1. Jan Dhan Account Deposits Swell, Mobilise Rs 21,000 Crore
One of Prime Minister Narendra Modi's key financial reforms is likely being misused to get around another key policy, and the government may take penal action. A senior government official told ET that the Jan Dhan bank accounts, which were opened for the poor, have seen huge deposits to the tune of Rs 21,000 crore in the fortnight since demonetisation.
Trinamool Congress-ruled West Bengal leads in this sudden spurt in deposits, followed by Congress-ruled Karnataka. TMC leader and Bengal CM Mamata Banerjee has been a vocal critic of demonetisation. The Congress too has been critical.
(Source: Economic Times)
2. Mistry Knows Where All the Bodies Are Buried in Tata Group: Kumar
Ousted chairman Cyrus Mistry knows where “all the bodies are buried in Tata Group”, his close aide and member of the now-disbanded Group Executive Council (GEC) Nirmalya Kumar said on Wednesday.
Kumar, who was dismissed from the company within hours of Mistry being unceremoniously ousted as chairman of Tata Group on 24 October, said there were no skeletons in Mistry’s cupboard.
(Source: Business Standard)
3. Demonetisation: Now, Encash Digital Money at Vodafone's M-Pesa
The country’s second-largest telecom operator Vodafone India is taking steps to ensure that its 8.4 million M-Pesa customers can encash their digital money from specified outlets.
Unlike a Paytm or Oxigen, Vodafone M-Pesa is essentially a banking correspondent, which facilitates financial services on behalf of an equal or unequal financial institutions, that enables a customer to go to specified outlets and get cash of same worth.
(Source: Economic Times)
4. Mastercard, Visa Set to Reap Spoils of India’s War on Cash
India’s war on cash has at least two likely victors: Visa Inc. and Mastercard Inc.
The world’s largest payment networks will see a surge in transactions and cardholders after the Indian government’s decision this month to remove high-denomination bills from circulation, according to analysts who cover the companies.
The two networks have been pushing for this kind of change in India, where a McKinsey & Co study found that more than 90 percent of transactions are still conducted in cash.
(Source: BloombergQuint)
5. Gold Loses Most Liquid Asset Status
Gold has traditionally been considered this country’s most liquid asset – at any time, people were prepared to give cash against it. After the demonetisation, that has changed.
Scrap gold dealers appear to be gradually shifting to cheque payment or net banking fund transfer. And, customers are not ready for this – selling against cheque means it shows in the account book and long-term capital gains tax is applicable. The concept of gold as an asset capable of getting anytime money is evaporating.
(Source: Business Standard)
6. Farmers Go Cashless in APMCs
The demonetising of high-value currencies had initially disturbed trade at agricultural mandis (wholesale markets). Now, farmers seem to have begun accepting payment for their produce through banking channels, setting the stage for cashless agri-trade.
Farmers in most APMC (Agricultural Produce Market Committee) mandis in Madhya Pradesh have shifted to real-time gross transfer (RTGS) or cheque mode of payment. Those requiring instant cash to meet their emergency requirements are withdrawing it within the limit the Reserve Bank of India has fixed. Traders are adjusting among themselves to meet immediate cash requirements for payment to labourers.Rakesh Shrivastava, Commissioner of the state’s Mandi Board
(Source: Business Standard)
7. Reliance Capital To Sell Radio, General Entertainment Assets To Zee
Anil Ambani-led Reliance Capital Ltd plans to reduce debt by Rs 1,900 crore by selling stakes in its radio and television businesses to the Zee Group, the company said in a media statement.
Reliance Broadcast Network Ltd will sell a 49 percent stake in its radio broadcast business 92.7 Big FM to Zee Media Corporation Ltd. Besides, Zee Entertainment Enterprises Ltd will acquire Reliance Group’s general entertainment television business.
This transaction is a part of our strategy to reduce exposure in non-core business of media and entertainment and work towards further reducing our debt under Reliance Capital.Sam Ghosh, Executive Director & Group CEO, Reliance Capital
The company has already received board approval for the deal.
Source: BloombergQuint
8. Facebook Wants Larger Slice of Digital Ad Pie From India Inc
Facebook India is helping brands translate campaigns and ads on its platforms to business as it seeks to become a more relevant platform for advertisers. This could also translate to larger piece of the fast growing digital advertising pie in India.
Facebook also sees the current demonetisation helping curb black economy and drive the digital economy in India.
Facebook, which reported 166 million users per month on its platform for Q3, the second largest after the US, also sees India becoming the largest user market globally sometime in the near future.
(Source: Economic Times)
9. Airtel Launches India's First Payments Bank
Airtel Payments Bank Ltd on Wednesday became the first payments bank to start operations, offering services in Rajasthan in a limited scale.
The payments bank is testing systems and processes ahead of a full scale, pan-Indian launch, the company said in a statement. Customers will be offered an interest rate of 7.25 percent on deposits in savings account, higher than the 4-6 percent commercial banks are offering, it said.
The pilot will run at 10,000 Airtel retail outlets where basic banking services will be provided. Airtel Payments Bank is planning to expand its merchant network in Rajasthan to 1,00,000 by the end of the year, the statement said.
(Source: Livemint)