State-owned UCO Bank on Saturday said the government has extended the term of its MD and CEO Atul Kumar Goel for two years.
The central government, through a notification dated August 26, extended the term of office of Atul Kumar Goel as UCO Bank’s managing director and chief executive officer (MD & CEO), for a period of two years or until further orders, whichever is earlier, the bank said in a regulatory filing.
Goel’s current term was to expire on November 1, 2021.
On Friday, Punjab National Bank and Bank of Maharashtra had also informed about extensions given to their MD & CEOs.
From September 1, traders will have to shell out 100 per cent margins upfront for their trades due to the new peak margin norms of Sebi kicking in. Traders taking intra-day positions will be the most impacted since in the earlier system margins were calculated on end-of-the-day basis. Now, margin requirements will be calculated four times every session bringing even intraday positions under the ambit. These changes in the margin norms have created furore amongst traders as they will now have to deploy more cash as margin. ET takes a look at the impact of the new norms on market participants.
WHAT WILL CHANGE FOR TRADERS FROM SEPTEMBER 1? Traders taking bets on futures and options (F&O) markets will have to shell out higher margin money making these trades more expensive. Essentially, they are required to cough up 100 per cent of margin upfront under the new peak margin norms. These margins would apply even to intra-day positions i.e. the ones where the trader enters and sells the contracts within the same market session. Currently, the upfront margin required is 75 per cent of the total margin. In other words, if a trader wants to buy a Nifty contract worth Rs 10 lakh, the margin at 20 per cent would be around Rs 2 lakh. Until August 30, the upfront margin was only Rs 1.75 lakh.
WHAT IS PEAK MARGIN? Until last year, margins were collected based on end-of-the-day positions. For example, a client had exposure to Rs 1 crore worth F&O securities as on yesterday and he has taken up further exposure of Rs 1 crore during the current market session. In the old system, traders were not required to pay margin money for the Rs 1 crore additional exposure taken until the end of the session. This benefited the active traders since if the additional exposure taken was sold off by the end of the session, the transaction wouldn’t need any special margin money to be brought in. The Securities and Exchange Board of India (Sebi) introduced the peak margin system late last year and it was to be implemented in four phases: first phase with 25 per cent peak margin, second phase with 50 per cent peak margin, third phase with 75 per cent peak margin and finally the complete implementation of upfront margin with effect from September 1. Under the peak margin system, the margin requirement is no longer calculated on the basis of end-of-the- day positions. Instead, the exchanges will sample the prices four times every session and the margins would be calculated based on this. So even the intra-day positions will come under margining.
WHY THE CHANGES? The intention behind the changes was to control the leverage being taken by some of the traders and thereby reduce systemic risks. Many traders were taking extremely risky bets intra-day which were not being captured in the margin system. Brokers used to allow such positions as long as the margin money in their bank accounts was more than total leverage taken at the end of the market session. But now, the margin will be calculated based on the four price samplings of the exchange and during every point of the trading session, the margin money must be adequate or greater than the requirement.
WHY ARE TRADERS ANGRY? Changes in rules have evoked strong reactions from the trader and broker community since they will have to shell out more money to bet in the futures market. The core of their contention is that intra-day positions will now need upfront margins. Also, if a trader falls short of these margins during the session, he would be liable to pay a penalty. So, if there are any wild price movements and margins of a trader fall short of the requirement, the same will be penalised. Brokers lobby ANMI has made several representations to exchanges, Sebi and the finance ministry seeking relief from these new rules.
A personal loan comes in handy when we are short of funds and need the money as soon as possible. A personal loan is an unsecured loan given by a lender. While taking this loan, the potential borrower is not required to provide collateral or security against the loan, unlike in a gold loan where gold jewellery is taken as security by the lender.
Where can you avail a personal loan? While one can approach one’s friends and relatives for a personal loan, lending institutions such as banks and non-banking financial companies (NBFCs) offer personal loans in a more structured and ‘on-tap’ format. Apart from banks like State Bank of India (SBI), HDFC Bank, NBFCs such as Tata Capital, Bajaj Finserv also offer personal loans. As personal loan from one’s friends and relatives may not always be readily available, we shall consider the more structured format of personal loans offered by lending institutions.
Maximum and minimum amount The minimum and maximum amount that can be taken varies from one lending institution to another. For instance, according to its website, SBI offers a maximum personal loan of Rs 20 lakh to salaried individuals. On the other hand, HDFC Bank offers personal loans up to Rs 12 lakh, as per the bank’s website.
