UPI To Include Pre-sanctioned Credit Lines Issued By Banks
The Reserve Bank of India (RBI) enables the use of pre-sanctioned credit accounts for payments through the Unified Payments Interface (UPI). The initiative was taken to expand the use of UPI and the consumer credit market in India. UPI is an instant payment system that was developed in India. The interface allowed transactions between person-to-merchant (P2M) and peer-to-peer (P2P). It was used on mobile devices for instant payments. In a pre-sanctioned credit line, the bank will offer consumer credit of a predetermined amount that is based on the details related to the credit score. The consumer will not require a debit or credit card to access the credited amount and will only be charged for the specific amount used.
The RBI has approved that pre-sanctioned or pre-approved loans will also be included in the UPI system. In April this year, the RBI proposed expanding the reach of UPI transactions in India. On Monday, September 4, the pre-sanctioned credit lines were circulated at banks.
Including the pre-sanctioned loans through UPI will help reduce the cost of certain offerings and will also help in developing unique products for Indian markets. For instance, if a customer has a pre-approved credit line of Rs 60,000, the user may use this amount as a loan for payments through UPI.
As per reports, transactions through UPI crossed the 24 billion mark in August and were approximately 10.9 billion in July. The RBI stated on September 4 that under this facility, payments through pre-sanctioned credit lines issued by a scheduled commercial bank to individuals, with prior consent from the customer, are enabled for transactions using the UPI system.
Bankers stated that the success of the new launch would depend on whether the new rules would allow the banks to structure their short-term loans, similar to credit card interest-free credit for 30 days. UPI's advantage over credit cards will be that the banks will not be signing up new users and will not incur expenditures in issuing cards or other requirements. Hence, credit on UPI will enable facilities anytime or anywhere and will allow users to make purchases on credits. Banks will also save costs as they will extend credit to their existing users. Along with lower costs, this will enable smaller credit.
RBI Governor Shaktikanta Das stated in an interview, “RuPay credit cards were permitted to be linked to UPI.” Following this, he also mentioned, “It is now proposed to expand the scope of UPI by enabling transfer to pre-sanctioned credit lines at banks.”
White Paper of Congress Govt Blames Previous BJP Regime's 'Fiscal Mismanagement' for Himachal's Debt Distress Published 44 minutes ago
With the Congress government in Himachal Pradesh presenting a white paper on the state's finances, an acrimonious exchange was witnessed between opposition and treasury benches in the assembly after the report indicated a grim fiscal health with the state's financial liabilities mounting to Rs 92,774 crore. The white paper was presented by deputy chief minister Mukesh Agnihotri.
Agnihotri read the report amid a charged atmosphere, while blaming the previous BJP regime for fiscal mismanagement and Himachal being ranked fifth in the country in raising loans. He said Rs 92,774 crore liabilities were left behind by the Jai Ram Thakur government, resulting in every child being born with a debt of Rs 1.02 lakh as compared to Rs 66,000 crore in 2017, till the Congress was in power.
He said Himachal Pradesh's debt when the BJP assumed power in 2017-18 was Rs 47,906 crore and with an increase of 12 per cent (Rs 2,874 crore) it has reached Rs 76,631 crore in 2023-24. “The financial health of the state is so grim that a sum of Rs 9,048 crore would be required to repay the loan (Rs 3,486 crore) and interest component (Rs 5,262 crore) in 2023-24,” he stated.
Agnihotri was confronted with repeated interruptions by leader of opposition Jai Ram Thakur and BJP MLAs who trouped to the well of the house twice, while accusing the government of presenting false and misleading data of only the BJP tenure to get political mileage.
Agnihotri said the BJP regime has made a record of indulging in wasteful expenditure, with no focus on resource generation or fiscal prudence, making a mockery of government spending. “The BJP is harming HP's interest as they have told the Centre to not give us funds as we implemented the old pension scheme,” he alleged. “It is after exhaustive examination of the reports of Reserve Bank of India (RBI), Comptroller and Auditor General (CAG), and the past budgets that we have come to the conclusion that it was because of the fiscal mismanagement by the previous BJP regime that today the total loan liabilities of the state have reached Rs 92,774 crore.”
