Month: March 2021

India in watchlist for inclusion in FTSE government bond index

Banking & Finance

[ad_1]

Read More/Less


India will be added to the watch list for potential inclusion in the FTSE Emerging Government Bond Index (EMGBI), according to FTSE Russell.

FTSE Russell, which is a leading global multi-asset index, analytics and data provider, announced this in its results of semi-annual country classification review for fixed income and equities.

Investment in G-Secs

Once India becomes part of the EMGBI, foreign portfolio investors (FPIs) could step up investment in the Government Securities (G-Sec) market, say market players.

The possibility of inclusion in EMGBI is good news for the government as its borrowing programme in FY22 is also high at about ₹12.05-lakh crore (₹12.80-lakh crore in FY21). FPI investment in G-Secs could take the pressure off banks to invest in these bonds and allow them to focus on lending.

As per the Reserve Bank of India’s latest monthly bulletin, FPIs owned only 2.10 per cent of the Central government-dated securities as of December-end 2020.

As per FTSE Russell’s December-end 2020 fact sheet, the FTSE EMGBI measures the performance of local currency government bonds from 16 countries, providing abroad benchmark for portfolio managers looking for a measure of sovereign emerging markets.

The 16 countries include Brazil, Chile, China, Colombia, Hungary, Indonesia, Mexico, Malaysia, Peru, Philippines, Poland, Romania, Russia, Thailand, Turkey and South Africa.

To join the EMGBI, a market must satisfy the market size and credit criteria. Accessibility of bonds and markets and replicability of returns are additional requirements.

“Once a market has met all the requirements, an announcement will be made that this market is eligible for inclusion into the EMGBI.

“If it continues to meet all three requirements for three consecutive months after the announcement, the market will join the EMGBI at the end of the three months that follow.”

For entry into EMGBI, the outstanding amount of a market’s eligible issues must total at least $10 billion for the market to be considered eligible for inclusion.

To remain eligible for the index, a market must maintain a minimum market size of at least half of the entry-level market size criteria.

[ad_2]

CLICK HERE TO APPLY

Leave a comment

New Rule For Recurring Transactions: Check What Does The New RBI Rule Say

Personal Finance

[ad_1]

Read More/Less


Planning

oi-Vipul Das

|

According to an RBI circular first released in December 2020, banks are likely to refuse auto payments from April 1 since all recurring transactions using cards and prepaid payment services will now allow an additional layer of authentication. A one-time password will be used for transactions above Rs 5,000. Customers will be alerted five days before an automatic payment is set, and the process will only proceed if the customer approves it. If banks fail to allow automatic payments, customers will have to execute their bill payments manually. Bills and subscription facilities such as OTT platforms, media, utility, and postpaid services are paid using recurring mandates on debit/credit cards. Payment rejection is supposed to trigger a massive crisis, with forecasts estimating that about Rs 2,000 crore transactions could fail as of April 1. UPI transactions, on the other hand, will be exempted by the new law. Due to contractual agreements, third-party payment providers have also refused to share customer details with banks, exacerbating the crisis. Although the central bank has rejected to extend the timeline, the crisis is likely to be settled in the upcoming days. Here are the few key things to note about the new law and how it can influence you.

New Rule For Recurring Transactions: Check What Does The New RBI Rule Say

  • In August 2019, the Reserve Bank of India (RBI) released a circular to all scheduled commercial banks, card payment systems, prepaid instrument providers, and the National Payments Corporation of India (NPCI) about the forthcoming regulation for an additional factor of verification on recurring transactions.
  • All recurring transactions will require additional authentication from the customer from April 1 respectively.
  • Not only will the regulation influence banks and financial institutions that provide credit cards, debit cards, and other prepaid payment services, but also mobile payment wallets and platforms that support UPI-based payments.
  • The law was proposed to relate to recurring transactions of up to Rs. 2,000 at first. The RBI, on the other hand, declared in December that, in response to stakeholder demands, it had agreed to raise the cap on recurring transactions not having an additional factor of authentication (AFA) to Rs. 5,000. A one-time password (OTP) will be required for all transactions above Rs. 5,000.
  • The banks also set a March 31 deadline for enforcement, according to an RBI circular released on December 4 that said, “Processing of recurring transactions (domestic or cross-border) using cards / PPIs / UPI under arrangements / practices not compliant with the aforesaid instructions shall not be continued beyond March 31, 2021.”
  • The new law will mandate banks and payment platforms that provide recurring transactions to give consumers a pre-transaction update at least 24 hours before the first transaction is set to be debited until it is enforced. The user can pick the mode of confirmation (SMS, email, etc.) while activating the e-mandate.
  • Customers’ permission will be required for the confirmation, after which the issuer will be free to continue with the payment. An additional factor of authentication (AFA) may be not required for potential recurring transactions.
  • All automatic payments are likely to be declined by banks, forcing customers to make bill payments manually. Banks have already begun alerting customers that they will not be able to accept recurring payments, suggesting that customers will have to make transfers manually before the issue is resolved and authentication is issued.
  • The new law is likely to affect firms that often use auto-payments for recurring charges, in particular to end users.
  • The central bank has rejected extending the time limit, but it is estimated that the case will be settled in the upcoming days. Banks and payment systems are yet to say if they are prepared to work under the new rule. Additionally, automatic payments across banks and wallets are likely to have some issues initially.
  • Due to a new Reserve Bank of India (RBI) law, auto and recurring payments of your mobile phone, utility bills, and subscription charges for over-the-top (OTT) platforms are likely to be disrupted from April 1.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Reserve Bank of India – Press Releases

