Month: June 2021

PFRDA Allows NACH Mandate For NPS Transactions

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Personal Finance

oi-Roshni Agarwal

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Pension Fund Regulatory and Development Authority (PFRDA) in respect of the pension scheme administered by it i.e. NPS has allowed NACH or National Automated Clearing House mandate to overcome the varied problems concerning fund transfer. Now through this advancement or NACH mandate feature, the entire transaction process involved in NPS will become online for PoP as well as other NPS distributors.

PFRDA Allows NACH Mandate For NPS Transactions

PFRDA Allows NACH Mandate For NPS Transactions

Current fund transfer process in NPS

In the current regime, the nodal offices submit NPS contribution of subscribers by working on a subscriber contribution file (SCF) and then uploading it on the “NPSCAN system” after verification of the same. Later, the nodal officer goes to the accredited bank for transferring the funds (the same amount i.e. shown in the SCF) to the trustee bank.

How central govt. employees can avail benefits under NPS?

New NACH mandate proposed for NPS

To get rid of the various fund transfer related issues, PFRDA has come up with the NACH mandate that is jointly handled by the trustee bank and CRA (central record keeping agency).

GoodReturns.in

Story first published: Wednesday, June 16, 2021, 22:17 [IST]



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Is Gold Hallmark Required When Selling Or Pledging Of Gold Jewellery?

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Is Hallmark Required For Selling Gold?

The hallmarking act will only apply to gold sold to consumers by traders. Customers do not need to get their gold jewellery, coins, or other goods hallmarked before selling or exchanging them. There are no consequences for individuals who store and/or utilise jewellery that has not been hallmarked. Customers will also be able to sell their jewellery at market value depending on its purity. It is possible to exchange gold without having it hallmarked. If a trader refuses to exchange gold, the consumer can take legal action against it.

Gold without hallmark can be pledged?

Gold without hallmark can be pledged?

It doesn’t matter if the jewellery is hallmarked when gold is pledged for financial purposes. As a result, the law does not apply to gold loans as well. Get the relevant information regarding the condition of the gold from the dealer before pledging the gold. Customers will receive the current market price for gold based on its purity and grams. Gold has been used as security by lenders that offer gold loans. They do consider hallmarking to be an extra quality assurance. Lenders evaluate the quality and quantity of gold before lending against it.

Jewellers are subject to mandatory hallmarking. The jewellery you purchased before will not be harmed in any way. There are no consequences for individuals who store and/or utilise jewellery that has not been hallmarked.

Which are the items exempted from hallmarking?

Which are the items exempted from hallmarking?

Watches, fountain pens, and certain forms of jewellery, such as Kundan, Polki, and Jadau, have been exempted from the necessary gold hallmarking.

Articles meant for export that conform to any specification required by the foreign buyer, articles weighing less than two grammes, articles intended for medical, dental, veterinary, scientific, or industrial purposes, articles made of gold thread, gold bullion in any shape of bar, plate, sheet, foil, rod, wire, strip, tube, or coin have been exempted by the notification. Incomplete articles, as well as articles for export, are free from the requirement to be hallmarked.

What are the charges of gold hallmarking?

What are the charges of gold hallmarking?

According to the Bureau of Indian Standards (BIS) website, hallmarking charges for gold jewelry/artefacts payable to BIS recognised Assaying and Hallmarking Centres by BIS licenced jewellers are Rs 35 per article, with a minimum charge of Rs 200 for a consignment. Services tax and other applicable levies are additional.

Regardless of the weight of the jewellery, the hallmarking prices are Rs.35/- +GST per piece for gold jewellery and Rs.25/- +GST per piece for silver jewellery.

Hallmarking of jewellery is required to increase the legitimacy of gold jewellery and customer satisfaction by providing third-party confirmation of gold purity and fineness, as well as consumer protection.

Mandatory Hallmark is applicable for gold bullion/Coins?

Mandatory Hallmark is applicable for gold bullion/Coins?

