Month: May 2021

Covid-19: Bankers favour a flexible loan revamp plan to help small borrowers

Banking & Finance

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With economic uncertainty looming amidst surging coronavirus cases and lockdowns put in place by several States, many banks are understood to favour a flexible loan restructuring package, especially to help small borrowers and entrepreneurs.

“Banks don’t want customers to feel like delinquents or get NPA tags just because of the pandemic and economic situation. A flexible restructuring programme for banks to help out customers at this point in the crisis would be helpful,” said a source familiar with the development.

The proposal of a flexible loan restructuring scheme is understood to have also been discussed at recent meetings of the Reserve Bank of India with bankers.

While the first 15 days of April saw normal collections for most banks and non-banking financial companies, there are worries going ahead.

“No one is sure how the month of May will pan out,” said the source.

Amitabh Chaudhry, Managing Director and CEO, Axis Bank had said at the fourth-quarter results that he expects collections to be impacted in coming weeks due to the local lockdowns though they have been strong in the initial weeks of the fiscal year.

Yes Bank MD and CEO Prashant Kumar also said that till April 15, collection efficiency for the lender was at 96 per cent, but there would be some impact after that though data is not available.

The Finance Industry Development Council recently requested the RBI for restructuring stressed retail and individual borrowers of NBFCs whether or not they had sought it earlier.

Needed an umbrella policy

“We need an umbrella policy offering options for restructuring including permission to undertake simple process for business restructuring, inducting new investor, restoring finance or any assistance to rebuild operations of SMEs, MSMEs, start-ups, retail borrowers ignoring their previous defaults, if any. The second and third wave could be more lethal and we need more human policy then regulatory flexibility,” said Nitin Potdar, Partner, J Sagar Associates.

While industry and bankers are hoping that the government and RBI will announce a fresh set of relief measures, some lenders believe that a fresh round of loan restructuring may not be the best way forward.

“It is still early days and more data may be needed on collection trends. We should not use restructuring to postpone the problem,” said a banker, who did not wish to be named.

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As Covid rises, RBI sharpens risk tools to gauge banks, NBFCs, BFSI News, ET BFSI

Banking & Finance

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The Reserve Bank has decided to review and strengthen the Risk Based Supervision (RBS) of the banking sector to enable financial sector players to address the emerging challenges.

The RBI uses the RBS model, including both qualitative and quantitative elements, to supervise banks, urban cooperatives banks, non-banking financial companies and all India financial institutions.

More robust

It is now intended to review the supervisory processes and mechanism in order to make the extant RBS model more robust and capable of addressing emerging challenges, while removing inconsistencies, if any,” the RBI said while inviting bids from technical experts/consultants to carry forward the process for banks.

In case of UCBs and NBFCs, the Expression of Interest (EOI) for ‘Consultant for Review of Supervisory Models’ said the supervisory functions pertaining to commercial banks, UCBs and NBFCs are now integrated, with the objective of harmonising the supervisory approach based on the activities/size of the supervised entities (SEs).

It is intended to review the existing supervisory rating models under CAMELS approach for improved risk capture in forward looking manner and for harmonising the supervisory approach across all SEs,” it said.

RBI monitoring

Annual financial inspection of UCBs and NBFCs is largely based on CAMELS model (Capital Adequacy, Asset Quality, Management, Earnings, Liquidity, and Systems & Control).

The RBI undertakes supervision of SEs with the objective of assessing their financial soundness, solvency, asset quality, governance framework, liquidity, and operational viability, so as to protect depositors’ interests and financial stability.

The Reserve Bank conducts supervision of the banks through offsite monitoring of the banks and an annual inspection of the banks, where applicable.

NPA threat

As per the Financial Stability Report of RBI, the NPAs of the banking sector were projected to surge to 13.5 per cent of advances by September 2021, from 7.5 per cent in September 2020, under the baseline scenario.

