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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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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Banking 18 Aug 2016 by Tojo Jose

SBI finalizes the merger of associated banks to form the single State Bank

SBI finalizes the merger of associated banks to form the single State Bank

Executive Board of the nation’s largest banker –State Bank of India has approved the merger of its five associates bank with it. The merger proposal is already an ongoing process and the Board has given nod to merge the remaining associate banks –State Bank of Travancore, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Hyderabad and State Bank of Patiala. Bharatiya Mahila Bank which was formed few years back will also merged with the banking biggie. Post-merger, the SBI will be much bigger than the second largest bank in the country – ICICI.  And the biggest impact on the banking system is that SBI’s asset will reach around

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Banking 07 Jul 2016 by Tojo Jose

FSDC to enlarge the list of ‘too big to fail’ institutions

FSDC to enlarge the list of ‘too big to fail’ institutions

Financial sector super regulator -Financial Stability and Development Council (FSDC) in its just concluded meeting has discussed forming of a platform to enlarge the number of too big to fail institutions. After the meeting of the FSDC, the Finance Ministry statement noted that efforts are undergoing to map out the big financial sector institutions that shows the symptoms of too big to fail, including insurance companies. FSDC is the coordination body of the financial sector regulators; Finance Minister is the Chairman of the Council. Too big to fail entities are generally big financial institutions especially banks that resist regulator’s instructions and takes too much ris

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Banking 22 Jun 2016 by Tojo Jose

Mudra Yojana targets Rs 1.8 lakh crore loan disbursal for the current fiscal

Mudra Yojana targets Rs 1.8 lakh crore loan disbursal for the current fiscal

The government targets Rs 1.80 lakh crore loan disbursal to MSMEs under the Prime Minister Mudra Yojana for 2016-17. Explaining the progress of the scheme, Minister of State for Finance Jayant Sinha revealed that the actual for the previous year was Rs 1.2 lakh crore. Around 3.5 crore beneficiaries have availed funds under the scheme.   The MUDRA Shceme that stands for Micro Units Development and Refinance Agency became the chief lending channels for small businesses who takes loans below Rs 10 lakh. Loans to the enterprises are divided into Shisu, Kishor and Tarun based on the loan limits. Shishu loans will be upto Rs 50000, Kishor from Rs 50000 to Rs five lakh and Tarun la

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Banking 07 Jun 2016 by Tojo Jose

Fighting NPAs: Government to give more power to PSBs

Fighting NPAs: Government to give more power to PSBs

Finance Minister Jaitely has offered more power to PSB management including a protection to bankers on bona fide decisions to settle bad loans. The other two measures include more legal empowerment to banks and strengthening the stressed asset funds. The decision came at the meeting between the Finance Minister and the Chief Executives of PSBs. Slowing economy and rising wilful default trend has created high level of NPAs especially for PSBs. Many PSBs have registered big losses in the last quarters. The leader SBI has made more than 12000 crores provisioning to cover up NPAs. Punjab National Bank recorded Rs 5367 crore losses whereas Bank of Baroda recorded Rs 3230 losses during

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Banking 12 May 2016 by Tojo Jose

RBI’s ontap bank licensing policy will give the NBFCs a chance to convert into banks

RBI’s ontap bank licensing policy will give the NBFCs a chance to convert into banks

The Reserve Bank of India has published draft guidelines for giving continuous licenses for private sector banks. The policy which was adopted couple of years back and announced in the budget is known as ‘ontap’ bank licensing where eligible candidates will be provided license regularly. As per the guidelines, entities and individuals can apply for bank licenses. Such a license will enable them to start full-fledged universal banks. Several conditions regarding eligibility of the applicant- separate for individuals and NBFCs, promoter’s shareholding norms, fit and proper criteria etc are elaborated by the RBI. Regarding capital, the minimum capital required is

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