Tokenisation – Card Transactions : Extending the Scope of Permitted Devices
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Tokenisation – Card Transactions : Extending the Scope of Permitted Devices
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Month: August 2021
Banks to start credit outreach programme later this year: Finance Minister
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Banks are set to start a credit outreach programme later this year under which they would go to every district of the country, Finance Minister Nirmala Sitharaman said on Wednesday, adding that they have also been asked to provide sector-specific support.
Wrapping up her two-day trip to Mumbai, the Finance Minister said she has asked banks to interact with export promotion agencies to help address exporters’ requirements and also look at providing support to sunrise sectors as well as fintechs.
Banks have also been asked to come up with specific schemes for the North-East, Sitharaman told presspersons.
She also highlighted that high CASA deposits in the eastern States are a matter of concern and said banks should give a greater credit expansion facility in the region.
The Finance Minister also noted that public sector banks have done well collectively and are in a position to go to the market to raise funds.
Debasish Panda, Secretary, Department of Financial Services, said banks were in the process of raising about Rs 12,000 crore from the markets this fiscal.
While she did not comment on questions relating to privatisation of public sector banks and general insurance companies, she stressed that the government will have bare a minimum presence in strategic sectors.
“Banks, financial services and insurance have been identified as strategic sectors,” she stressed.
‘Bad bank close to getting a licence’
Sitharaman said the proposed bad bank is close to getting a licence. Panda said the Indian Banks’ Association has applied to the RBI and a licence for the bad bank is expected soon. Projects have also been identified, he said.
National Monetisation Pipeline
The FM also stressed that there will be no change of ownership under the National Monetisation Pipeline and ownership of assets will remain with the Union Government.
“These are brownfield assets but are under utilised,” she said in response to a query.
Taking on Opposition concerns, she questioned who had monetised the Mumbai-Pune Corridor and taken out a Request for Proposal for the New Delhi Railway Station.
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PSBs to transform into ‘digital-attacker banks’ under EASE 4.0 reforms agenda
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Union Finance Minister Nirmala Sitharaman on Wednesday unveiled a roadmap to transform all public sector banks (PSBs) into “digital-attacker banks”, working hand-in-hand with key constituents of the financial services ecosystem to offer industry-best customer experience.
The fourth edition of the EASE (Enhanced Access and Service Excellence) reforms agenda for PSBs has been unveiled in the backdrop of the amalgamation of 13 PSBs into 5 PSBs being successfully completed over the last two years.
EASE 4.0 commits PSBs to tech-enabled, simplified and collaborative banking, the Indian Banks’ Association (IBA) said in a statement, adding that it aims to further the agenda of customer-centric digital transformation and deeply embed digital and data into PSBs’ ways of working..
24×7 banking services
In the last two years, PSBs have undergone mega consolidation. It started with Dena Bank and Vijaya Bank being amalgamated with Bank of Baroda (with effect from April 1, 2019).
This amalgamation was followed by the amalgamation of Oriental Bank of Commerce and United Bank of India with Punjab National Bank; Syndicate Bank with Canara Bank; Andhra Bank and Corporation Bank with Union Bank of India; and Allahabad Bank with Indian Bank with effect from April 1, 2020.
According to the IBA statement, under EASE 4.0, the theme of new age 24×7 banking with resilient technology has been introduced to ensure uninterrupted availability of banking services by ensuring 24×7 availability of select banking channels, improving the reliability of technology platforms, and aligning internal processes in the PSBs to deliver such services.
As per the agenda, collaborative banking for synergistic outcomes aims to maximise synergies through collaboration between PSBs and with broader financial services ecosystem such as non-banking finance companies (NBFCs) for the coordinated handling of co-originated loans.
In addition to the new themes, several other new reforms will be added to existing themes such as increased use of digital and data for agriculture financing through partnerships with third parties for alternate data exchange, driving impetus on digital payments in semi-urban and rural areas, at-scale adoption of doorstep banking services for PSB customers.
EASE 3.0
Smart Lending was a key theme introduced under EASE 3.0 (launched in FY21) to simplify access to credit through initiatives such as ‘Dial-a-loan’ for origination of loans through digital channels available 24×7.
Further, ‘Credit@click’ was introduced for end-to-end digital retail and MSME loans with significantly reduced turnaround time, pro-active reach-out to existing bank customers through analytics-based and customer-need driven credit offers, use of cash-flow data based lending, etc.