Only 14 carat, 18 carat, and 22 carat gold jewellery can be hallmarked and sold, and the order only applies to gold jewellery and antiquities. Gold bullion/coins with a fineness of 999/995 are allowed to be hallmarked by BIS-approved refineries/mints (39 licenced refineries are in operation at present as on 01 Jan 2021). The list of BIS licenced refineries/mints may be found under the hallmarking category on the BIS website.



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Reserve Bank of India – Press Releases

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The Reserve Bank of India today released the June 2021 issue of its monthly Bulletin. The Bulletin includes Monetary Policy Statement, three Articles and Current Statistics.

The three articles are: I. State of the Economy; II. A Macroeconomic View of the Shape of India’s Sovereign Yield Curve; and III. Fiscal Framework and Quality of Expenditure in India.

I. State of the Economy

The Indian economy continues to wrestle with the second wave of the pandemic, though cautious optimism is returning. By current assessment, the second wave’s toll is mainly in terms of the hit to domestic demand. On the brighter side, several aspects of aggregate supply conditions – agriculture and contactless services are holding up, while industrial production and exports have surged compared to last year amidst pandemic protocols. Going forward, the speed and scale of vaccination will shape the path of recovery. The economy has the resilience and the fundamentals to bounce back from the pandemic and unshackle itself from pre-existing cyclical and structural hindrances.

II. A Macroeconomic View of the Shape of India’s Sovereign Yield Curve

Considering macroeconomic determinants of the yield curve, the study finds that the level of the yield curve has undergone a downward shift from the second quarter of 2019, reflecting the ultra-accommodative stance of monetary policy. The slope of the yield curve is found to have steepened with abundant liquidity depressing short-term interest rates more than proportionately alongside a pick-up in issuances of ultra-long dated paper. Out of sample forecasts indicate scope for moderation of longer-term yields from current levels.

III. Fiscal Framework and Quality of Expenditure in India

The COVID-19 pandemic necessitated an overwhelming fiscal response from governments across the world. As India unwinds the fiscal stimulus and embarks on the path of fiscal adjustment, it is necessary to emphasise on ‘how’ over ‘how much’. This article proposes a few quantifiable indicators, viz., ratios of revenue expenditure to capital outlay and revenue deficit to gross fiscal deficit along with threshold levels for them that can be suitably blended into the fiscal fabric for a sustainable growth trajectory. Some of the highlights of this study are as follows:

  • Cross-country experience suggests that expenditure reductions, especially the ones associated with permanent reduction in current expenditure, have been found to be more effective in achieving durable fiscal consolidation than revenue raising measures.

  • The article has analysed the quality of expenditure of centre and states using six indicators of quality of government expenditure, both individually as well as through a composite indicator.

  • The threshold level of ratio of revenue expenditure to capital outlay (RECO) is found to be around 5.0, while the threshold of share of revenue deficit in gross fiscal deficit (RD-GFD) is found to be 40 per cent for general government (centre plus states) in India.

  • Finally, the article projects some key fiscal indicators that could be achieved by blending the quality of expenditure considerations with the GFD target of 4.5 per cent of GDP by 2025-26 as outlined in the Union Budget 2021-22.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/374

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SBI offers revamping of loan for personal segment borrowers

Banking & Finance

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State Bank of India (SBI) has announced offering restructuring of loans to its eligible personal segment borrowers who availed home loans, Xpress credit, education loans and auto loans before April 1, 2021.

According to the bank, the eligible borrowers may access the following link and opt for restructuring (under Resolution Framework 2.00).

The link: https://covid19restruct.sbi.co.in:8443/EMIRestruct/EMI_CustomerLogin.jsp

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India’s consumer credit market to grow at a higher rate than global economies: Report

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Driven by a shift in demography, a burgeoning affluent middle class ramping up private consumption and growth in rural population, India’s consumer credit market is projected to grow at a higher rate than most major global economies.

According to the Experian-Invest India Credit Ecosystem Review report, the factors supporting the consumer credit market would be all catalysed by technology.

Experian is a global information services company, and Invest India is an Indian agency for investment and facilitation.

V-shaped recovery

The report, which tracks India’s credit ecosystem from March 2017 to February 2021, highlights a ‘V’-shaped recovery across Indian markets, with a gradual and steady improvement in sourcing trends.

