Aditya Birla Sun Life Mutual Fund on private placement basis.
“…Pursuant to the authority accorded by our board… 1,950 numbers of NCDs, having a face value of ₹10,00,000 each at par for an aggregate amount of ₹195 crore, issued on private placement basis,” GIC Housing Finance said in a regulatory filing.
The NCDs have been allotted to Aditya Birla Sun Life Mutual Fund and carry an interest rate of 6.94 per cent per annum.
GIC Housing Finance said the NCDs are proposed to be listed on the BSE.
Shares of GIC Housing Finance were trading 1.21 per cent higher at ₹117.15 apiece on the BSE.
The Finance Industry Development Council (FIDC) on Tuesday announced the appointment of TT Srinivasaraghavan, Managing Director, Sundaram Finance, as its Chairman Emeritus.
It also announced Sanjay Chamria, Vice-Chairman and Managing Director, Magma Fincorp, and Umesh Revankar, Managing Director, Shriram Transport Finance Co, as its Co-Chairmen.
The appointments are with effect from April 1, 2021, FIDC said in a statement.
Welcome to the refurbished site of the Reserve Bank of India.
The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.
With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.
The site can be accessed through most browsers and devices; it also meets accessibility standards.
Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.
Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.