The loan liability left behind by the BJP regime for 2022-23 was Rs 76,631 crores, he added.
Agnihotri alleged that the previous BJP government had misused a loan amount of Rs 16,261 crore raised in the last election year for holding party functions. “This loan amount was mis-utilised for organising functions like Amrit Mahotsav, Pragatisheel Himachal and Jan Manch for party campaigns with an eye on the assembly polls,” he remarked.
He said even now Rs 8.50 crore bills of the State Transport Corporation were pending as buses were used to ferry people for these functions used for party campaigns.
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Can You Guess The Only Indian Hotel In The World's Top 50
Oberoi Hotels revealed that The Oberoi Amarvilas in Agra has been awarded the 45th rank in the World's Top 50 Hotels for 2023. This list was announced in London and comprises hotels from locations across the globe. The list is dominated by hotels in Europe and Asia. Hence the inclusion of The Oberoi Amarvilas, Agra is indeed prestigious for India.
The Oberoi Amarvilas is known as one of India's finest hotels. What makes it extraordinary is it is just 600 metres away from one of the seven wonders of the world- the Taj Mahal. Adding to this is the panoramic view of this UNESCO heritage site from the windows of its rooms and suites just adds to the charm of the hotel and makes the stay more magical.
According to Money Control, Arjun Oberoi, the Executive Chairman of the Oberoi Group felt honoured. He said, “We are honoured to be the sole representative of India on The World's 50 Best Hotels 2023 list. This recognition reflects our relentless pursuit of perfection, the dedication of our team and the timeless allure of The Oberoi Amarvilas, Agra," he said.
Vikram Oberoi, CEO and MD of the Oberoi Group shared his happiness as well. He shared that the team is delighted to be included in the inaugural listing of the World's 50 Best Hotels 2023. On this occasion, he remembered the founder Rai Bahadur MS Oberoi and the former Chairman and mentor PRS Oberoi and their belief that it is the colleagues who are the most valuable asset.
Passalacqua located close to Lake Como in Italy ranks first as the best hotel in the world. It is an 18th-century villa hotel and was the former home of composer Vincenzo Bellini. Reportedly, this is the first time that the 50 Best organisation has ranked hotels. It usually ranks the World's 50 Best Restaurants and the World's 50 Best Bars for many years.
These rankings in the list are completely based on nominations by 580 anonymous voters who are travel journalists, hoteliers and luxury travellers across the world.
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How Bank of Baroda customers can enable UPI LITE to make instant payments
Bank of Baroda (BoB) announced that it has enabled UPI LITE - Small Value on Device Wallet. UPI LITE is a wallet that allows users to make instant, small-value digital payments with only one tap without the use of a UPI PIN. “UPI is today one of the most preferred digital payment modes for consumers given the sheer ease and convenience of making payments and the superior user experience along with security and interoperability features. Bank of Baroda is one of the leading UPI remitter banks and the launch of our UPI LITE facility will further accelerate the adoption of UPI and help in promoting digital financial inclusion," said Joydeep Dutta Roy, Executive Director, Bank of Baroda.
What is UPI LITE?
UPI LITE enables customers to seamlessly make multiple, small-value transactions instantly during peak hours.
UPI LITE transaction limit
The maximum balance in the UPI LITE wallet at any point in time cannot exceed ₹2,000.
How can customers avail of this service?
1)To avail of this service, customers need to enable UPI LITE on BHIM or any UPI LITE support app.
2)During LITE activation, customers can fund their UPI LITE account through their UPI-linked Bank of Baroda bank account.
3)Once a customer activates the UPI LITE account, small-value digital transactions as per the permissible limit will be debited from the LITE account without any additional factor authentication (AFA).
4)However, users recharging or loading funds in UPI LITE will need to enter additional factor authentication.