Neeraj Dhawan, Managing Director of Experian India, said: “The behavioural shift in Indian population has been tremendous just over the last five years. Consumerism has been growing in the previously untapped semi-urban and rural regions as millennials become the main driving force of the mass market. Technological adaption is steep which has, in turn, created acceptance for new financial tools”.

“The biggest beneficiary of this change is the credit market, which is evolving into a self-generating and self-sustaining one. In line with this trend, the risk appetite of traditionally conservative lenders is growing as the horizon of creditworthiness expands. With its array of innovative solutions that help businesses in credit evaluation, smarter lending decisions and safeguarding themselves and their customers from fraud, Experian is at the forefront and one of the main enablers of this shift,” he added.

Domestic credit growth

The country’s domestic credit growth has averaged 15.1 per cent from March 2000 to March 2021, primarily driven by retail loans and increasing penetration of credit cards. The consumer credit market continues to expand at a rate higher than most other major economies globally, with 22 million Indians applying for new credits every month.

The recovery of personal loans has been high in both low (less than Rs 1 lakh) and high (higher than Rs 5 lakh) ticket-size segments, while the recovery in higher ticket-size loans is also improving steadily.

The credit portfolio has been resilient in February 2021, and growth stood at 8 per cent year-on-year for the portfolio of key products, lower than the 13 per cent observed for March 2020. However, the pace of growth slowed down for all products with unsecured products experiencing a faster year-on-year growth rate compared to secured loans.

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InsurTech startup Vital raises $3mn in pre-series A round led by BLinC Invest

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InsurTech platform Vital has raised $3 million with a pre-series A round led by venture capital company BLinC Invest.

“Venture Catalyst, Survam Partners and several other angel investors also participated in the pre-series A round,” it said in a statement on Wednesday.

Established in 2020, Vital aims to provide personalised health insurance coverage to each customer based on their individual needs and go beyond hospitalisation to include essential wellness expenses.

It offers monthly subscriptions with premiums up to 70 per cent lower through small deductibles. It also rewards its members for leading a healthier lifestyle.

It has co-developed the insurance cover with Care Health Insurance and integrated with Mfine, Healthians, Thyrocare, 1Mg, BeatO, Fitterfly, Fitternity, Cult fit, and Betterlyf, for the wellness benefits.

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FIS, BFSI News, ET BFSI

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As the Covid-19 pandemic accelerated the adoption of digital payments in India, 68 percent of Indian consumers surveyed by FIS are now using online or mobile banking applications to transact.

A survey conducted by FIS between June 2020 and April 2021 looks at how the pandemic has impacted the consumer behavior on how they transact and found that there’s a significant shift on digital payments uptake where 94 percent of GenZ users own mobile wallets.

A similar surge is seen in the Buy Now, Pay Later (BNPL) during the pandemic, especially among younger generations. On an average, 32 percent of consumers own a BNPL app, and most often consumers use Amazon or Flipkart’s BNPL option.

Bharat Panchal, Chief Risk Officer, APMEA, FIS said: “The pandemic has led India to a new phase of digital payments adoption. To be successful, it’s vital that the banking sector provides technology-centric strategies which meet the diverse preferences of consumers’ rapidly changing habits, while also driving financial inclusion for underserved communities around the country.”

The report also points out that as the usage increases there has been an increase in financial frauds during the pandemic where consumers increasingly become more vulnerable. Around 34 percent of people surveyed have reported financial frauds in the past 12 months.

The fraud number rises to 41 percent among Gen Y and financial frauds were mostly related through phishing, QR code/UPI scams and card scams too.



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Reserve Bank of India – Press Releases

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April 14, 2015




Dear All




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.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


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net direct tax receipts increased by more than 100 percen Despite the COVID-19 outbreak

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Taxes

oi-Sneha Kulkarni

|

Despite the economic disruption caused by the COVID-19 pandemic, net direct tax collections for FY 2021-22 have increased at a healthy rate. In the fiscal year 2021-22, refunds totaling Rs 30,731 crore were also issued.