Press Releases

[ad_1]

Read More/Less


Sr. No. State/ UT Notified amount
(₹ Cr)		 Amount Accepted
(₹ Cr)		 Cut off Price/ Yield (%) Tenure
(Yrs)
1. Bihar 969 969 5.43 3
2. Goa 200 200 6.84 10
3. Gujarat 1,500 1,500 5.39 3
1,000 1,000 5.88 4
1,000 1,000 6.18 5
1,500 1,500 6.58 6
1,500 1,500 6.90 9
4. Jammu and Kashmir 201 201 6.84 10
5. Jharkhand 1,000 1,000 6.82 13
6. Kerala 1,000 1,000 6.80 10
1,000 1,000 6.82 11
1,000 1,000 6.82 14
7. Puducherry 240 240 6.98 12
8. Punjab 1,851 1,851 6.82 15
1,000 1,000 100.32/6.8203 Reissue of 6.86% Punjab SDL 2033 Issued on March 24, 2021
9. Uttarakhand 1,000 1,000 6.80 10
10. West Bengal 4,680 4,680 6.99 15
  Total 20,641 20,641    

Ajit Prasad
Director   

Press Release: 2020-2021/1315

[ad_2]

CLICK HERE TO APPLY

Leave a comment

Reserve Bank of India – Press Releases

Press Releases

[ad_1]

Read More/Less


Auction Results 91 days 182 days 364 days
I. Notified Amount ₹ 4000 Crore ₹ 7000 Crore ₹ 8000 Crore
II. Competitive Bids Received      
(i) Number 65 75 102
(ii) Amount ₹ 22440 Crore ₹ 21387.5 Crore ₹ 24475 Crore
III. Cut-off price / Yield 99.1800 98.3000 96.3243
(YTM: 3.3162%) (YTM: 3.4683%) (YTM: 3.8264%)
IV. Competitive Bids Accepted      
(i) Number 10 17 57
(ii) Amount ₹ 3984 Crore ₹ 7000 Crore ₹ 8000 Crore
V. Partial Allotment Percentage of Competitive Bids 36.8% 72.75% 13%
(1 Bids) (1 Bids) (1 Bids)
VI. Weighted Average Price/Yield 99.1849 98.3083 96.3677
(WAY: 3.2962%) (WAY: 3.4511%) (WAY: 3.7796%)
VII. Non-Competitive Bids Received      
(i) Number 3 0 0
(ii) Amount ₹ 16 Crore ₹ 0 Crore ₹ 0 Crore
VIII. Non-Competitive Bids Accepted      
(i) Number 3 0 0
(ii) Amount ₹ 16 Crore ₹ 0 Crore ₹ 0 Crore
(iii) Partial Allotment Percentage 100% NIL NIL

Ajit Prasad
Director   

Press Release: 2020-2021/1314

[ad_2]

CLICK HERE TO APPLY

Leave a comment

Check The New Penalty Charges Applicable On Post Office RD Account

Personal Finance

[ad_1]

Read More/Less


Investment

oi-Vipul Das

|

A post office RD is one of the most familiar investment alternatives available at post offices. As compared to bank fixed deposits, post office recurring deposits have been the most prominent because of the interest rate which is now at 5.8% (compounded on a quarterly basis) and tax benefits. If we compare this interest rate for the quarter ending in March 2021 with SBI FD, the leading public sector bank of India is now currently providing a low interest rate of only 5.4%. Post Office RD comes with a fixed tenure of 5 years and hence the interest earned is completely taxable. If you wish to keep your RD account after 5 years, there is a clause that allows you to extend it for another 5 years, bringing the total period to ten years. Furthermore, RDs that have been extended for another 5 years will continue to receive a quarterly compounded interest rate. With a minimum deposit of Rs 100 per month or any amount in multiples of Rs 10, one can open a post office RD account. After three years from the date of account opening, an RD account can be closed early by submitting the required application form to the respective Post Office. If the account is closed early, or one day before maturity, the interest rate on the Post Office Savings Account will apply. That being said, if you want to open a post office RD account, know the current penalty charges applicable on missing monthly installments.