5)On deactivating UPI LITE, the balance in the UPI LITE wallet will be credited back to the Primary LITE bank account.
6)Customers can use their wallet balance to make small value, cashless payments at Kirana stores, pharmacies, restaurants, shops, fuel retail outlets, and more.
“UPI LITE will help in reducing the load on the system by processing small-value payments, improving the success rate for low-value transactions, and enhancing user experience,"BoB said in a media release.
Bank of Baroda has also launched the UPI LITE X on a pilot basis during the Global Fintech Fest 2023 on 6th September 2023 at the hands of the Reserve Bank of India Governor Shaktikanta Das.
Source: Live Mint
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HDFC AMC gets RBI nod to acquire up to 9
The Reserve Bank of India (RBI) has approved HDFC AMC to acquire up to 9.5% of Karur Vysya Bank's share capital or voting rights, subject to conditions.
“Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, we advised that the Reserve Bank of India vide its letter dated September 20, 2023, has accorded its approval to HDFC Asset Management Company Ltd. (HDFC AMC) for acquiring aggregate holding of up to 9.5% of the paid-up share capital or voting rights of The Karur Vysya Bank Ltd," Karur Vysya Bank said in a regulatory filing.
The approval has been granted with reference to the application made by HDFC AMC to RBI.
The aforesaid approval granted by RBI is subject to compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India, and any other guidelines, regulations, and statutes as applicable, it added.
HDFC AMC must ensure that the aggregate holding in the Bank does not exceed 9.5% of the paid-up share capital or voting rights of the Bank at all times. Further if the aggregate holding falls below 5%, prior approval of RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights of the Bank, the bank said in the regulatory filing.
HDFC AMC gets RBI nod to acquire up to 9.5% stake in DCB Bank
In a separate filing, DCB Bank informed the exchanges that RBI has accorded its approval to HDFC AMC to acquire up to 9.5% of the paid-up share capital or voting rights of the Bank.
“We would like to inform you that the Bank has received an intimation from RBI on September 20, 2023, that it has accorded its approval to HDFC Asset Management Company Limited (“AMC") to acquire aggregate holding of up to 9.5% of the paid-up share capital or voting rights of the Bank," DCB Bank informed the exchanges.
The central bank has advised HDFC AMC to acquire a stake in the Bank within 1 year from the approval date.
AMC has been advised by the RBI to acquire the aforesaid major shareholding in the Bank within a period of one year from the date of approval. If AMC fails to acquire major shareholding within the stipulated period, the approval granted by the RBI shall stand cancelled. Further, AMC must ensure that the aggregate holding in the Bank does not exceed 9.5% of the paid-up share capital or voting rights of the Bank at all times, it added.
HDFC Asset Management Company reported a 52% jump in profit for the first quarter of FY24 with average assets under management growing to ₹4.86 lakh crore. The company serves a mutual fund customer base of 71 lakh individuals, with a total of 122 lakh live accounts.
Source: Live Mint
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When Thalapathy Vijay Encouraged Atlee To Give His Life To Jawan Published 23 minutes ago
Atlee is currently riding high on the success of the Bollywood blockbuster Jawan, starring Shah Rukh Khan and Nayanthara in the lead roles. While the director is well known for his collaborations with South Indian superstar Thalapathy Vijay, he recently opened up about the actor's reaction to him working with King Khan. In an interview with Hindustan Times, the filmmaker shared that the opportunity to work with SRK was like a dream come true moment for him. Atlee shared that initially, even the Master star couldn't believe him, but later, he encouraged the director to pour his heart and soul into the project.
The filmmaker recalled, “When Shah Rukh sir asked me to make a film with him, it was like a lifetime opportunity for any director. I was very happy, I said yes. Then I went to Vijay sir and told him. He said, ‘Are you serious? He came to you?' I said he did. He said, ‘Give your life to it'.”
“I learnt a lot from Khan sir, by being patient, getting everything right, taking the film to the next level. Shah Rukh sir has taught me to raise the bar. My next film will have even better energy and we'll make something bigger than Jawan,” Atlee added.