According to Tata Capital’s website, you can take a minimum personal loan of Rs 75,000 and maximum of Rs 25 lakh depending on your eligibility.
Fixed or floating interest rate While taking a loan, one should check with the lender if the interest rate offered on the personal loan is fixed or floating. In case the interest rate is fixed, changes in the bank’s MCLR will not impact your equated monthly instalment (EMI) amount. Also, do remember that normally the interest rates charged on personal loans are much higher than on home loans or loans against gold because the former are unsecured loans.
Interest rate, loan amount offered by banks for personal loans
All data sourced from Economic Times Intelligence Group (ETIG) Data as on August 29, 2021Eligibility to apply for personal loans The eligibility criteria for sanctioning personal loans vary from lender to lender. To be eligible for a personal loan from SBI, your minimum monthly income should be Rs 15,000 irrespective of whether you have a salary account with the bank or not as per the bank’s website.
In case of HDFC Bank, to be eligible for a personal loan an individual should be between 21 years and 60 years of age and should have a job for at least two years, with a minimum of one year with the current employer. Further, if salary account is maintained with HDFC Bank, then the individual should have minimum Rs 25,000 net income per month. If the individual is not an HDFC Bank account holder, then he/she should have minimum Rs 50,000 net income per month.
Your credit score will also play an important role in determining whether or not you are eligible to get the personal loan.
Tenure of personal loans Usually, a personal loan is offered for a maximum of five years by lending institutions such as banks. However, the tenure can vary from lender to lender.
Charges in personal loan To avail a personal loan, a bank or NBFC will levy certain charges such as processing fees, stamp duty and other statutory charges etc. These charges vary from lender to lender.
Further, a lender can also levy pre-payment charges or pre-closure charges. Therefore, before taking a loan from the lender do check the different types of charges leviable.
Disclaimer: The data/information given above is subject to change, hence before taking any decision based on it, please check terms and conditions with the bank/institution concerned. For any queries or changes, please write to us on etigdb@timesgroup.com or call us at 022 – 66353963.
The Central Board of Direct Taxes (CBDT) has extended the deadline to file certain electronic forms under Income-tax Act 1961. The decision is made by the tax department in response to the concerns identified by taxpayers and other stakeholders in e – filing of various Forms under the standards of the Income-tax Act of 1961. In its press release issued on 29th August 2021, CBDT has said that “On consideration of difficulties reported by the taxpayers and other stakeholders in electronic filing of certain Forms under the provisions of the Income-tax Act,1961 read with Income-tax Rules,1962 (Rules), Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for electronic filing of such Forms.”
On consideration of difficulties reported by taxpayers & other stakeholders in electronic filing of certain Forms under the IT Act,1961, CBDT has further extended the due dates for electronic filing of such Forms. CBDT Circular No.16/2021 dated 29.08.2021 issued. pic.twitter.com/iOadU8ImUQ
According to CBDT the further details are as follows:
1. The application for registration or intimation or approval under Section 10(23C), 12A, 35(1)(ii)/(iia)/(iii) or 80G of the Act in Form No. 10A required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No.12 of 2021 dated 25.06.2021, may be filed on or before 31st March, 2022;
2. The application for registration or approval under Section 10(23C), 12A or 80G of the Act in Form No.10AB, for which the last date for filing falls on or before 28th February, 2022 may be filed on or before 31st March, 2022;
3. The Equalization Levy Statement in Form No.1 for the Financial Year 2020- 21, which was required to be filed on or before 30th June, 2021, as extended to 31st August, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be filed on or before 31st December, 2021;
4. The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th June, 2021, required to be furnished on or before 15th July, 2021 under Rule 37BB of the Rules, as extended to 31st August, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be furnished on or before 30th November, 2021;
5. The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30th September, 2021, required to be furnished on or before 15th October, 2021 under Rule 37BB of the Rules, may be furnished on or before 31st December, 2021;
6. Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June, 2021, which was originally required to be uploaded on or before 15th July, 2021, and subsequently by 31st August, 2021, as per Circular No.12 of 2021 dated 25.06.2021, may be uploaded on or before 30th November, 2021;
7. Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th September, 2021, which is required to be uploaded on or before 15th October, 2021, may be uploaded on or before 31st December, 2021;
8. Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021 as per Circular No.15 of 2020 dated 22.07.2020, as extended to 30th September, 2021 vide Circular No.15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021;
9. Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 as per Circular No.15 of 2020 dated 22.07.2020, may be made on or before 31st December, 2021;
10. Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th June, 2021, required to be made on or before 31st July, 2021 under Rule 2DB of the Rules, as extended to 30th September, 2021 vide Circular No. 15 of 2021 dated 03.08.2021, may be made on or before 30th November, 2021;
11. Intimation to be made by a Pension Fund in respect of each investment made by it in India in Form No. 10BBB for the quarter ending on 30th September, 2021, required to be made on or before 31st October, 2021 under Rule 2DB of the Rules, may be made on or before 31st December, 2021;
12. Intimation by a constituent entity, resident in India, of an international group, the parent entity of which is not resident in India, for the purposes of sub-section (1) of section 286 of the Act, in Form No.3CEAC, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021;
13. Report by a parent entity or an alternate reporting entity or any other constituent entity, resident in India, for the purposes of sub-section (2) or sub-section (4) of section 286 of the Act, in Form No. 3CEAD, required to be furnished on or before 30th November, 2021 under Rule 10DB of the Rules, may be furnished on or before 31st December, 2021;
14. Intimation on behalf of an international group for the purposes of the proviso to sub-section (4) of section 286 of the Act in Form No. 3CEAE, required to be made on or before 30th November, 2021 under Rule 10DB of the Rules, may be made on or before 31st December, 2021.
On the other side, the Income Tax Department has confirmed via its Twitter handle that “Date of payment under the Direct Tax Vivad se Vishwas Act, 2020 (without additional amount) extended to 30th September, 2021. The last date for payment of the amount (with additional amount) remains 31st October, 2021.”
Date of payment under the Direct Tax Vivad se Vishwas Act, 2020 (without additional amount) extended to 30th September, 2021. The last date for payment of the amount (with additional amount) remains 31st October, 2021. Press release issued. pic.twitter.com/gNPPUEbEEF
Regarding the tax refunds, the Income Tax Department has also requested taxpayers through its Twitter handle that “The Deptt requests taxpayers to respond online quickly, so that ITRs in such cases of AY 20-21 can be processed expeditiously. The Deptt has also commenced processing of ITRs 1 & 4 for AY 21-22 & refunds, if any, will be issued directly to the bank account of the taxpayer.”
The Deptt requests taxpayers to respond online quickly, so that ITRs in such cases of AY 20-21 can be processed expeditiously. The Deptt has also commenced processing of ITRs 1 & 4 for AY 21-22 & refunds, if any, will be issued directly to the bank account of the taxpayer (5/5)
The department has further clarified that “CBDT issues refunds of over Rs. 51,531 crore to more than 22.99 lakh taxpayers between 1st April,2021 to 23rd August,2021. Income tax refunds of Rs. 14,835 crore have been issued in 21,70,134 cases & corporate tax refunds of Rs. 36,696 crore have been issued in 1,28,870 cases.”
CBDT issues refunds of over Rs. 51,531 crore to more than 22.99 lakh taxpayers between 1st April,2021 to 23rd August,2021. Income tax refunds of Rs. 14,835 crore have been issued in 21,70,134 cases &corporate tax refunds of Rs. 36,696 crore have been issued in 1,28,870 cases(1/5)
Will banking meet the sorry fate of newspapers? With the tech industry creeping up on licensed deposit-taking institutions in India, it’s time to take the question seriously.
Alphabet Inc.’s Google already provides one of the two most popular payment wallets in the country. But now Google Pay wants to push time-deposit products of small Indian banks that don’t have much of a retail liability franchise of their own. According to a press release, Equitas Small Finance Bank will offer Google Pay customers up to 6.85% interest on one-year funds as part of a “branded commercial experience” on the platform. The Mint newspaper, which has reviewed the application interface built by Setu, a Bangalore-based fintech, says other lenders may also sign up.
The move has global significance. It shows the tenuous nature of the hold financial institutions have on a core operation like deposit-taking, and their vulnerability to an assault from online search, social media and e-commerce behemoths. Alphabet, Facebook Inc. and Amazon.com Inc. may pose a far bigger challenge to brick-and-mortar lenders than fintech startups that don’t have the scale of platform businesses. Just like in India, deposit-strapped challenger banks might throw the keys to tech intermediaries with hundreds of millions of active users. When the giants storm the fortress, even larger banks will lose control of banking.
