NEW DELHI: In the cryptocurrency market, if you go beyond the top 100 or 500 tokens, the volatility spikes to mind-numbing levels. In those dark alleys, if your pick is right, you can multiply your wealth up to 10-fold in a day, or if it is wrong, can lose everything in the same period.
Monday has been no different. The top gainers’ list available on CoinMarketCap shows nine tokens more than doubled their value in the last 24 hours, with one jumping as much as 500 per cent.
ForeverFomo, Rapidz, Gaj Finance, GravitX, WAIV Care, Axion, Pastel, Big League and Power Tool were those nine names as of 16:45 hours (IST). Some of these were priced as ridiculously low as one-thousandth of a dollar.
On the other hand, the list of losers showed one token that is down nearly 97 per cent in the last 24 hours. This list also included coins that gained over 800 per cent the day before. This reeks of a classic pump-and-dump scheme.
The top loser of the day, AquaGoat.Finance, priced at $0.000000000208, fell 96.65 per cent in the last 24 hours. GoldFinX, which surged 800 per cent on Sunday, is down over 80 per cent.
Understandably, the volume of trade remains low usually for these names, but can spike whenever they top the gainers’ or losers’ list. Even then, it rarely surpasses a few lakh dollars.
Major cryptocurrencies, which seem to operate in an entirely different world and have gained some legitimacy, were largely in the green. Solana was one of the biggest gainers, climbing 7 per cent.
Data shows the global crypto market-cap on Monday stood at $1.95 trillion, a 2.69 per cent increase over the previous day. The total crypto market volume over the last 24 hours stood at $97.68 billion, marking a 11.53 per cent drop. The volume of all stablecoins is now $78.36 billion, which is 80.22 per cent of the total crypto market’s 24-hour volume.
NEW DELHI: In the cryptocurrency market, if you go beyond the top 100 or 500 tokens, the volatility spikes to mind-numbing levels. In those dark alleys, if your pick is right, you can multiply your wealth up to 10-fold in a day, or if it is wrong, can lose everything in the same period.
Monday has been no different. The top gainers’ list available on CoinMarketCap shows nine tokens more than doubled their value in the last 24 hours, with one jumping as much as 500 per cent.
ForeverFomo, Rapidz, Gaj Finance, GravitX, WAIV Care, Axion, Pastel, Big League and Power Tool were those nine names as of 16:45 hours (IST). Some of these were priced as ridiculously low as one-thousandth of a dollar.
On the other hand, the list of losers showed one token that is down nearly 97 per cent in the last 24 hours. This list also included coins that gained over 800 per cent the day before. This reeks of a classic pump-and-dump scheme.
The top loser of the day, AquaGoat.Finance, priced at $0.000000000208, fell 96.65 per cent in the last 24 hours. GoldFinX, which surged 800 per cent on Sunday, is down over 80 per cent.
Understandably, the volume of trade remains low usually for these names, but can spike whenever they top the gainers’ or losers’ list. Even then, it rarely surpasses a few lakh dollars.
Major cryptocurrencies, which seem to operate in an entirely different world and have gained some legitimacy, were largely in the green. Solana was one of the biggest gainers, climbing 7 per cent.
Data shows the global crypto market-cap on Monday stood at $1.95 trillion, a 2.69 per cent increase over the previous day. The total crypto market volume over the last 24 hours stood at $97.68 billion, marking a 11.53 per cent drop. The volume of all stablecoins is now $78.36 billion, which is 80.22 per cent of the total crypto market’s 24-hour volume.
Online financial services sector fraud attempts dipped 15 per cent in the sector quarter as fraudsters in India are re-focusing their efforts from financial services to the travel and logistics industries according to a study by credit bureau Transunion Cibil.
Though the rate of suspected online financial services fraud attempts have still risen globally by 18.8% globally during April-June quarter over the same period a year ago, it declined in India by 15.35%, indicating stronger fraud control measures being adopted by the financial services industry, a release by the credit bureau said.
The rate of suspected digital fraud attempts on an aggregate rose 16.5% globally when comparing Q2 2021 to Q2 2020. But in India the percentage of digital fraud attempts decreased by 49.20% during the same time period.
The study notes that gaming and travel and leisure were the two most impacted industries globally for the suspected digital fraud attempt rate, rising 393.0% and 155.9% respectively in the last year. For transactions originating in India this rate rose 53.97% for gaming and 269.72%% for travel and leisure, the release said indicating a shift in industry[focus by fraudsters.
