1. Axis Bank and Shriram Housing Finance partner for co-lending
Tags: Economy/Finance National News
Axis Bank and Shriram Housing Finance Limited (SHFL) entered into a strategic partnership through the Yubi Co.Lend platform under the co-lending model.
An Overview of the News
The partnership aims to address the needs of unorganized sector customers, including self-employed or salaried borrowers, who have limited access to credit due to lack of sufficient income proof.
The partnership will provide secured MSME loans and home loans to middle and low-income group borrowers in rural and semi-urban areas.
The collaboration between Axis Bank and SHFL will address the credit gap faced by MSME and home loan borrowers by using their wide customer reach and rigorous credit underwriting and appraisal tools.
This partnership is in line with Axis Bank's India Banking mission of financial inclusion in rural and semi-urban areas in a seamless digital manner.
About Shriram Housing Finance Limited (SHFL)
It is a subsidiary of Shriram City Union Finance Limited (SCUF) and was established in 2011. It is registered with National Housing Bank (NHB) and provides housing finance solutions to individuals, groups and corporate entities.
The company primarily focuses on catering to the needs of the Economically Weaker Sections (EWS) and Low Income Groups (LIG) of the society. It also caters to the needs of the middle-income group (MIG) and self-employed individuals.
As on December 31, 2022, the company had 2,901 branches across 19 states and 1 union territory.
It has been ranked 8th in the Great Place to Work® Institute's Best Workplaces for BFSI 2020 list.
2. Aditya Birla Health Insurance partners with UCO Bank
Tags: Economy/Finance National News
Aditya Birla Health Insurance Company Limited (ABHICL) has entered into a partnership with UCO Bank to distribute health insurance products through the bank's branches across India.
An Overview of the News
UCO Bank's network of 3164 branches and over 40 million customers will allow ABHICL to expand its national footprint.
Through the partnership, UCO Bank's customers and employees will have access to ABHICL's health-first insurance solutions, including incentive wellness benefits and chronic management programs.
ABHICL now has 17 Bancassurance Partners with over 80,000 Direct Selling Agents across India.
CEO of UCO Bank - Soma Shankar Prasad
CEO of Aditya Birla Health Insurance - Mayank Bathwal
About Aditya Birla Health Insurance Company Limited (ABHICL)
It is an Indian health insurance company that offers a range of health insurance products to individuals, families and corporations.
It is a subsidiary of Aditya Birla Capital Limited, one of the largest conglomerates in India.
ABHICL has tie-ups with over 5,500 network hospitals across India, providing customers easy access to cashless medical treatment.
Additionally, ABHICL offers wellness programs to help customers maintain a healthy lifestyle.
3. India Post Payments Bank launches WhatsApp Banking Services
Tags: Economy/Finance
India Post Payments Bank (IPPB) has announced the launch of WhatsApp Banking service in collaboration with Airtel, a leading private sector telecom company.
An overview of the news
According to the Ministry of Communications, with this new service of India Post Payments Bank, customers can now easily access various banking services from their WhatsApp account through their mobile phones.
Under this new arrangement, it will be delivered to customers through WhatsApp messaging solution Airtel IQ.
Airtel will enable IPPB customers to seamlessly connect with the bank on WhatsApp.
With this, customers will not only be able to avail multiple banking services conveniently, but will also be able to avail a host of services like locating the nearest post office.
WhatsApp messaging will enhance the convenience of connecting with the bank directly at the customers' fingertips.
With this, the Digital India Mission of the Central Government will also be taken forward.
IPPB is a public sector bank which was launched in 2018 with the objective of providing banking services to the unbanked population of India.
4. IMF approves 15.6 billion dollar support package for Ukraine
Tags: Economy/Finance International News
The International Monetary Fund (IMF) has approved a $15.6 billion support package to aid the economic recovery of conflict-torn country Ukraine.
An overview of the news
The Russian invasion has devastated Ukraine's economy, causing economic activity to shrink by about 30 percent last year, according to the IMF.
War has destroyed capital stock and promoted poverty.
The 48-month Extended Fund Facility program approved by the Fund's Board amounts to approximately $15.6 billion.
It is part of the IMF's $115 billion total support package, which includes debt relief, grants, and loans by multilateral and bilateral institutions.
If the current conflict were to continue into 2025, it would raise Ukraine's financial needs from $115 billion to around $140 billion, said the IMF.
About Ukraine
Ukraine, a country located in Eastern Europe, is the second largest country in the continent after Russia.
