July 2021 – Page 109 – IFSCCodeof.in

Jet Airways lenders face 95% haircut, but get 9.5% stake, BFSI News, ET BFSI

July 1, 2021 root Banking & Finance

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Here’s How New TDS Rules Are Going To Impact You From Today

July 1, 2021 root Personal Finance

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Taxes

oi-Vipul Das

|

Published: Thursday, July 1, 2021, 11:46 [IST]

Non-filers of income tax for the previous two financial years would be liable for higher TDS starting from today, i.e. July 1, 2021, under a new income tax regulation. If a taxpayer has tax deductions totalling Rs 50,000 or more in each of the previous two years, such non-filer will be subject to higher tax deducted at source (TDS) and tax collected at source (TCS). The Central Board of Direct Taxes has built a tool called ‘Compliance Check’ for Section 206AB & 206CCA to better execute the new TDS rule. In order to reduce the tax deductor’s compliance effort, CBDT said in a notification that “To ease this compliance burden, the Central Board of Direct Taxes has issued a new functionality “Compliance Check for Sections 206AB & 206CCA”. This functionality is already functioning through reporting portal of the income tax department (https://report.insight.gov.in).”

For the clarification for use of functionality under section 206AB and 206CCA of the Income-tax Act, 1961, CBDT has also said that “The tax deductor/collector can feed the single PAN (PAN search) or multiple PANs (bulk search) of the deductee/ collectee and can get a response from the functionality if such deductee/collectee is a specified person. For PAN Search, response will be visible on the screen which can be downloaded in the PDF format. For Bulk Search, response would be in the form of downloadable file which can be kept for record.” According to the CBDT, the TDS or TCS rates would be higher for those who have not submitted income tax returns for the past two years.

TDS or TCS shall be levied at double the rate indicated in the relevant section of the Income Tax Act, or at a rate of 5%. The rules of this section will not apply to salary, lottery or crossword winnings, horse racing winnings, trust income, and cash withdrawals. However, a non-resident Indian (NRI) who does not have a permanent establishment in India is excluded from this rule of higher TDS rate or double TDS. On the other hand, from July 1, the individual (buyer) whose overall sales, gross revenues, or turnover from the company conducted by him or her exceeds Rs 50 lakh will be liable to deduct the tax. Section 194Q of the Finance Act of 2021 authorised the deduction of tax at source (TDS) on payments for the acquisition of goods.

A purchaser who has to pay a resident seller for the acquisition of goods worth more than Rs. 50 lakhs in any previous year must deduct an amount equal to 0.1 per cent of such amount surpassing Rs 50 lakh. According to the official memorandum of Budget 2021 “Tax is required to be deducted by such person if the purchase of goods by him from the seller is of the value or aggregate of such value exceeding fifty lakh rupees in the previous year.”

Meanwhile, the Income Tax Department has also issued certain guidelines under section 194Q of Income-tax Act,1961(TDS on purchase of goods), effective from 01.07.2021. Regarding the same the tax department has recently declared via its Twitter handle that “CBDT issues Circular No.13 of 2021 dated 30th June 2021 detailing guidelines under section 194Q of Income-tax Act,1961(TDS on purchase of goods), effective from 01.07.2021.” The circular may be downloaded at (https://www.incometaxindia.gov.in/communications/circular/circular_13_2021.pdf).

CBDT issues Circular No.13 of 2021 dated 30th June, 2021 detailing guidelines under section 194Q of Income-tax Act,1961(TDS on purchase of goods), effective from 01.07.2021.
The said Circular may be accessed at:https://t.co/XKXnqdxKXR @nsitharamanoffc @Anurag_Office @FinMinIndia

— Income Tax India (@IncomeTaxIndia) June 30, 2021

Story first published: Thursday, July 1, 2021, 11:46 [IST]

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Malaysia digital banking lures dozens of firms as fintechs expand in Asia, BFSI News, ET BFSI

July 1, 2021 root Banking & Finance

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Southeast Asian ride-hailing-to-fintech group Grab and budget airline AirAsia were among more than a dozen bidders involving over 50 companies that are vying for digital banking licences in Malaysia, people familiar with the matter said.

Others who submitted bids by Wednesday’s deadline included telecoms operator Axiata and a consortium backed by Chinese tech firm Tencent, said the sources.

They have been drawn in by relatively low financial entry barriers and the promise of a growing army of young smartphone users in a country with a population of more than 32 million.

