Private sector banks report significant increase in MSME loans market share: CRIF High Mark

By originations volumes, Maharashtra, Tamil Nadu and Uttar Pradesh are the top 3 states in FY 21-22. from The HinduBusinessLine - Money & Banking https://ift.tt/uM05o...

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Cash deposit machines turn unfriendly towards ₹2,000 notes

Many machines no longer accept old notes causing inconvenience to customers from The HinduBusinessLine - Money & Banking https://ift.tt/at3zr...

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RBI extends card tokenisation deadline; merchants get 3 more months

By Shashank Didmishe The Reserve Bank of India (RBI) on Friday extended the deadline for merchants to delete the card storage data of their customers under the card-on-file tokenisation system by three months till September 30. This is the third time the central bank has extended the timeline for mandatory card tokenisation. The RBI first extended the deadline by six months from June 30, 2021, till December 30, 2021, and then by another six months till June 30. Noting that considerable progress has been made on card tokenisation and some merchants have already initiated the use of tokens, the central bank observed that the system is yet to gain traction with all categories of merchants. Additionally,...

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Buy now pay later loan, pre-paid payment instruments come under RBI scrutiny

The Reserve Bank of India’s (RBI) is believed to be examining the “buy now pay later” (BNPL) services and pre-paid payment instruments (PPIs) such as wallets. The central bank is concerned about PPIs being loaded through lines of credit, as it could result in systemic risks. New age financial players have been using lines of credit from banks and non-banking financial companies (NBFCs) to load customers’ wallets. The central bank appears to be apprehensive adequate due diligence may not be taking place while the PPIs are being loaded. The RBI, they stressed, encourages innovation but it shouldn’t be based on regulatory arbitrage. Persons, familiar with the matter, point out the RBI is not opposed...

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Most big players have complied with RBI’s card-on-file tokenisation norms

Most of the large merchants have implemented the Reserve Bank of India (RBI’s) card-on-file tokenisation norms, sources familiar with the matter said. The RBI on Friday extended the deadline for merchants to delete the card storage data of their customers under the card-on-file tokenisation system by three months till September 30. As many as 195 million tokens have been issued so far and the number is going up fast, they said, adding that the system is already well-prepared to adopt the new mechanism. Card-on-file typically refers to card information stored by payment gateway and merchants to process future transactions. To curb frauds, the central bank had directed all merchants and payment...

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Card Tokenisation: Here's all you need to know as RBI extends deadline for complying norms by 3 months

from Banking/Finance-Industry-Economic Times https://ift.tt/qwI20...

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RBI doubles limit on home loans issued by urban cooperative banks

The Reserve Bank of India (RBI) on Thursday doubled the limit on home loans issued by urban cooperative banks (UCB). With this, tier-I UCBs can issue individual housing loans of up to Rs 60 lakh while tier-II UCBs are allowed to offer loans of up to Rs 1.4 crore, the central bank said in a master circular. The RBI had made the announcement in its June monetary policy. The revision in lending limits for UCBs was last done in 2011. “Taking into account the increase in housing prices since the limits were last revised and considering the customer needs, it has been decided to increase the existing limits on individual housing loans by cooperative banks,” the RBI had said on June 8. The central...

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Jammu & Kashmir Bank to consider raising tier-I, II capital

Public sector bank Jammu & Kashmir Bank on Tuesday will consider raising tier-I and tier-II capital for the current financial year. The bank’s capital adequacy ratio improved to 13.23% as on March 31 from 12.20% a year ago. The Reserve Bank of India norms require banks to maintain 9% capital adequacy ratio. The bank had raised over Rs 1,100 crore as capital during the FY22. Of the total funds raised Rs 500 crore was equity infusion by the government, Rs 150 crore was raised via employee stock scheme, Rs 93 crore via QIP and Rs 360 crore via tier 2 bond issue. “…the board of directors of the bank in their meeting scheduled for June 28 shall inter alia consider the raising of capital (Tier...

