In the First Cohort under the Regulatory Sandbox with ‘Retail Payments’ as its theme, six entities commenced testing of their products which was communicated vide Press Release dated November 17 and December 24, 2020.
2. The following six entities have completed the ‘Test Phase’.
Sl. No.
Name of the Sandbox Entity
Description of the product
(i)
Nucleus Software Exports Ltd. (PaySe)
PaySe is an offline digital cash product which proposes to help in digitisation of payments in rural areas, starting with Self Help Groups (SHG), through an offline payment solution and a digitised SHG-centered ecosystem. It uses NFC or Bluetooth Low energy protocol for secure wireless offline payment mode where no other connectivity is required at the time of the customer transaction at merchant location.
(ii)
Tap Smart Data Information Services Private Limited (Citycash).
‘Citycash’, a set of NFC based Prepaid card and NFC enabled Point of Sale (PoS) device to facilitate offline Person-to-Merchant (P2M) transactions. The card can be used as travel pass and wallet to pay in offline mode for purchase of bus tickets as well as payment at select merchants.
(iii)
Natural Support Consultancy Services Pvt. Ltd. (IND-e-Cash)
The product ‘IND-e-Cash’ (earlier named ‘eRupaya’), is a set of Near-Field Communication (NFC) based Prepaid card and NFC enabled Point of Sale (PoS) device, to facilitate offline P2M transactions and offline digital payments in remote locations.
(iv)
Naffa Innovations Pvt. Ltd. (ToneTag)
The product is an offline, feature phone-based payment solution for P2M transactions over ‘sound medium’ by establishing a secure channel for data transfer over Interactive Voice Response (IVR) between devices. The product enables contactless payment even without internet.
(v)
Ubona Technologies Pvt. Ltd. (BHIM Voice)
The voice-based UPI payment solution facilitates offline Person-to Person (P2P) and P2M transactions using mobile phones including feature phones. The product also offers convenience of preferred Indian language to the customer through IVR, making adoption of digital transactions user friendly.
(vi)
Eroute Technologies Pvt. Ltd.
The product is UPI based offline payment solution using SIM overlay smartcard placed on the SIM to drive SIM Tool Kit (STK) menu-based user interface to facilitate P2P/P2M transactions. This product offers payment solution to non-internet connected feature phone users.
3. The products were evaluated based on mutually agreed test scenarios and expected outcomes. All the products have been found viable within the boundary conditions defined during testing under Regulatory Sandbox.
4. The aforesaid entities have now exited the First Cohort of the Regulatory Sandbox on ‘Retail Payments’. The products found acceptable under this Cohort may be considered for adoption by Regulated Entities subject to compliance with applicable regulatory requirements.
The captioned advertisement for inviting “E-Tender for providing Catering and Maintenance Services at the Officers’ Lounge and Dining Room (OLDR) and the Staff Canteen at Reserve Bank of India, Chandigarh” was published on August 14, 2021 in the newspapers namely Jag Bani, The Tribune and Punjab Kesari. The same was uploaded on the MSTC portal (https://www.mstcecommerce.com/eprochome/rbi/) and RBI website on August 17, 2021. The last date for submission of bids was decided as September 13, 2021, 1400 hours.
Extension of Last Date of Submission: –
1. It has been decided to further extend the last date for submission of bids to September 21, 2021 till 14:00 hours. The Part-I i.e. Technical Bid of the e-tender will be opened on September 21, 2021 at 15:00 hours. Part-II, i.e., Price Bid will be opened in respect of the tenderers/ bidders satisfying all criteria stipulated in Part-I on a later date to be intimated by the Bank.
2. Tenderers /Bidders who have already submitted their bid/tender pursuant to the e-tender notice dated August 17, 2021 need not submit again.
3. All other terms and conditions of this e-tender remain unchanged.
Regional Director Reserve Bank of India Chandigarh
Audit regulator National Financial Reporting Authority (NFRA) wants to be positioned as a regulator for the entire gamut of financial reporting, covering all processes and participants in the financial reporting chain.
Towards this end, NFRA has “requested” its Technical Advisory Committee (TAC) to come up with draft proposals in this regard.
This has been revealed as part of one of the conclusions made by NFRA to the 19 specific questions arising from the recommendations of the TAC report of March 2021, which formed the basis of a consultation paper issued by the audit regulator in June.