Malaysia’s move to open up its banking sector comes as Asian markets such as Hong Kong, Singapore and the Philippines are ushering in new players, mostly fintech firms, who are taking on incumbents with their low-cost and newer services.

The Malaysian central bank https://www.bnm.gov.my/-/policy-document-on-licensing-framework-for-digital-banks has said it will issue up to five licences by early 2022.

“Malaysia has many of the characteristics digital banking players are looking for, with a sizeable population, large smartphone penetration and young population eager to try out new services,” said Shankar Kanabiran, financial services consulting partner at EY.

Malaysia requires only 300 million ringgit ($72 million) of capital funds for digital banks, which has drawn interest from fintechs to money remittance companies to co-operatives representing banks and housing sectors.

In contrast, Singapore needed license applicants to have S$1.5 billion ($1.1 billion) in paid-up capital for fully functioning digital banks or S$100 million for digital wholesale banks.

Sources said that most of the applicants for Malaysia’s online-only banks were likely to be local, with only a handful of foreign names such as Southeast Asian internet platform Sea , Grab, and Tencent-backed Linklogis.

Sea, which won a full digital banking licence in Singapore, is partnering with Malaysian conglomerate YTL Corp Bhd , they added.

A joint venture of Grab and Singtel, which also won a full digital banking licence in Singapore, has applied with a consortium of other investors, Singtel said on Thursday.

AirAsia has tied up with a consortium for the application through its fintech unit BigPay, sources said. Axiata has teamed up with RHB Bank.

Sea and BigPay declined to comment while there was no response to a query sent to YTL. The sources declined to be identified as they were not authorised to speak to the media.

At a news conference last month, Axiata Digital CEO Khairil Abdullah said that a lack of access to credit for a big chunk of Malaysia’s population had created a “very sizeable underserved segment” for the company to tap into.

Maybank, CIMB Group Holdings and Public Bank Bhd dominate Malaysia’s banking sector.

Nomura analysts said in a June report that the entry of digital banks would intensify competition in segments such as deposit pricing, fees, and later, loan pricing where there might be some overlap with conventional banks.

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4 Equity Mutual Fund SIPs To Invest For The Month Of July 2021

July 1, 2021 root Personal Finance

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Canara Robeco Bluechip Equity Fund

This fund has generated solid 1-year returns of 53%, while in the slightly longer term of three years the returns are 19.55% on an annualized basis. Canara Robeco Bluechip Equity Fund has been well rated by rating agency CRISIL as 5-star. The portfolio of the fund is extremely sound at includes names like HDFC Bank, Infosys, ICICI Bank, Reliance Industries, Tata Consultancy Services and State Bank of India.

This fund is a largecap fund and the risk is therefore a little less compared to funds that are small cap or midcap. However, that does not mean there is no risk. Investors in largecap fund also face the risk, in case of a market collapse. This is why when the Sensex is at a peak of 53,000 points, we are recommending investors to go with good SIPs, which is the best bet in the current market to average your risk.

Axis Long Term Equity Fund

This fund has been a consistent performer over the years, and has often been rated in the 5-star category by Crisil, Value Research and Morning Star. It continues to be accorded a very high rating of 5-star by Morning Star.

You can start an investment with a small sum of Rs 500 by way of SIP. The fund is very large in terms of assets managed and currently has assets under management of nearly Rs 30,000 crores.

Almost 99.6% of the fund is invested in equities, which means the fund is very low on cash and cash equivalents. This may not neccessarily be the best option, if the markets fall, as the fund manager would not be on cash to invest. The fund has given a returns of 53% in a-year and the annualized yield of 16.15% over the last 5-years.

Mirae Asset Tax Saver Fund

Mirae Asset Tax Saver Fund as the name suggests is a tax saver fund that offers tax savings under Sec 80C of the Income Tax Act for investments upto Rs 1.5 lakhs.

Mirae Asset Tax Saver Fund has been rated 5-star by CRISIL and has generated returns of 68.15% in the last 1-year. The fund has assets under management to the tune of Rs 7,300 crores. The fund has mostly invested in largecaps with stocks like Infosys, HDFC Bank and ICICI Bank among the portfolio of the fund.

Investors can look to invest in the SIP of the fund with a small investment of as less as Rs 500 each month.

We wish to emphasize the fact that markets have run-up too sharply in the last few months and hence investing lumpsum amount can be dangerous. It is therefore, better to invest through the SIP route. Shouls the markets fall from these levels by 10% or so, investors can look to increasing their SIPs. At the moment the markets are very expensive.