The report had warned that if the macroeconomic environment worsens into a severe stress scenario, the NPA ratio may escalate to 14.8 per cent.

Risk based internal audit

RBI earlier this year issued guidelines on risk-based internal audit (RBIA) system for select non-bank lenders and urban co-operative banks (UCBs)

to strengthen the quality and effectiveness of the internal audit system. While NBFCs and UCBs have grown in size and become systemically important, prevalence of different audit systems/approaches in such entities has created certain inconsistencies, risks and gaps, RBI said. The entities have to implement the RBIA framework by March 31, 2022, and have been asked to constitute a committee of senior executives, to be entrusted with the responsibility of formulating a suitable action plan



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May look at raising capital on economic recovery, credit offtake: Yes Bank chief

Banking & Finance

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Optimistic about economic prospects despite the second wave of Covid-19, Prashant Kumar, Managing Director and CEO, Yes Bank, said the bank’s elevated stressed asset pool should be seen as an opportunity to add to the capital post-recovery. In an interview with BusinessLine, he also said the bank may look at capital raise if the economy does well and indicated interest in Citi’s Indian consumer banking operations. Edited excerpts:

Does the bank have any plans to raise capital this fiscal?

As of now, I don’t see any fund requirement. But if there is a lot of improvement in the economy and credit growth occurs, there may be some need. Since all approvals are in place and depending on the situation, we will take a call. We had taken an overarching approval of ₹10,000 crore, but the requirement will not be so much.

How is your credit card business doing? Are you interested in opportunities like Citi’s consumer banking business?

The credit card business is doing very well. We are not very aggressive and cautious in expanding and are being selective in terms of customer acquisition. As a result, our book has increased by 40 per cent, and the spend has increased by 36 per cent.

Citi is running a profit. We will see the opportunity and cost. Their business offers a good potential, not only credit card but wealth and retail as well. Once they come out with the exact EoI, we will examine it.

Did you apply for a license for a new umbrella entity for retail payments?

We did not apply for the NUE. We were interested if we could bring out our expertise in innovation. If one has a significant stake, then you can influence the strategy. We do not want to be a minority partner.

What is the status of the proposal of an asset reconstruction company?

We had applied to RBI, and we wanted an ARC where we would have a controlling stake. The RBI is not comfortable giving a controlling stake to a bank as it would be a moral hazard. Since they have set up a committee to look at the ARC framework, we will wait for the report and then approach the RBI based on the proposal.

Are the elevated stressed assets a concern for the bank?

A stressed asset is an opportunity. No other bank would have a pool of stressed assets of almost ₹45,000 crore, which you can recover and add to your capital. Once we have made the adequate provisions of almost 80 per cent and even the ₹17,000 crore book, which we have technically written off, which means 100 per cent provision. Any recovery would directly add to our profits.

How will the earnings be this fiscal with the accelerated provisioning already made?

There will be no need to make further provision in the existing book as it is adequately provided. There may be some slippage, which will be taken care of by the recovery. For Covid, no more provisioning is required. We have not made any provisions for the second wave as our SMA 1, and SMA 2 book has come down and since we have accelerated provisioning on the existing book.

What is your outlook on the economy given the Covid surge? Will it further impact the bank’s book?

Sectors that have been impacted by Covid first wave are affected by the second wave also. Those accounts have already been recognised as NPAs. This time, things are much better as this time there is not a complete lockdown but restrictions. Economic activities, trading, taking place. Once we come down from the peak and focus on vaccination, the overall improvement would happen much faster. There is a concern as many people have been infected. It has an impact but the first quarter is a lazy quarter for banks. If we can cross the hurdle in the next 15 to 20 days, the effect would be lower.

