Reserve Bank of India – Press Releases
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Author: root
Rana Kapoor’s wife, daughters remanded to judicial custody, BFSI News, ET BFSI
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A special CBI court in Mumbai on Saturday denied bail to the wife and two daughters of Yes Bank founder Rana Kapoor in a quid-pro-quo case involving private sector lender DHFL and remanded them to 14-day judicial custody.
Kapoor’s wife Bindu and daughters Radha Khanna and Roshini have been named as accused in charge sheets filed by the probe agency in the case, and the court, after taking cognizance of the charge sheet, had summoned the trio.
The three appeared in court and filed for bail through their legal team comprising Vijay Agarwal and Rahul Agarwal, who argued that the charge sheet was filed without Bindu, Radha and Roshni being arrested, and, therefore, as per a Supreme Court judgement, they deserve to be granted bail.
Vijay Agarwal further argued that the court had already exercised the discretion of issuing summons to his clients, which clearly shows there is no need for their arrests.
However, Special Judge S U Wadgaonkar rejected their bail applications and sent them to judicial custody till September 23.
After the prosecution submitted that the jail superintendent wouldn’t accept the custody of the accused without an RTPCR report, the court allowed the probe agency to keep the three in judicial custody till it was received.
As per the Central Bureau of Investigation, Kapoor, who is in jail in a related case being probed by the Enforcement Directorate, entered into a criminal conspiracy with DHFL’s Kapil Wadhawan.
The CBI has stated that between April and June, 2018, Yes Bank invested Rs 3,700 crore in short-term debentures of Dewan Housing Finance Corporation Ltd (DHFL).
In return, DHFL’s Wadhawan allegedly “paid kickback of Rs 600 crore” to Kapoor in the form of loans to DoIT Urban Ventures, a firm controlled by Kapoor’s wife and daughters.
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Y Combinator-backed inai raises $4 million in seed round
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Fintech SaaS startup inai has raised around $4 million in a seed round led by Berlin-based Paua Ventures and 9Unicorns.
Uncommon Capital, Soma Capital, Anarko ventures, Better Capital, and Gemba Capital along with angel investors — Sriram Krishnan, Lenny Rachitsky, Matt Robinson (Founder GoCardless, Nested), Louis Beryl (Rocketplace, Earnest) , Charlie Delingpole (Founder Comply Advantage), Naren Shaam (Founder Omio) and Kunal Shah (Founder CRED) — also participated in the round.
Founded by serial entrepreneurs Anantharaman Pattabiraman and Karthik Narayanan in May this year, inai is in the payments segment: inai is a no/low code platform that connects with multiple payment methods and payment gateways or processors in one simple integration. It allows merchants to manage checkout, payments, subscriptions, refunds, cancellations, chargebacks across the globe along with the ability to orchestrate any business logic such as localising the checkout by region, routing transactions intelligently or having failover logic to recover more transactions without needing any further developer involvement. Merchants can also connect with BI tools, fraud providers, invoicing and tax tools.
Strengthen tech team
inai will utilize the fresh capital to strengthen its technology team, expand its product portfolio, and build out their sales and marketing. The start-up is part of Y Combinator’s Summer 2021 cohort for start-ups.
Anantharaman Pattabiraman and Karthik Narayanan, Founders, inai, said, “While running our previous DTC business, we realised that with e-commerce going increasingly cross-border, optimising the checkout experience for the customer in each market is extremely important. inai allows merchants to go live within 60 minutes with an international payment stack that is optimised for every market they want to operate in and take control of their payment data. In addition, inai provides a rich software layer to support different subscription models for an e-commerce merchant or a SaaS business to sell across multiple geographies and localise the checkout experience.”
Also see: Tummoc raises $540,000 in seed funding round from angel investors
Federico Wengi , Partner at Paua Ventures said, “As the online payments tech-stack gets more sophisticated with new local payment methods, BNPL solutions (buy now pay later) and e-wallets, companies look for solutions to simplify and coordinate online payments. Inai taps into this large opportunity by offering a no-code software solution to simplify online payments once and for all.”
Dr Apoorva Ranjan Sharma, Co-founder & Managing Director, 9Unicorns, said, “The key differentiating factor of this platform is that it enables merchants to set up their payment stack with a single integration. Merchants are not required to write any code, which makes it easier for start-ups and e-commerce businesses to ramp up their operations without any technical expertise. In an increasingly digital economy like Asia, where e-commerce and cross border e-commerce is on an upward growth trajectory, inai is well-poised to capitalize on the cross border payments market.”
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Credit card issuances, spends see sharp uptick as festive season nears, BFSI News, ET BFSI
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Credit card firms are witnessing a sharp rebound in new card issuances and spends as lockdowns and restrictions ease across geographies.