Further, the director mentioned that initially, he thought of creating a typical romantic film with SRK. However, the superstar expressed his desire to be a part of a project that fit Atlee's unique style and vision. He wanted to explore something different that he hadn't attempted before. This pushed the filmmaker to create a new concept and storyline that would align with his own creative world.
Meanwhile, in an earlier interview with Siddharth Kannan, the Bigil director spoke about the potential collaboration between, Thalapathy Vijay and Shah Rukh Khan and shared that both actors had expressed genuine interest in working together on a project. Initially, Atlee thought they might be saying this as a birthday gift to him. However, the following day, Vijay confirmed his commitment to the project, while Khan, who was present during this conversation, also shared his eagerness to collaborate and asked if they were serious about making a film together.
Jawan is continuing its remarkable run at the global box office, having recently crossed the milestone of Rs 800 Crore in worldwide earnings. In India, the action-packed drama is rapidly approaching the Rs 700 Crore mark, while its overseas collection has collected Rs 295 Crore.
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Humanity Still Exists
A stranded mako shark that washed ashore on Pensacola Beach in Florida received help from a group of brave Samaritans. Footage of the incident circulating on social media has restored faith in humanity by winning over multiple hearts. According to a report by the Independent, the rescue video was captured by beachgoer Tina Fey on Facebook. She was accompanied by her husband Josh when the stranded marine creature caught the attention of surrounding beachgoers. Josh along with three other men jumped into action to save the helpless fish stuck on the shore. The video opens to show a group working in sync to push the gigantic creature back into the water.
“Babe, look at them freaking teeth," Tina yells while capturing the moment seemingly asking her husband to stay alert. The marine being doesn't react initially but at one point it begins to thrash water around by moving its tail and fangs. The group understands the fish's discomfort and leaves it alone for a brief moment. “Babe, it's too dangerous, don't be doing that," Tina frantically advises her husband to be careful again. Once the men are sure it's safe to resume their rescue mission they begin to drag the shark into the water again. Almost the entire group works during the pulling process, but toward the end, most of them move behind leaving only one to direct the shark's way.
The footage ends with the fish completely submerged in water and moving away from the shore as other beachgoers begin to applaud the brave Samaritans for their quick effort. Take a look at the video here:
The shark rescuers have been bombarded with an abundance of praise and appreciation on social media. Reacting to the clip, a user said, “Acts like these are very important for environmental conservation and animal safety."
Another wrote, “Total respect. Thank you, shark savers."
One more agreed, “What brave souls they are. Wow! That beast is very strong."
Meanwhile, a user simply noted, “Humanity still exists."
According to the Independent, Tina Fey revealed the shark appeared when they were casually swimming near the shore. “It just showed up while we were swimming. I just so happened to be right in front of us. We took action to get him back in the water since the wildlife people and lifeguards told us there was nothing they could do! So, we did our best to try to save him," she reportedly captioned the footage while sharing it on Facebook. It is suggested that Tina and her husband had taken a trip to the beach in Texas to celebrate their wedding anniversary.
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HDFC Bank’s Jagdishan gets 3-year extension
MUMBAI : The Reserve Bank of India has approved the reappointment of Sashidhar Jagdishan as HDFC Bank managing director and chief executive officer for three more years till 26 October 2026, the bank said in a regulatory filing.
Jagdishan joined the bank in 1996 as a manager in the finance function and became business head of finance in 1999. He was later appointed chief financial officer in 2008. Prior to his appointment as CEO in October 2020, he was the group head of the bank in addition to overseeing the functions of finance, human resources, legal and secretarial, administration, infrastructure, corporate communications and corporate social responsibility.
Jagdishan has an overall experience of over 31 years and has completed his graduation in science with a specialization in physics. He is a chartered accountant by profession and holds a Master's degree in economics of money, banking and finance from the University of Sheffield, UK.