China’s homegrown tech titans have already shown how easy it is to dislodge traditional lenders from lending. In a growing network of users, real-time nonfinancial data can be a more powerful predictive tool than credit scores relied upon by banks. Adding a layer of financial activity to an online platform brings in yet more information. Before Beijing stepped in to clip its wings, Jack Ma’s Ant Group Co. pursued this advantage to the hilt.
Silicon Valley never had a chance in China. However, it’s in a stronger position in the world’s second-most-populous nation, where everything to do with money is increasingly about plugging into an open network. Banks’ historic moat has been breached by tech innovation.
For instance, the government’s digital identification system for 1.3 billion people has made paper trails and physical presence redundant, and turned the banks’ cumbersome know-your-customer processes (verifying an address or being introduced by another account holder) into a cheap utility with standard protocols. A wallet can establish customer identity as easily as a bank and manage the process of seeking her consent.
Nor do India’s deposit-taking institutions have any special advantage left in moving retail money. Yes, they still hold the accounts for sending or receiving funds. But rather than transacting on their bank apps or cards, customers prefer to use Google Pay or Walmart Inc.’s PhonePe to pay one another and merchants. The two wallets were used to transfer 5 trillion rupees ($70 billion) last month, giving the duo an 85% share of a market that has more than 50 apps, including from banks.
That’s the power of platforms’ data-network-activity, or DNA, loop, as researchers at the Bank for International Settlements describe it. When Facebook’s WhatsApp Pay is fully ready, the half a billion Indian users of the messaging service are bound to give it a leg-up in financial businesses.
The environment is ripe for Silicon Valley to encroach into banking. Equitas doesn’t have a pre-existing relationship with the Google Pay customer to whom it’s marketing fixed-term products. Even after getting the money, the lender might not get to build long-term association with the saver. Once the deposit matures, the money will simply get swept back into whichever bank’s account it came from. Since it won’t even take two minutes for a platform to book deposits from scratch, if another lender offers a better deal, idle funds might go there next. Customer loyalty, which is often just plain inertia, will no longer ensure stickiness. Savers will gain.
If the playbook is successful, the likes of PhonePe and WhatsApp Pay might also want to copy it. For a fee, platforms can easily extend their insights into consumer behavior and payment flows to influence deposit mobilization. The higher the commission, the lower the banks’ profit. India’s state-run lenders, in particular, will need to become more efficient. Or they’ll have to lobby with regulators to rein in the tech giants. Amazon, Google and Facebook were all competing to build a brand-new payment network in India, But the central bank has put the license on hold because of data safety concerns, according to a separate report in Mint last week.
Globally, banks and regulators have been bracing themselves for the challenge from Diem, a Facebook-backed project that promises to replicate major global currencies to broaden financial inclusion. But lenders can be on a slippery slope even without new payment instruments. As Big Tech asserts control over the flow of yield-seeking savings, an imposing high-street presence will no longer serve as a ticket to cheap funding.
Regulated institutions may be left holding a license to take deposits — and a thick rule book accompanying that privilege — but platforms will decide if a bank’s promotional offer is to be displayed prominently or buried in an obscure corner. The same slow, painful decline that gutted the print media after readers and advertisers moved online and publishers lost their sway over them may be waiting in the wings for banking, too. (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
The regulatory bite is getting sharper for regulated entities (REs), including banks and non-banks, with business restrictions being imposed by the Reserve Bank of India (RBI) on those not complying with its regulations, going by its recent actions. Recalcitrant REs will have to banish the thought of getting off lightly by just paying monetary penalties.
Business restriction can prove to be a more potent tool to make a non-compliant RE fall in line with regulations vis-a-vis monetary penalty as it will hurt the RE more.
RBI Governor Shaktikanta Das, in an interaction with BusinessLine, emphasised that supervision of regulated entities has been tightened.
“And for the first time, we are not confining ourselves to monetary penalty (for regulatory violations). We are also imposing business restrictions. Some ₹1 crore monetary penalty here, ₹2 crore there, how does it matter? So, we are entering into business restrictions. We are answerable to the public,” he said.
Das likened the business restrictions on banks and non-banks to All Inclusive Directions (AID) imposed by the RBI on some of the urban co-operative banks (UCBs). AID is imposed on UCBs to arrest further deterioration in their financial health and protect depositors’ interest.