On a year to date basis, the credit card industry witnessed a sharp improvement in spends, albeit on a marginally lower base in July. New card sourcing picked up momentum, supporting Cards-in-Force (CIF) growth of 10% YoY. In July 2021, the business volumes grew by 38% year on year, which was aided by the increasing shift towards online spending. Spends grew a robust 78% YoY. The new customer additions have shown an improvement in MoM and are expected to improve further thus aiding CIF growth.
Amongst the private banks, ICICI Bank continued to remain a clear outperformer registering a growth of 23%/145% YoY in CIF/Spends on a YTD basis. This resulted in the market share improvement of 190/503bps YoY in CIF/Spends to 17.7%/18.4% respectively. New card additions were the highest for ICICI at 655,000 during this fiscal
SBI Cards
SBI Cards picked up momentum with new card additions of 198,000 being the highest in the past 16 months, resulting in a CIF growth of 14% YoY. During YTDFY22, spends grew by 68% YoY, supported by a lower base a year ago. July 21 business volumes are encouraging and with the COVID 2.0 impact waning, the growth momentum is likely to sustain. Business volumes remained strong growing at 40% YoY in July 2021 and 46% on a YTD basis.
While HDFC Bank remains the market leader with a 20%+ market share in CIF/spends each, it continued to underperform as the credit card vertical was impacted due to the RBI’s restrictions on new card sourcing. However, with the RBI permitting the issuance of new cards, the company is expected to improve its performance. On a YTD basis, the performance remained muted with CIF remaining flat YoY and spends registering a growth of 60%, favoured by a lower base. The bank’s customer base came down by 222,000 customers in YTDFY22.
AU Small Finance Bank, a new entrant in the credit card space since November 2020 has witnessed a strong pick-up (albeit the low base) since the commencement of the business. While the bank holds a negligible market share in terms of CIF/Spends which currently stand at 0.04/0.02% respectively on a YTDFY22 basis, increasing traction in the credit cards vertical would aid revenue streams for the bank.
The outlook
“The relaxations in the Covid related lockdowns and a gradual pick-up in the economic activities have aided a strong revival in spends, new sourcing, and business volumes in July 21. The forthcoming festive season will lend further support to the picked-up momentum in the spends and new customers sourcing. However, a possible Covid 3.0 remains a key risk. We continue to believe that Citi Bank’s exit from the credit cards business along with the domestic corporate loan recovery cycle yet to pick up, provides good growth opportunities for the credit cards business, supported by improving macro-conditions,’ Axis Securities said in a note.
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Reserve Bank of India – Press Releases
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Reserve Bank of India – Tenders
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The Captioned meeting was held at 3.00 p.m. on September 15, 2021 through WebEx in the Board Room on the third floor of the Bank’s Main Office Building at Bakery Junction, Thiruvananthapuram. List of participants are indicated below: (a) List of Bank’s Officials who attended the meeting
(b) Architect appointed by Bank
(c) List of Contractors’ representatives who attended the meeting
2. Shri V Jayaraj, Assistant General Manager welcomed the participants to the meeting and invited queries, if any, from the prospective bidders regarding the captioned tender. The details of queries raised by the Contractors and clarifications / comments of the Bank are tabulated below:
Bidders shall note that all the above clarifications provided by the Bank during the pre-bid meeting along with details indicated in the Tender document shall form part of the contract. 3. Shri V Jayaraj, Assistant General Manager thanked the participants for attending the meeting. The meeting concluded at 3:50 pm. Regional Director |
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How Senior Citizens Over The Age of 65 Years Can Open NPS Account?
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Choice of Pension Fund (PF) and Asset Allocation
When a subscriber joins NPS beyond the age of 65, he or she has the option of choosing between pension fund (PF) and Asset Allocation, with a maximum equity allocation of 15% and 50% under Auto and Active Choice, respectively. The pension fund can be modified only once a year, while the asset allocation can be adjusted two times a year. Below are the two investment options under NPS for subscribers over 65 years of age.