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SBI Cuts Home Loan Rates, Check How To Calculate Monthly EMI

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Investment

oi-Vipul Das

|

The lower level of home loan interest rates has been lowered by the State Bank of India (SBI) to 6.70 percent from 6.95 percent. According to a press release issued by SBI on Saturday, the interest rate on fresh home loans up to Rs 30 lakh will now start at 6.70 percent. SBI home loan interest rates will start at 6.95 percent for loans above Rs 30 lakh and up to Rs 75 lakh, and 7.05 percent for loans above Rs 75 lakh. The country’s largest commercial bank has also reported a 0.05 percent interest rate concession for female borrowers on home loans. Individuals who apply for a home loan through the YONO App will get a 5-bps interest rate cut, according to the bank. The new rates are in force from May 1 2021.

SBI Cuts Home Loan Rates, Check How To Calculate Monthly EMI

The monthly EMI for instance on a Rs 10 lakh loan for a term of 10 years at 6.95 percent (previous SBI home loan interest rate) is Rs 11585, according to the SBI home loan calculator. That being said, based on the initial SBI home loan interest rate of 6.70 percent, the monthly EMI on a Rs 10 lakh home loan taken over a term of 10 years will now be Rs 11457, according to the SBI calculator.

SBI Cuts Home Loan Rates, Check How To Calculate Monthly EMI

That ensures that if a new SBI home loan borrower takes out a Rs 10 lakh loan for a term of ten years, the monthly EMI will be reduced by Rs 128 per month after the starting SBI home loan rate is reduced from 6.95 percent to 6.70 percent. So, across the course of ten years, the new SBI home loan borrower can save Rs 15,360. (Rs 128x12x10).

SBI Cuts Home Loan Rates, Check How To Calculate Monthly EMI

Female home loan borrowers, on the other hand, will get an additional 0.05 percent SBI home loan interest rate rebate, bringing the starting home loan rate to 6.65 percent. So, with a home loan of Rs 10 lakh for ten years, a female customer’s EMI will be Rs 11,431.

SBI Cuts Home Loan Rates, Check How To Calculate Monthly EMI

SBI Home Loan EMI Calculation

The following formula is used for an SBI home loan monthly EMI calculation.

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]. Here P is the principal loan amount, R is the rate of interest, N is the number of tenures in months.

If we take the above figure in consideration then EMI= [10,00,000 x 0.55/100 x (1+0.55/100) ^ 120 / [(1+0.55/100) ^ 120 – 1) = Rs 11,407 approx.

The EMI payments are directly proportional to the loan amount and interest rates, and inversely proportional to the loan tenure, while the three influencing variables are taken into account. The EMI payments increase in proportion to the loan amount or interest rate, and vice versa.



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4 Equity Mutual Funds With Returns Of More Than 60% In 1-Year

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UTI Flexi Cap Fund

This fund has generated a return of 62.10 per cent in the last 1 year. UTI Flexi Cap Fund has been rated 5-star by Value Research. The 3-year returns are more tempered at 14.92%, while the 5-year returns is 16 per cent on an annualized basis. The fund is run by UTI and has assets under management of more than 16,000 crores.

The portfolio of the fund comprises of stocks like HDFC Bank, Bajaj Finance, L&T Infotech, Infosys and HDFC. One can also invest in the fund through the SIP route, where the minimum sum required is Rs 1,000 per month. We wish to inform readers that the markets have run-up sharply in the last 1 year after the collapse due to the nation wide lockdown. Hence, seeing 1-year returns and then investing may not be the ideal way to go about investing.

Mirae Emerging Bluechip Fund

Mirae Emerging Bluechip Fund

This fund has a 5-star rating from Crisil and Value Research. The 1-year returns of the fund has been excellent at 63.24 per cent, while the 3-year returns has been 16.15 per cent and 5-year returns has been 20.77 per cent on an annualized basis. The assets under management of the fund is in excess of Rs 16,000 crores.

Almost the entire amounts has been invested and the fund does not have anything in cash and equivalents. The portfolio of Mirae Emerging Bluechip Fund comprises of names like HDFC Bank, ICICI Bank, Infosys and Axis Bank. For those looking to invest, it is better to avoid investing lumpsum, given the way the markets have rallied in the last 1-year.