“In the case of co-operative banks, once we impose AID, business restrictions are put – they will not accept fresh deposits and cannot grant or renew any loans and advances.
“All those business restrictions, which were earlier confined only to co-operative banks, we are now using it for other entities also. So, this really helps in the enforcement action,” explained Das.
Business restrictions
Last December, RBI directed HDFC Bank to temporarily halt sourcing of new credit card customers as well as launches of digital business generating activities planned under its proposed programme Digital 2.0. However, in a major relief for the private sector bank, the central bank partially lifted the ban, allowing it to issue new credit cards.
RBI barred Mastercard from acquiring new customers (debit, credit or prepaid) from July 22 for not complying with data localisation requirements.
According to RBI’s latest annual report, during the July 2020-March 2021 period, it took enforcement action against 54 REs and imposed an aggregate penalty of ₹19.41 crore for non-compliance with provisions/contravention of certain directions issued by it from time to time through various circulars.
Since April 1, 2015, 52 UCBs (up to December 11, 2020) have been placed under AID by RBI, per the Report on Trend and Progress of Banking in India 2019-20.
With technical glitches in the new Income Tax portal remaining unresolved, the Central Board of Direct Taxes (CBDT) has extended the due date for the filing of certain electronic forms including one relating to Equalization Levy statement, and the form for declaration received from senior citizen account holder among others. These forms are to be filed electronically.
Extensions on forms
According to the board, the Equalization Levy Statement in Form No.1 for the FY21 can now be filed on or before December 30. Earlier, this date was extended to August 31 from June 30.
Banks will have till November 30 to upload declarations received from recipients in Form No.15G/15H during the quarter ended June 30. Earlier the date was extended to August 31.
Normally these declarations are submitted by a senior citizen who does not have PAN to get income tax benefits. Similarly declarations submitted during July-September quarter can now be uploaded on or before December 31.
The application for registration or approval under Section 10(23C), 12A or 80G of the Act in Form No.10AB will now have to be filed on or before March 31 of the next year. These sections help in getting exemption on contributions made to educational institution or charitable institution.
The Quarterly statement in Form No.15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on June 30 may be furnished on or before November 30. Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on June 30 may be made on or before 30th November. The same will be applicable for overseas pension fund.
Intimation by a constituent entity, resident in India, of an international group, the parent entity of which is not resident in India for the purpose of compliance of tax law can now be made on or before December 31. The same date is applicable for a report by a parent entity or an alternate reporting entity or any other constituent entity, resident in India, and for intimation on behalf of an international group.
Vivad Se Viswas
CBDT also announced giving more time for payment of the amount (without any additional amount) under Vivad se Viswas scheme.
According to the board, considering the difficulties faced in issuing and amending Form No.3, a prerequisite for making payment by the declarant under Vivad se Vishwas Act, it has been decided to extend the last date of payment of the amount (without any additional amount) to September 30. Earlier the date was extended to August 31.
It is however clarified that there is no proposal to change the last date for payment of the amount (with additional amount) under the act, which remains as October 31.
The Reserve Bank of India on Friday issued Master Directions on Prepaid Payment Instruments (PPIs) with fresh classification of the instruments.
“Keeping in view the recent updates to PPI guidelines, it has been decided to issue the Master Directions afresh,” the RBI said.
No entity can set up and operate payment systems for PPIs without prior approval or authorisation of the RBI, it stated.
The master directions classify PPIs in two categories – small PPIs and full KYC PPIs. They were earlier classified as closed systems, semi-closed systems and open system PPIs.
“Small PPIs: Issued by banks and non-banks after obtaining minimum details of the PPI holder. They shall be used only for purchase of goods and services. Funds transfer or cash withdrawal from such PPIs shall not be permitted,” the RBI said.
PPI Classification
Small PPIs can have cash upto ₹10,000 loaded per month, not exceeding ₹1.2 lakh in a year.
Full-KYC PPIs will be issued by banks and non-banks after completing Know Your Customer (KYC) of the PPI holder.
“These PPIs shall be used for the purchase of goods and services, funds transfer or cash withdrawal,” it further said, adding that the amount outstanding shall not exceed ₹2 lakh at any point of time.
The RBI has also said that PPI issuer shall have a board-approved policy for PPI interoperability.