TAC recommendation
This aspiration to be a regulator for the entire gamut of financial reporting formed part of conclusion on a TAC recommendation to introduce a policy on settlement of disciplinary matters against auditors.
It maybe recalled that the TAC had recommended that the NFRA examine the desirability and feasibility of a policy on settlement of disciplinary matters.
Responding to this suggestion, NFRA has now concluded that the introduction of a settlement mechanism is only one aspect of a whole raft of changes that need to be brought about in the law, to more properly define NFRA’s remit, and to provide it with the requisite functional, financial and administrative autonomy for being an effective regulator.
“NFRA needs to be positioned as a regulator for the entire gamut of financial reporting, covering all processes and participants in the financial reporting chain,” the NFRA conclusion said.
NFRA on Monday made public its conclusions on the questions posed in its consultation paper on TAC report on Enhancing Engagement with Stakeholders. NFRA had requested for comments on a total of 19 specific questions arising from the recommendations of the TAC report.
The comment period for this consultation paper ended on June 30 this year. NFRA has received 17 comment letters from stakeholders such as important industry bodies, large accounting firms and research /academia.
– Since mid-cap funds put money in companies that invest in not so mature companies, you need to have an investment horizon of at least 5-years to let the company mature and maximize returns for you.
– Market volatility should not nudge you to redeem your investment i.e. volatility in such schemes cannot be ignored.
– Past short term performance cannot be just factored in for deciding on the mid cap scheme to lap up for your investment. The best option shall be to look at such schemes in longer term horizons and also make out how they performed in different market cycles. Also, another factor that needs to be monitored is risk adjusted returns.
– Also, you should be choosing a scheme that just not only has the potential to give exceptional returns in the bull run but also can contain losses in volatile times.
– When picking a mutual fund, you should go for a mid cap fund that has at least a 5-year track record and refrain from betting on NFOs providing such a scheme.
– In the long run for maximizing your return from the mid cap mutual fund scheme can be lowest expense ratio, good long term performance as well as sound and good management team.
Top 5 Mid-Cap Funds You Can Start SIP Based On CRISIL, Morning Star And Value Research Rating along with minimum SIP amount
Rating agencies based on several factors and not just NAV rate mutual funds based on their performance etc. and these ratings can certainly be a good criteria to decide on your investments in mutual funds.
We wish to tell our readers that markets have gone-up significantly in the last few months and therefore, even if you are investing through SIPs, you need to be a little cautious. Do not invest large sums, as it could be a tad risky, given where the markets are.
Mid-cap fund
CRISIL Rating
Morning Star Rating
Value Research Rating
5 Year annualized SIP return
Minimum SIP Amount
PGIM India Midcap Opportunities Fund – Direct Plan – GrowthMid Cap Fund
5
5
5
33.07%
Rs. 1000
BNP Paribas Mid Cap Fund – Direct Plan –
5
4
3
24.28%
Rs. 300
Kotak Emerging Equity – Direct Plan –
4
4
4
25.33%
Rs. 1000
Mahindra Manulife Mid Cap Unnati Yojana – Direct Plan
4
4
4
NA
Rs. 500
SBI Magnum Midcap Fund – Direct Plan –
4
2
2
23.17%
Rs. 500
Is The Timing Right To Invest In Mid Cap funds?
SIP investment does not need to be timed and the market dynamics help to average out the cost in the medium to long run. Nonetheless, markets are placed near all time high levels and there has been too fast a rally on the Nifty, which makes expert to foresee a correction on the headline indices going ahead. Now in such a situation one needs to be mindful of the inherent risk and talking specifically of the broader markets which have seen remarkable rally of late, volatility and correction is warranted. So, if you can stomach in the volatility and have a longer term horizon to maximise your returns from the investment, you can surely lap up one of the best rated mid-cap funds.
Disclaimer:
The schemes with high rating from rating agencies as well as their performance are listed just for information purpose and should not be construed as investment advice.
India is a globally significant market for gold business, but interestingly India does not produce a considerable amount of gold that can meet huge domestic demands. India stands at the second position in terms of gold import globally, after China. The country imports gold in the form of gold bars, which is governed by the Reserve Bank of India (RBI), the central bank. Amid the pandemic, India has imported the precious metal worth $34.6 billion in the last fiscal, against $28.2 billion in the previous fiscal. This year too, India has increased its gold imports massively, although the prices are muted than earlier levels.
