Tez rebranded as GooglePay, platform to receive major push this Diwali

Global tech giant Google on Tuesday said that by Diwali it plans to expand the operations of its payments platform, and would add major retail chains restaurants and cab aggregators to the platform.

The tech giant has also re-branded 'Tez' as 'Google Pay' as part of its efforts to take the digital payments app to more online and retail merchants across the country.

“Building for India has helped Google build for everyone all around the world... Our partnership with RailTel is an example where millions of people are accessing the Internet from hundreds of railway station in India. We have also taken Google Station to other countries like Indonesia, Nigeria, Thailand and Mexico," Google General Manager (Next Billion Users initiative and Payments) Caesar Sengupta said.

Previously, Google had partnered with RailTel to offer Wi-Fi access across 400 railway stations in the country.

"Earlier this year, we partnered with APSFNL. We expect to start rolling out the service by year-end in cities like Vijayawada and Visakhapatnam, to connect Gram panchayats, primary health care centres and other public places," he said.

Long queues again? ATMs go dry as many states face cash crunch: Top updates

A cash crunch has been reported in several states of India -- Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana. People are facing a huge monetary crisis, with a majority of automated teller machines (ATMs) running out of cash. In Bihar's Patna several ATMs have gone 'out of service' causing inconvenience to the locals.
Taking stock of the situation, Union Finance Minister Arun Jaitley said: "We have reviewed the currency situation in the country; there is more than adequate currency circulation and it is available with the banks... a temporary shortage caused by the sudden and unusual increase in some areas is being tackled.

Here are the top developments in the crisis caused by a sudden shortage of cash across several states and what the government is saying:
1. Life gets miserable for many Indians, especially traders: Despite the currency flow in the economy going back to the pre-demonetisation level, ATMs are going dry making life miserable for many residents, especially traders. Many are running from one ATM to another in search of currency notes.

PNB scam: Govt opposes PIL for Nirav Modi extradition; top 10 developments

The matter of absconding businessman Nirav Modi's possible extradition and a probe into the role of the bank's top management in the Rs 114-billion Punjab National Bank (PNB) fraud case reached the Supreme Court on Wednesday, with the Centre opposing a public interest litigation (PIL) seeking such an action.

Opposing the PIL, Attorney General K K Venugopal told a Bench of Chief Justice Dipak Misra, Justice A M Khanwilkar, and Justice D Y Chandrachud that an FIR had already been filed in the multi-billion PNB fraud case and a probe was going on. As Venugopal rose to oppose the PIL, petitioner lawyer Vineet Dhanda urged the Bench to issue a notice to the Centre as the "kingpin of the scam Nirav Modi" had run away with the "common man's savings".

Further, carrying forward with the arrests it made on Tuesday, the Central Bureau of Investigation (CBI) on Wednesday said that it has arrested a General Manager rank officer of the PNB in connection with the Nirav Modi fraud case. "Rajesh Jindal, who was holding the charge of Brady House Branch Head between August 2009 and May 2011 was arrested on Tuesday night from Mumbai," a CBI official said. It was during Jindal's tenure at the Brady House that the alleged fraud took place, the CBI officer said.

Rate sensitive stocks slip as RBI cuts repo rate by 25 bps to 6%

STOCK MARKET - Shares of rate sensitive sectors such as financials, automobiles and real estate were trading lower after the Reserve Bank of India (RBI) cut the repo rate and reverse repo rate by 25 bps at 6% and 5.75%, respectively, at Wednesday's third Bi-monthly monetary policy, keeping in line with what analysts and experts had forecast.

At 2:55 PM; Nifty PSU Bank and Nifty Private Bank index trading lower by 0.3% each, while Nifty Auto, Nifty and Nifty Realty indices fell 0.4% each on the National Stock Exchange (NSE), as compared to 0.4% decline in the Nifty 50 index.


Only Punjab Nation Bank and Axis Bank were trading in green while IDFC Bank, IndusInd Bank, Canara Bank, HDFC Bank, Federal Bank, State Bank of India (SBI), and Bank of Baroda were quoting in red on NSE.

Tata Motors, Ashok Leyland, Mahindra & Mahindra (M&M) and Bajaj Auto from automobiles and Unitech, Oberoi Realty, Godrej Properties and Sobha from real estate were down in the range of 1% to 4%.

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SBI cuts affordable home loan rates to 8.35%; lowest in market

India's largest lender, the State Bank of India (SBI), on Monday announced a steep reduction of 25 basis points (bps) in affordable housing loans to 8.35 per cent for new borrowers.

Under the new government scheme, loans under Rs 30 lakh qualify for affordable housing.

For male borrowers, the limited period offer is valid till July 31 and the reduction is 20 bps to 8.40 per cent, SBI Managing Director for national banking Rajnish Kumar told PTI in a conference call.

