Category: Banking & Finance

Union Bank of India, Syndicate Bank post highest UPI failure rates; Paytm sees lowest decline rate

Banking & Finance

[ad_1]

Read More/Less


Andhra Bank and Indian Bank recorded the second and third highest TD rate of 10.40 per cent and 9.83 per cent respectively in January.

Public sector lender Union Bank of India continued to witness the highest failure rate for UPI transactions among India’s top 30 UPI remitter banks due to technical reasons in January. From 10.75 per cent technical decline (TD) in December, the failure rate jumped to 12.89 per cent in January for Union Bank of India, data from the National Payments Corporation of India (NPCI) showed. 85.95 million UPI transactions were processed by Union Bank of India during the month out of which nearly 80 per cent were approved while 7.36 per cent were declined due to reasons including invalid pin entered by customer, incorrect beneficiary account, exceeding per transaction limit or permitted count of transactions per day or amount limit for the day, etc. Andhra Bank and Indian Bank recorded the second and third highest TD rate of 10.40 per cent and 9.83 per cent respectively in January.

Among the top 30 UPI beneficiary banks (bank of the account holder who is receiving money) as well, Indian Bank recorded the second-highest TD rate of 5.50 per cent while Syndicate Bank topped the tally with 8.65 per cent. Karnataka Bank posted the third-highest TD rate of 3.18 per cent among UPI beneficiary banks in January. State Bank of India, which posted the highest TD rate of 9.08 per cent in December, improved it to 1.52 per cent in January.

Also read: Flipkart leads Q4FY21 international net sales for Walmart

Paytm Payments Bank recorded the lowest TD rate of 0.05 per cent on 145.61 million transactions in January among remitter banks. In terms of transaction volume, the top remitter banks were SBI (664.75 million), HDFC Bank (206.65 million), Axis Bank (173.38 million), and ICICI Bank (152.06 million). Among beneficiary banks, CITI Bank saw zero transactions failing due to technical reasons on 5.94 million transactions. Paytm Payments Bank (368.90 million), SBI (354.61 million), Yes Bank (273.95 million), ICICI Bank (237.59 million), and Axis Bank (207.61 million) saw the highest volume among beneficiary banks.

Walmart-owned digital payments company PhonePe was the highest UPI app in January processing processed 968.72 million UPI transactions involving nearly Rs 1.92 lakh crore. PhonePe volume was more than 100 million transactions higher than Google’s 853.53 million transactions worth Rs 1.77 lakh crore. Paytm Payments Bank, however, remained the distant third player with a volume of 332.69 million worth Rs 37,845.76 crore.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , , , , ,

SBI launches YONO Merchant app to tap retail, enterprise players

Banking & Finance

[ad_1]

Read More/Less


State Bank of India (SBI) is planning to deploy low-cost acceptance infrastructure across India over the next two years targeting two crore potential merchants across India in the retail and enterprise segments.

In this regard, India’s largest bank said its subsidiary, SBI Payments, is launching YONO Merchant App to expand the digitisation of merchant payments in the country.

Also read: SBI employees’ body expresses concern over target via digital platform YONO

SBI, in a statement, said the launch of the app is in line with the Reserve Bank of India’s recent announcement of creating a Payments Infrastructure Development Fund (PIDF) to encourage acquirers to deploy Point of Sale (PoS) infrastructure (both physical and digital) in lesser penetrated areas of the country.

Merchants will now be able to turn their near field communication (NFC)-enabled Android smartphones into payment acceptance devices through a simple mobile app, it added.

Following the deployment, merchants will also be able to access details of transactions, generate reports, and upload transactions for processing, among others, through SBI’s mobile application, besides accepting payments on their mobile device.

Dinesh Kumar Khara, Chairman, SBI, observed that the bank’s YONO platform, which was launched three years ago, has 35.8 million registered users.

“YONO Merchant is a brand extension of this platform aiming to improve user experience and bringing convenience to our merchants.