Its capital is Kiev, located on the Dnieper River in north-central Ukraine.
Prime Minister: Denys Shmyhal
President: Volodymyr Zelensky
Capital: Kyiv
Official Language : Ukrainian
Currency : Rryvnya (UAH)
About International Monetary Fund (IMF)
It is an international organization that promotes global economic growth and financial stability, encourages international trade, and reduces poverty.
It was established in 1944 in the aftermath of the Great Depression of the 1930s.
It is an organization of 190 member countries.
It is governed by and accountable to 190 countries.
India became its member in December 1945.
The IMF's resources come mainly from money that countries pay in as their capital subscriptions (quotas) when they become members.
The International Monetary Fund’s executive board comprises 24 members.
Managing Director - Kristalina Georgieva (Bulgaria)
Headquarter (HQ) - Washington, D.C., US
5. Unified rate approved for natural gas pipeline, new rate applicable from April 1
Tags: Economy/Finance National News
With the ambitious objective of One Nation,One Grid and One Tariff, the Petroleum and Natural Gas Regulatory Board (PNGRB) has decided to change the Unified Tariff which will be applicable from 1st April 2023.
An overview of the news
PNGRB has notified a levelized Unified tariff of 73.93 rupees per MBTU (Metric Million British Thermal Unit).
The rates will be implemented as per three tariff zones in the entire gas network of the country.
This decision will give a boost to the economic development of all regions of the country.
This will facilitate the government's vision for the development of gas markets and increase the utilization of gas in the country.
Three different Tariff Zones
The rate will be different for a distance of 300 km from the gas source.
The rate will be different for the distance of 300-1200 km from the gas source.
The area of more than 1200 km distance will come in the third zone.
National Gas Grid
It covers Indian Oil Corporation, ONGC, Gail India, Pipeline Infrastructure Limited, Gujarat State Petronet, Gujarat Gas Limited, Reliance Gas Pipeline, GSPL India Gasnet Limited and GSPL India Trans Limited.
6. Japan to provide USD 1.24 billion line of credit to Bangladesh for road, railway and port projects
Tags: Economy/Finance International News
Japan will provide an Official Development Assistance (ODA) loan of USD 1.24 billion to Bangladesh for infrastructure and connectivity projects and the second tranche of the 43rd Japanese Yen loan package was signed at the exchange of notes between the two countries.
An Overview of the News
The loan package includes three projects: Chattogram-Cox's Bazar Highway Improvement Project, construction of a dual gauge rail line between Joydebpur-Eshwardi section, and Matarbari Port Development Project, Phase 2.
The first tranche of loan was almost the same amount, making the total package around US$ 2.48 billion.
Japan has been the largest bilateral donor to Bangladesh since 2012, assisting various mega-infrastructure projects.
About Official Development Assistance (ODA)
It is financial aid provided by developed countries to developing countries to support economic growth and reduce poverty.
It can be given in the form of grants or loans, and is provided by governments, international organisations and non-governmental organisations.
It can be used for a variety of purposes, including building infrastructure, promoting economic development, and providing emergency relief.
The Organization for Economic Co-operation and Development (OECD) monitors and reports on ODA flows between its member countries.
ODA is important for supporting economic growth and reducing poverty in developing countries.
About Japan
Prime Minister- Fumio Kishida
Capital- Tokyo
Currency - Yen
Ambassador- Iwama Kiminori
About Bangladesh
Prime Minister- Sheikh Hasina
Bangladesh currency - Bangladeshi taka
Capital- Dhaka.
7. Axis Bank launches 'Micropay' on 'PIN on Mobile' technology
Tags: Economy/Finance National News
Axis Bank launched a groundbreaking payment solution called "Micropay" by Razorpay and MyPinpad in association with technology partners Ezetap.
An Overview of the News
Micropay is a "Pin on mobile" solution that enables a merchant's smartphone to act as a Point-of-Sale (POS) terminal, providing a unique customer experience and simplifying digital payments.
This solution has the potential to revolutionise digital payments in India, especially in Tier-2 and Tier-3 cities where retail and grocery stores often have limited working capital and need cost-effective payment options.
The launch of Micropay by Axis Bank is expected to have a significant impact on small businesses, making digital payments more accessible and cheaper.
About 'Micropay' and 'PIN on Mobile' technology
The new Pin on mobile technology offers merchants an affordable way to accept payments through cards, UPI and BAR codes while maintaining high security standards.
