1. RBI Opposes Tata-Docomo USD 1.17 Billion Settlement in Delhi High Court
The Reserve Bank of India (RBI) on Wednesday once again opposed the USD 1.17 billion settlement between Tata Sons and Japan’s NTT Docomo, leaving the fate of the payment to the Delhi High Court. Consistent with its stand, first in February 2015 and subsequently in July 2016, the RBI told the court Tata Sons cannot pay Docomo despite the London Court of International Arbitration award in June 2016 as it would amount to violating the Foreign Exchange Management Act.
The High Court has now asked the RBI whether its special permission was required to enforce the award, and if yes to cite the relevant regulations. “Is RBI’s special permission required for paying damages for failing to fulfil contractual obligations? Say yes or no. If yes, then quote the circular, regulation or rule under which permission is required. If not, then say no,” Justice S Muralidhar said and added, “Make your stand clear.”
The RBI said it would submit its stand before the court at the next hearing on 14 March.
(Source: Indian Express)
2. Banking Tycoon Cuts Kotak Stake Through Sale to Canada Funds
Canadian pension fund manager firm Caisse de Depot et Placement du Quebec bought a stake in Kotak Mahindra Bank Ltd, as India’s richest banker offloaded a part of his holdings to comply with rules.
Billionaire Uday Kotak sold 27.6 million shares, or 1.5 percent stake, in the lender on Wednesday at 817 rupees apiece, according to BSE data released after the market closed. Caisse de Depot bought 18.4 million shares and Canada Pension Plan Investment Board bought 9.2 million shares of Kotak Mahindra, which is India’s fourth-largest private-sector lender by assets.
The sale would help Kotak move toward compliance with a central bank directive to cut his ownership in the lender to 30 percent by the end of June. The tycoon and related parties held a 33.6 percent stake in Kotak Mahindra Bank before the transaction.
(Source: BloombergQuint)
3. Axis Snips Credit for Some Snapdeal Sellers Over Dwindling Sales
Axis Bank is withdrawing credit limits it had sanctioned to several merchants on online marketplace Snapdeal.
It is among the first few lenders to ring the bell of alarm over dwindling sales for many retailers on the e-commerce platform, which is struggling to raise fresh capital even as it competes with US’ Amazon and India’s Flipkart in one of the world’s fastest growing markets for digital commerce.
The Mumbai-based bank has sent notices to merchants – who have suffered a drop in sales and had earlier availed loans through Snapdeal’s Capital Assist programme – seeking immediate repayment of outstanding loans while informing them of the withdrawal of unavailed credit.
(Source: Economic Times)
4. Salman Khan Ventures Into Smartphones Business with 'BeingSmart', Selects Plant, Models
For his next blockbuster, Salman Khan is betting on a smaller screen – the smartphone.
The star is dialling a raft of investors for his smartphone venture, in which he may take a majority shareholding directly or through his family. He’s currently building an operational management team to be headed by a professional with leadership stints at Samsung and Micromax, two top industry executives told ET.
The Bollywood superstar, who owns the Being Human clothing brand, has registered the BeingSmart trademark for smartphones targeted at the entry to-middle market segment. He has also selected the Chinese plant and initial phone models that will run on Android and cost below Rs 20,000.
(Source: Economic Times)
5. Penalty For Not Keeping Minimum Balance Will Help Bear Jan Dhan Costs, SBI Says
Facing a backlash for levying penalty on non-maintenance of minimum balance in accounts, SBI on Wednesday justified its move saying the bank needs to impose some charges to balance the "burden" of managing a large number of no-frills Jan Dhan accounts.
The bank also said it has not received any "formal communication" from the government for reconsidering the penalty and it will take a call "if something comes up". It also clarified that the penalty will not apply to Jan Dhan accounts.
Last week, the country's largest lender decided to reintroduce the penalty on non-maintenance of minimum balance in savings bank accounts and also revised charges on other banking services. The new charges would be applicable from 1 April.
(Source: BloombergQuint)
Read The Quint’s report here.
6. Paytm to Levy 2% Fee on Recharge via Credit Cards
Digital wallet player Paytm will now levy a 2% fee for adding money to Paytm wallet using credit cards. This is a result of multiple users using Paytm to get free credit by using credit cards to top up their digital wallets and transferring the money back to their bank accounts at zero transaction cost.
The digital payment wallet will, however, provide an equivalent amount of cashback for using credit card to add money to the wallet. The cost of adding money to the wallet through other modes such as netbanking and debit cards remains non-chargeable.
(Source: Economic Times)
7. Qatar Airways to Start Fully-Owned Airline in India
Qatar Airways said on Wednesday that it will start a fully-owned airline in India.
The civil aviation ministry had asked the Qatar government and state-owned Qatar Airways CEO Akbar Al Baker to start an airline in India and participate in the country’s growth story, Mint first reported citing government officials on 24 January.
“Yes we will have a 100% owned domestic carrier in India that will belong to both QR (Qatar Airways) and our state investment arm as India has now allowed foreign investment in domestic carriers within India,” Al Baker announced on Wednesday at the ITB Berlin travel show which was telecast live on the airline’s Facebook page. “We will soon be making an application to that effect.”
(Source: Livemint)
8. Centre May Pay Your Rent Through Vouchers Soon in 100 Cities
The Narendra Modi government may now pay your rent. The Centre is all set to roll out a Rs 2,700-crore welfare scheme in 100 smart cities to give rent vouchers to the urban poor.
The government would launch the new rental housing policy with the rent vouchers for below poverty line (BPL) families. Though the policy has been in the works for three years, the first component is likely to be rolled out in 2017-18 financial year in the smart cities.
Aimed directly at the urban poor and helping the migrant population, the scheme would involve distribution of rent vouchers by urban local bodies.
The tenant would give these vouchers to the landowner, who in turn would be able to redeem them at any citizen service bureau. If the rent is higher than the value of rent voucher, the tenant would pay the difference in cash to the landowner.
(Source: Economic Times)
9. Japanese Investors Look to Bet Their Money on Indian Startups
A new wave of small Japanese investors is scouting in India for early-stage startups they can bet their money on, undeterred by a bearish spell that threatens to upset Tokyo-based Soft-Bank’s biggest wagers in the country.
REAPRA Ventures and Asuka Corporation are the latest Japanese early-stage investors preparing for their India debut, joining Incubate Fund, GREE Ventures, Mistletoe Capital and other funds that have recently started investing in the country.
This fresh infusion of capital likely signals a return of confidence in India’s startup ecosystem despite a recent battering of some well-known consumer internet companies, although not without a healthy dose of caution.
(Source: Economic Times)
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