“It is quite common for fraudsters to shift their focus every few months from one industry to another,” said Shai Cohen, senior vice president of Global Fraud Solutions at TransUnion. “Fraudsters tend to seek out industries that may be seeing an immense growth in transactions. This quarter, as countries began to open up more from their COVID-19 lockdowns and travel and other leisure activities became more mainstream, fraudsters clearly made this industry a top target”.
The pandemic accelerated community – online dating and online retail transactions which require logistics and fraudsters have recognized this. “In India post the unlocks, travel and leisure has increasingly become a target as the industry recovers and fraudsters are looking to capitalize as more transactions return to this industry,” added Shai. “As fraudsters continue to target consumers, it’s incumbent on businesses to do all that they can to ensure their customers have an appropriate level of security to trust their transaction is safe all while having a friction-right experience to avoid shopping cart abandonment.”
MUMBAI: Some cardholders might see standing instructions for payment on their credit card fail from next month. These could be for subscriptions with online content platforms, edtech companies or standing instructions for online advertisement payments. Some of these merchants are yet to comply with RBI’s new requirement of additional factor authentication (OTP) for recurring payments through cards though the deadline is less than a week away.
According to sources, around 75% of the banks have put in place the technology to meet RBI’s directive. However, there are some banks and merchants who are still in wait-and-watch mode. Banks are writing to customers, warning that some transactions may fail: “Effective October 1, 2021, the bank will not approve any standing instruction (e-mandate on cards for recurring transactions) given at merchant website/app on HDFC Bank credit/debit card, unless it is as per RBI-compliant process.” The bank has recommended that customers use its bill-pay option for utilities or pay on the biller’s website using OTP.
According to Razorpay, which processes close to a third of all recurring payment transactions, a dozen banks have already put in place the new setup where even for repeat payments the bank will alert the customer a day in advance and also provide them with a link to discontinue the mandate. “In the short term, there may be some disruption but, in the long term, this move by the RBI can take growth in recurring payment mandates off the charts,” said Razorpay chief technology officer and co-founder Shashank Kumar.
Kumar says the RBI directive addresses two key issues. Earlier, discontinuing a standing instruction to a merchant could be extremely cumbersome with some asking for a letter to be sent by post asking to discontinue the subscription. Second, debit cards were a grey area and recurring payments were done largely in credit cards. Incidentally, even after October 1, international mandates will continue as neither banks nor the RBI has jurisdiction over international billers.
“There are 900 million debit cards in India and their inclusion could increase the market multifold,” said Kumar. According to Kumar, by empowering customers to stop the payments at any time, the RBI has increased the confidence level. This could also make online education or entertainment more affordable as the availability of this facility will encourage providers to have a monthly debit model rather than recover annual fees.
Besides requiring banks to alert customers, the RBI has capped automatic debits at Rs 5,000 per month. This would mean that billers, like insurance companies, with large instalments, would need to increase the frequency to enable auto-debit. In the case of utilities, many online payers use their bank’s bill payment platform for standing instructions and will have no impact.
Along with NARCL, India Debt Resolution Company Ltd (IDRCL), has also been set up, it will then try to sell the stressed assets in the market. (Representative image)
By Sandesh Dholakia
A few days back, in one of her key announcements Finance Minister Nirmala Sitharaman made good on one of her promises from the Budget 21-22 and announced the formation of India’s first-ever “Bad Bank”. National Asset Reconstruction Company (NARCL) which has already been incorporated as a company and received cabinet approval will acquire stressed assets worth Rs. 2 lakh crores from various banks in order to recover them. Along with NARCL, India Debt Resolution Company Ltd (IDRCL), has also been set up, it will then try to sell the stressed assets in the market. This NARCL-IDRCL structure is the new “Bad Bank of India.”
But why do we really need a Bad Bank ?
Insolvency and Bankruptcy Code (IBC), Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI Act), Debt Recovery Tribunals as well as setting up of dedicated Stressed Asset Management Verticals (SAMVs) in banks for large-value NPA accounts have brought much-needed focus on the recovery of non-performing assets. In spite of such efforts, a substantial amount of NPAs continues on the balance sheets of banks primarily because the stock of bad loans as revealed by the Asset Quality Review is not only large but fragmented across various lenders.