UTI Flexi Cap Fund

UTI flexi Cap Fund is a fund that invests in stocks across different market capitalizations. This means the fund manager can move money from largecap stocks to small cap or midcap and vice versa. This can make the returns more dynamic and sync things in tune with the movement across companies.

UTI Flexi Cap Fund has a 5-star rating from CRISIL, which is the highest possible rating. This fund is good for those looking at long-term returns. UTI Flexi Cap Fund has generated a 1-year returns of 70%, in line in which the markets have moved over the last one year.

The 5-year annualized returns are more moderate at that 18% annualized mark. The holdings of the fund includes name like HDFC Bank, Bajaj Finance, HDFC, L&T etc.

Disclaimer

Investing in mutual funds are risky and investors should do their own research. The author, or Greynium Information Technologies is not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly.

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3 Top Rated Banking And PSU Debt Funds To Invest In India 2021

July 1, 2021 root Personal Finance

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Investment

oi-Roshni Agarwal

|

Updated: Thursday, July 1, 2021, 11:01 [IST]

For those investors who are optimistic on the banking and PSU sector landscape going ahead can definitely park their corpus for fixed income investment in this category of funds for reaping higher return than bank fixed deposits. Now, before we discuss all such top rated funds, here is in brief what investors should be mindful of:

3 Top Rated Banking And PSU Debt Funds To Invest In India 2021

Is It The Right Time To Invest In Banking And Debt PSU Funds?

Banking and financial services sector form the foundation of the economy. Until now the sector confronted negatives such as weak asset quality but now these parameters seem to be behind us. Moreover, provisioning for bad debts has also reduced. Now as even amid the pandemic banks in India came up with better results with lower slippages, underlying strength in the sector is reflected. Also, India Inc.’s resilience provides for a better corporate NPA cycle picture.

Pointers to note when investing in Banking and financial services fund:

These should be invested in to form the fixed income portfolio for a long term or can even be pocketed in for medium term investment. Also, the fund tends to give returns by investing in the sector (i.e. mostly bonds issued by PSUs, banks) which shows high correlation to the economy.

Economic and sectoral risk can also have an impact on the returns generated by such funds and hence investors need to be prepared for even low returns. To moderate this aspect, funds deploy funds across sub-segments.

3 Banking and Financial services fund

Now considering all the above listed sectors if you want to participate in the growth story of banking industry of India going ahead:

1. ICICI Prudential Banking & PSU Debt Fund – Growth:

This is a 5-star CRISIL rated fund with an asset under management size of Rs. 13,920 crore. Expense ratio involved in the fund is 0.8 percent, while the fund carries moderate risk as per the mutual fund risk-o-meter.The fund has over 98% corpus invested in debt instruments and these funds primarily in bonds issued by banks, PSUs as well as PSU financial entities. The funds are able to give a better return than bank FDs.

For lump sum investment a minimum of Rs. 500 needs to be invested, while an investor can also start a SIP in the fund.
SIP of Rs. 10000 monthly has grown in value to Rs. 4.04 lakh in a period of 3 years.

2. Axis Banking and PSU Debt Fund-Growth:

The 4-star CRISIL rated fund commands an exorbitant fund size of Rs. 17,077 crore. As per the risk-o-meter the fund carries low to moderate risk and the expense ratio is 0.62 percent. Over the 3-year period, the fund has yielded a good over 8 percent return. NAV of the fund as on June 30, 2021 has been 2081.48.

Minimum SIP investment in the fund can be of Rs. 1000 while on a lump sum basis, investors need to put in a minimum of Rs. 5000.

3. Nippon India Banking & PSU Debt fund:

This is a CRISIL 3-star rated and Value Research 5-star rated fund. NAV of the fund as on June 30, 2021 is 16.32. SIP investment in the fund can be started for as less as Rs. 100 and minimum lump sum investment has to be to the tune of Rs. 5000.
SIP started 3 years back with a monthly investment of Rs. 10000 is now equivalent to Rs. 4.08 lakh.

Taxation of Banking and PSU Debt fund

Holding period Capital gains Taxation rule

More than 3 years Long term capital gains 20% after providing for indexation

Before 3 years Short term capital gains Gains added to taxable income and taxed as per individual’s tax slab

For dividends, these are added to individual income and taxed as per the respective tax slab. Also, in a case if the dividend income exceeds Rs. 5000 in a fiscal year then TDS of 10% is also deducted.