The IBA statement said PSBs now offer 24×7 availability of select retail and MSME credit products through five digital channels – SMS, missed call, call centre, bank website, and mobile banking application.
“These channels are integrated end-to-end to ensure action on credit requests within committed turnaround time.
“PSBs are also offering the facility to customers to request product advice, loan application filling, and necessary documents collection at their doorstep,” the Association added.
Meanwhile, IBA said State Bank of India (SBI), Bank of Baroda (BoB), and Union Bank of India (UBI) have won the awards for best performing banks for PSB Reforms EASE 3.0 based on the EASE index. Indian Bank won the award for the best improvement from the baseline performance.
SBI, BoB, UBI, Punjab National Bank and Canara Bank won the top awards in different themes of the PSB Reforms Agenda EASE 3.0.
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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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FM asks banks to work with state govts to push ‘one district, one product’ agenda
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Finance Minister Nirmala Sitharaman on Wednesday said she has requested banks to work with all state governments to push the ‘one district, one product’ agenda.
Banks have also been requested to interact with export promotion agencies, chambers of commerce and industry to understand and address the requirement of exporters on time, Sitharaman said while addressing media here on Wednesday.
The Finance Minister, who is on a two-day visit to the financial capital, said there should be some simple approach between public sector banks so that exporters are not made to run between one bank to another, scouting for a better offer.
During the day, she met heads of public sector banks (PSBs) to review their financial performance.
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2 Bank Stocks To Buy With An Upside Target Of 18%, Says Emkay Global
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Buy ICICI Bank with target of Rs 825
In its research report dated August 25, 2021, Emkay Global Financial suggested a buy rating on ICICI Bank, with a target price of Rs 825. RBI extends the tenure of the MD and CEO for another two years; they are eligible for two more full terms.
| Current Market Price | Rs 694 |
| Target Price | Rs 825 |
| Upside potential | 18.8% |
According to Emkay Global financials, by FY23E/FY24E, the bank to recapture its decade-best RoEs of 15%/16%, owing to improved growth and good core profitability. Mr. Bakhshi has given the management team much-needed credibility and steadiness. As a result, we believe that his continued relationship with the bank will be critical for the stock’s future re-rating.
“ICICI remains our top pick in the sector. Retain Buy/OW in EAP with a TP of Rs825 (2.5x Sep’23E ABV + subs value of Rs170), given its solid growth trajectory, superior core profitability, healthy capital/provision buffers, and management credibility/stability unseen in the past.
The RBI’s term extension for two years, instead of the general practice of a three-year extension, is in line with the valid board/shareholder approval for his appointment for a five-year period from October 15, 2018, to October 23, 2023. Thus, it should not be seen as a short-term extension by the RBI similar to RBL/DCB,” the Brokerage said in its research report.
Buy Canara Bank with target of Rs 185
In its research report dated August 25, 2021, Emkay Global Financial suggested a buy rating on Canara Bank, with a target price of Rs 185. QIP will help to shore up core capital levels, but expansion will require more.
| Current Market Price | Rs 156 |
| Target Price | Rs 185 |
| Upside Potential | 18.8% |
According to Emkay Global Financials, CBK raised Rs25 billion this week via the second tranche of QIP at a better price of Rs149.3 per share, following the first round of capital raise in December.
The brokerage anticipate the capital raise will mostly be used to shore up the company’s capital ratios, which have remained low in comparison to rivals since the merger with Syndicate Bank.
“We believe that merger-related concerns are largely behind and the bank should report a gradual improvement in its RoA/RoE to 0.4-0.5%/10-11% by FY23E-24E, led by better growth and moderate LLP. Retain Buy with a TP of Rs185, valuing the core bank at 0.6x Sep’23E ABV and subs at Rs22 per share”, the brokerage said in its research report.
Disclaimer
The above stocks are based on the report of Emkay Global Financials. Investing in stocks is risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as are at record peaks. Please consult a professional advisor.
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An Indian Millennial opens a bank account every 30 seconds says Niyo, BFSI News, ET BFSI
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The gaining popularity of digital banking services among millennials can be witnessed from the fact that over 82% customers of NiyoX are below 35 years of age. The convenience and accessibility provided by such products holds increased importance among this population thus making them the early adopters.
Niyo is seeing tremendous traction among the millennial population with one NiyoX digital savings account being opened every 30 seconds. This has led to the digital banking fintech on-boarding 500,000 customers within 150 days of its launch.
