BFSI - NewNerve

CBDC’s Programmability: Revolutionizing Digital Transactions and Governance

27Mar

By Ankit2 Comments

Payments

CBDC’s Programmability: Revolutionizing Digital Transactions and Governance

Central Bank Digital Currency (CBDC) has emerged as a transformative force in the financial landscape, with experts predicting that its programmability feature will turbocharge its impact. In a recent episode of FinTech Diary, industry leaders discussed the potential of CBDC, its current initiatives, and the journey of India's CBDC pilot projects. This article explores the key insights shared by these experts and highlights the significance of CBDC's programmability in revolutionizing the way we transact and govern financial transactions. Exploring CBDC's Potential and Scope: CBDC, often referred to as digital cash, operates outside traditional bank accounts and instead resides in digital wallets. Ajay Rajan, Country Head at Yes Bank, emphasizes that CBDC's programmability, offline mode,...

RBI’s Risk Weight Hike: Implications for Incremental Bank Lending to NBFCs

27Mar

By Ankit2 Comments

Digital Lending, NBFC

RBI’s Risk Weight Hike: Implications for Incremental Bank Lending to NBFCs

The Reserve Bank of India (RBI) recently implemented a significant increase in risk weight for bank exposures to Non-Banking Financial Companies (NBFCs). This move is expected to have a notable impact on incremental bank lending to the NBFC sector. In this article, we will explore the implications of the RBI's decision and discuss the potential consequences for the lending landscape. Key Points: Decrease in Bank Loans to NBFCs: As of January 2024, outstanding bank loans to NBFCs stood at Rs 15.03 trillion. However, in FY23, banks extended only Rs 3.08 trillion to finance companies, a significant decline compared to the previous year's Rs 73,831 crore. This downward trend can be attributed to various factors, including the tightening of risk weights by the RBI. Projections for FY25: ...

Paytm’s FY25E Revenue Likely to Decline by 24%: Challenges Ahead

27Mar

By Ankit1 Comment

Payments

Paytm’s FY25E Revenue Likely to Decline by 24%: Challenges Ahead

Introduction: In a rapidly evolving digital landscape, Paytm, one of India’s leading digital payment platforms, faces significant headwinds. A recent report by Motilal Oswal Financial Services sheds light on the company’s future prospects, highlighting potential revenue declines and competitive pressures. The Forecast: A 24% Revenue Drop Motilal Oswal estimates that Paytm’s FY25E revenue is expected to decline by a substantial 24%. This projection reflects the challenges the company is currently grappling with. Let’s delve into the key factors contributing to this anticipated decline: Business Transition: Paytm is undergoing a significant business transition. As it diversifies its offerings beyond payments, it faces the delicate task of retaining existing cus...

26Mar

By Ankit1 Comment

Fintech, Payments

Trust Bank Empowers Customers with AutoPay for Hassle-Free Credit Card Repayments

Trust Bank, Singapore's digital bank, has rolled out AutoPay, a new feature aimed at simplifying credit card repayments for its users. This development allows Trust Bank customers to set up automatic repayments for their credit cards with just a few clicks, provided they have a savings account. Introducing Trust Bank's AutoPay Feature Trust Bank's AutoPay feature offers a straightforward setup process. Customers who have a Trust credit card and savings account can activate AutoPay in a matter of seconds. Even those without a savings account can open one quickly, with an account opening experience that takes approximately one minute. Benefits for Savings Account Holders: Interest Rates and Insurance Coverage In addition to the convenience of automatic repayments, Trust Bank's savings ac...

Digital Wallet Dominance: 58% India’s E-Commerce Revolution Driven by Mobile Wallets

24Mar

By Ankit2 Comments

Fintech, Payments

Digital Wallet Dominance: 58% India’s E-Commerce Revolution Driven by Mobile Wallets

India’s e-commerce landscape is undergoing a significant transformation, with alternative payment methods now commanding a substantial 58% share of the market in 2023. This shift, driven by the widespread adoption of mobile and digital wallets, marks a profound change in consumer preferences and transactional behavior. The Changing Face of Indian E-Commerce: The Rise of Alternative Payments Mobile Wallets: Brands like Amazon Pay and Google Pay have gained prominence as alternative payment solutions among Indian consumers. Decline of Cash: Traditional cash payments, prevalent in in-store retail, have witnessed a sharp decline in online purchases, capturing only a 6.2% share of the market. Payment Cards Remain Relevant Credit and Charge Cards: Payment...