Disclaimer: Note the above story is for informational purpose. Investors should consult financial advisers before taking any investment decision.

GoodReturns.in

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Reserve Bank of India – Tenders

July 1, 2021 root Tenders

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E-tender no. RBI/Shillong/Estate/6/21-22/ET/6

Reserve Bank of India, Shillong invites tenders for the above-mentioned work.

The tender forms can be downloaded from http://www.rbi.org.in and https://www.mstcecommerce.com. Your tender, duly filled-in and e-signed, should be submitted by e-tendering only through https://www.mstcecommerce.com up to 14:00 hours on July 23, 2021.

1. Estimated cost: – ₹ 17,00,000/-

2. Earnest Money: – ₹ 34,000/-

3. Event View date & time: – 01.07.2021 from 12:00 hours.

4. Date of pre-bid meeting: – From 12:00 hours on 12.07.2021

5. Event start date & time: – 13.07.2021 at 11:00 hours.

6. Event close date & time: – 23.07.2021 at 14:00 hours.

7. TOE start time: – 23.07.2021 at 15:00 hours.

8. Time allowed for completion of the work: 90 days from tenth day of issue of written order to commence the work.

Bank reserves the right to accept or reject any or all the tenders, either in whole or in part, without assigning any reasons for doing so.

General Manager (O-i-C)
Reserve Bank of India
Shillong

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Reserve Bank of India – Press Releases

July 1, 2021 root 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) 4,06,395.62 3.22 0.01-3.50

     I. Call Money 5,889.68 3.16 1.90-3.50

     II. Triparty Repo 3,02,534.40 3.22 3.20-3.50

     III. Market Repo 97,971.54 3.21 0.01-3.35

     IV. Repo in Corporate Bond 0.00 –

B. Term Segment

     I. Notice Money** 184.45 3.11 2.75-3.40

     II. Term Money^@@ 204.25 – 3.15-3.45

     III. Triparty Repo 0.00 – –

     IV. Market Repo 207.81 2.66 2.00-3.60

     V. Repo in Corporate Bond 0.00 – –

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 Wed, 30/06/2021 1 Thu, 01/07/2021 4,84,819.00 3.35

    (iii) Special Reverse Repo^~

    (iv) Special Reverse Repo^ψ

2. Variable Rate^&

  (I) Main Operation

     (a) Reverse Repo

  (II) Fine Tuning Operations

     (a) Repo

     (b) Reverse Repo

3. MSF Wed, 30/06/2021 1 Thu, 01/07/2021 15.00 4.25

4. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)^£

5. Net liquidity injected from today’s operations
[injection (+)/absorption (-)]* -4,84,804.00

II. Outstanding Operations

1. Fixed Rate

   (i) Repo

    (ii) Reverse Repo

    (iii) Special Reverse Repo^~ Fri, 18/06/2021 14 Fri, 02/07/2021 960.00 3.75

    (iv) Special Reverse Repo^ψ Fri, 18/06/2021 14 Fri, 02/07/2021 40.00 3.75

2. Variable Rate^&

  (I) Main Operation

     (a) Reverse Repo Fri, 18/06/2021 14 Fri, 02/07/2021 2,00,009.00 3.50

  (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

Mon, 14/06/2021 1096 Fri, 14/06/2024 320.00 4.00

8. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)^£ Mon, 17/05/2021 1095 Thu, 16/05/2024 400.00 4.00

Tue, 15/06/2021 1095 Fri, 14/06/2024 490.00 4.00

D. Standing Liquidity Facility (SLF) Availed from RBI^$ 17,313.80

E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]* -1,00,403.20

F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]* -5,85,207.20

G. Cash Reserves Position of Scheduled Commercial Banks

     (i) Cash balances with RBI as on 30/06/2021 6,24,034.88

     (ii) Average daily cash reserve requirement for the fortnight ending 02/07/2021 6,19,074.00

H. Government of India Surplus Cash Balance Reckoned for Auction as on^¥ 30/06/2021 0.00

I. Net durable liquidity [surplus (+)/deficit (-)] as on 04/06/2021 8,57,660.00

^@ 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.

^£ As per the Press Release No. 2021-2022/181 dated May 07, 2021.

^~ As per the Press Release No. 2021-2022/177 dated May 07, 2021.

^ψ As per the Press Release No. 2021-2022/323 dated June 04, 2021.