Auto Choice:
The maximum allocation to the equity asset class in (%) under this investment option is as follows:
| Asset Class in per cent | Asset Class in per cent | Asset Class in per cent | ||
|---|---|---|---|---|
| Sl. No. | Auto Choice | Equity (E) | Corporate Bonds (C) | Government Securities (G) |
| 1 | Aggressive Life Cycle Fund (LC 75) | 15 | 10 | 75 |
| 2 | Moderate Life Cycle Fund (LC 50) | 10 | 10 | 80 |
| 3 | Conservative Life Cycle Fund (LC 25) | 5 | 5 | 90 |
| Source: http://www.npstrust.org.in/ |
Active Choice:
The limit on equity allocation is 50%, while the remainder of the asset classes is as follows:
| Cap on Asset Class | Cap on Asset Class | Cap on Asset Class | Cap on Asset Class | |
|---|---|---|---|---|
| Active Choice | Equity (E) | Corporate Bonds (C) | Government Securities (G) | Alternate Investment (A) |
| Percentage of Allocation | 50% | 100% | 100% | 5% |
| (Alternate Investment as asset class not provided under Tier II), Source: http://www.npstrust.org.in/ |
Exit and withdrawal rules
Subscribers who join NPS after the age of 65 will be subject to the following exit rules:
Normal Exit shall be after 3 years: The subscriber must use at least 40% of the corpus to buy an annuity, with the remainder available for withdrawal as a lump sum settlement or withdrawal. If the corpus is equal to or less than Rs 5.00 lakh, the subscriber can then choose to withdraw the whole accrued pension fund in a lump sum.
Premature exit: Premature exit is defined as existing before the conclusion of three years. The subscriber is obligated to use at least 80% of the corpus for annuity purchase and the remainder can be withdrawn in a lump sum according to the premature rules under NPS. If the corpus is equal to or less than Rs 2.5 lakh, the subscriber can then choose to withdraw the whole accrued pension fund in one single amount or lump sum.
In case of death: In the event of the subscriber’s unfortunate death, the whole corpus will be reimbursed in one single payment or lump sum to the enrolled nominee.
| Type of Exit | Lump sum withdrawal (Maximum) | Annuity (Minimum) |
|---|---|---|
| Normal Exit (if Corpus > Rs 5 Lakh) | 60% | 40% |
| Pre-Mature Exit (if Corpus > Rs 2.5 Lakh) | 20% | 80% |
| Unfortunate Death of the Subscriber | Entire corpus payable to the nominee as lump sum | |
| Source: http://www.npstrust.org.in/ |
Tax benefits under NPS
Under NPS a subscriber can receive a tax advantage under Section 80 CCD (1) up to a maximum of Rs. 1.5 lac under Section 80 CCE. NPS subscribers are eligible for an additional deduction of up to Rs. 50,000 for contributions in NPS (Tier I account) under section 80CCD (1B). This would be an additional tax benefit to the Rs. 1.5 lakh deduction provided under Section 80C of the Income Tax Act of 1961.
Except for the tax breaks provided under Section 80CCD, subscribers can withdraw funds from their NPS tier I account in part before reaching the age of 60 for specific cases where the amount is withdrawn up to 25% of the subscriber’s contribution is tax-free. The amount contributed for the purchase of an annuity, on the other hand, is completely tax-free.
The annuity benefit you get in subsequent years will be taxable. Only after the subscriber reaches the age of 60, up to 40% of the overall corpus withdrawn in lump-sum is tax-free under NPS Tier I account. Contributing in a Tier II NPS Account, however, does not offer any tax deduction.
How to open an NPS account?
By following the ways and steps mentioned below one can open an NPS account effectively.
By visiting POP-SP
Any Indian citizen between the ages of 18 and 70 can open an NPS account at any POP-SP. An individual can get a PRAN application form from any of the Point of Presence – Service Providers (POP-SP) filing which he or she can submit the form for account opening. He or she then must make sure that the form is duly filed without any error including passport size photograph, signature, PAN number, and other details such as KYC documentation such as proof of identity and proof of address.
To submit the duly filed PRAN application along with the KYC documents the individual needs to visit his or her local or nearest POP-SP. The CRA will deliver your PRAN card to your correspondence address. POP-SP will issue you a receipt number after you submit your PRAN application. The individual can verify the status of his or her PRAN application by visiting https://cra-nsdl.com/CRA/pranCardStatusInput.do. While submitting the request for registration with any POP-SP, the individual must make the initial contribution of Rs 500.
Through eNPS
Individuals can use PAN & Bank credentials to open an NPS account online by visiting eNPS. Bank/Demat/Folio Account details for KYC validation for subscriber registration by ENPS with the approved bank or non-bank. Based on your selection made throughout the registration procedure, the KYC of the individual will be verified by the Bank/Non-Bank POP. For more information, subscribers can click here.
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HDFC Bank, Paytm set to launch co-branded credit cards
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HDFC Bank and Paytm on Monday announced plans for launching a comprehensive range of credit cards powered by Visa.
“The partnership aims to provide one of the widest range of offerings across customer segments, with a special focus on millennials, business owners and merchants,” said a statement.
Customised cards
The credit cards will be customised to meet distinct needs of retail customers, from new-to-credit users to affluent users, and will offer one of the best-in-class rewards and cashback for users, it further said, adding that the new cards offering will also facilitate small business owners.