In his message to shareholders earlier this year, Jagdishan flagged funding as a risk. He had also raised concerns that the merger with HDFC Ltd may impact the bank's net interest margins due to the higher proportion of the low-interest-yielding housing loans added.
Jagdishan had said that the same will be visible from the results for the September quarter itself.
Following the merger with HDFC in July, Jagdishan, however, said the country's largest lender aims to double every four years. In a letter to the over 4,000 employees from HDFC who joined the bank's rolls on 1 July, Jagdishan said the future is bright.
“The runway for financial services and mortgage, which are so underserved and underpenetrated, is going to be very large. HDFC Bank - the combined entity - with a large and growing distribution and customer franchise, more than adequate capital, healthy asset quality and profitability, will be best positioned to capture growth. The pace at which we aim to grow - we could be creating a new HDFC Bank every four years," he had said.
Source: Live Mint
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RBI imposes monetary penalty on four co-operative banks
The Reserve Bank has imposed monetary penalties on four co-operative banks for deficiencies in regulatory compliance. These co-operative banks are: Lalbaug Co-operative Bank Ltd, The Co-operative Bank of Mehsana Ltd, The Harij Nagrik Sahakari Bank Ltd and The National Co-operative Bank Ltd.
The Reserve Bank imposed a monetary penalty of ₹5.00 lakh on Lalbaug Co-operative Bank Ltd., Vadodara, Gujarat for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)' and ‘Reserve Bank of India (Co-operative Banks - Interest Rate on Deposits) Directions, 2016'.
The RBI said the bank had not only breached prudential inter-bank (gross) exposure limit, but also breached prudential inter-bank counter-party exposure limit, and failed to pay interest on overdue recurring and term deposits from the date of maturity till the date of repayment at the applicable rate.
A monetary penalty of ₹3.50 lakh was imposed on The Co-operative Bank of Mehsana Ltd., Mehsana, Gujarat for non-compliance with the directions issued by RBI on ‘Loans and Advances to directors, relatives and firms or concerns in which they are Interested' read with ‘Loans and Advances to Directors etc. - Directors as surety or guarantors – Clarification' and ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)'.
The bank had sanctioned loans where relative of one of the directors of the bank stood as guarantor, and had also breached inter-bank counterparty exposure limit, the banking regulator said.
The apex bank imposed a monetary penalty of ₹3.00 Lakh on The Harij Nagrik Sahakari Bank Ltd., Harij, Gujarat for non-compliance with the directions issued by RBI on ‘Maintenance of Cash Reserve Ratio (CRR)', ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)', and ‘Interest Rate on Deposits - Directions, 2016'.
The RBI said the bank had failed to maintain minimum Cash Reserve Ratio (CRR) for few days, and breached inter-bank counter-party exposure limit. RBI further said the bank failed to make payment of applicable interest on deposits lying in the current accounts of deceased individual depositors or sole proprietorship concerns.
The RBI imposed a monetary penalty of ₹1.00 lakh on The National Co-operative Bank Ltd., Mumbai, Maharashtra for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts-Primary (Urban) Co-operative Banks'. The bank had not conducted annual review of inoperative accounts, the RBI added.
The actions of Reserve Bank was based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with its customers.
Source: Live Mint
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Ex-Indian Cricketer Virender Sehwag Calls Out Investment Firm
Investing in the stock market has become quite popular now. Many people are now actively taking part in trading. From young students to homemakers, people are now actively engaging in trading to generate a passive source of income. But it is important to note that, as much as it is beneficial, it also involves a lot of risks. There are times when the market goes down and the money is lost. Apart from that, there have also been various scammers who work as brokers. Even celebrities have lost their money while getting trapped in these scams. Now, former Indian cricketer Virender Sehwag has also expressed himself on social media about the scams of the stock market.
Virender Sehwag has always been in the limelight for his hilarious tweets and controversial opinions. Recently, the former Indian cricketer hit the spotlight while replying to X channel account holder @ViaWealthy. He commented on a tweet posted by the account and called them out for being fraudulent and scamming people with their money.