“In the next two to three years, we are aiming to digitise millions of merchants by upgrading their mobile phones into a PoS device accepting all form factors, accessing value-added services such as loyalty, GST invoicing, inventory management, and connecting into an interface to avail other banking products at a click of a button,” Khara said

Giri Kumar Nair, MD & CEO, SBI Payments, said his company is aiming to grow its merchant touch points multi-fold crossing 5-10 million (50 lakh- one crore) within two to three years.

According to the statement, SBI has partnered with Visa, on the ‘Tap to Phone’ feature, which aims to give the necessary boost to scale up acceptance infrastructure across the country.

TR Ramachandran, Group Country Manager, India and South Asia, Visa, said, “Our partnership with SBI is aimed at empowering more merchants with low-cost, innovative, simple and secure ways of accepting digital payments.

“We are confident that with SBI’s presence around the length and breadth of the country, millions of consumers in smaller cities will be able to pay digitally and conveniently at their nearby stores.”

[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,

Deccan Urban Co-op Bank put under RBI ‘Directions’ as of Feb 19

Banking & Finance

[ad_1]

Read More/Less


The Reserve Bank of India (RBI) has issued Directions to Deccan Urban Co-operative Bank (Vijayapur, Karnataka), whereby, as from the close of business on February 19, 2021, deposit withdrawals have been capped at ₹1,000 per depositor.

“Considering the bank’s present liquidity position, a sum not exceeding ₹1000 of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn, but are allowed to set off loans against deposits subject to the conditions stated in the above RBI Directions.

Also read: Banks under Directions: Govt, RBI working on allowing depositors withdraw up to ₹5 lakh

“However, 99.58 per cent of the depositors are fully covered by the DICGC insurance scheme,” the central bank said in a statement.

According to the Directions, the chief executive officer of the bank shall not, without prior approval of RBI in writing grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, among others.

“The issue of the above Directions by the RBI should not per se be construed as cancellation of banking license by RBI.

“The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these Directions depending upon circumstances,” the central bank said.

Besides Deccan Urban Co-operative Bank, RBI has imposed directions on two other urban co-operative banks — Sarjeraodada Naik Shirala Sahakari Bank (Shirala, Sangli District, Maharashtra) with effect from close of business on February 3, and Independence Co-operative Bank (Nashik, Maharashtra) with effect from close of business on February 10 — since the beginning of 2021. .

According to the RBI’s report on Trend and Progress of Banking in India 2019-20 (released on December 29, 2020), since April 1, 2015, 52 UCBs have been placed under All Inclusive Directions by the RBI.

Of the total claims settled by the Deposit Insurance and Credit Guarantee Corporation (DICGC) since inception, around 94.3 per cent of claims pertained to co-operative banks that were liquidated, amalgamated, or restructured.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , , ,

Deccan Urban Co-op Bank withdrawals capped at Rs 1000 per customer; RBI bars from lending, investing

Banking & Finance

[ad_1]

Read More/Less


(Image- REUTERS)

The Reserve Bank of India (RBI) on Friday imposed a Rs 1,000 cap on withdrawals from all savings, current or any other accounts of Deccan Urban Cooperative Bank. The restrictions shall stay in force for a period of six months as RBI looks to improve the bank’s liquidity position, the central bank said in a statement late Friday. The curbs come into force from the close of business on Friday, February 19, 2021. The withdrawal limit imposed on the bank is similar to that imposed on PMC Bank, Lakshmi Vilas Bank, and Mantha Urban Cooperative Bank in the past.

Deccan Urban Co-operative Bank, a Karnataka-based lender, has also been barred from granting or renewing any loans and advances. It has also been barred from making any investment; incurring any liability including borrowal of funds and acceptance of fresh deposits; disbursing or agreeing to disburse any payment, whether in the discharge of its liabilities and obligations, or otherwise.

The move will also restrict Deccan Urban Co-operative Bank’s ability to enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI in its direction sent to the bank.