“At Niyo we are committed to making banking simple while adding value to the users are every step i.e. On-boarding, transactions, fund transfers, chat besides our popular 007 offering. This is just the beginning as we add more features and products to delight our users. Half a million accounts is a humbling milestone and motivates us to work harder to ensure great banking experience for all.” said, Vinay Bagri, Co-founder, CEO, Niyo.
Since its launch, NiyoX has seen more than one crore transactions. With more than 50% of the transactions on the app being done via UPI, highlights the growing demand of the payment option among the digitally-savvy millennials. According to NiyoX, the top categories where customers spend the most include food delivery, ecommerce and entertainment.
The top 5 cities with maximum customer base for NiyoX are Delhi, Mumbai, Kolkata, Hyderabad and Bangalore. 35% of the customers on-boarded NiyoX for its industry-high 7%* p.a. interest rate feature, followed by 25% customers who were driven by the 2-in-1 account facility as well as the ease of banking provided by the platform.
“The demand for a safer, better and faster banking experience is now more than ever and we at Niyo are trying to fulfil just that. We have tried to create a power-packed product with multiple features to provide a seamless banking experience to our customers. Our product lives up to the promise of instant digital on boarding with customers being on-boarded as fast as under 100 seconds,” adds, Virender Bisht, Co-founder, CTO Niyo,
20% of the millennial customers joined the platform for its 0% Commission on mutual funds and zero balance savings account features.
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Key Highlights of Finance Minister’s meeting with the heads of PSU banks., BFSI News, ET BFSI
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Union Finance Minister, Nirmala Sitharaman on Wednesday met with the heads of the Public Sector Banks to review their financial performance and the progress made in supporting the pandemic hit economy.
Sitharaman took note of the situation of the PSBs and their progress around the restructuring 2.0 scheme announced by the Reserve Bank of India.
“We Reviewed the annual performance of Public Sector banks and also the implementation of announcements of various COVID-19 related packages and Aatmanirbhar Bharat package,” FM Nirmala Sitharaman said.
The minister also declared the results of Ease 3.0 (Enhanced Access and Service Excellence) Index for 2020-21 and launched the Ease 4.0.
Ease is a common reform agenda for PSBs aimed at institutionalising clean and smart banking.
This is the first meeting of the Finance Minister with the heads of PSBs since the beginning of the Covid-19 pandemic.
Following are the key highlights
From Nirmala Sitharaman, Finance Minister
- Nature of banking is evolving rapidly, and the industry has realised the changing requirements of the sector.
- Collectively, PSBs have done well and have shown that they are in a position to come to the market and raise funds.
- Despite the customer requirements during COVID-19 pandemic, work of amalgamation of banks has not suffered.
- Banks & financial services have been identified as strategic sectors. Govt will have a bare minimum presence.
- Industries have the option of raising funds outside the banking sector.
- There will be credit outreach in every district of the country this year.
- Banks have been asked to come up with special plans for northeast states focusing on logistics, exports from the area.
- Banks expressed concerns about CASA deposits piling up in eastern areas including Bihar, WB, Jharkhand. Banks should provide facilities to provide credit flow for business development in these regions.
- Requested the public sector banks to address the needs of exporters. They have been directed to interact regularly with Federation of Exporters Organisation.
- Banks are raising funds from different avenues. This new aspect needs to be studied to target credit where it is needed.
- Customer Service of banks has not suffered even during the pandemic.
- Sunrise sectors and fintech need banking support.
- Fintech can provide technological help to banks. Fintechs and the banking sector can mutually benefit each other.
From Tarun Bajaj, Revenue Secretary
- Direct listing of companies on the overseas platforms is under consideration.
Debashish Panda, DFS Secretary
- PSBs’ contribution for employee pensions under NPS hiked to 14 pc from 10 pc earlier.
- Pension payouts to bank employees could increase to ₹30,000- ₹35,000 from the earlier cap of ₹9284.
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Ujjivan Small Finance Bank Offers Up To 7% Returns On FD Post Latest Revision: Check New Rates Here
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Investment
oi-Vipul Das
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Ujjivan Small Finance Bank (USFB) offers term deposits with attractive interest rates, flexible tenure ranging from 7 days to 10 years, loan against FD option to both regular as well as senior citizens. Investors can open a fixed deposit account at USFB with a minimum amount of Rs 1000 and in multiples of Rs 100 thereof. Apart from premature closure and partial withdrawal facility, the bank also allows quarterly, half-yearly, annually, and at maturity interest payout options, discounted interest rate for monthly interest pay-out option, 0.5% p.a. additional rate for senior citizens, and so on. USFB also offers a Tax Saver Fixed Deposit scheme where investors are required to stay invested for a lock-in period of 5 years to seek tax benefits under Section 80C of the Income Tax Act, 1961. With effect from 16th August 2021, the bank has revised interest rates on its fixed deposits which are discussed below.