Where PPIs are issued in the form of wallets, interoperability across PPIs should be enabled through UPI. Where PPIs are issued in the form of cards (physical or virtual), the cards should be affiliated to the authorised card networks, it said.
PPI for mass transit systems should remain exempted from interoperability, while Gift PPI issuers (both banks and non-banks) have the option to offer interoperability.
“Interoperability shall be mandatory on the acceptance side as well. QR codes in all modes shall be interoperable by March 31, 2022,” it further said.
The RBI has also said the PPI issuer shall put in place a formal, publicly disclosed customer grievance redressal framework, including designating a nodal officer to handle customer complaints or grievances, the escalation matrix and turn-around-times for complaint resolution.
In the case of PPIs issued by banks and non-banks, customers shall have recourse to the Banking Ombudsman Scheme and Ombudsman Scheme for Digital Transactions respectively for grievance redressal.
indiagold, a gold-focused alternative credit platform, is planning to raise $12 million funding from PayU and Alpha Wave Incubation (AWI) fund. Other investors such as Better Tomorrow Ventures, 3one4 Capital, RainmatterCapital, and Leo Capital will also be participating in this round.
Launched in 2020 by Deepak Abbot and Nitin Misra, indiagold offers gold-backed loans, gold savings, and gold locker services to over a million consumers in India. Both the founders have worked as Senior Vice President of Paytm in the past.
The company aims to build a doorstep gold loan business backed by a robust technology stack, AI-based gold assessment capabilities, and superior customer-centricity – offering faster gold release and a transparent repayment policy. indiagold has made its Gold Locker service more secure, transparent, and convenient.
Nitin Misra and Deepak Abbot, co-founders of indiagold said, “India offers a large $650 billion addressable gold loan market which is highly fragmented and currently dominated by the informal segment. Even the formal segment hasn’t adopted digital practices at scale. indiagold’s suite of financial products bridges this critical need gap by digitally transforming lending against gold. With the support of our existing and new investors, we are moving aggressively towards our larger vision of establishing gold holdings as an alternate credit score, and creating a gold back credit platform for lenders to provide instant credit against gold.”
Vijay Agicha, Global Head of Strategy & Growth, PayU said, “Empowering disruptive fintech entrepreneurs through early-stage investments is a key element of PayU’s growth strategy. By supporting businesses that complement our existing portfolio, we aim to achieve our vision of developing a fintech ecosystem that will meet the financial services needs of millions of Indians. We believe that indiagold has the unique opportunity to expand the addressable market on the back of its product offerings and scale the business up significantly.”
Navroz D. Udwadia, Co-founder of Falcon Edge Capital said, “Gold, found in almost every household in India, is the key to provide affordable credit to every Indian. indiagold’s doorstep gold loan and gold locker products offers good customer experience and enables it to offer credit at more affordable rates.”
The gold financing business in India is predominantly offline, dominated by the informal segment, which accounts for approximately 70 per cent of gold loans in India. These loans address the liquidity needs of Indians without access to unsecured credit which is availed by less than 10 per cent of the total working population. The Covid-19 pandemic has accelerated the demand for short-term, low-cost, safe, and easily accessible formal credit options like digital gold loans.
The Reserve Bank of India has made enhancements to the Indo-Nepal Remittance Facility Scheme, whereby the ceiling per transaction has been increased four-fold to ₹2 lakh and the cap of 12 remittances in a year per remitter has been removed.
The aforementioned enhancements, which come into effect from October 1, have been announced to boost trade payments between the two countries, as also to facilitate person-to-person remittances electronically to Nepal, RBI said in a circular to all Banks participating in the National Electronic Funds Transfer facility.
Under the scheme, the beneficiary receives funds in Nepalese Rupees through credit to her / his bank account maintained with the subsidiary of State Bank of India in Nepal, — Nepal SBI Bank Limited (NSBL) or through an agency arrangement.
The central bank said as hitherto, banks shall accept remittances by way of cash from walk-in customers or non-customers. The ceiling of ₹50,000 per remittance with a maximum of 12 remittances in a year shall, however, continue to apply for such remittances.
The central bank asked banks to put in place suitable velocity checks and other risk mitigation procedures.
Thje RBI emphasised that “the enhancements are also expected to facilitate payments relating to retirement, pension, etc., to our ex-servicemen who have settled / relocated in Nepal.”