Although the withdrawal limit has been capped to just Rs 1,000 per account, RBI has said that depositors will be allowed to set off loans against deposits subject to some conditions. “The issue of the above Directions by the RBI should not per se be construed as a cancellation of the banking license by RBI. The bank will continue to undertake banking business with restrictions till its financial position improves,” the Reserve Bank of India said.

RBI had earlier in November last year imposed a penalty of Rs 1 lakh on Deccan Urban Co-operative Bank, for contravention of the directions issued by it on the prohibition of loans and advances to directors. The central bank has earlier placed similar restrictions on banks such as Yes Bank where the withdrawal limit was capped to Rs 50,000. Similarly, PMC Bank’s withdrawal limit was also capped to Rs 50,000 but was later revised t0 Rs 1 lakh. Lakshmi Vilas Bank was the latest in the line where the withdrawal limit was capped at Rs 25,000 per account.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,

RBI puts Rs 1,000 withdrawal cap on Deccan Urban Co-op Bank; fresh loans, deposits restricted, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The Reserve Bank on Friday said it has barred Karnataka-based Deccan Urban Co-operative Bank Ltd from granting fresh loans or accepting deposits and customers cannot withdraw more than Rs 1,000 from their savings account for a period of six months. The lender has also been asked not to make fresh investments or incur any liability without its prior permission.

The RBI said it issued the directions to chief executive officer of the bank on Thursday (February 18).

It has also asked the lender to desist from disbursing any payment whether in discharge of its liabilities or otherwise, or dispose of any of its assets except as notified in the RBI direction.

“Considering the bank’s present liquidity position, a sum not exceeding Rs 1000 only of the total balance across all savings bank or current accounts or any other account of a depositor, may be allowed to be withdrawn,” RBI said in a release on Friday.

It said customers can set off their loans against deposits subject to conditions.

“However, 99.58 per cent of the depositors are fully covered by the DICGC insurance scheme,” said the regulator.

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of RBI, provides insurance cover on bank deposits.

The RBI further said putting the bank under restrictions should not be construed as cancellation of its banking license.

The bank will continue to undertake banking business with restrictions till its financial position improves.

The Reserve Bank may consider modifications of the directions depending upon circumstances.

The directions are set to remain in force for six months from the close of business on February 19, 2021 and are subject to review, it added.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

PDs suffer in yield war between RBI and bidders

Banking & Finance

[ad_1]

Read More/Less


Government Securities (G-Sec) auctions are caught in a tug-of-war between bidders demanding higher yields and the Reserve Bank of India’s reluctance to concede that, leading to devolvement on primary dealers (PDs).

Of the four G-Sec auctions conducted since the Budget, only one (on February 11) was fully subscribed without PD support.

In the G-Sec auctions conducted since the Budget announcement, the RBI devolved G-Secs aggregating about ₹37,000 crore on PDs.

 

Borrowing target

Finance Minister Nirmala Sitharaman had announced in her Budget speech that the government would need to borrow another ₹80,000 crore in February-March and the gross borrowing from the market for FY22 would be around ₹12-lakh crore.

The market wants higher yields, but the central bank, which is the banker and debt manager to the government, wants to the keep the yields from rising as they have implications for the cost of government’s borrowing.

Rising G-Sec yields will have a ripple effect as the cost of borrowing of States and India Inc too will rise in sync.

Since January-end, the yield on the widely traded 10-year G-Sec (maturing in 2030 and carrying 5.77 per cent coupon rate) has increased by about 23 basis points to 6.1792 per cent, with its price declining by ₹1.59 to ₹97.1.

Referring to the devolvement of two G-Secs aggregating about ₹21,594 crore on PDs at Thursday’s auction, Marzban Irani, Chief Investment Officer – Fixed Income, LIC Mutual Fund, said: “The bids were on the higher side and the RBI wanted to give a signal that it was not comfortable at those yields. Hence, the auction got devolved.”