Ajit Prasad
Director

Press Release: 2021-2022/461

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Reserve Bank of India – Tenders

July 1, 2021 root Tenders

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Regional Director, Reserve Bank of India, Hyderabad invites e-Tender through MSTC for Supply, Installation, testing and Commissioning of 160 no’s SMF batteries of 120 AH capacity each for Centralised UPS System for Reserve Bank of India, Hyderabad. The e-Tender along with the detailed tender notice is available at the e-Tendering portal of MSTC Ltd (http://mstcecommerce.com/eprochome/rbi) under the menu “Tenders”.

2. All interested bidders must register themselves with MSTC through the above-mentioned website to participate in the tendering process.

3. The estimated cost of the work is ₹16 lakh, however the actual amount may vary.

4. The Schedule of e-Tendering process is as follows:

a. e-Tender Name Supply, Installation, testing and Commissioning of 160 no’s SMF batteries of 120 AH capacity each for Centralised UPS System for Reserve Bank of India, Hyderabad.

b. e-Tender no RBI/Hyderabad/Estate/8/21-22/ET/8

c. Mode of Tender e-Procurement System
(Online Part I – Techno-Commercial Bid and Part II – Price Bid through
(www.mstcecommerce.com/eprochome/rbi)

d. Date of NIT available to parties to download July 01, 2021

e. Date of Pre-Bid meeting July 09, 2021 at 11:30 AM

f. Earnest Money Deposit ₹ 32000.00 (₹ Thirty-two thousand only) from all the bidders in the form of online payment / NEFT to the Bank before 02:00 PM of July 22, 2021.
Details for NEFT
IFSC Code – RBIS0NEFTHY (0 is zero)
A/c number – 8614038
Beneficiary Name: Reserve Bank of India, Hyderabad
Your Firm’s Name
Remarks: 160 no’s SMF batteries

g. Last date of submission of EMD Up to 02:00 PM on July 22, 2021

h. Date of Starting of e-Tender for submission of on line Techno- Commercial Bid and price Bid at
www.mstcecommerce.com/eprochome/rbi 10:00 AM of July 12, 2021

i. Date of closing of online e-tender for submission of Techno-Commercial Bid & Price Bid 2:00 PM on July 22, 2021

j. Date & time of opening of Part-I (i.e. Techno-Commercial Bid)
Date & Time of opening of Part- II (i.e. Price Bid) 3:00 PM on July 22, 2021

5. The Part-II, i.e., Price-bid will be opened on the same day or at a later date as intimated by the Bank in respect of only those contractors/bidders who satisfies all criteria stipulated in Part-I. The Bank reserves the right to accept or reject any or all e-Tenders without assigning any reasons thereof.

Please note: There is no tender fees to download the tender document from Portal.

Applicants intending to apply will have to satisfy the Bank by furnishing documentary evidence in support of their possessing required eligibility and in the event of their failure to do so, the Bank reserves the right to reject their candidature. Tenders without EMD will not be accepted under any circumstances.

All the tenderers may please note that any amendments / corrigendum to the e-tender, if any, issued in future will only be notified on the RBI Website and MSTC Website as given above and will not be published in the newspaper.

Regional Director for Andhra Pradesh & Telangana
Hyderabad

July 01, 2021

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Personal loans keep banks afloat in FY21 as industrial credit demand sinks, BFSI News, ET BFSI

July 1, 2021 root Banking & Finance

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Credit growth to the industrial sector remained in the negative territory during 2020-21, mainly due to the COVID-19 pandemic and resultant lockdowns, RBI data showed on Tuesday. However, “personal loans continued to grow at a robust pace and recorded 13.5 per cent growth (Y-oY) in March 2021; industrial loan growth, on the other hand, remained negative during all quarters of 2020-21.”

The RBI further said working capital loans in the form of cash credit, overdraft and demand loans, which accounted for a third of total credit, contracted during 2020-21, indicating the impact of the coronavirus pandemic.

Private banks

The data further revealed that private sector banks recorded higher loan growth when compared to public sector lenders. Their share in total credit increased to 36.5 per cent in March 2021 from 35.4 per cent a year ago and 24.8 per cent five years ago, it said.

However, the private sector banks’ loan growth slowed to 9.1 per cent in FY21, from 9.3 per cent in FY20. Public sector loans grew 3.6 per cent in FY21, down from 4.2 per cent in FY20. The lending by foreign banks shrunk by 3.3 per cent during 2020-21 as against a growth of 7.2 per cent a year ago.