According to the latest Union Budget, gold now attracts 7.5% customs duty, which was a reduction from earlier 12.5%. Indians import gold in bulk and to keep the price in control FM Nirmala Sitharaman took the decision that has been implemented in this fiscal. However, India now imposes a separate 2.5% cess on gold.
Rules on who can import gold in India?
The list of entities that can import gold in India is notified by the Directorate General of Foreign Trade (DGFT). An individual of Indian origin having a valid passport can import gold, only after an issue of license by the DGFT. The list of entities, who can import gold in the domestic market, follows:
Metals and Minerals Trading Corporation Limited (MMTC) Handicraft and Handloom Export Corporation (HHEC) Project and Equipment Corporation of India Limited (PEC) State Trading Corporation (STC) MSTC Limited STCL Limited Diamond India Limited (DIL) Gems & Jewellery Export Promotion Council (G&J EPC) Star Trading House (only for Gems & Jewellery sector) or a Premier Trading House Any other agency authorized by the RBI
For the consignments of the yellow metal, the importers have to submit the report of their utilization and proof of evidence to the Central Excise Office of India. The Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance ascertains the gold import regulations in India. This year, CBIC has exempted gold and silver imported under export promotion schemes from Agriculture Infrastructure and Development Cess (AIDC), in the public interest.
Returning Indians who have been out of India for more than 6 months and are returning home, can import gold but have to pay duty in the convertible foreign currency. Important banks like the SBI, including a few foreign banks, are also allowed to import gold and silver at the normal duty.
Restrictions on gold imports
Indian entities have to import gold in the form of gold bars, and the form of coins and medallions is prohibited by the RBI. Imports of the yellow metal should be routed through only custom bonded warehouses. One entity cannot import more than 10 kg of gold (including ornaments) per passenger. Entities under the SEZ and EOUs, Premier and Star Trading Houses are permitted to import gold only for exports, and not for any other purpose. No gold ornament studded with stones and pearls is permitted.
To import gold, entities can check schemes offered by the State Trading Corporation (STC) of India, a union government enterprise; STC imports gold of 100 gm and 1 Kg bars with 0.995 and 0.999 purity, for traders or jewellery manufacturers.
Which country is the largest gold exporter to India?
Switzerland, Saudi Arabia, and China are those countries to export a large amount of gold to India. In earlier years the middle eastern countries always remained the major source of India’s gold. However, Switzerland, in the last fiscal strengthened its position as India’s one of the most significant import partners because of increasing gold imports from the country and replaced Saudi Arabia to become the 4th largest import partner of India. Gold imported from Switzerland accounted for almost half of India’s total gold imports. On the other hand, Dubai, the gold city is also a significant place from where India imports gold.
Gold under the government reserve
Robust promotion of RBI’s Sovereign Gold Bond scheme, Gold ETFs, and digital gold purchases have muted the demand for physical gold only a bit. The increasing price of gold has influenced investors to focus on the long-term return from gold, and not only on gold ornaments. But in the case of digital gold or SGB, RBI has to store gold at their warehouses. So, to meet the increased demand, RBI has imported a record amount of gold from the foreign market. These golds are not imported by other entities but directly purchased by the RBI.
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Story first published: Monday, September 13, 2021, 19:52 [IST]
Having struck the largest fintech deal in the country with the acquisition of BillDesk, PayU India is now looking to explore small-ticket financial offerings and embedded finance for gig workers.
The company is currently piloting credit offerings for the SMB segment, Anirban Mukherjee, CEO, PayU India, said.
“Our goal is to become one of the leading payment companies by innovating digital credit and payments through partnerships and building together a full ecosystem of various financial services. On the digital credit front, we have already bought PaySense and merged it with LazyPay. We are at present experimenting with SMB credit and revolving credit. The demand is massive, and the segment is underserved,” Mukherjee told BusinessLine.
Strategic invetments
In its attempt to become a full services fintech player, PayU has been regularly making strategic investments in various fintech start-ups operating in different segments including DotPe, Fisdom and Indiagold. Mukherjee added that the company will continue to make similar investments, without disclosing specific capabilities he will be on the lookout for.
He believes that using LazyPay-based systems, consumers with little credit history will pave the way that PayU will take in the future. “We were the pioneers in ‘buy now, pay later’ segment. We are trying to do many things. Technological enhancements enable us to offer simple and lower ticket size products at various price points. We offer merchants overnight lending. We will also be exploring embedded finance for gig workers,” he said.