Tata Midcap Growth

Tata Midcap Growth

This is another fund that has done exceptionally well in the last 1 year. The 1-year returns has been 61.74 per cent on an annualized basis. The 3-year returns is more tempered at 11 per cent. It’s important to emphasize the fact that this is a midcap fund, which means returns tend to be more volatile. In a sense, if the markets fall, this funds returns would fall faster, while if the markets gain, returns could be much better. In this kind of a fund, the best way would be to invest through the Systematic Investment route plans. This fund has investment in stocks like Voltas, Cholamandalam Investment, Tat Power, Navin Flourine etc. Again, being a midcap fund, one should think twice before investing large lumpsum amounts.

SBI Small Cap Fund

SBI Small Cap Fund

SBI Small Cap Fund has given an astounding returns of almost 81 per cent in 1-year. That is a phenomenal set of returns by any standards. The fund invests in companies with a small market cap, which means returns can be volatile. If there is some serious selling pressure in stocks, the returns from the fund could be in serious trouble. The fund has a portfolio that includes stocks like JK Cement, Elgi equipments, Bluestar etc. One can invest through the SIP route as well, which would be the ideal way to invest in small cap stocks.

About the author

About the author

Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, mutual funds and tax planning.

Please read our disclaimer on the goodreturns.in website before investing. The above mentioned article is purely for informational purposes. It is not a solicitation to buy or sell equity mutual fund schemes. Greynium Information Technologies and the author are nor responsible for losses incurred based on action taken through reading of the article.



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Changes In Central Motor Vehicle Rules To Add Nominee In The RC Notified

Personal Finance

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Personal Finance

oi-Roshni Agarwal

|

The Ministry of Road Transport and Highways has notified certain changes in the Central Motor Vehicles Rules, 1989 to facilitate the owner of a vehicle for nominating a person in the registration certificate, which would help the motor vehicle to be registered or transferred in the name of the nominee, in case of death of the owner.

Changes In Central Motor Vehicle Rules To Add Nominee In The RC Notified

Now, the owner can put the name of the nominee at the time of registration of the vehicles and can also add it later through an online application.

The process is otherwise cumbersome and non-uniform across the country. According to the notified rules, the owner of a vehicle has to submit proof of the identity of the nominee, in case the nominee is mentioned.

“Where the owner of a motor vehicle dies, the person nominated by the vehicle owner in the certificate of registration or the person succeeding to the possession of the vehicle, as the case may be, may for a period of three months from the death of the owner of the motor vehicle, use the vehicle as if it has been transferred to him, Provided that such person has, within thirty days of the death of the owner, informed the registering authority of the occurrence of the death of the owner and of his own intention to use the vehicle,” the notification said.

It further said the nominee or person succeeding to the possession of the vehicle shall apply in Form 31 within the period of three months from the death of the owner of the motor vehicle, to the registering authority for the transfer of ownership of the vehicle in his name.

For the change in nominee in case of contingencies like divorce or division of property, the owner may change the nomination with an agreed Standard Operating Procedure (SOP), it added. Currently, in case of the death of a registered owner of a vehicle, the procedure of transferring the vehicle to a nominee requires complying with a raft of procedures and frequent visits to different offices.

The Ministry of Road Transport and Highways on November 27, 2020, had proposed to amend the Central Motor Vehicles Rules, 1989 to facilitate the owner of a vehicle for nominating a person in the registration certificate. The government “has invited suggestions and comments from the public and all stakeholders on the proposed amendment…,” it had said.

Under the proposed amendment, “an additional clause is proposed to be inserted wherein ‘proof of identity of nominee if any’ to enable the owner to nominate anyone to be the legal heir of the vehicle in case of death,” it had said. For transferring the vehicle to the legal heir in case no nominee has been specified by the owner, it is proposed that an additional clause may be inserted to enable the owner to nominate a nominee.