Credit to the household sector rose by 10.9 per cent (Y-o-Y) and its share in total credit increased to 52.6 per cent in March 2021 from 49.8 per cent a year ago, as per the ‘Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), March 2021’, released by the central bank.

Industrial credit

Growth in credit to the private corporate sector, however, declined for the sixth successive quarter and its share in total credit stood at 28.3 per cent. RBI said the weighted average lending rate (WALR) on outstanding credit has moderated by 91 basis points during 2020-21, including a decline of 21 basis points in Q4.

It also said bank branches in urban, semi-urban and rural areas recorded double-digit credit growth (Y-o-Y) in March 2021, whereas metropolitan branches, which accounted for 63 per cent of bank credit, logged 1.4 per cent growth.

Overall credit growth in India slowed down in FY21 to 5.6 per cent from 6.4 per cent in FY20 as the economy was hit hard by Covid. and subsequent lockdowns.

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Bitcoin’s year so far, BFSI News, ET BFSI

July 1, 2021 root Personal Finance

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LONDON: If you’re a bitcoin investor, your nerves may have taken quite a pounding in 2021.

The cryptocurrency‘s journey towards the investment and commercial mainstream has gathered pace, with major financial firms and companies embracing the emerging asset.

Such interest helped push it to a record high just shy of $65,000 in April. Yet in typically capricious fashion, it has since slumped by almost half.

At the halfway point of the year, the original and biggest cryptocurrency is up around 20% year-to-date. Here are some charts that tell the story of bitcoin’s year so far.

1/STILL VOLATILE
Wild price swings have been a defining feature of bitcoin throughout its near 13-year life. The first half of 2021 has been no different, despite hopes that greater liquidity in markets and stronger infrastructure would dampen swings.

Bitcoin more than doubled from the start of the year to its all-time high of $64,895 hit in mid-April, before slumping by over half in just five weeks as regulators across the world – especially China – cracked down on cryptocurrencies.

In May alone bitcoin lost 35%, in its worst month since 2018. Last week it fell under $30,000 for the first time since January, briefly wiping out its year-to-date gains.

Many larger investors also left the bitcoin market after prices spiked in the first quarter, with some shifting to gold, according to JP Morgan analyst Nikolaos Panigirtzoglou.

“What we found out in the second quarter was that actually demand for bitcoin is price sensitive,” he said. “Some institutional investors started getting out of bitcoin in April … they thought bitcoin prices were too high relative to gold.”

2/BITCOINS OR ALTCOINS?
Bitcoin has attracted the lion’s share of the headlines so far this year. Yet many of its smaller digital currency rivals – known as the altcoins – have posted bigger gains.

Ether, the second-largest cryptocurrency, has nearly trebled so far this year, bolstered by a surge in the so-called decentralised finance sector. “DeFi” often uses its underlying blockchain technology to offer financial services without traditional middlemen such as banks.

Signs that the ethereum blockchain is gaining traction with mainstream financial firms has also fuelled gains.

XRP, the seventh-largest coin, has gained a similar amount. Other once-obscure coins such as dogecoin, started in 2013 as a joke, have also far outpaced bitcoin, with investors drawn to the prospect of quick gains. Dogecoin is up over 5,000% so far this year.

3/OUTPACED BY MEME STOCKS
Retail investors have embraced bitcoin this year, attracted by narratives that it can act as a hedge against inflation and as a future payment method.

Also driving gains has been a perception that it is a vehicle for quick gains – a perceived quality shared by another 2021 financial market phenomenon: “meme” stocks, whose value is propelled by social-media buzz.

GameStop Corp and AMC Entertainment Holdings , two of the leading meme stocks, soared in the first quarter along with bitcoin, fuelled by retail investors with spare cash and free time because of coronavirus stimulus lockdowns.

Yet the assets have since decoupled, with bitcoin’s gains for the year so far outpaced by GameStop – up more than 1,000% – and AMC Entertainment, which has surged over 2,500%.

“It’s just an extension of free money just going crazy and so I think that has somewhat you can see that rippling over into cryptocurrencies,” said Joel Kruger, a strategist at crypto exchange LMAX Digital.

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Holding period	Capital gains	Taxation rule
More than 3 years	Long term capital gains	20% after providing for indexation
Before 3 years	Short term capital gains	Gains added to taxable income and taxed as per individual’s tax slab