Wednesday, June 18

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PSBs’ Spreads Hit 10-Year Low: Implications for Lending, Deposits, and Profitability
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BFSI, Lending, NBFC

PSBs’ Spreads Hit 10-Year Low: Implications for Lending, Deposits, and Profitability

Public Sector Banks (PSBs) in India have seen their spreads between lending and deposit rates shrink to a 10-year low of 2.28%, according to data from the Economic Times BFSI. This is significantly lower than the 3.81% spread maintained by Private Banks (PVBs). This narrowing of spreads reflects several factors, including: Increased competition: The banking sector in India is becoming increasingly competitive, with both PSBs and PVBs vying for market share. This has put pressure on banks to offer lower lending rates and higher deposit rates, leading to a compression of spreads. RBI's policy stance: The Reserve Bank of India (RBI) has been maintaining an accommodative monetary policy stance in recent months, which has helped to keep interest rates low. This has also contributed t...
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RBI’s Gold Rush: Stacks Up 18.5 tonnes of gold in Jan-Mar
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BFSI, Economics, Goverment Notice/Circulars

RBI’s Gold Rush: Stacks Up 18.5 tonnes of gold in Jan-Mar

Global central banks continued to bolster their gold reserves in March, with significant purchases led by emerging market banks, according to data from the World Gold Council (WGC). Central banks collectively added 16 tonnes of gold to their reserves during the month, matching the additions seen in February. The Reserve Bank of India (RBI) notably contributed to this trend, purchasing 18.5 tonnes of gold in the first quarter of 2024, propelling its reserves to a record high. By the end of March, India’s gold reserves stood at 822.1 tonnes, comprising 9% of its total reserves and ranking it as the 10th-largest holder of official gold globally. The RBI’s gold acquisitions in the first quarter already exceeded its total purchases of 16.2 tonnes throughout 2023. So far this year, only Tu...
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Top Cross-Border Payment Companies (Global): Navigating the Landscape of Providers
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Payments, Blog

Top Cross-Border Payment Companies (Global): Navigating the Landscape of Providers

Cross-border payments have become increasingly vital in today's interconnected world, where businesses and individuals need to transfer funds across different countries efficiently and securely. With the rise of e-commerce and global trade, the demand for reliable cross-border payment solutions has grown significantly. In this article, we will explore and discuss some of the top cross-border payment companies that are shaping the global payments landscape. PayPal: PayPal is a household name in the world of digital payments. With its extensive global reach and user-friendly interface, PayPal enables individuals and businesses to send and receive money across borders seamlessly. Users can link their bank accounts, credit cards, or use their PayPal balance to conduct transactions. The c...
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Emerging Trends and Solutions in Cross-Border Payments: Shaping the Future of Global Transactions
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Payments, Blog

Emerging Trends and Solutions in Cross-Border Payments: Shaping the Future of Global Transactions

The landscape of cross border payments is undergoing a transformative shift, driven by technological advancements, changing customer expectations, and evolving regulatory frameworks. Emerging trends and innovative solutions are paving the way for a future where cross-border transactions are faster, more efficient, and more accessible than ever before. FinTechs: These companies have revolutionized cross-border payments by offering enhanced customer service, global reach, flexible payment options, lower fees, and faster transaction times. FinTechs facilitate secure, fast, and affordable transfers. Faster Payment Rails: Emerging payment networks enable quicker cross-border transactions. These systems aim to reduce settlement times significantly. Distributed Ledger Technology (DLT):...
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Legacy Channels for Cross-Border Payments: Navigating the Established Landscape
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Blog, Payments

Legacy Channels for Cross-Border Payments: Navigating the Established Landscape

While the world of cross-border payments is rapidly evolving with innovative technologies, legacy channels still play a significant role in facilitating international transactions. These traditional methods, despite their limitations, continue to be widely used by businesses and individuals due to their familiarity, established infrastructure, and global reach. In this article, we delve into the key legacy channels for cross-border payments, exploring their characteristics, advantages, and disadvantages. 1. International Wire Transfers: The Time-Tested Standard International wire transfers remain a cornerstone of cross-border payments, offering a reliable and secure method for transferring funds between bank accounts across different countries. These transfers are facilitated through the...
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Revolutionizing Global Transactions: Advancements in Cross-Border Payments
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Blog, Payments, Technology