@ViaWealthy, which is a SEBI-registered wealthy advisory firm, posted, “20 hazaar se dar nai lagtaa saab. T shirts se lagta hai. A 2008 victim." In response to this tweet, Virender Sehwag called them out and wrote, “Tumhaare jaise bhagode choron se lagta hai, who for a commission buy pump and dump shares in clients account with malafide intentions in a proper understanding with the promoter. You have scammed many innocents, and your game is over."
After Virender Sehwag's comment, many people on the microblogging platform had a series of reactions. Currently, the post has been deleted by the account.
But this was not the only time that the former star cricketer had called out the wealth-advising company on social media. Earlier in February 2022, he tweeted about Pritam Deuskar, owner of Wealthy Via, and called him a fraud. He also wrote that he is part of a syndicated network, has duped several innocent retail investors, and has even stopped answering investor calls. He even mentioned that if the money is not returned to the investors, legal action will be taken against him.
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NBFCs relying more on bank loans
Mumbai: Domestic non-banking financial companies (NBFCs), especially those in the upper-layer category, are increasingly relying on bank borrowings as their primary source of funding, according to an analysis in Reserve Bank of India (RBI)’s September bulletin.
RBI regulations classify the NBFCs into four layers based on the size, activity and perceived risks. The upper layer comprises prominent names like Tata Sons, LIC Housing Finance and Shriram Finance, according to a recent RBI notification.
NBFCs primarily finance their operations through a mix of market borrowing and bank loans, constituting around 75% of total borrowings. According to the analysis, the substantial reliance on banks makes them the largest net borrowers, thus intricately linking them to the broader financial system.
The article pertains to the sector's performance during the 2022-23 period, up to Q3.
Although there were 9,443 RBI-registered NBFCs as of 31 March, the analysis is based on a sample of 205 firms that regularly submitted returns for all quarters from December 2020 to December 2022. “During the assessment period, NBFCs' reliance on banks increased steadily due to (the) low interest environment and lag monetary policy transmission," the article said.
The banks' share in aggregate NBFC borrowings rose to 35.1% last December, against 29.7% in December 2020, the data cited showed.
While the article was written by RBI officials, it had the usual disclaimer that the views expressed are those of authors and do not reflect the views of the organization. “A deeper analysis highlights the banks' preference in lending to NBFCs in the upper layer."
Direct bank borrowings by the upper-layer NBFCs grew steadily in recent quarters, accounting for nearly half of the total borrowings at the end of December 2022. Those in the middle layer relied more on debentures, although their bank borrowings also grew in recent times. Besides, upper-layer NBFCs seem to be more successful in raising short-term debt through commercial papers (CP), it said.
According to the analysis, banks are also key subscribers of the debenture and commercial paper issuances by NBFCs. Therefore, the exposure to the NBFC sector is higher than the quantum indicated by direct lending, it said. “Banks' exposure to NBFC-UL (upper layer) in particular has been steadily rising, primarily due to a steep growth in their direct lending to these NBFCs in 2022-23 (up to December 2022). Bank subscription to debenture and CP issuances of NBFC-UL are also growing at a robust pace, and reflect banks' preference for instruments of bigger NBFCs, which in general have strong parentage and are under enhanced regulation."
The debenture issuances of NBFCs are also subscribed by other market participants such as mutual funds, insurers, retail investors and pension funds. “Going forward, NBFCs need to diversify their funding sources, to reduce excessive reliance on bank borrowings," the article said.
“They need to develop strong governance and risk management standards and be more vigilant about cybercrimes, as the growing digital lending space offers huge opportunities, but also presents novel challenges," it added.
A scale-based analysis of the credit allocation by the authors of the article found NBFCs in the upper layer provide a major chunk of their loans to retail borrowers, while those in the middle layer provided a large chunk to the industry. Government NBFCs that fall in the middle layer are large providers of credit to the infrastructure segment of industries, it said.
Source: Live Mint
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