IBA’s New Captain: MV Rao Charts Course for Financial Excellence

24Mar

By Ankit1 Comment

Banking, BFSI

IBA’s New Captain: MV Rao Charts Course for Financial Excellence

MV Rao Takes the Helm at IBA In a significant development, MV Rao has been chosen to lead the IBA (Indian Banks’ Association. His appointment as Chairman was confirmed during a meeting of the IBA’s Managing Committee on Thursday, March 21, 2024. This prestigious role places him at the forefront of shaping policies and strategies for the banking sector. Prior to his current role as the Managing Director & CEO of Central Bank of India, MV Rao served as the Executive Director of Canara Bank for over three years. During his tenure at Canara Bank, he played a pivotal role in the bank’s progress and was instrumental in the amalgamation of Syndicate Bank with Canara Bank. Deputy Chairmen Appointed Alongside MV Rao, the IBA has also appointed three Deputy Chairmen: ...

The Evolving Landscape of the Banking Industry in the UAE: 5 Key Insights

23Mar

By Ankit1 Comment

Banking

The Evolving Landscape of the Banking Industry in the UAE: 5 Key Insights

Imagine a bustling financial landscape where innovation meets resilience, where global integration drives economic growth, and where traditional banking merges seamlessly with digital advancements. This is the story of the banking industry in the United Arab Emirates (UAE). UAE Banking Industry: A Journey Through Growth and Innovation In this article, we will explore the main findings and insights from a comprehensive report on the UAE banking industry, shedding light on the operational insights, digital trends, and market analysis that have shaped this dynamic sector. For a more in-depth understanding, we highly recommend referring to the original report by Majid Dodehaki. Original Report: Banking Industry in the UAE Growth and Resilience: The UAE has emerged as a global financial ...

Perfios and NPCI Collaborate to Revolutionize RuPay Credit Card Onboarding Process, 2024

22Mar

By Ankit1 Comment

Digital Lending, Fintech, Lending

Perfios and NPCI Collaborate to Revolutionize RuPay Credit Card Onboarding Process, 2024

Perfios and NPCI collaboration: In a significant development for the Indian financial industry, Perfios, a leading fintech company, has joined forces with the National Payments Corporation of India (NPCI) to introduce a unified onboarding framework for RuPay credit cards. This collaboration is part of NPCI's co-creation initiative and aims to streamline and optimize the onboarding process, enabling customers to obtain their RuPay credit cards in less than two minutes. This exciting partnership holds the potential to revolutionize the way individuals access and utilize credit in the country. Enhancing Onboarding Efficiency: The traditional process of applying for a credit card in India has often been associated with lengthy paperwork, complex verification procedures, and time-consuming a...

Surge in Export Credit: Indian Banks Reach a 12-Month High Amidst International Demand

22Mar

By AnkitNo Comments

BFSI

Surge in Export Credit: Indian Banks Reach a 12-Month High Amidst International Demand

Introduction to the Export Credit Surge In an economic landscape marked by global uncertainties, Indian banks have emerged as pillars of stability and growth with a surge in export credit. The latest data reveals a remarkable surge in export credit, which has soared to a 12-month high of Rs 20,489 crore, showcasing the resilience and potential of the Indian export sector amid rising global demand. The Current Economic Scenario The Economic Times reports that this surge is not just a fleeting spike but a sustained upward trajectory, with a 5% increase this financial year, marking the highest point since February of the previous year. This growth comes despite the ongoing Red Sea crisis, which has posed significant challenges to international trade due to piracy raids ...

Startup Mahakumbh 2024: PM Modi’s Address at Bharat Mandapam

21Mar

By Ankit2 Comments

Fintech

Startup Mahakumbh 2024: PM Modi’s Address at Bharat Mandapam

The Startup Mahakumbh event, held from March 18-20 at Bharat Mandapam in New Delhi, was a significant occasion for India’s burgeoning startup ecosystem. Prime Minister Narendra Modi addressed the gathering, emphasizing the government’s support for emerging sectors such as deeptech, agritech, biotech, medtech, and AI. The event, organized by apex industry associations and supported by the DPIIT, showcased over 1306 startups across 10 sectors, featuring 392 speakers and 165 sessions. Highlights from Startup Mahakumbh Event PM Modi highlighted the transformative potential of startups, noting their role in revolutionizing industries and contributing to economic growth. He pointed out that startups are not just confined to metro cities but have become a social culture, spreading to smal...