Spice Money: Industry Monitoring 10 January 2019
- Priyanka Kanodia
- Jan 11, 2019
- 6 min read
Spice Money
Industry News
Bandhan Bank jumps 2% after six days of losses
Publication- The Economic Times
Edition- Online
Date- 10 January, 2019
Shares of Bandhan Bank climbed 2 per cent on Thursday morning ahead of its December quarterly earnings. The stock rose today after six straight sessions of losses. Bandhan Bank announced acquisition of Gruh Finance NSE 1.65 % in a share swap deal last Monday. The swap ratio is 568 shares in Bandhan Bank for every 1,000 held in Gruh Finance.
However, analysts and brokerages believe that Bandhan Bank has made an expensive deal in acquiring Gruh Finance. Phillip Capital said the acquisition is expensive for Bandhan Bank and does not fully resolve promoter stake dilution concern. Shares of Gruh Finance also climbed 2 per cent after four consecutive sessions of losses. Around 10:05 am, shares of Bandhan Bank were 1.58 per cent up at Rs 461.55 while those of Gruh Finance rose 1.79 per cent to Rs 238.50.
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Bandhan Bank, Gruh Finance extend their slide
Publication- The Economic Times
Edition- Online
Date- 10 January, 2019
Shares of Bandhan Bank and Gruh Finance NSE 1.65 % extended their multi-day losing streak to Wednesday's session, sliding 4 per cent and 9 per cent, respectively, on the BSE. Bandhan Bank shares have been on the downswing for the sixth straight session whereas shares of Gruh Finance fell for the fourth session. In the last six sessions, Bandhan Bank shares have tanked nearly 18 per cent while those of Gruh Finance have plunged 28 per cent in its four-day losing streak. Bandhan Bank announced acquisition of Gruh Finance in a share swap deal on Monday.
The swap ratio is 568 shares in Bandhan Bank for every 1,000 held in Gruh Finance. Analysts believe that Bandhan Bank has made an expensive deal in the acquisition of Gruh Finance. The merger should help Bandhan reduce the promoter shareholding from 82 per cent to 61 per cent, but it is still higher than the RBI’s requirement of 40 per cent, said global brokerage CLSA.
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https://economictimes.indiatimes.com/markets/stocks/news/bandhan-bank-gruh-finance-extend-their-slide/articleshow/67452430.cms
Important news for customers of ewallets like PayTm, Mobikwik, others. Big step by RBI to check unauthorized transactions
Publication- The Financial Express
Edition- Online
Date- 10 January, 2019
At a time when the electronic payment transactions are catching up in the country, the Reserve Bank of India (RBI) has come up with a framework for customer protection by limiting the liability in the case of an unauthorised transaction in any Prepaid Payment Instruments (PPIs). The usage of PPIs such as Amazon Pay, Paytm, MobiKwik, Oxigen, ItzCash, Ola Money, and PhonePe etc. is rising and any such kind of protection layers instills confidence in the usage of them. Interestingly, the RBI’s directives not only cover remote or online payment transactions that do not require physical PPIs to be presented at the point of transactions e.g. wallets or card not present (CNP) transactions, but also covers face-to-face or proximity payment transactions i.e. transactions which require the physical PPIs such as cards or mobile phones to be present at the point of transactions.
PPI issuers have been asked to compulsorily send the SMS alert for any payment transaction in the account to the customers and e-mail alert may additionally be sent, wherever registered. The transaction alert should have a contact number and an e-mail id on which a customer can report unauthorised transactions or notify the objection. For this the PPI issuers shall ensure that their customers mandatorily register for SMS alerts and wherever available also register for e-mail alerts, for electronic payment transactions.
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https://www.financialexpress.com/money/now-every-transaction-alert-from-e-wallet-will-have-this-feature/1438710/
Amazon starts closed user group testing of UPI pay platform
Publication- The Times of India
Edition- Online
Date- 10 January, 2019
While banks and financial institutions try to lure the middle class with quick loans and urge them to leverage their credit worthiness citing healthy CIBIL scores, the formal lending sector seldom reaches out to the needy. Most of the country’s poor have no choice but to go to moneylenders or fall back on MFIs to borrow money and end up paying exorbitant interest rates. To empower the poor, especially the unbanked and underbanked populations, the Telangana government has joined hands with London-based startup Cognito Technologies to kick off a pilot project, wherein it will leverage Blockchain technology to come up with credit scores of those from economically weaker sections of society.
