Month: October 2021

Banking sector experts said that most of these merchants offering various bouquet of service have migrated to the new Standard Instruction Platform put in place by the banks in the country. This would mean that payment instruction to these compliant vendors would have to be revalidated once and it would move seamlessly in subsequent months without any hindrance to the service.

As part of measures to secure recurring transactions made by customers using their cards, the Reserve Bank of India (RBI) has mandated new auto-debit rules that have kicked in from October 1. The apex banks directive states that there will be no automatic recurring payment for various services including utility bills, recharge of phone, DTH, and OTT, among others as the additional factor of authentication (AFA) will become mandatory.

This created confusion initially as customers were flooded with messages to update their payment instruction or else such transactions would be declined from the beginning of October.

“We have not experienced any disruption in service or customer complaints over new system of recurring payments. Most banks are already compliant with new security measure and several large merchants have also updated their transaction systems and have joined the standard instruction platform of banks. Some merchants are still non compliant to the changes and customers would have to authorize payments under an additional factor of authentication (AFA),” said a senior executive from country’s largest private sector bank asking not to be named as he was not authorized to speak to media.

The new RBI rules will not impact any standing instructions registered using bank accounts for mutual funds, SIPs, equated monthly instalments. It will also not impact payment to complaint merchants.

Customers will have to go through a one-time registration process, and subsequent transactions can be performed without the additional factor authentication.

While registering, customers can now provide the validity period for future transactions. For recurring payments above Rs 5,000, banks are required to send a one-time password to customers as per the new guidelines.

–IANS

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“On the whole we would require $2 billion for FY22. We may tap the bond market in January again subject to favourable market conditions,” Bangari added. The export credit agency is looking at raising $1 billion.

Exim borrows $2-3 billion annually on average. The exact quantum would depend on demand. “We have already borrowed around $1 billion, mostly on the bilateral market,” Bangari says. Bilateral market borrowing gives the borrower an advantage of 15-20 basis points over bonds in terms of pricing. Exim has factored in a loan book growth of 8-10 per cent for FY22, higher than its earlier forecast of 5-7 per cent made in May 2021.

“A stable outlook gives us a lot of comfort. I hope investor appetite gets much better. We are getting a pricing that is given to a higher rated entity. Besides, Exim would also be borrowing Rs 15,000-20,000 crore from the domestic market.”

Exim Bank is also seeing some improvement in the asset quality. “It is much better than the last two-three years. There are a few accounts that have slipped and are very much in the bank’s radar,” Bangari says. As part of a consortium, the bank has identified nine accounts worth Rs 700-800 crore to be transferred to the National Asset Reconstruction Company (NARCL).

Exim Bank’s slippage ratio improved to 1.52 per cent in FY21 from 1.94 per cent in FY20. Net NPA stood at 0.51 per cent from 1.77 per cent in FY20. Bangari says the provision coverage ratio was at over 95% last year & will be higher this fiscal.

It has received a capital support of Rs 750 crore from the government of India so far, against the budgeted amount of Rs 15,00 crore.