In the case where the nominee is already specified, the vehicle will be transferred in his/her name.



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Reserve Bank of India – Press Releases

Press Releases

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(Amount in ₹ crore, Rate in Per cent)
  Volume
(One Leg)		 Weighted
Average Rate 		Range
A. Overnight Segment (I+II+III+IV) 4,01,160.82 3.23 0.01-3.50
     I. Call Money 10,583.16 3.21 1.90-3.50
     II. Triparty Repo 2,91,345.70 3.25 3.01-3.28
     III. Market Repo 97,419.96 3.16 0.01-3.45
     IV. Repo in Corporate Bond 1,812.00 3.44 3.40-3.45
B. Term Segment      
     I. Notice Money** 362.65 3.32 2.65-3.40
     II. Term Money@@ 465.95 – 2.50-3.50
     III. Triparty Repo 200.00 3.24 3.24-3.24
     IV. Market Repo 0.00 – –
     V. Repo in Corporate Bond 1,550.00 3.43 3.43-3.43
  Auction Date Tenor (Days) Maturity Date Amount Current Rate /
Cut off Rate
C. Liquidity Adjustment Facility (LAF) & Marginal Standing Facility (MSF)
I. Today’s Operations
1. Fixed Rate          
     (i) Repo          
     (ii) Reverse Repo Fri, 30/04/2021 3 Mon, 03/05/2021 4,19,013.00 3.35
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo          
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo – – – – –
3. MSF Fri, 30/04/2021 3 Mon, 03/05/2021 342.00 4.25
4. Long-Term Repo Operations –   –   –
5. Targeted Long Term Repo Operations – – – – –
6. Targeted Long Term Repo Operations 2.0 – – – – –
7. Net liquidity injected from today’s operations
[injection (+)/absorption (-)]*		       -4,18,671.00  
II. Outstanding Operations
1. Fixed Rate          
     (i) Repo          
     (ii) Reverse Repo          
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo Fri, 23/04/2021 14 Fri, 07/05/2021 2,00,017.00 3.47
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo          
3. MSF          
4. Long-Term Repo Operations# Mon, 17/02/2020 1095 Thu, 16/02/2023 499.00 5.15
  Mon, 02/03/2020 1094 Wed, 01/03/2023 253.00 5.15
  Mon, 09/03/2020 1093 Tue, 07/03/2023 484.00 5.15
  Wed, 18/03/2020 1094 Fri, 17/03/2023 294.00 5.15
5. Targeted Long Term Repo Operations^ Fri, 27/03/2020 1092 Fri, 24/03/2023 12,236.00 4.40
  Fri, 03/04/2020 1095 Mon, 03/04/2023 16,925.00 4.40
  Thu, 09/04/2020 1093 Fri, 07/04/2023 18,042.00 4.40
  Fri, 17/04/2020 1091 Thu, 13/04/2023 20,399.00 4.40
6. Targeted Long Term Repo Operations 2.0^ Thu, 23/04/2020 1093 Fri, 21/04/2023 7,950.00 4.40
7. On Tap Targeted Long Term Repo Operations€ Mon, 22/03/2021 1095 Thu, 21/03/2024 5,000.00 4.00
D. Standing Liquidity Facility (SLF) Availed from RBI$       22,702.06  
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -95,232.94  
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -5,13,903.94  
G. Cash Reserves Position of Scheduled Commercial Banks
     (i) Cash balances with RBI as on 30/04/2021 5,79,344.31  
     (ii) Average daily cash reserve requirement for the fortnight ending 07/05/2021 5,38,082.00  
H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ 30/04/2021 0.00  
I. Net durable liquidity [surplus (+)/deficit (-)] as on 09/04/2021 7,12,322.00  
@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
– Not Applicable / No Transaction.
** Relates to uncollateralized transactions of 2 to 14 days tenor.
@@ Relates to uncollateralized transactions of 15 days to one year tenor.
$ Includes refinance facilities extended by RBI.
& As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo.
# As per the Press Release No. 2020-2021/287 dated September 04, 2020.
^ As per the Press Release No. 2020-2021/605 dated November 06, 2020.
€ As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020 and Press Release No. 2020-2021/1057 dated February 05, 2021.
¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
Rupambara
Director   
Press Release : 2021-2022/148