Revolutionizing Global Transactions: Advancements in Cross-Border Payments

Cross-border payments are undergoing a significant transformation due to advancements in technology, changing customer expectations, and evolving regulatory frameworks. These developments are revolutionizing the way businesses and individuals conduct international/ global transactions, offering faster, more secure, and cost-effective cross-border payment solutions. In this article, we explore the key advancements that are reshaping the landscape of cross-border payments. Technological Innovations: Blockchain and Distributed Ledger Technology (DLT): Blockchain and DLT solutions offer decentralized and transparent networks for cross-border payments. They eliminate intermediaries, enhance security, and enable real-time, peer-to-peer transactions. Application Programming Interfaces ...
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Types of Cross-Border Payment
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Payments, Blog

Types of Cross-Border Payment

Cross-border payments are an integral part of the global economy, facilitating international trade, remittances, and financial transactions. As businesses and individuals engage in economic activities across borders, understanding the different types of cross-border payments becomes essential. In this article, we delve into the various methods and instruments used for cross-border payments, highlighting their characteristics and significance. Types of Cross-Border Payments- Classification based on Business types: B2B (Business-to-Business): These involve payments between businesses across borders. Examples include paying suppliers, settling invoices, and conducting international trade. B2P (Business-to-Person): These are payments made by businesses to individuals abroad. Use...
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The Promising Future of Cross-Border Payments: 7 Key Advancements
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Blog, CBDC, Fintech, Payments

The Promising Future of Cross-Border Payments: 7 Key Advancements

In an increasingly interconnected world, cross-border payments play a vital role in facilitating international trade, remittances, and global economic transactions. The ability to transfer funds swiftly, securely, and cost-effectively across borders is crucial for businesses, individuals, and economies at large. However, cross-border payments have historically been associated with various challenges, including high costs, delays, and inefficiencies. In recent years, technological advancements and evolving regulatory frameworks have paved the way for transformative changes in the cross-border payment landscape. This article explores the advancements, challenges, and potential future developments in cross-border payments. Cross-border payments refer to financial transactions that involve ...
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India and Ghana Forge UPI Link for Instant Cross-Border Transactions
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BFSI, Fintech

India and Ghana Forge UPI Link for Instant Cross-Border Transactions

India and Ghana have recently agreed to operationalize the Unified Payment Interface (UPI) with the Ghana Interbank Payment and Settlement Systems (GhIPSS) within the next six months. This strategic move aims to facilitate instant fund transfers for users in both countries. Background: The Unified Payment Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). It allows users to instantly transfer funds between bank accounts using their mobile phones. Ghana Interbank Payment and Settlement Systems (GhIPSS) is responsible for managing payment systems in Ghana. Why Is This Significant? The agreement between India and Ghana to operationalize the UPI link within six months has several implications: Enhanced Trade and I...
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Private Digital Currencies vs. CBDC: A Safer Alternative
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BFSI, CBDC, Fintech

Private Digital Currencies vs. CBDC: A Safer Alternative

Reserve Bank of India (RBI) Governor Shaktikanta Das recently emphasized the importance of Central Bank Digital Currency (CBDC) as a safer alternative to potentially dangerous private digital currencies. Let’s delve into the details. Digital Currencies: The Context Private digital currencies, commonly known as cryptocurrencies, are currently unregulated in India. The Indian government does not register crypto exchanges, and these assets operate in a borderless manner, requiring international collaboration. CBDC: A Safer Alternative Governor Das highlighted that CBDC can drive financial inclusion and provide a much safer alternative to private digital currencies. Here are the key points: Settlement Finality: CBDC offers the feature of settlement finality, which can substantially re...
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