Market wants correction

Irani observed that the market wants the yields to correct. The yield curve across maturities such as 6 years, 7 years, 8 years, and 15 years has corrected but not the 10-year yield. Hence, the market wants the 10-year G-Sec yield to inch up, he added.

“The borrowing programme this year as well as next is on the higher side. Unless the yield curve gets corrected, there won’t be aggressive bidding at the auctions. The RBI will have to support via open market operations (OMOs) at regular intervals,” he said.

Hardening yields

Edelweiss Mutual Fund, in its latest bond market update, noted that G-Sec yields have hardened in anticipation of a mismatch in the demand-supply dynamics.

“The bond market was hoping that the RBI would guide the market with some sort of calendar for OMO bond purchase programme for the next year. However, the RBI has refrained from doing that.

“Perhaps they don’t want to pre-commit themselves at this point. However, the RBI said that the government’s borrowing programme will be concluded without any disruption. This is quite reassuring. However, the bond market is not convinced on this yet,” the report said.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,

General insurance sector may revive in Q4

Banking & Finance

[ad_1]

Read More/Less


The general insurance industry, which had witnessed a significant degrowth in business across various segments, including motor and health during the first quarter of FY21, is likely to turnaround and register positive growth in the fourth quarter of this fiscal.

Massive degrowth

According to Subramanyam Brahmajosyula, Head Underwriting & Reinsurance, SBI General Insurance, the industry had witnessed a massive degrowth in business during the first two to three months of the current fiscal, and most business segments other than fire, had registered a drop in growth.

However, from Q2 there was a gradual uptick in demand and the industry is hopeful of ending the year in a “good shape”.

The general insurance industry has registered a growth of around 2.76 per cent year-to-date up to January 2021 (10-month period from April 2020) compared to the same period last year. The non-life industry has been growing by around 13-15 per cent on a year-on-year basis for the last couple of years.

“While the growth rate is lower than the previous performance of the industry as a whole, considering what we saw in the initial stages, this is a good turnaround.

“We were initially worried that it may take two years or longer to bounce back to the kind of growth rate we were experiencing earlier, but now I am almost confident that we should be close to business as usual by next year in terms of growth rates,” said Brahmajosyula at an InsureInd event organised by the CII here on Friday.

While fire insurance has seen a growth of around 30 per cent, health and liability witnessed a growth of around 15 per cent each.

There has been a lot of interest and enquiries from customers about the various new lines of business, particularly on the liability side, and the industry should look to capitalise on it. Moving forward, the industry should focus on product innovation and enhancement.

“The pandemic has focussed our attention on the need to innovate and some of these learnings have become permanent part of the way we work,” he said.

While it is difficult to predict and price a pandemic like Covid, as an industry, insurers should be better prepared for a risk like this. There is also likely to be a higher demand for business interruption covers and the industry, either on its own or through reinsurance solution providers, should come up with something to address this demand.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Transporters to join Bharat Bandh on Feb 26

Banking & Finance

[ad_1]

Read More/Less


The All-India Transporters’ Welfare Association, the an apex body of the organised road transportation companies, has urged the government to abolish E-Way Bill and track vehicles by using Fast Tag connectivity to E-Invoice.

It has also appealed the government to scrap the penalty on transporters for any time-based compliance target of transit and make diesel prices uniform across the country.

With no proper response from the government on issues raised by the transporters’ association, AITWA has joined the one-day Bharat Bandh on February 26 called by the Confederation of All India Trade Associations.

The transporters body has urged members to reject bookings and asked to park their vehicles between 10 am to 6 pm as a symbolic protest.

Mahendra Arya, National President, AITWA, said without any discussion with the industry, the government has decided the time limit for transport of goods from booking station to delivery point.

Last month, the GST department doubled the distance to be covered in a day by truck drivers again without any consultation with transporters.