Check The New Penalty Charges Applicable On Post Office RD Account

Post Office RD Penalty Charges

  • The minimum monthly deposit is Rs100, and deposits in multiples of Rs10 subsequently. You can deposit the money before the 15th of the month if the account was opened within the first 15 days of the month. If the account was opened after that, the money had to be deposited by the month’s end.
  • The account is considered defaulted and deactivated if the deposits are not made within the specified time period. To reactivate the account, the depositor must pay a penalty of Rs1 for every Rs100 deposited, in addition to the required amount.
  • After four regular defaults, the account can be reactivated for up to two months. If the account is not reopened within this timeframe, it will be terminated and no more deposits will be allowed.
  • If there are no more than four defaults in monthly deposits, the account holder can then choose to extend the account’s maturity period by the same number of months as the number of defaults and deposit the missed installments during the extended period of months or years.

Note

Section 80C of the Income Tax Act allows post office RD account holders to claim tax benefits. Individuals can claim a tax deduction of up to Rs. 1.5 lakh per year under this section. The interest earned by the post office RD scheme, on the other hand, is taxable. Individuals should pay tax according to their income tax bracket. In addition, any interest that crosses Rs. 10,000 is subject to TDS deduction. TDS will be charged at 10% for account holders with PAN Card and 20% for those who do not have the same.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Karnataka Bank operationalises non-financial subsidiary

Banking & Finance

[ad_1]

Read More/Less


Karnataka Bank operationalised its wholly owned non-financial subsidiary – KBL Services Ltd – on Tuesday. With its registered and head office in Bengaluru, this subsidiary is established as conceptualised under the transformation journey of the bank – ‘KBL – Vikaas’ – in achieving bank’s strategic objectives in the long run.

Quoting Mahabaleshwara MS, Managing Director and Chief Executive Officer of Karnataka Bank and non-executive Chairman of KBL Services Ltd, a press release said the formation of the first wholly owned non-financial subsidiary of the bank – KBL Services Ltd – is a significant milestone for Karnataka Bank. With this new entity, Karnataka Bank is taking a step in realigning its business strategy with the objectives of improving efficiency and achieve better results and valuation in the long run, he said.

“By moving some of the non-financial operations of the bank such as management of alternate banking channels, back-end processing activities, IT project and support, digital capabilities, business sourcing, contact centre management etc., to the subsidiary in a phased manner, Karnataka Bank will have a renewed focus on its core banking business,” he said.

Speaking at the inauguration of the subsidiary, Mahabaleshwara thanked the board of directors of Karnataka Bank for its vision and guidance in materializing this subsidiary, and acknowledged the hard work put in by the core team of the bank behind this journey.

The Directors of the bank – Rammohan Rao Belle and D Surendra Kumar – were present on the occasion.

[ad_2]

CLICK HERE TO APPLY

Leave a comment

Mashreq Bank appoints Mohua Sengupta as MD of its remote working campuses in Bengaluru, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Mohua Sengupta, Managing Director, Mashreq Bangalore.

UAE based lender Mashreq announced the appointment of Mohua Sengupta as the Managing Director of its remote working campuses spread across India, Egypt and Pakistan. Sengupta, who will be based out of Bangalore, will collaborate with all group functions to enable and develop them into market leading talent and services platforms, Mashreq said.

Mohua was earlier the Executive Vice President and Global Head of Services for 3i Infotech, prior to which she was associated with iGATE, MPHASIS, and Accenture.

Mark Edwards, Group Head of Operations, Mashreq Bank, said We are very pleased that Mohua has joined Mashreq to lead our remote working campuses in India, Egypt and Pakistan. The recent widespread changes in working practices has presented an opportunity for us to create the best digital remote working experience for our employees, ensuring that we can continue to provide the very best digital banking experience for our customers.

“We are confident that Mohua, with her rich and diverse experience, together with Mashreq’s proven agile way of thinking and acting, will be able to successfully lead our efforts in building a world class work from anywhere platform for Mashreq globally,” added Edwards.