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Ethereum breaks past $3,000 to quadruple in value in 2021, BFSI News, ET BFSI

Personal Finance

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Cryptocurrency ether broke past $3,000 on Monday to set a new record high in a dazzling rally that has outshone the bigger bitcoin, as investors bet that ether will be of ever greater use in a decentralised future financial system.

Ether, the token transacted on the ethereum blockchain, rose 3% on the Bitstamp exchange to $3,051.99 by lunchtime in Asia. It is up more than 300% for the year so far, easily outpacing a 95% rise in the more popular bitcoin.

In part, the big rally is a catch-up to late 2020 gains in bitcoin, said James Quinn, managing director at Q9 Capital, a Hong Kong cryptocurrency private wealth manager.

It also reflects improvements to the ethereum blockchain, he said, and a growing shift towards “DeFi”, or decentralised finance, which refers to transactions outside traditional banking for which the ethereum blockchain is a crucial platform.

“At first, the rally was really led by bitcoin because as a lot of the institutional investors came into the space, that would be their natural first port of call,” Quinn said.

“But as the rally has matured over the last six months, you have DeFi and a lot of DeFi is built on ethereum.”

The launch of ether exchange-traded funds in Canada and surging demand for ether wallets to transact non-fungible tokens such as digital art have also pushed up the price.

The ether/bitcoin cross rate has soared more than 100% this year and hit a 2.5-year high on Sunday, pointing to a degree of rotation into the second-biggest cryptocurrency as investors diversify their exposure.

“Surging DeFi volumes continue to push ethereum prices higher as investors gain confidence in crypto and see ethereum as a safe second-place asset,” said Jehan Chu, managing partner at Hong Kong blockchain venture capital firm Kenetic Capital.

Illustrating the momentum for such new transactions, Bloomberg reported last week that the European Investment Bank plans on issuing a digital bond over the Ethereum blockchain, while JP Morgan plans a managed bitcoin fund.

Bitcoin, the world’s biggest crypto asset with more than $1 trillion in market capitalisation, regained the $50,000 mark last week and hovered around $58,000 on Monday, up about 3% but well below its record high at $64,895.22.

The U.S. dollar was broadly steady. [FRX/]

(Reporting by Tom Westbrook and Vidya Ranganathan; Editing by Himani Sarkar & Shri Navaratnam)



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Merchants payments is next battleground for SBI, HDFC Bank and ICICI Bank, BFSI News, ET BFSI

Banking & Finance

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State Bank of India, HDFC Bank and ICICI Bank have lined up a slew of plans to capture the payments and settlement market as they ramp up their digitisation initiatives.

ICICI Bank, India’s second-largest private sector lender by assets is eyeing a large share of the potential Rs 31 lakh crore of payments and settlement market to more than 2 crores small, big, offline and online businesses by fiscal 2022 by offering these wholesalers and retailers payment systems bundled with cash management and credit facilities.

The bank is targeting income from fee, credit and savings due to use of technology by offering these services to these large and small establishments spread across the country. As per RBI data the market for merchant services is Rs 2.32 lakh crore or about Rs 24 lakh to Rs 25 lakh crore in fiscal 2020 and is expected to increase 45% to Rs 31 lakh crore by fiscal 2022.

The merchant stack will provide “seamless banking services” to over 2 crore retail merchants in the country.

The bank also expects to extend other services like short term loans of tenure between six months to 1 year.