The new rate reduction of 25 bps for women will be for salaried borrowers. For non-salaried borrowers, it will be a 20 bps cut.

Similar rates will be applicable for male salaried and non-salaried borrowers.

One percentage point is 100 bps.

"This a huge saving for the borrower as the 25 bps reduction translates into a saving of Rs 530 per month on EMIs," he said.

The new rates will be effective from Tuesday.

"This is giant leap to give a fillip to the affordable housing segment keeping the Prime Minister's vision of providing 'housing for all' by 2022," Kumar said, adding that the lender now offers the lowest rates in the industry.

With a home loan book of Rs 2.23 lakh crore, SBI leads the segment with 25-26 per cent market share, Kumar said further.

However, he is of the view that the new offer may not push up SBI's market share significantly as 45 per cent of its 2.23 lakh crore home loan book is under the Rs 30 lakh bracket.
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Reason to cheer: No more limits on cash withdrawals at ATMs

BREAKING NEWS - All limits on savings bank cash withdrawals post-demonetisation ended on Monday, as had been announced by the Reserve Bank of India (RBI) last month.

In a two-stage process, the weekly withdrawal limit per account had been raised to Rs 50,000, from Rs 24,000, with effect from February 20, and all limits on ATM withdrawals were slated to cease from March 13.

The announcement had been made by RBI Deputy Governor R. Gandhi following the fiscal's last monetary policy review announcement by the central bank in February, when it kept its key interest rate unchanged at 6.25 per cent, saying it awaited data on the full impact of the government's demonetisation drive.

On January 30, the RBI had ended all curbs on withdrawals from Current Accounts, Cash Credit Accounts and Overdraft Accounts.

The limits were placed following the November 8 demonetisation of Rs 1,000 and Rs 500 notes. The upper limit at ATMs was just Rs 2,500 initially and was later raised to Rs 4,500.

In January, the RBI had hiked the daily ATM withdrawal limit to Rs 10,000 and doubled the weekly Current Account withdrawal limit to Rs 1 lakh.

The upper limit for weekly withdrawal from bank accounts had been raised to Rs 24,000 from Rs 20,000 in November.

While lifting of ATM withdrawal limits represents coming full circle for these machines in respect of demonetisation, the return to normalcy in terms of cash available in them is still awaited, indicating the slow pace of remonetisation.(READ MORE)

Govt asks SBI to reconsider minimum balance penalty

BREAKING NEWS - The government on Monday asked State Bank of India (SBI) to reconsider its decision to levy penalty on non-maintenance of minimum balance, which the bank plans to hike manifold from April 1 impacting over 310 million savings bank account holders.

SBI, according to a source, has also been asked to reconsider charges it proposes to levy on cash transactions and ATM withdrawals over specified limits.

The country’s largest lender has announced imposing penalty ranging from Rs 20-100 on non-maintenance of minimum average balance (MAB) in savings bank accounts from April 1.

The penalty is as high as Rs 500 in case of current accounts.

The penalty for breach of MAB is being reintroduced after a gap of five years.

The bank has also increased the minimum balance requirement by many times, which is as high as Rs 5,000 for account maintained with branches in six metro cities.

SBI has also imposed restrictions on withdrawals of cash from its branches as well as ATMs. These will attract charges after certain specified limits.(READ MORE)

Cash withdrawal fee: 78 per cent disagree with banks' move

BREAKING NEWS - Banks, including HDFC Bank, ICICI Bank and Axis Bank, from March 1 started imposing a minimum charge of Rs 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month. The new charges would apply to savings as well as salary accounts. The bank would also cap the third party cash transactions at Rs 25,000 per day, while cash handling charges would be withdrawn.

You can read about then details of this move here:  Banks to levy Rs 150 after 4 cash transactions

Business Standard did a quick poll on Twitter yesterday and the results show how unpopular this move is

We asked: Are banks justified in charging customers for cash transactions in their own accounts?

Out of 575 responses, 78 per cent replied in the negative while 22 per cent supported the banks' move

But why did banks make this move? What prompted this decision? We tried to decode this decision for you.

While these charges have become a reality, you can still transact up to Rs 2 lakh a month at your home branch for free.

So, will banks stick to their decision or will they respond to the negative public reaction to this move? We will keep you informed whatever happens.(READ MORE)

Read: You can still transact up to Rs 2 lakh a month at your home branch for free

Note ban: You can withdraw Rs 50,000 from your savings accounts from today

Breaking news - The weekly limit on withdrawal of cash from savings bank accounts will be increased to Rs 50,000, from the current Rs 24,000, from Monday, and the limit will be removed from March 13.