The situation becomes even duller when we benchmark India with other leading G-20 nations. As per World Bank data, the share of NPA to gross loans in Indian banking is significantly higher compared to all other leading G-20 nations with an exception of the Russian Federation. Large unresolved NPAs over a sustained period of time have proven detrimental to policymaking and economic growth for many economies in the past.
How will the new Bad Bank structure function ?
NARCL proposes to acquire Rs. 2 Lakh crores of (gross value) assets. As per the Secretary DFS, blended net realizable value of these assets is likely to be ~18% i.e. Rs. 36,000 crores (Rs. 30,000 crores post-tax). 15% of the net realizable value will be in the form of cash and rest through security receipts(SR).
GOI guarantee on SRs will be good between net realizable value and actual realized value. In a normal Asset Reconstruction Company (ARC) transaction, cash realization is recorded upfront and flow to profits and SRs are subject to MTM. Due to uncertainty on recovery, these SRs are illiquid hence locked capital for banks. Under the scheme, SRs are guaranteed by GOI so it will provide liquidity to SR and free up capital on immediate basis post conclusion of sale.
Let’s understand through an example : –
Let’s say a loan of Rs. 10,000 was written-off by a bank –
The book value of asset in bank’s balance sheet is zero
If the bad bank determines the recoverable value at 30% or Rs. 3,000 then:
Bad bank will have to pay 15% of Rs. 3,000 = Rs. 450 (or 4.5% of original loan value) – this will be paid in cash by bad-bank, which may source funds from banks themselves as equity. From accounting perspective, banks will report Rs. 450 as profit from recoveries of written off loans that gets added to net worth.
For the balance 85% of Rs 3,000 = Rs. 2,550 – bad bank will issue securitisation receipts (SRs) which will be partly guaranteed by government and partly non-guaranteed. For the guaranteed part, banks will recognise the value as investment but that will not require any capital for 5yrs as there is Govt. guarantee. For non-guaranteed part, banks might not recognise value until actual recovery is made.
What does the Global Experience say about Bad Banks?
Way forward for Bad Bank of India –
Aggregation of stressed assets at one entity’s hand is undoubtedly expected to speed up the process for finding interested buyers, transfer of assets, restructuring of debt etc. but more than anything else the quality of such asset will matter the most. Historically we have seen proven examples of formation of Bad Banks working, most of it were in the cases where not only a law was passed but the enforcement of it was done properly. A plenty of it also relied on the evolving socio-economic and political conditions of the country.
As India recovers from its hardest ever economic hit due to Covid-19 the challenges going to be faced by the Bad Bank are not going to be easy but if tackled properly this could provide a much-needed moment of renaissance to the entire Indian Banking Sector.
(The author is founder & CEO at Case Ace and Asia-Pacific chairman at International Finance Students’ Association. Views expressed are personal.)
Please refer to tender: RBI/Thiruvananthapuram/Estate/98/21-22/ET/132 uploaded in RBI website and MSTC Portal. In connection with this, Last date of submission of tender has been extended by one day. Eligible bidders can submit their bids up to September 28, 2021 till 2:00 PM.
India’s cryptotech industry is likely to create an economic value addition of $184 billion by 2030, in the form of investments and cost savings, according to a study by the National Association of Software and Services Companies (NASSCOM) and crypto exchange WazirX.
More than 60% of the states are adopting cryptotech, and there are over 15 million retail investors. As of now, India has more than 230 startups operating in the space, the study said.
The Indian market is growing four times the pace of tech industry in the last two years, while institutional funding for startups has seen eight times the growth. The cryptotech market size in India is $74.2 million so far in FY21, up 39% in last five years.
It is one of the fastest growing technology sub-sectors in India, in terms of revenue.
“CryptoTech industry in India has not only demonstrated a positive impact at the grassroots levels but is emerging as one of the fastest growing technology sub-sector. India provides the most unique ecosystem to CryptoTech to play a transformative role in strengthening key priority areas such as healthcare, safety, digital identification, trade and finance, and remittances and help in addressing pandemic-induced challenges,” said Debjani Ghosh, president at NASSCOM.
The market has the potential to create over 8 Lakh jobs by 2030. The cryptotech industry includes crypto applications in trading, P2P payments, remittances, and retail among others.
“A consultative and enabling regulatory approach towards Crypto technologies can help drive the growth of CryptoTech ecosystem and innovation in India,” Ghosh added.