Also see: Banks geared for card tokenisation
The launch is planned in October 2021 to coincide with the festive season to tap into potentially higher consumer demand for credit card offers, EMIs and Buy Now Pay Later options, with the full suite of products to be on offer by the end of December 2021.
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Non-industrial sectors dominate non-food credit growth since 2014
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The overall non-food credit growth during the period 2014-15 to 2020-21 was almost entirely driven by expansion of credit to non-industrial sectors, particularly lending to the retail segment in the form of personal loans, per an article in the Reserve Bank of India’s latest monthly bulletin.
Active participation of both the dominant-group (including six leading banks on the basis of their share in total non-food credit) and the other-group of banks (which includes the remaining 27 banks) is driving credit growth to the non-industrial sectors, according to an analysis of 33 select banks by RBI officials Pawan Kumar, Manjusha Senapati and Anand Prakash.
Impact of Covid
The authors observed that credit extended by the other-group to the industrial sector was affected significantly due to Covid-19 but the performance of this group is better than the dominant-group as far as credit to agriculture and services sectors is concerned.
They said that, “The sharp slowdown in industrial credit, especially by other-group of banks, warrants attention and steps to step up credit offtake commensurate with appropriate risk-taking, a number of which have already been taken by the Government and the Reserve Bank, could defreeze the credit market for the industrial sector and help in reviving the growth momentum derailed by the Covid-19 pandemic.”
After witnessing a significant slowdown in credit offtake during 2019-20 and 2020-21, there has been some uptick in credit growth in the recent months notwithstanding the second Covid wave, which augurs well for the economy, the authors said.
Credit boom period
According to the article, bank credit growth has witnessed significant fluctuations in the past one and half decades.
“The period between 2007-08 to 2013-14 could be characterised as bank credit boom period in the Indian economy, as non-food credit registered double digit growth, primarily driven by robust credit growth to the industrial sector,” the authors said.
Both dominant-group and other-group of banks lent aggressively to the industrial as well as other sectors.
Within industries, infrastructure, and basic metal & metal product industries accounted for a major portion of credit offtake from both the bank groups during the credit boom period.
Credit cycle reversal
Thereafter, however, the credit cycle reversed along with a shift in the sectoral deployment of bank credit.
“During 2014-15 to 2020-21, overall credit growth decelerated, primarily driven down by reversal in credit growth to the industrial sector because of deleveraging by non-financial firms, increasing dependence on non-bank sources for financial resources, and some risk aversion on the part of banks, especially by the other-group of banks to lend to industries, which got further compounded after the outbreak of Covid-19 pandemic,” the authors said.
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Buy This Liquor Stock With A 32% Upside, Says ICICI Direct
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Globus Spirits: Key triggers for future price performance
- GSL’s capacity is scheduled to more than double in the next two years, from 16 crore litres in FY21 to 33 crore litres. Once commercialised, the management’s objective of establishing capacity in ENA deficient areas (West Bengal, Bihar, Jharkhand, etc.) would allow for faster utilization at the greater realization.
- Following the commercialization of capabilities, management plans to expand its consumer business in the states (which accounts for 50% of FY21 revenues) by supplying items at various price points and enhancing its range of offerings to appeal to a variety of tastes.
- Consumerization of its ENA capacity enhances asset turnover as well as per-unit volume realization, offering a strong boost to return ratios.
- The government accelerated the 20 percent blending objective to 2025, resulting in increased ENA diversion to ethanol and creating structural support for ENA prices by drying up surplus capabilities.
- GSL has seen high FCF inflow as a result of changing dynamics in the liquor business.
Target Price & Valuation
“Globus Spirits has benefited from changing dynamics in the liquor industry (inflation in ENA prices and growth in the IMIL area due to greater quality, higher strength, and attractive product positioning). The management has been on the cutting edge of seizing chances.
We remain bullish on the stock and continue to suggest BUY.
Target Price & Valuation: On FY23E EPS, we value the stock at Around 1750, or 17x P/E,” the brokerage has said.
According to ICICI Direct, the IMIL segment accounted for 42 percent of consolidated revenues, with bulk alcohol (45 percent) and others accounting for the rest. Rajasthan accounts for 80% of all IMIL sale.
Key Risk
Below are the two key risks, according to the brokerage;
(i) Hardening of raw material prices,
(ii) Extension of state lockdowns
Despite the record yield, management has reverted to allocating incremental capital to its core strength of building newer ENA capacities and gradually expanding its consumer portfolio, rather than being swayed by ambitions to allocate more capital to the premium portfolio.
Disclaimer
The above stock is picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. Please consult a professional advisor.
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