Cognito Technologies that will be setting up its India office in Hyderabad in January with 15 employees will be collaborating with Sthree Nidhi Credit Cooperative Federation Ltd, a government body that advances affordable credit to the self-help group (SHG) members in the state. Murali Mohan Reddy Duvvuru, co-founder, Cognito Technologies, said Sthree Nidhi currently has a digital system in place to run its operations and the startup will be using Blockchain as an underlying technology to help them establish a credit history of every individual. “In phase-1, the entire process of loan disbursement and repayments will be recorded on Blockchain ledgers using smart contracts.
Please click on the link below:
https://timesofindia.indiatimes.com/business/india-business/blockchain-tech-to-help-the-unbanked-get-credit-scores/articleshow/67461532.cms
Your debit, credit card payments to get safer
Publication- The Times of India
Edition- Online
Date- 10 January, 2019
The RBI’s move to allow tokenization of credit and transactions, announced on Tuesday, could prove to be a game changer for the average Indian consumer. Indian consumers, who traditionally fight shy of storing their card data on any device or ecommerce website, will find that the new rules permit them to use a bank-issued token (16- digit number) instead of the actual card. The new rules would offer particular comfort to international travellers. Travel to countries like Thailand has its risks because of their notorious card-skimming syndicates, who skim card data at popular joints like pubs and eateries. Sometimes purchase of niche goods like e-cigarette cartridges, mountain cycle parts, or drones from international websites could prove a costly error as many of these sites have less stringent security compared to Indian sites, which always have the mandated two-factor authentication. debit card Industry players say tokenisation will provide a big boost to digital payments.
“Today, one of the biggest hurdles for lesser known e-commerce sites is how to get the customer to pay on their site, that is, share their credit or debit card information. But once this data is masked, people will have the confidence to shop at lesser-known websites and mobile apps,” says Suresh Rajagopalan, head of payments at FSS, a financial technology company that has a product for banks to issue tokens to their customers. Tokens also come with very high security features. “Once the token is issued, other than you (the card holder), no one else, including your bank’s employees, can reverse the token to find the original card number,” says Rajagopalan. India’s two major card networks, Visa and Mastercard, already have products for turning account numbers into digital tokens. But RBI’s move will hopefully bring more publicity to this feature and normal retail customers can get their bank to issue them tokens at no extra cost.
Please click on the link below:
https://timesofindia.indiatimes.com/business/india-business/your-card-payments-to-get-safer/articleshow/67464262.cms
Big push by RBI to boost digital payment systems, sets up committee led by former UIDAI, Infosys chairman Nandan Nilekani
Publication- Zee Business
Edition- Online
Date- 10 January, 2019
Making India a cashless economy is one of the major goals of Prime Minister Narendra Modi and many reforms have taken place like the launch of demonetisation drive, UPI, BHIM payment modes, etc. It seems Reserve Bank of India (RBI) governor Shaktikanta Das is preparing to take Digital India movement ahead, which is why, the central bank has now set up a committee to look into a list of matters in order to deepen digital payment system. RBI said, "With a view to encourage digitisation of payments and enhance financial inclusion through digitisation, the Reserve Bank of India has decided to constitute a High-Level Committee on Deepening of Digital Payments."
This committee will be headed by Nandan Nilekani who was the former chairman of the Unique Identification Authority of India (UIDAI) and also IT-giant Infosys. Other members of this committee are - H.R. Khan Former RBI Deputy Governor, Kishore Sansi former Vijaya Bank MD & CEO, Aruna Sharma former secretary of Ministry of Information Technology & Steel and Sanjay Jain Chief Innovation Officer, Center for Innovation, Incubation & Entrepreneurship (CIIE), IIM Ahmedabad.
Please click on the link below:
https://www.zeebiz.com/india/news-big-push-by-rbi-to-boost-digital-payment-systems-sets-up-committee-led-by-former-uidai-infosys-chairman-nandan-nilekani-79421
Here’s Why Your Mobile Wallets Might Stop Working From March 2019
Publication- The Quint
Edition- Online
Date- 10 January, 2019
Post demonetisation, India’s penchant for mobile wallets reached a new high, with cash seldom available on the streets. This catapulted demand for wallet players like Paytm, MobiKwik and PhonePe among others, including the government-pushed Unified Payment Interface or UPI. But a recent ET Tech report says that most of the wallet companies might stop working, if they don’t adhere to a specific regulation from the Reserve Bank of India, asking them to complete “know your customer” (KYC) norms for all their customers.
Quoting a senior executive from a payment company, the report says that “95 percent of mobile wallets in the country could stop working by March 2019.” Now this could pose issues for wallet players to operate in the market, especially with the RBI being stringent with its regulations in most cases. The KYC regulation was first stipulated in early 2018, when the likes of Paytm, MobiKwik and PhonePe among others were asked to re-verify all of its prepaid wallet users, without which, wallet interoperability wouldn’t have been possible to function.
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