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New-age firms: No shortage of funding for neobanks

A new breed of privately-owned banking startups, catering to both consumers and SMEs, have lately become an epicentre for fintech deal activity, as investors continue to pour in millions into the new-age firms. Termed ‘neobanks’, these startups operate unlike traditional banks, with digitally managed bank accounts and without a brick-and-mortar presence. According to a recent report by management consulting firm RedSeer, neobanks including the likes of Razorpay, Open, Fi, Freo, Niyo, Flobiz, Zolve and others have raised close to $900 million in funding in CY2021, which is a 7.5x growth compared to 2020. Even in the year 2020, despite uncertainty from Covid-19 disruption, neobanks raised around...

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PPI Norms: Fintech lenders may seek staggered transition to new wallet loading norm

The fintech lending industry is likely to request the Reserve Bank of India (RBI) to apply a one-year grandfathering clause to its new circular, barring the loading of wallets with credit lines, three people in the know told FE. The relaxation, if permitted, would allow lenders, who have prepaid card-based outstandings, to smoothly migrate their existing customers to a different mode of credit issuance. The two industry associations, Digital Lenders Association of India (DLAI) and Fintech Association for Consumer Empowerment (Face), are known to be holding discussions with their respective members about the communications to be sent to the regulator. The industry is also likely to seek a clarification...

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AU Small Finance Bank issues 225,000 credit cards since launch

AU Small Finance Bank has issued 225,000 credit cards since it first launched its credit card services in 2021, Mayank Markanday, head of credit card business of the bank, said. Of the total cards issued, about one lakh cards are issued to first time credit card users, he said. The demand for credit cards in tier-2 and tier-3 cities has increased due to the penetration of e-commerce companies. With increasing traffic on these online platforms, the demand for credit cards has gone up. Since the bank has a stronger presence in smaller towns, it has managed to issue so many cards in such a short span, Markanday said while speaking at the launch of the bank’s customised credit cards. The bank will...

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Banks hike deposit rates to woo savers

State Bank of India, the country's largest lender, last week increased the retail rate by 20 basis points, or 0.2 percentage point, for fixed deposits of less than two years. from Banking/Finance-Industry-Economic Times https://ift.tt/b5imB...

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PPI Norms: Fintech lenders may seek staggered transition to new wallet loading norm

The fintech lending industry is likely to request the Reserve Bank of India (RBI) to apply a one-year grandfathering clause to its new circular, barring the loading of wallets with credit lines, three people in the know told FE. The relaxation, if permitted, would allow lenders, who have prepaid card-based outstandings, to smoothly migrate their existing customers to a different mode of credit issuance. The two industry associations, Digital Lenders Association of India (DLAI) and Fintech Association for Consumer Empowerment (Face), are known to be holding discussions with their respective members about the communications to be sent to the regulator. The industry is also likely to seek a clarification...

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AU Small Finance Bank issues 225,000 credit cards since launch

AU Small Finance Bank has issued 225,000 credit cards since it first launched its credit card services in 2021, Mayank Markanday, head of credit card business of the bank, said. Of the total cards issued, about one lakh cards are issued to first time credit card users, he said. The demand for credit cards in tier-2 and tier-3 cities has increased due to the penetration of e-commerce companies. With increasing traffic on these online platforms, the demand for credit cards has gone up. Since the bank has a stronger presence in smaller towns, it has managed to issue so many cards in such a short span, Markanday said while speaking at the launch of the bank’s customised credit cards. The bank will...

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RBI norms for IT services outsourcing by banks and financial entities

The Reserve Bank of India (RBI) on Thursday said that banks and other financial institutions outsourcing their information technology (IT) services to third parties must take care that such arrangements do not impact their obligations towards customers. The banks will not have to take approval from the central bank for entering into such outsourcing agreements, the RBI clarified with a caveat that such arrangements will be subject to periodic inspection. The central bank, in its monetary policy in June, highlighted the issue stating that outsourcing of IT services expose financial institutions to certain risks. The RBI has therefore issued the guidelines for financial institutions to deploy...