With embedded finance, unbanked population will get access to payment and lending products through the company’s platforms without needing to have or attach bank accounts.
BillDesk’s acquisition has boosted PayU’s journey in many ways. While PayU has been powering transactions for several internet economy companies, BillDesk has been a clear market leader in payment technologies space enabling over 50 per cent of the billing transactions in the country. The company also has been a key service provider to the BFSI sector and government organisations.
“This deal makes PayU one of the leading companies for digital payments. It gives us massive scale, and it will enable us to process 4 billion transactions together. It also creates scope for much more innovations and at that kind of scale, it will be very significant,” Mukherjee said.
The BillDesk team and founders will continue to be a part of the business even as PayU takes charge.
“India accounts for more than 50 per cent of our business and we are leaders in seven markets out of the 20 we operate in. BillDesk’s products have global applicability and with PayU partnership, we can take those innovations and platforms global,” he added.
The Consumer Price Index-based Inflation (CPI) or retail inflation for August, 2021 has eased at 5.30%, compared to 5.59% in July, according to the National Statistical Office (NSO) data, published today. Consumer Food Price Inflation (CFPI) for August is at 3.11%, compared to 3.96% in the previous month.
Food prices, mostly in vegetables eased this month that led to that improvement in CPI. In addition to that, Aditi Nayar, Chief Economist of ICRA commented, “The welcome decline in the CPI inflation in August 2021 was broad-based, led by all the components except clothing and footwear, and fuel and power. Contrary to our apprehension, the CPI inflation receded appreciably, led by lower than expected food inflation.” The core-CPI inflation eased to 5.5% in August from 5.7% in July. However, the heading price of edible oil is a concern still now, which registered a hike of 33% (y-o-y).
Madhavi Arora, Lead Economist, Emkay Global Financial Services commented to GoodReturns, “Today’s CPI inflation surprise is lower by our estimates by 30bps, led by sequentially lower than expected food inflation. However, the core remains high and sticky. Core inflation may remain under pressure amid the lagging impact of passing on of high global commodities and margin pressures.” She also thinks that the ensuing demand revival in contact-sensitive household services amid reopening could pressure core services inflation ahead. Overall, core inflation will likely remain sticky ahead and will likely outdo headline inflation through the year.
The surge in fuel costs and transportation costs led to high inflation rates in the domestic market, this fiscal. But since July, the CPI inflation came under control, within the Monetary Policy Committee’s (MPC) target range. The CPI inflation has been above 6% in the 1st quarter of this fiscal, in May it was at a high of 6.30%.
Madhavi Arora later added, “The headline CPI may average almost 60 bps lower than the RBI’s forecast of 5.7%. With the monetary reaction function currently hinging more on growth revival becoming sustainable, the RBI is unlikely to change key policy rates this year and the focus will be more on surplus liquidity management.
According to government sources, India’s Kharif food grain production is likely to touch a new record of over 150 million tonnes in 2021-22 crop year. With better food grain productions and easing fuel prices in the country, inflation should improve in the next quarters.
However, Aditi Nayar is expecting a policy normalization in February, next year, “with a change in the stance of monetary policy to neutral from accommodative, followed by a hike in the repo rate of 25 bps each in the April 2022 and June 2022 meetings.”
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Story first published: Monday, September 13, 2021, 19:24 [IST]
The Reserve Bank had announced opening of the Second Cohort under Regulatory Sandbox vide Press release dated December 16, 2020 for Cross Border Payments.
The Reserve Bank received 27 applications from 26 entities of which eight entities have been selected for the ‘Test Phase’. The entities, as per details below, shall commence testing of their products from the third week of September 2021.
Sr. No.
Sandbox Entity
Description
1
Book My Forex Private Limited
The product facilitates fully online outward cross-border remittances to bank accounts and debit/ prepaid cards overseas using VISA Direct and Master Card Send via digitisation of the process including digital KYC/ AML verification.
2
Cashfree Payments India Private Limited
The product extends a cross-border payment platform to facilitates the purchase of assets listed on foreign exchanges (e.g NASDAQ) like publicly listed shares, exchange-traded funds i.e. ETFs and units of mutual funds, securities by Indian investors via local payment methods.
3
Fairex Solutions Private Limited
The product provides an aggregation platform of leading cross-border payment providers for outward remittance.