HDFC Bank

HDFC Bank, the country’s largest private sector lender, has set an ambitious target to expand its merchant base by ten-fold

in the next three years, eyeing a sizable share of India’s rapidly growing digital payments market.

The lender is planning to reach out to more than 20 million small and medium merchants and also professional services like doctors,

pharmacies, salons and laundry services across metro, semi urban and rural India in the next 3 years. HDFC Bank has about two

million merchants on its network as of FY20. The lender on Wednesday launched a new banking and payment solution for its merchant called SmartHub Merchant Solution 3.0. This will allow merchants and self-employed professionals to instantly open a current account and start accepting payments both through physical and digital channels.

It has tied up with global card network Visa to enable some of the payment solutions. The features would also be digitizing Khata, enabling collection reminders, inventory management, billing software and lending to merchants’ basis their banking history.

HDFC Bank processes about 48% of the overall card transactions at the merchant level in terms of volumes and about a fourth of the Unified Payments Interface (UPI) volumes.

State Bank of India

SBI Payments, a subsidiary of India’s largest lender State Bank of India, will launch YONO Merchant App to provide low-cost digital payments infrastructure to merchants.

YONO Merchant App will expand digitization of merchant payments in the country, SBI said in a release.

Aiming to enable millions of merchants through mobile-led technology to accept digital payments, SBI plan to deploy low-cost acceptance infrastructure across India over the next two years targeting 20 million potential merchants across India in retail and enterprise segment. This will help boost digital payments acceptance infrastructure in tier 3, 4 as well as north eastern cities.

YONO SBI Merchant will act as a soft PoS (point of sale) solution for which it has partnered with global payments technology major Visa to enable Tap to Phone feature. The partnerships aim to give the necessary boost to scale up acceptance infrastructure across the country,

Bank launched YONO Platform three years ago, YONO, has 35.8 million registered users.

In the next 2-3 years, SBI is aiming to digitize millions of merchants by upgrading their mobile phones into a PoS device accepting all form factors, accessing Value Added Services such as loyalty, GST invoicing, inventory management, among others and connecting into an interface to avail other banking products at a click of a button. The bank is aiming to grow our merchant touch points multi-fold crossing 5-10 million within 2-3 years.



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Charlie Munger feels ‘disgusted’ about Bitcoin; Buffett is ‘alright on that one’, BFSI News, ET BFSI

Personal Finance

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MUMBAI: Legendary investor Charlie Munger of Berkshire Hathaway is not happy with the success of cryptocurrencies like Bitcoin and Ethereum, as he sees them as “contradictory to the development of civilisation.”

Cryptocurrency assets such as Bitcoin and Ethereum are now worth more than $2 trillion within just 12 years of their birth. Bitcoin alone today has a market capitalisation of little less than $1 trillion and is trading around $58,000 from less than $5,000 more than a year ago.

Cryptocurrencies, often compared with the Internet in its early age, has enjoyed greater acceptance and success over the past year. Corporate America has embraced cryptocurrency with companies like Microsystem and Tesla converting a part of their cash holdings into Bitcoin.

Companies such as MasterCard, Square, PayPal and others have started to accept cryptocurrencies like Bitcoin as payments enabling wider acceptance.

On Wall Street, investment firms are scurrying to make Bitcoin available to their clients to invest with companies such Vanguard, Blackstone and others rallying behind the cryptocurrency. JP Morgan & Chase recently recommended its wealthy clients to take an exposure to Bitcoin in their portfolio.

Munger, who was speaking at the annual meeting of Berkshire Hathaway, said he hates the success of Bitcoin. “I don’t welcome a currency, which is so useful to kidnappers,” Munger said.

Warren Buffett, Munger’s partner for more than 60 years, ducked the question by using a line that a former governor of Nebraska used to say: “I am alright on that one.”

One of the most successful investors of the past century, Buffett has previously stated that cryptocurrencies have “no value” and “don’t produce anything”.



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