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Explainer: Regulating Fintechs

By Shashank Didmishe RBI has disallowed non-bank pre-paid instruments (PPI) to be loaded through credit lines. The rule appears to be aimed at reining in lending activity by fintechs via NBFCs and probably stems from concerns systemic risk could build up, reports Shashank Didmishe. Some new generation players have acquired close to 200–300k cards using PPI licences and loading the wallets of consumers using credit lines from NBFCs and banks. The regulator appears to be displeased that PPI licences are being utilised to disburse loans rather than to route payments. Moreover, it seems concerned that NBFC money is being used to load consumer wallets. However, it is comfortable with wallets being...

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RBI taps top banks including HDFC, ICICI, SBI for blockchain-based trade financing project

Belgium-based SettleMint, US-based Corda Technologies and IBM would provide technology support for the project driven by the Reserve Bank of India’s (RBI) Innovation Hub in Bangalore, three people familiar with the matter told ET. Axis Bank, Bank of Baroda and Union Bank of India are also involved. from Banking/Finance-Industry-Economic Times https://ift.tt/kFlDa...

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IndusInd Bank ups MCLR by 15-25 bps

Private sector bank IndusInd Bank on Wednesday raised marginal cost of funds-based lending rates (MCLR) by 15 basis points (bps) to 25 bps across tenures. With this increase the bank’s one year MCLR stands at 9%, as per information on the lender’s website. The bank made a 25 bps increase in its one-year MCLR for June. The increase in MCLR in June is steeper compared to the hikes announced by the bank in the previous months. The bank raised MCLR by 5 bps in March and April each while the bank raised lending rates by 20 bps in May following the 40 bps hike by the Reserve Bank of India in repo rate in an off-cycle meeting in the same month. Subsequently, the central bank raised the repo rate by...

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Biggest banking fraud of Rs 34,615 crores: CBI files fresh case against DHFL’s erstwhile promoters Wadhawans

In India’s biggest bank fraud case, the Central Bureau of Investigation (CBI) has registered a fresh case against DHFL, its erstwhile promoters Kapil Wadhawan and Dheeraj Wadhawan, who are already in judicial custody, for defrauding a consortium of 17 banks, led by Union Bank of India (UBI), to the tune of Rs 34,615 crore. The action came on a complaint from UBI, which had extended credit facilities to the tune of Rs 42,871 crore between 2010 and 2018. The bank has alleged that Kapil and Dheeraj Wadhawan in criminal conspiracy with others misrepresented and concealed facts, committed criminal breach of trust and abused public funds to cheat the consortium to the tune of Rs 34,614 crore by defaulting...

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Biggest banking fraud of Rs 34,615 crores: CBI files fresh case against DHFL’s erstwhile promoters Wadhawans

In India’s biggest bank fraud case, the Central Bureau of Investigation (CBI) has registered a fresh case against DHFL, its erstwhile promoters Kapil Wadhawan and Dheeraj Wadhawan, who are already in judicial custody, for defrauding a consortium of 17 banks, led by Union Bank of India (UBI), to the tune of Rs 34,615 crore. The action came on a complaint from UBI, which had extended credit facilities to the tune of Rs 42,871 crore between 2010 and 2018. The bank has alleged that Kapil and Dheeraj Wadhawan in criminal conspiracy with others misrepresented and concealed facts, committed criminal breach of trust and abused public funds to cheat the consortium to the tune of Rs 34,614 crore by defaulting...

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State Bank of India taking steps to counter impact of HDFC-HDFC Bank merger: SBI chairman Dinesh Khara

State Bank of India (SBI) is cognisant of the competitive impact of the merger of Housing Development Finance Corporation (HDFC) into HDFC Bank and is gearing up to meet the challenge, chairman Dinesh Khara said at the bank’s 67th annual general meeting (AGM). “SBI is the largest home loan provider in the country. Our home loan market share stands at 35.3% and we are very mindful of the HDFC-HDFC Bank merger and are taking necessary steps to counter the emerging competition,” Khara said in response to a question from a shareholder. The addition of HDFC’s mortgage portfolio to HDFC Bank’s loan book could pose a challenge to SBI’s dominance in the home loan market. The value of SBI’s outstanding...