Arya said the transport model involves hub and spoke method, trans-shipment of Goods at various locations, effects of climate and, most of all, the driver’s liberty as per his health condition.

The movement of vehicle and consignment becomes illegal once e-pass expires and both the vehicle and consignment loaded are confiscated.

The vehicle and goods can be released only on payment of penalties prescribed by GST Laws, which amounts to 200 per cent of GST involved, he said.

Transportation rates cannot be flexible as per daily changing diesel rates. The non-uniformity of prices across nation also makes it difficult to compete fairly.

Ever since diesel prices started increasing it has become impossible for the transporters to honour their contracts with customers, he added.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,

Fino Payments Bank to onboard 10,000 women as business correspondents in U.P.

Banking & Finance

[ad_1]

Read More/Less


Fino Payments Bank is working with the Uttar Pradesh State Rural Livelihood Mission (UPSRLM) to train and onboard 10,000 women from Self Help Groups (SHG) as business correspondent (BC) Sakhis in the State.

“The agreement in this regard was signed on Friday at an event organised by the UP government in the presence of State Chief Minister Yogi Adityanath,” the bank said in a statement.

The project, implemented over the next three months, is part of UPSRLM’s mission to onboard around 58,000 women as BC Sakhis ,or banking agents, across all the 75 districts of the State, it further said.

Better banking access

Fino is one of banking partners and facilitators engaged for the project to appoint BC Sakhis, it said, adding that the project is aimed at improving banking access in rural UP and enhancing the household income of the SHG members.

Ashish Ahuja, Chief Operating Officer, Fino Payments Bank, said: “It is an opportunity for women in rural areas to showcase their entrepreneurial spirit and improve income. As banking agents in the villages they play a critical role in helping people adopt banking services.”

The 10,000 BC Sakhis are in addition to the already existing over 50,000 Fino merchants in Uttar Pradesh.

As part of the broader National Rural Livelihood Mission (NRLM) initiative, each BC Sakhi will also receive financial support for the first six months of Rs 24,000 to help her in the initial phase.

Each BC Sakhi will also be provided with an integrated POS device, cash box, and fake currency identifier to enable her to undertake all basic banking services, except credit, the bank said.

Further, to ensure safe transactions in the current pandemic, a contactless iris scanner for customer authentication will also be provided.

[ad_2]

CLICK HERE TO APPLY

Leave a comment

Transporters to join Bharat Bandh on Feb 26

Banking & Finance

[ad_1]

Read More/Less


The All-India Transporters’ Welfare Association, the an apex body of the organised road transportation companies, has urged the government to abolish E-Way Bill and track vehicles by using Fast Tag connectivity to E-Invoice.

It has also appealed the government to scrap the penalty on transporters for any time-based compliance target of transit and make diesel prices uniform across the country.

With no proper response from the government on issues raised by the transporters’ association, AITWA has joined the one-day Bharat Bandh on February 26 called by the Confederation of All India Trade Associations.

The transporters body has urged members to reject bookings and asked to park their vehicles between 10 am to 6 pm as a symbolic protest.

Mahendra Arya, National President, AITWA, said without any discussion with the industry, the government has decided the time limit for transport of goods from booking station to delivery point.

Last month, the GST department doubled the distance to be covered in a day by truck drivers again without any consultation with transporters.

Arya said the transport model involves hub and spoke method, trans-shipment of Goods at various locations, effects of climate and, most of all, the driver’s liberty as per his health condition.

The movement of vehicle and consignment becomes illegal once e-pass expires and both the vehicle and consignment loaded are confiscated.

The vehicle and goods can be released only on payment of penalties prescribed by GST Laws, which amounts to 200 per cent of GST involved, he said.

Transportation rates cannot be flexible as per daily changing diesel rates. The non-uniformity of prices across nation also makes it difficult to compete fairly.

Ever since diesel prices started increasing it has become impossible for the transporters to honour their contracts with customers, he added.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,
1 … 465 466 467 468 469 … 540