4
Flyremit Private Limited
The product is an online outward cross-border remittance platform for individuals as well as for businesses and facilitates digitization of the remittance process including digital KYC verification.
5
Nearby Technologies Private Limited
The product ‘Paynearby’ facilitates routing the inward cross-border remittance to the beneficiary’s Aadhaar number as a virtual bank account using existing RDA mechanism.
6
Open Financial Technologies Private Limited
The product proposes a Blockchain-based Cross border payment system, leveraging the current infrastructure and ensures frictionless and tamperproof monitoring capabilities.
7
SoCash India Private Limited
The product is primarily aimed at inbound and outbound tourists to/from India to facilitate cross-border retail merchant payments and cash withdrawal at select merchant outlets in India and Singapore.
8
Wall Street Finance Limited
The product ‘WSFx SecuSmart REMIT’ facilitates contactless outward cross-border remittances with digital customer onboarding and remittance processing through a complete digital process.
The Chairpersons/ CEOs of all the Regulated Entities
Madam/Dear Sir,
Implementation of Section 51A of UAPA, 1967: Updates to UNSC’s 1267/ 1989 ISIL (Da’esh) & Al-Qaida Sanctions List: Deletion of one entry
Please refer to Section 51 of our Master Direction on Know Your Customer dated February 25, 2016 as amended on May 10, 2021, in terms of which “Regulated Entities (REs) shall ensure that in terms of Section 51A of the Unlawful Activities (Prevention) (UAPA) Act, 1967, they do not have any account in the name of individuals/entities appearing in the lists of individuals and entities, suspected of having terrorist links, which are approved by and periodically circulated by the United Nations Security Council (UNSC).”
2. In this regard, Ministry of External Affairs (MEA) has now forwarded the following Press Release issued by the United Nations Security Council (UNSC) Committee established pursuant to Resolutions 1267 (1999), 1989 (2011) and 2253 (2015) concerning ISIL (Da’esh), Al-Qaida, and associated individuals, groups, undertakings and entities regarding changes in the List of individuals and entities subject to the assets freeze, travel ban and arms embargo set out in paragraph 1 of UNSC resolution 2368 (2017), and adopted under Chapter VII of the Charter of the United Nations.
Note SC/14622 dated 06 September 2021 regarding removal of one individual QDi.253 Name: 1: KHALIFA 2: MUHAMMAD 3: TURKI 4:AL SUBAIY] from UNSC’s 1267/ 1989 ISIL (Da’esh) & Al-Qaida Sanctions List.
5. As per the instructions from the Ministry of Home Affairs (MHA), any request for delisting received by any Regulated Entity (RE) is to be forwarded electronically to Joint Secretary (CTCR), MHA for consideration. Individuals, groups, undertakings or entities seeking to be removed from the Security Council’s ISIL (Da’esh) and Al-Qaida Sanctions List can submit their request for delisting to an independent and impartial Ombudsperson who has been appointed by the United Nations Secretary-General. More details are available at the following URL: https://www.un.org/securitycouncil/ombudsperson/application
6. In view of the above, REs are advised to take note of the aforementioned UNSC communication and ensure meticulous compliance.
The Reserve Bank of India has cautioned members of public against frauds being perpetrated by fraudsters under the garb of KYC (know your customer) updation.
The central bank, in a statement, said members of public should not share account login details, personal information, copies of KYC documents, card information, PIN, password, OTP, etc. with unidentified persons or agencies.
Further, such details should not be shared through unverified/ unauthorised websites or applications. In case they receive any such requests, customers are requested to get in touch with their bank/ branch.
RBI’s caution comes as it has been receiving complaints/ reports about customers falling prey to frauds being perpetrated in the name of KYC updation.
The usual modus operandi in such cases include receipt of unsolicited communication such as calls, SMSs, emails, by customer urging him/her to share certain personal details, account / login details/ card information, PIN, OTP, etc. or install some unauthorised/ unverified application for KYC updation using a link provided in the communication.
The central bank said such communications are also reported to carry threats of account freeze/ block/closure. Once customer shares information over call/ message/ unauthorised application, fraudsters get access to customer’s account and defraud him/ her, it added.
Periodic KYC updation
The RBI also clarified that while the Regulated Entities (REs) are required to undertake periodic updation of KYC. It said the process of periodic updation of KYC being simplified to a large extent.
Further, REs have been advised that in respect of customer accounts where periodic updation of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator/ enforcement agency/court of law, etc.