"Effective February 20, 2017, the limits from cash withdrawal from savings bank accounts will be enhanced to Rs 50,000 per week from the current limit of Rs 24,000 per week (and) effective March 13, 2017, there will be no limits prescribed by RBI on cash withdrawal from savings bank accounts."

The Government and RBI had imposed limits on withdrawal of money from ATMs and bank branches in view of the currency shortage following demonetisation.

These limits, however, are being gradually eased, with RBI pumping in new notes of Rs 500 and Rs 2,000. (Read More)

Full text: RBI keep repo rate unchanged at 6.25%

Sixth Bi-monthly Monetary Policy Statement, 2016-17 Resolution of the Monetary Policy Committee (MPC), Reserve Bank of India 

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to:

1)  keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25 per cent.
Consequently, the reverse repo rate under the LAF remains unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.

The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 per cent by Q4 of 2016-17 and the medium-term target of 4 per cent within a band of +/- 2 per cent, while supporting growth. The main considerations underlying the decision are set out in the statement below.

Assessment 

2. Global growth is projected to pick up modestly in 2017, after slowing down in the year gone by. Advanced economies (AEs) are expected to build upon the slow gathering of momentum that started in the second half of 2016, led by the US and Japan. However, uncertainty surrounds the direction of US macroeconomic policies with potential global spillovers. Growth prospects for emerging market economies (EMEs) are also expected to improve moderately, with recessionary conditions ebbing in Russia and Brazil, and China stabilising on policy stimulus. Inflation is edging up on the back of rising energy prices and a mild firming up of demand. However, global trade remains subdued due to an increasing tendency towards protectionist policies and heightened political tensions. Furthermore, financial conditions are likely to tighten as central banks in AEs normalise exceptional accommodation in monetary policy.

Outlook 

11. In the fifth bi-monthly statement of December, headline inflation was projected at 5 per cent in Q4 of 2016-17 with risks lower than before but still tilted to the upside. The decline in headline CPI inflation in November and December has been larger than expected, but almost exclusively on the back of deflation in vegetables and pulses. While the seasonal ebb in the prices of vegetables that usually occurs with the onset of winter as well as some demand compression may have contributed to this outcome, anecdotal evidence points to some distress sales of perishables having accentuated the decline in vegetable prices, with spillovers into January as well. Looking beyond, prices of pulses are likely to remain soft with comfortable supply conditions, while vegetable prices may potentially rebound as the effects of demonetisation wear off. 

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RBI raises ATM withdrawal limit to Rs 10,000 a day

Breaking news - Further relaxing the rules for cash withdrawal from automated teller machines (ATMs), the Reserve Bank on Monday raised the cap from Rs 4,500 a day to Rs 10,000 for each card, but within the existing weekly limit of Rs 24,000 per week, with immediate effect.

Besides, current account holders can now withdraw up to Rs 1 lakh per week. Earlier, they were allowed to withdraw only up to Rs 50,000 in cash in a week. This facility has been extended to overdraft and cash credit accounts as well.  

Already the cash availability has improved vastly in cash vending machines as more new notes are getting released in the system, but the weekly limit persists. The enhanced withdrawal limit, will help banks to bring down the transaction cost, which has now been waived off by the central bank till March.

The RBI had imposed these limits in November after the government announced a ban on all high-value currency notes, and said it would replace them with new notes.

The withdrawal limits are unlikely to be removed completely until the RBI has supplied the economy with sufficient amount of new notes, analysts said.(Read More)

Paytm to transfer wallet biz to payments bank

Latest Business News - Digital payments firm Paytm on Tuesday said its wallet business will soon be transferred to its payments bank but quashed social media rumours that the m-wallets will stop working after January 15.

"There are some rumours circulating that you will not be able to use the Paytm Wallet after 15th January! Nothing could be farther from the truth. On the contrary, Paytm Wallet users will soon enjoy additional benefits through Paytm Payments Bank Account," Paytm said in a blog post.

The hoax message claims that since Paytm is converting into a payments bank post January 15, users will not be able to transact with their Paytm wallet money, it said.

The company noted that the Paytm Wallet will soon be transferred to the newly incorporated Paytm Payments Bank automatically but added that the m-wallets will work even after January 15.

Stating that this is just a "transfer of ownership of wallet to a new company called Paytm Payments Bank Ltd", Paytm said customers will be given an option to open a separate bank account when the bank launches its services.(Read More)

Banks should supply 40% notes in lower denomination to rural areas: RBI

Special Weekend News - The Reserve Bank of India (RBI) on Tuesday instructed banks to ensure that at least 40 per cent of bank notes are supplied to rural areas, in denomination of Rs 500 or below, as the notes being supplied to rural areas "are not commensurate with the requirements of rural population".