According to Nischal Shetty, chief executive officer of WazirX, crypto has immense potential to contribute to India’s vision of being a $5-Trillion economy. “In the coming years, we’ll see crypto shatter the financial barriers for rural India, create more opportunities and access to jobs, investment and capital,” he said.
Globally, the cryptotech industry is estimated to cross $1.6 billion by 2021, and $2.3 billion by 2026, according to the study.
To help those borrowers who have been finding it difficult to pay back loans, the Reserve Bank of India (RBI) had lent a helping hand in the form of loan restructuring.
In 2020, the RBI had announced a loan restructuring program. And then in May 2021, due to the second wave of Covid-19, it announced a second resolution framework for many borrowers including individual borrowers.
Various banks have announced the terms and conditions for availing their loan restructuring 2.0.
Here is a look at the FAQs of HDFC Bank‘s loan restructuring policy 2.0 as per the lender’s website.
What is the restructuring 2.0 scheme approved by RBI? RBI has provided a framework to banks & lending institutions for implementation of resolution plans for addressing the economic fallout due to the COVID-19 pandemic which has led to significant financial stress for customers. Basis the framework and regulatory guidelines, your bank has framed its policy for the restructuring of the loan/s of individuals and entities that have been impacted due to the COVID-19 pandemic.
Who is eligible for restructuring? a) Individuals and Entities that are classified as Standard with the bank as on April 1, 2021. b) The customer has to be impacted financially by COVID-19 pandemic in the form of reduction/ loss of income or cash flows. c) Only those accounts, which are on the bank’s book as on April 1, 2021 will be eligible. c) The reduction of income and its financial impact on the customer will be reviewed by the bank basis the documents / information provided which does show the drop in cash flow due to the COVID-19 impact. The bank will assess the viability of the customer to pay the restructured EMIs basis the documents provided, before granting the restructuring. Apart from the viability calculations, the repayment track record of the customer, credit bureau records, and the responses given by the customer while availing moratorium earlier will also be factored in the restructuring decision.
Which are the products covered under the regulatory restructuring relief package. * Credit Card receivables* Auto Loans and Two-wheeler Loans * Personal Loans (both for personal use and for business / commercial purposes)* Personal Loans to professionals * Education Loans* Loans given for creation/ enhancement of immovable assets (e.g., housing loans)* MSME loans with Udyam certificate (The borrower should be classified as a MSME on March 31, 2021 in terms of Gazette Notification S.O. 2119 (E) dated June 26, 2020)
What type of loans are not eligible for restructuring? Loans to the following entities/individuals are not eligible for restructuring: -* individuals/entities for agricultural purposes and classified as agricultural loans by the bank * agricultural credit societies * financial service providers* Central, State and local government bodies * HDFC Bank employees* Exposures to housing finance companies which have already been rescheduled* Loans which have been already restructured once
How do I avail the restructuring benefit on my loan? You may visit the bank’s website for the application link, fill the application form and submit the relevant details.Login to the application form with your Loan Account Number / Credit Card Number / Email ID registered with the bank and the OTP sent on your registered mobile number/ Email. If you have changed your number, please give a written request for change in number at the nearest branch, and apply post the number has changed on system.Alternatively, you may contact your Relationship Manager (RM).
Can I apply multiple times? No. You can apply for restructuring only once.
What are the restructuring options that are available to me? The balance tenure of the loan can be extended by a further period of maximum 24 months, including the moratorium period at the bank’s discretion to ease your monthly EMI repayment burden.
Do I need to submit any documents to avail of the restructuring benefit? The bank will require you to submit documents giving details about the current status of your employment or business. For salaried borrowers:* Salary slips for the month of March 2021 and latest salary slip for last 2 months* A declaration of estimated salary/income immediately after the end of the desired restructuring period (Maximum 24 months).* Letter of discharge from job (in case of job loss)* Bank account statements of the account where salary is credited in case of salaried employees from Oct 2020 to date For self-employed borrowers/ entities:* Current / CC account bank statement from 1st April 2020 till date * GST returns Oct-2020 till date * Income tax returns for FY-19 & FY-20 and FY-21 (if filed) * Profit and loss statement / Balance sheet for the last 2 years* Udyam certificate * Declaration by self-employed professionals/ businessmen declaring that their business is affected by Covid-19.Please do keep these documents ready before you apply on the link, as incomplete applications are unlikely to be processed.