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Collaboration between banks & fintechs will be a win-win game: Mahabaleshwara MS, MD & CEO, Karnataka Bank

"We first identified the areas for transformation like Advances, HR, Technology and Customer experience and completed the task successfully. Our entire KBL staff today is repositioned as a sales and marketing team." from Banking/Finance-Industry-Economic Times https://ift.tt/gSGrI...

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Freo partners with Equitas Small Finance Bank to launch digital savings account

The neobank is planning to open one million new accounts in the next 10 months from The HinduBusinessLine - Money & Banking https://ift.tt/my1QH...

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PSBs asked to measure customer service quality

Public sector banks (PSBs) will be assessed for customer service, which will be measured on the basis of customer service ratings. They will also focus on the younger generation's banking needs and draw up plans for meeting all-round customer requirements. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/sYKjl...

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Standard Chartered looks to sell distressed loan portfolio worth $1.6 billion

It's one of the largest non-performing asset (NPA) pools being sold as a single block by any bank in recent times. from Banking/Finance-Industry-Economic Times https://ift.tt/Lc6dr...

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Fintechs behaving like banks may have triggered RBI order on credit lines

For their part, fintech companies likened the order to giving traditional banks significant control of the sector's innovation stack, potentially affecting their business models. from Banking/Finance-Industry-Economic Times https://ift.tt/fl1KB...

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Yes Bank launches FDs linked to repo rate

Mumbai-based Yes Bank on Tuesday launched a floating repo rate-linked term deposit which will be linked to the existing repo rate. The interest rates offered by the bank on the term deposits will automatically reset as per the applicable repo rate in the previous month. The bank will offer a mark-up rate in addition to the existing repo rate. For deposits with tenure between a year and 18 months, the bank will offer a mark-up rate of 1.1% in addition to the repo rate, as per information on its website. For deposits maturing between 18 months and 3 years, the mark-up rate will be 1.6%. Currently, the repo rate stands at 4.90%. With this, the shorter term deposits will fetch an interest rate of...

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HDFC Bank to add 1,500-2,000 branches every year for 5 years

HDFC Bank proposes to double its network of branches in the next three to five years by adding 1,500 to 2,000 branches annually, which would akin to adding a new HDFC Bank every five years, said its managing director and CEO Sashidhar Jagdishan. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/7CZk2...

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Finmin asks PSBs to support growth with adequate credit to industry

The finance ministry on Monday advised public sector banks (PSBs) to continue to support economic growth by extending adequate credit to the industry even as it asked the PSBs to accelerate bad loan recovery, sources said. The meeting with chiefs of public-sector banks (PSBs) remained inconclusive as finance minister Nirmala Sitharaman could not attend the meeting, which was chaired by the minister of state for finance Bhagwat Karad in her absence. Another meeting will take place soon in the presence of Sitharaman. The meeting, convened by the department of financial services, came at a time when the government wants banks to satiate the growing credit appetite of a fast-recuperating economy...

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Banks holding on to subsidy share, say payments firms

The companies have written to the National Payments Corp. of India (NPCI), complaining that ₹700 crore of the ₹1,500 crore granted in the budget is being retained by banks. from Banking/Finance-Industry-Economic Times https://ift.tt/b9AHw...

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Apollo Global has a rethink on ARC JV with ICICI Bank, 'Looking to Exit'

The company has decided to henceforth invest in distressed assets through its AIF and will look for a buyer of its more than 90% stake in the ARC, five people familiar with Apollo's plans said. from Banking/Finance-Industry-Economic Times https://ift.tt/TKdLj...