Banks maintaining currency chests should step up issuance of fresh notes to rural branches of regional rural banks, district co-operative banks, other commercial banks, white label ATMs (WLAOs) and post offices in rural areas on priority basis.

The distribution can be worked out by checking district level current and savings account data, sorting out rural and urban mix in every district. 

"Accordingly, all chests operating in a district must issue bank notes to the above mentioned distribution channels in the indicated proportion," RBI said in its notification on its website. 

"In particular ATMs, including WLAOs, may be issued Rs 500 and Rs 100 notes and among ATMs category, Off-site ATMs should be allocated higher proportion of cash as against on site ATMs as they are more important in last mile currency connectivity," RBI said.(Read More)

Withdrawal limits from banks, ATMs won't be lifted anytime soon

Breaking News - The Narendra Modi government has asked for time till late December to mid-January for the 'pain' of demonetisation to ease out. However, a major reason for the inconvenience -- withdrawal limits from banks and ATMs -- is likely to stay for longer.

After announcing his demonetisation drive on November 8, Modi has time and again asked for 50 days from the public. While no explicit instructions have been issued as to when the limits of Rs 24,000 per week for savings accounts and Rs 50,000 per week from current accounts, and Rs 2,500 per day from ATMs will be lifted, a large section of the public is hoping that these restrictions will be eased after December 30.

However, these limits will certainly not be lifted anytime soon. Even if the situation eases by mid-January, as per a statement by Finance Minister Arun Jaitley a couple of weeks back, the Finance Ministry and the Reserve Bank of India will take their time assessing the situation before lifting the caps, Business Standard has learnt from senior government sources (Read More).

RBI retracts - multiple deposits of demonetised notes allowed till Dec 30

Breaking News - A day after the Reserve Bank withdrew the notification that barred people from depositing old notes in bank accounts more than once, the central bank on Thursday clarified that people are free to make more than one deposit till December 30.

The old Rs 500 and Rs 1,000 notes can be deposited at bank branches or in cash deposit machines more than once till December 30, Reserve Bank of India (RBI) said in the updated Frequently asked questions (FAQ).

The customers should use separate pay-in-slips for making deposits in the mixed bunch of demonetised and legal tender notes, it said.

Anybody depositing more than Rs 50,000 in cash in their bank account needs to submit a copy of the PAN card in case the bank account is not seeded with the information.

The clarification on the part of the RBI comes a day after it took a U-turn on its notification of December 19 after widespread protests from the public.

Finance Minister Arun Jaitley had clarified the same evening on December 19 that one-time deposit would not attract any scrutiny by bankers. However, on Tuesday, he had insisted that only a one-time deposit would be allowed till December 30. On Wednesday, the RBI withdrew its norms on KYC deposits, but left it unclear whether multiple deposits would be allowed.(Read More)

30% tax advantage for digital transactions, says Arun Jailtey

Finance Minister Arun Jaitley on Tuesday said small traders and businesses will get a tax advantage of more than 30 per cent for digital transactions.

The government on Monday said small traders and businesses with a turnover of up to Rs 2 crore would pay less tax if they accept payments through banking and digital means.

"There will be a significant tax benefit for small traders if you turn digital. It is a tax incentive to support digitisation of economy," Jaitley told the media.

"If we calculate, many traders will get a tax advantage of more than 30 per cent for transactions in digital mode," he added.(Read More)

Now, banks asking for source of funds deposited in old currency

Cautious bank staffers also checking on last deposit amount, showering a volley of questions to save their own skin

A day after the Union government announced that bank customers would now need to provide satisfactory explanation while depositing more than Rs 5,000 in old currency notes, every bank has come out with its own way to evaluate its customers.

At one of the Central Bank branches in the national capital, the bank manager appeared reluctant to accept old currency in the denomination of Rs 500 and Rs 1,000. “This new scheme is to fix the bank officials. They will ask me why I took money in old currency,” said the visibly upset manager, who did not wish to be identified.

The manager was asking each customers to write an application detailing why she didn’t deposit the money before December 20. The bank has also designed a form asking the customers to fill details like name, account number, and since when she had held an account at the branch.(Read More)

Black money probe: ED seeks details about suspicious transactions from 100 co-op banks

Officials said the agency has sought details from these banks after it got reports about suspicious activities of some huge transactions being reported from the bank accounts in these branches.
The ED has written to about 100 cooperative bank branches across the country seeking details about activities in their dormant accounts and other suspicious transactions as part of its anti-black money probe post Demonetisation.

Officials said the agency has sought details from these banks after it got reports about suspicious activities of some huge transactions being reported from the bank accounts in these branches.

They said the Enforcement Directorate is probing these cases for possible contravention of the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA). (Read More)