Commodities 22 Apr 2017 by Tojo Jose

Oil sinks below $50 as market discovers Shales’ new resistance against OPEC

Oil sinks below $50 as market discovers Shales’ new resistance against OPEC

Crude oil market witnessed prices falling to two week’s low in the background of renewed production deployment by the rookie shale producers. The US benchmark WTI fell to $49.39 and the global version -Brent lost $1.24 to $51.75. Market observers say the new down trend is not due to demand and supply reasons. Rather, reports of more rig deployment by Shale producers sent shock waves across market. Though the development is not going to bring market further down, analysts say that it will strengthen the threshold resistance by Shale against the colluding OPEC. Shale producer’s willingness and capability to strike the consortium of countries with higher output is an ind

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Banking 03 Apr 2017 by Tojo Jose

SBI grows big, but should change more internally

SBI grows big, but should change more internally

The merger of five state bank associates with the SBI has made the latter as the only state bank. A passionate nationalist may read the development as India is going to have one of the top 50 banks in the world. Big and now grow sophistticated The merger’s impact on the SBI’s status as a global entity will be just arithmetic and may not be quality wise. To be a global bank, the asset size and national networks are not enough. Rather, sophisticated corporate financial intermediation, products and services are essential. None of the Indian banks have even a good merchant banking division. When the ONGC made its IPO in early 2004, most of its merchant bankers who promo

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Banking 22 Feb 2017 by Tojo Jose

BHIM app gets record 17 mn installations

BHIM app gets record 17 mn installations

The ace digital payment app- Bharat Interface for Money has seen a record 17 million installations so far according to NITI Ayog. This is a world record as it was launched just at the end of December last year. The NITI Ayog’s CEO- Amitabh Kant described that what matters is to keep the momentum for the BHIM drive. The BHIM App as a digital payment interface is getting increasingly accepted among people especially in the context of the demonetisation driven digital payment campaign according to the NITI CEO. One updation in the form a new payment option ‘Pay to Aaadhar was made since its launch. Now the app is available in seven vernacular languages besides Hindi and

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Commodities 10 Jan 2017 by Tojo Jose

Crude registers price fall as US shale starts responding to OPEC production cut

Crude registers price fall as US shale starts responding to OPEC production cut

Crude has ended its ten-week consecutive rise to stop and fell to $ 54.3 (Brent) from the previous week high of $58. This was amidst prospects of robust supply by the US Shale and Iraqi producers. The new price trend of crude shows limitations of OPEC’s production cut. The oil cartel agreed for a production cut for the first time in nearly eight years in last month. On November 30 last year, the cartel decided to trim output to 32.5 mn barrels a day, supported by Russia. Markets were keenly observing the success of the OPEC policy in a world market where several producers were outside the cartel besides the rookie shale going ultra-market oriented. “Concerns about th

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Banking 03 Jan 2017 by Tojo Jose

Paytm gets approval for payment bank license -to make a face to face with Paypal

Paytm gets approval for payment bank license -to make a face to face with Paypal

Financial sector disruptor, Vijay Shekhar Sharma’s Paytm has got the approval to launch its payment bank business. The digital payment leader is expected to start payment bank operations by next month. “Today, RBI gave permission to formally launch Paytim Payments Bank. We cant wait to bring it in front of you” Vijay Shekhar Sharma remarked in blog. Payment bank operation will enable the company to launch the high graded open system payment instruments or the multipurpose cards. Payment bank license allows the holder to accept deposits without extending credit. The business is especially good for digital transaction firms as it will help them to deal with public

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Banking 10 Dec 2016 by Tojo Jose

Government launches massive digital payment incentives to go cashless

Government launches massive digital payment incentives to go cashless

Government and the RBI are working hard to promote cashless transactions in the economy. Several incentives are declared to maximize the cash constraint situation to promote cashless transactions. Despite some difficulties like lack of digital and tech knowledge among bulk of the people, inadequate digital payment infrastructure and prevailing bias towards cash oriented transactions, these measures may bring up the volume of cashless transactions. The support measures launched by the government covers incentives in the form of tax (service tax) concessions, bonus (petrol, railways, insurance), promotion of digital infrastructure (PoS machines, cards etc.) and reduction of charges (

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Banking 24 Nov 2016 by Tojo Jose

JDY account deposit grows by 50%; Centre doubts them black money store houses

JDY account deposit grows by 50%; Centre doubts them black money store houses

Post demonetization, the country’s Jan Dhan Yojana account’s deposits have gone up from Rs 45636 crore to Rs 66366 crores.  JDY as the basic bank account facility provided to the so far unbanked people registered a growth rate in deposits by nearly 50% from November 9 onwards. Government fears that the account has been rented out for money laundering purposes to keep black money. There are nearly 25 crore Pradhan Mantri Jan Dhan Yojana accounts in the country which were launched as a pet project of the PM. The accounts have only low KYC norm requirements especially for those who have a deposit limit of Rs 50000 or less. Finance Minister Arun Jaitely earlier warne

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Banking 25 Oct 2016 by Tojo Jose

Debit card data breach: RBI and NPCI may bring shielding measures

Debit card data breach: RBI and NPCI may bring shielding measures

The banking industry in the country’s tiny shock from the debit card data breach may initiate bank initiated data protection measures according to the industry experts. Reserve Bank of India already held a meeting of major bankers and payment industry experts to avoid such incidents in future. In the meeting held on Monday, the RBI asked all lenders to report cyber security issues on a real-time basis. This increases the administrative burden of banks to ensure data security as every case of breach has to be immediately reported. Similarly, banks may have to centralize their cyber security operations instead of outsourcing it. Earlier in an instruction to banks, the RBI po

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Commodities 11 Oct 2016 by Tojo Jose

Oil slips from the one year high as market unsure about production cut

Oil slips from the one year high as market unsure about production cut

After registering a one-year high, crude prices came down by a dollar in the international market on Tuesday. Cold response from Russian oil industry on production cut is cited as the major reason for the price fall trend. The new turnaround in the global market casts doubts about the strength of the new production cutting agreement between Saudi Arabia from the part of OPEC and Russia. Oil prices that jumped by 3 percent on Monday, after the Russia and Saudi Arabia reached a trend-setting deal bringing cooperation between OPEC and non-OPEC producers. But Brent oil futures fell to $52.84 on Tuesday from $53.73 on the previous day. The International Energy Agency also raised dou

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Commodities 29 Sep 2016 by Tojo Jose

OPEC reaches in a break through production cutting agreement

OPEC reaches in a break through production cutting agreement

The oil cartel – OPEC has agreed on a path-breaking oil production cut that may test the current low crude price era. This is the first time in eight years that the influential organization of the oil producers agreeing on production cut to stabilize prices. The last production limiting consensus was in 2008. In the latest meeting at Algiers, the OPEC countries decided to limit production to a range of 32.5 to 33 million barrels of oil per day from 33.4 million at present. The production cut will be led by Saudi Arabia, the largest oil producer. Saudi is expected to give up 350,000 barrels a day, according to a senior OPEC source quoting the final proposal. Other OPEC nation

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