Mohua Sengupta further echoed “I am delighted to be part of the Mashreq family. For over 50 years, Mashreq has been powering the future of banking using the latest technologies in data, software, intelligence, robotics. Today, the global financial and technology landscape is extremely dynamic and exciting.”



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

HDFC Bank customers facing issues with net banking, mobile banking

Banking & Finance

[ad_1]

Read More/Less


Private sector lender HDFC Bank on Tuesday said that it was facing certain intermittent issues with its NetBanking/MobileBanking App.

“Some customers are facing intermittent issues accessing our NetBanking/MobileBanking App. We are looking into it on priority for resolution. We apologize for the inconvenience and request you to try again after sometime. Thank you,” the bank said in a tweet at 12:58 pm IST on Tuesday.

Customers of the bank had taken to social media, reporting issues with accessing certain digital channels of the bank. Customers were unable to access the website and the app for the bank.

HDFC Bank has said that it is currently working on resolving the issue.

The bank had faced a similar issue at the beginning of this month. Some customers had faced intermittent issues in internet and mobile banking on March 1.

Customers had taken to social media to complain about the issue and had said that they were unable to use net banking and mobile banking facilities as well as carry out payments.

The problem was however, not widespread and was later resolved.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

Before exiting a firm, PFRDA instructs NPS subscribers to apply for Inter Sector Shifting

Personal Finance

[ad_1]

Read More/Less


Planning

oi-Vipul Das

|

Before switching organisations, NPS subscribers must change their Point of Presence (PoP) by submitting an application to the Central Record Keeping Agency (CRA) System in the specified format. That being said, despite leaving their employer, some individuals have yet to update their National Pension System (NPS) account to the PoP of their preference. And to prevent this, the PFRDA has advised employers to make Inter Sector Shifting (ISS) a part of the exit process by allowing employees to transfer their NPS account to a preferred Point of Presence. On a recent circular the Pension Fund Regulatory and Development Authority has stated that “It has been observed that there are instances wherein the NPS Subscribers under Corporate Sector have not exercised Inter Sector Shifting (ISS) before leaving their employers due to various reasons viz Resignation, Retirement etc and those employees are still tagged with their erstwhile employers in Central Record Keeping Agency (CRA) system even though they no longer work with those employers.”

Before exiting firms, PFRDA asks NPS holders to apply for Inter Sector Shifting

As per the guideline, employers should provide a record of those employees, as well as their Permanent Retirement Account Numbers (PRANs), to the CRA/ POP for labelling, with the intention of de-tagging those PRANs from the employer, as per the rules listed below:

Employees of corporate sectors

Following the flagging of such employees’ PRANs in the CRA system, the Subscriber must choose a POP within three months, otherwise the PRANs will be labeled to the respective POP of the Corporate employer under the voluntary system. This category includes companies that serve as POPs while still offering NPS to their own employees (most specifically banks).

Employees of direct corporate sectors

Following the CRA system’s flagging of those employees’ PRANs, the subscriber must practise his or her preference of PoPs within three months, or the PRANs will be labeled to eNPS under the voluntary system. The subscriber has the option of continuing with eNPS or switching to another POP.

Employees under Corporate CG pattern of investment

Employees whose PRANs are in the Corporate CG pattern of investment but have been flagged in the CRA system must practise their option of investment and POP as applicable to their present role.

Intermediary charges

If intermediary charges were charged by the respective employer before the PRANs were flagged in the CRA system, the subscriber is liable for it. According to the PFRDA circular, CRAs are urged to establish adequate technology features in order to conform with the guidelines, and subscribers are to be continuously communicated with by CRAs in order to exercise their individual preference listed under multiple situations.



[ad_2]

CLICK HERE TO APPLY

Leave a comment

RBL Bank and Tide, collaborate to serve Indian SMEs, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Private lender, RBL Bank has tied-up with Tide India, a UK-based banking fintech, to provide banking infrastructure for Tide’s India platform focused on the SME segment.

This collaboration will enable Tide to bring its platform to the Indian markets with a full-fledged launch. 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. Tide plans to acquire 25,000 customers in the next financial year and scale up to two million customers in the next five years.

Apart from supporting the organised SME sector, Tide will also focus on serving the unregistered and unorganised sector, helping bring these SMEs into the mainstream by providing them access to RBL Bank’s plethora of business banking products and services.

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. Together, we are passionate about delivering innovative and integrated services that will improve the overall banking experience for the SME segment.”

Oliver Prill, Tide CEO said, “RBL Bank offers industry leading banking, payments and security technology, giving Tide the foundations that will enable us to build the best possible service to help SME owners save time and money through its digital banking capabilities.

Prill added, “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”



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,
1 … 7 8 9 10 11 … 96