Direct Tax

Direct Tax collections for the Financial Year 2021-22, as of 15.06.2021, indicate net collections of Rs.1,85,871 crore, up from Rs. 92,762 crore in the previous year’s similar period, showing a 100.4 percent increase over the previous year’s revenues.

Net Direct Tax Increased More Than 100% Despite COVID-19 Pandemic

Corporation Tax
Corporation Tax (CIT) at Rs. 74,356 crore (net of rebate) and Personal Income Tax (PIT) and Security Transaction Tax (STT) at Rs. 1,11,043 crore make up the net Direct Tax collections (net of refund).

The gross collection of direct taxes (before refunds) for the fiscal year 2021-22 is Rs. 2,16,602 crore, up from Rs. 1,37,825 crore in the previous year’s similar period. This includes Corporation Tax (CIT) of Rs. 96,923 crore and Personal Income Tax (PIT) of Rs. 1,19,197 crore, which includes Security Transaction Tax (STT).

Advance tax

An advance tax of Rs. 28,780 crore, Tax Deducted at Source of Rs. 1,56,824 crore, Self-Assessment Tax of Rs. 15,343 crore, Regular Assessment Tax of Rs. 14,079 crore, Dividend Distribution Tax of Rs. 1086 crore, and Tax under other minor categories of Rs. 491 crore makes up the minor head collection.

Despite the difficult first few months of the new fiscal year, Advance Tax receipts for the first quarter of FY 2021-22 were Rs. 28,780 crore, up from Rs. 11,714 crore in the same period of the previous fiscal year, representing a 146 percent increase. This includes Rs. 18,358 crore in Corporation Tax (CIT) and Rs. 10,422 crore in Personal Income Tax (PIT). As more information from banks becomes available, this figure is projected to rise.

Story first published: Wednesday, June 16, 2021, 17:09 [IST]



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Godrej Housing Finance launches ‘design your EMI’ home loan product

Banking & Finance

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Godrej Housing Finance (GHF) has launched a ‘design your EMI’ home loan product to enable customers to customise their equated monthly installments (EMIs). This is aimed at optimising their cashflows and bring down the cost of home ownership.

Manish Shah, MD & CEO, Godrej Housing Finance said EMIs can be tailored to suit customers’ requirements —a customer might want to start with a smaller EMI and gradually increase it or start with a bigger EMI (since expenses are down in Covid-19 times) and normalise it.

For example, when a customer puts down money to buy a home, with the possession date being 12-24 months later , the finances can be challenging —if he is currently staying in a leased accommodation, rent needs to be paid and there is EMI for the new house, he said.

Also read: Home finance firms to comply with risk-based internal audit norms

“Suppose, EMI for a ₹50 lakh loan is about ₹40,000. So, the customer can start with small EMIs — ₹10,000 a month in the first year; ₹20,000 a month in the second year…The EMI can go up slowl,” he said.

“There can be another scenario where the customer feels that since some of his expenses have come down in the pandemic, he wants to increase the EMI to, say, ₹60,000 a month. Later on when the expenses go back to normal, the EMIs can get normalised to ₹40,000 a month,” explained Shah.

Launch of customised EMIs

The GHF chief emphasised that his company, which started its operations in November 2020 and is seeking to build a balance sheet of ₹10,000 crore in three years, offers an assisted journey for designing EMI for customers.

“The whole team is trained to handhold the customer for trying various permutations and combinations. They will customise it (EMIs). We have launched this in Pune. Now we are rolling it in all our markets (Mumbai, National Capital Region and Bengaluru),” he said.

On the service front, the company has piloted an end-to-end digital home loan sanction process, whereby the loan sanction process is completed without the customer and GHF employee coming face-to-face. This ensures that both are not put at risk in the current pandemic times.

“We have initiated this (end-to-end sanction) process with over 100 customers between May and now,” Shah said.

According to ICRA, GHF is currently owned by the Godrej family through Anamudi Real Estates LLP (AREL). The entire shareholding of GHF is proposed to be taken over by Godrej Industries (GIL) through Pyxis Holdings (PHPL).

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