Will opting for the restructuring package have an impact on my credit bureau report? As per regulatory guidelines, your loan/credit facility will be reported to the credit bureau as “Restructured”.
I hold multiple loans/credit facilities with the bank. Do I have to apply separately for each of these loans? The restructuring application form shall have the option to apply for one or all the loans by a single application on the bank’s website. The bank shall assess the application on regulatory guidelines, on the COVID-19 impact and the viability of the repayment plan before decisioning the same.
I have a credit card with EMI plans within my credit limit. Can I opt for restructuring of only the card outstanding and not the EMI plans? The entire credit card balance including the loans within the credit limit will be restructured and converted into a separate loan account.
I have a Jumbo Loan facility on my credit card. Is it mandatory to convert the Jumbo Loan if I choose to restructure the credit card? You may choose to restructure either the card balance or the Jumbo Loan or both the facilities.
Will my credit card be blocked or deactivated if I avail of the restructuring scheme? Your credit card will be deactivated without any further notice once the restructuring is approved for any of the loans / credit cards you have with the bank. The bank may choose to reinstate fresh limits at its discretion on the card after 12 months basis the repayment behaviour on the loan EMIs.
Is there a minimum outstanding requirement for availing the restructuring facility?v Minimum outstanding balance required to convert the card/loan outstanding is Rs. 25,000.
I am self-employed/ entity having my small-scale unit. Am I eligible for relief? Self-employed individuals/entities are eligible for relief for both under the MSME category as well as the Non-MSME category. The Bank would request its self-employed customers to register themselves as MSME through the Udyam portal of the Government wherever applicable. Udyam portal link: https://udyamregistration.gov.in/Government-of-India/Ministry-of-MSME/online-registration.htm
Can I apply for restructuring now as I was not able to apply for moratorium before? The scheme for restructuring is open to all customers of the bank irrespective of the moratorium applied status subject to the borrower meeting the regulatory guidelines of restructuring.
I have already availed of restructuring. Can I avail this once again? If you have already availed restructuring, you are not eligible for restructuring under this scheme. However if you have not availed of the full benefit of 24 month tenor extension in the earlier scheme which ended on 31st Dec, the bank can evaluate and provide relief to the extent of overall tenor extension of 24 months.
My loan was taken along with a co-borrower/s. Will all the co-borrowers of the original Loan agreement be required to sign the revised restructuring agreement? As per regulatory and legal requirements, all borrowers/co-borrowers of the original loan need to agree and sign on any changes in the loan structure including the restructuring agreement.
What is the last date of making applications through the portal. The link on the portal will be live till 20th September 2021 for customers with single loan or overall exposure less than 25 Lacs.
How much time will it take for me to know the status of the restructuring application. The bank will process and communicate the status of the application to the customers in 10 to 14 working days.
How will I get the approval and communication for acceptance? The bank will communicate the status of the restructuring request vide text message or email on the registered phone number or email address.
Will I need to do further documentation for restructuring? For all loans, you would have to sign the restructuring agreement post approval for the bank to effect restructuring. If you are sole borrower, bank will provide digital options for signing the agreements. In case there are two or more applicants on the loan structure, then all applicants will be required to accept the terms by putting physical signatures on the application and revised agreement, and this agreement will need to be submitted at the nearest customer service desk. The customer will get a copy of the revised terms and amort schedule on their registered mail id / by regular post.
It has been decided with the approval of competent authority to extend bid submission end date and bid opening date. Accordingly, Important Bidding Information Summary (Page 5 of Tender Document) stands modified/amended as under:
Sl.No.
Details
Existing date
Revised Date
1
Last date of submission of EMD
September 21, 2021 (1200 Hrs)
October 11, 2021 (1200 Hrs)
2
Last date of Submission of Tender
September 21, 2021 (1400 Hrs)
October 11, 2021 (1400 Hrs)
3
Opening of Part – 1 (Technical Bid) of Tender
September 21, 2021 (1500 Hrs)
October 11, 2021 (1500 Hrs)
4
Opening of Part – II of the Tender (Price Bid)
September 28, 2021 (1400 Hrs)
October 19, 2021 (1500 Hrs)
2. All other terms and conditions of the tender remain unchanged.
3. The above clarifications/modifications/amendments shall be part of the Tender / Bid document for all purposes. All applicants are requested to apply well in advance to avoid any last minute technical issue in MSTC portal.
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