Pin on mobile technology is a small, low-cost card reader that connects via Bluetooth to a merchant's smartphone.
Customers can enter their Pin directly on the merchant's device, in compliance with PCI standards for software-based Pin entry on COTS phones, ensuring the security of the Pin.
Harshil Mathur, CEO of Razorpay
Beas Nambisan, CEO of Ezetap
8. Employees' Provident Fund Organization increased the interest rate on Employees' Provident Fund to 8.15%
Tags: Economy/Finance National News
Employees' Provident Fund Organization (EPFO) has fixed the interest rate on Employees' Provident Fund (EPF) deposits at 8.15% for the financial year 2022-23, which is higher than the previous year's interest rate of 8.10%.
An Overview of the News
Last year's interest rate of 8.10% The interest rate provided by EPFO for EPF deposits was the lowest in more than 40 years.
EPFO has sought approval from the Finance Ministry for the new interest rate.
The CBT will also review the annual accounts of EPFO along with the interest rate on EPF deposits for the financial year 2022-23.
EPFO has given four months time to the subscribers of Employees' Pension Scheme 1995 to opt for higher pension as per the order of the Supreme Court.
Members can opt for higher pension till May 3, 2023.
About Employees Provident Fund Organization (EPFO)
It is a statutory body under the Ministry of Labor and Employment, responsible for operating provident funds, pension schemes and insurance schemes for the organised sector workforce in India.
It manages a corpus of over Rs 17 lakh crore with over 6 crore clients.
EPFO aims to provide social security benefits to workers in the organised sector and ensure their financial stability and well-being.
Since its inception in 1951, the EPFO has expanded its ambit to include pension and insurance benefits, and in 2014, it launched the Universal Account Number (UAN) to ease EPF account management and ensure transparency.
About Employees Provident Fund (EPF)
It is a mandatory retirement savings scheme in India for employees with income below a certain salary limit.
Both the employer and the employee contribute 12% of the employee's basic salary and dearness allowance to the EPF account every month.
Employees can withdraw their EPF balance after a certain period or in case of certain contingencies, and EPF is an important component of an employee's retirement plan.
9. Government imposes surcharge for Google Pay and other payment apps
Tags: Economy/Finance National News
The National Payments Corporation of India (NPCI) has issued a circular suggesting "Prepaid Payment Instruments (PPI)" charges on merchant transactions on Unified Payments Interface (UPI).
An overview of the news
NPCI has introduced an interchange charge of up to 1.1 per cent on merchant UPI transactions done using prepaid payment instruments from April 1.
It will be levied on UPI payments above Rs 2,000 made to online merchants, large merchants and small merchants.
NPCI has clarified that there will be no charges for UPI payment from bank account to bank account or normal UPI payment.
With UPI, customers will have the option of using any bank account, RuPay credit card and prepaid wallet on a UPI-enabled app.
What is the interchange fee?
The interchange fee is levied to cover the costs of accepting, processing, and authorising transactions.
This is likely to make the transaction costlier.
Interchange fee is a fee paid by payment service providers to wallet issuers such as banks.
These wallets are mainly online payments like Paytm, PhonePe and Google Pay.
National Payments Corporation of India (NPCI)
NPCI, an umbrella organization for operating retail payment and settlement systems in India, has been initiated by the 'RBI' and the 'Indian Banks' Association' (IBA) under the 'Payment and Settlement Systems Act, 2007'.
It is a 'not-for-profit' company established under the provisions of Section 25 of the Companies Act 1956 (as amended in 2013), with the objective of providing physical and electronic payment infrastructure to the entire banking system in India.
10. India’s overall exports cross all time high of 750 Billion US dollars
Tags: Economy/Finance National News
Commerce and Industry Minister Piyush Goyal has said on March 28 that India's total exports have crossed US$ 750 billion which is the highest ever and this achievement has come in the 75th year of independence.
An overview of the news
In 2021-22, the country's goods and services exports reached an all-time high of US$ 422 billion and US$ 254 billion, respectively, taking total shipments to US$ 676 billion.
Exports fell by 8.82 per cent in February 2022, while imports fell by 8.21 per cent, the biggest decline in more than two years.
Experts have expressed concern over the slowdown in exports due to recession concerns and weak global demand.
Exports declined by 8.8 per cent to $33.88 billion in February 2023 from $37.15 billion in February 2022.
Imports also declined for the third consecutive month in February at $51.31 billion, down 8.21 per cent from $55.9 billion a year ago.
The country's trade deficit in February stood at $17.43 billion.