Ujjivan Small Finance Bank Regular Fixed Deposit Interest Rates
For term deposits maturing in 7 days to 29 days and 30 Days to 89 Days, the bank is now offering an interest rate of 2.90% and 3.50%. Ujjivan Small Finance Bank is providing an interest rate of 4.25% and 4.75% for FDs maturing in 90 days to 179 days and 180 days to 364 days. For deposits maturing in 1 year to 2 years, 2 years and 1 day to 3 years, 3 years and 1 day to 5 years and 5 years and 1 day to 10 years the bank is promising an interest rate of 6.00%, 6.50%, 6.25%, and 6.00% to the general public after the most recent revision.
| Tenure | Interest Rate (p.a.) (Under Rs. 2 Cr) |
|---|---|
| 7 Days to 29 Days | 2.90% |
| 30 Days to 89 Days | 3.50% |
| 90 Days to 179 Days | 4.25% |
| 180 Days to 364 Days | 4.75% |
| 1 Year to 2 Years | 6.00% |
| 2 Years and 1 Day to 3 years | 6.50% |
| 3 Years and 1 Day to 5 Years | 6.25% |
| 5 Years and 1 Day to 10 Years | 6.00% |
| Source: Bank Website, W.e.f. 16th August 2021 |
Ujjivan Small Finance Bank Fixed Deposit Interest Rates For Senior Citizens
For a deposit amount of less than Rs 2 Cr, senior citizens will continue to get an additional rate of 0.50% on their deposits compared to the general public. Following are the recent interest rates on FD of Ujjivan Small Finance Bank for senior citizens.
| Tenure | Interest Rate (p.a.) (Under Rs. 2 Cr) |
|---|---|
| 7 Days to 29 Days | 3.40% |
| 30 Days to 89 Days | 4.00% |
| 90 Days to 179 Days | 4.75% |
| 180 Days to 364 Days | 5.25% |
| 1 Year to 2 Years | 6.50% |
| 2 Years and 1 Day to 3 years | 7.00% |
| 3 Years and 1 Day to 5 Years | 6.75% |
| 5 Years and 1 Day to 10 Years | 6.50% |
| Source: Bank Website, W.e.f. 16th August 2021 |
Ujjivan Small Finance Bank NRE Fixed Deposit Interest Rates
With no additional interest rate for senior citizens, USFB offers the following interest rates on NRE deposits of less than Rs 2 Cr.
| Term Deposits | Interest Rate (p.a.) (Under Rs. 2 Cr) |
|---|---|
| 1 Year to 2 Years | 6.00% |
| 2 Years and 1 Day to 3 Years | 6.50% |
| 3 Years and 1 Day to 5 Years | 6.25% |
| 5 Years and 1 Day to 10 Years | 6.00% |
| Source: Bank Website, W.e.f. 16th August 2021 |
Story first published: Wednesday, August 25, 2021, 16:24 [IST]
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Reserve Bank of India – Notifications
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RBI/2021-22/91 August 25, 2021 All Housing Finance Companies (HFCs) Dear Sir/ Madam, Notification as ‘Financial Institution’ under Section 2(1)(m)(iv) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) Please refer to Para 105 of Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 wherein certain criteria have been prescribed for notification of HFCs as ‘Financial Institution’ under Section 2(1)(m)(iv) of the SARFAESI Act. 2. In this connection, Government of India (GoI) has, vide its Gazette Notification No. S.O. 2405(E) dated June 17, 2021 notified the HFCs registered under Section 29A(5) of National Housing Bank Act, 1987 and having assets worth ₹100 crore & above, as ‘Financial Institution’ under Section 2(1)(m)(iv) of SARFAESI Act, 2002. In view of revision of the criteria for notification as ‘Financial Institution’ as per the abovementioned Gazette notification of GoI, the criteria prescribed under Para 105 of the aforesaid Master Direction are withdrawn with immediate effect. 3. The Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 is being modified accordingly. Yours faithfully, (J.P. Sharma) |
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