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Short-term risk management must not hurt macro stability

The report said headwinds from monetary tightening, seen globally, are a concern. "Depreciation risk to rupee, however, still remains as long as net foreign portfolio investor (FPI) outflows continue in response to the increase in policy rates and quantitative tightening in advanced economies as they wage a prolonged battle to calm inflation," it said from Banking/Finance-Industry-Economic Times https://ift.tt/lbh71...

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Finance ministry asks banks to expedite NPA resolution

The finance ministry on Monday held a meeting with heads of public sector banks (PSBs) to review their annual performance and progress made by them on various government schemes. from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/nuiFw...

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Finance ministry asks banks to expedite NPA resolution; focus on credit growth

The annual performance review of PSBs was chaired by Minister of State for Finance Bhagwat K Karad. Besides the minister, Financial Services Secretary Sanjay Malhotra and other senior officials of the Department of Financial Services (DFS) were present at the meeting. from Banking/Finance-Industry-Economic Times https://ift.tt/Ju0Is...

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Finance Minister Nirmala Sitharaman to meet heads of PSBs on Monday; may urge them for credit growth

Banks would be urged to sanction loans for productive sectors to accelerate the revival of the economy facing headwinds including from the Russia-Ukraine war, sources said. from Banking/Finance-Industry-Economic Times https://ift.tt/WvXpu...

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Sequoia India asks court to dismiss lawsuit by its former counsel: Report

Sequoia has been locked in a legal battle with Sandeep Kapoor, after he included the company in a defamation lawsuit against media companies that reported on a leaked Sequoia email of June 2. Kapoor was Sequoia's in-house general counsel for nearly nine years until 2019. from Banking/Finance-Industry-Economic Times https://ift.tt/blwd0...

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RBI’s ‘Payments Vision 2025’ aims to establish India as a powerhouse of payments globally, say experts

The Reserve Bank’s ‘Payments Vision 2025’ document, which seeks a three-fold jump in the number of digital payments, is progressive and aims to establish India as a powerhouse of payments globally, opined industry players. The RBI on Friday came out with its ‘Payments Vision 2025’ document which also talks about ring-fencing of domestic payment systems, including the need to mandate domestic processing of payment transactions, in view of the emerging geopolitical risks. The core theme of the vision documents is ‘E-Payments for Everyone, Everywhere, Everytime’ (4Es), with an overall objective to provide every user with safe, secure, fast, convenient, accessible, and affordable e-payment options. Commenting...

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IDBI Bank-led consortium invokes SARFAESI Act to sell GTL’s secured assets

Lenders have exposure aggregating to ₹7,250 cr with GTL from The HinduBusinessLine - Money & Banking https://ift.tt/54PyM...

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CVC-constituted panel ABBFF gives advice on 84 bank fraud cases

Headed by former Vigilance Commissioner T M Bhasin, ABBFF was set up in August 2019, by CVC in consultation with Reserve Bank of India (RBI) for conducting first-level of examination in the cases of frauds reported by Public Sector Banks (PSBs), Public Sector Financial Institutions (PSFIs) before these cases were reported to the external investigative agencies viz. CBI, etc. from Banking/Finance-Industry-Economic Times https://ift.tt/Y6Xzv...

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RBI cancels Karnataka-based Millath Co-operative Bank’s license

“All the depositors will receive full amount of their deposits from DICGC,” the central bank said. from The HinduBusinessLine - Money & Banking https://ift.tt/Xp65S...

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CVC-constituted panel ABBFF gives advice on 84 bank fraud cases

The Central Vigilance Commission (CVC) constituted panel — Advisory Board for Banking and Financial Frauds (ABBFF) — has given its advice after thorough examination of role of all levels of officials on 84 bank fraud cases involving amount of over Rs 3 crore in the last three years. Headed by former Vigilance Commissioner T M Bhasin, ABBFF was set up in August 2019, by CVC in consultation with Reserve Bank of India (RBI) for conducting first-level of examination in the cases of frauds reported by Public Sector Banks (PSBs), Public Sector Financial Institutions (PSFIs) before these cases were reported to the external investigative agencies viz. CBI, etc. Earlier in January this year, the ambit...

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