Money & Banking
India Post to open payments bank with 650 branches
India Post, which already offers limited financial services through its 154,800 post offices, is also becoming a payments bank with 650 dedicated branches involving an investment of Rs 800 crore, officials said on Wednesday.
 
A meeting of the cabinet, presided over by Prime Minister Narendra Modi, gave its approval to the proposal, following an in-principle approval by the Reserve Bank of India earlier.
 
Payments banks offer small savings accounts, as also remittances and mobile and net banking services, notably to migrant labour workforce, low-income households, small businesses and other unorganised sector entities.
 
They can also accept demand deposits up to a maximum of Rs 100,000 per individual customer, issue ATM/debit cards and act as agents for simple financial products like mutual fund units and insurance.
 
"The payments bank will be a game-changer in rural and semi-urban areas. It will help in our larger goal of financial inclusion," Communications Minister Ravi Shankar Prasad said after the cabinet meeting. 
 
"By September 2017, all 650 branches dedicated for postal payments bank will be operational." 
 
"All post offices, including the 1.39 lakh of the rural post offices, will be the access points for India Post Payments Bank. These post offices will be equipped with Micro-ATMs for facilitating both cash and digital transactions," the minister added.
 
More than 50 national and international banks, insurance companies, money transfer organisations are keen to tie-up with India Post Payments Bank, he said.
 
"We will start operations in March 2017 in about 50 districts ad quickly scale up to cover the entire country by the end of financial year 2018-19."
 
Prasad said the India Post Payments Bank will be professionally managed and run by a chief executive, with assistance from the designated of the departments of posts services, expenditure and economic services. 
 
"The payments bank will have 5,000 ATMs," the minister said. As regards the Rs 800 crore investment, half of it will be in the form of equity and the rest as grant, he added.
 
Some limited banking services are not new at post offices, which have been facilitating people to open savings accounts, recurring deposits, time deposit accounts and monthly income schemes and senior citizen savings schemes.
 
In addition, they also facilitate the opening and maintenance of provident fund accounts, and the purchase of National Savings Certificates, Kisan Vikas Patra and Sukanya Samriddhi accounts for the girl child.
 
The payments bank was first proposed by Finance Minister Arun Jaitley in 2014.
 
“After making suitable changes to current framework, a structure will be put in place for continuous authorization of universal banks in the private sector in the current financial year," Jaitley said in his budget speech on July 10, 2014.
 
"Differentiated banks serving niche interests, local area banks, payment banks are contemplated to meet the credit and remittance needs of small businesses, unorganised sector, low income households, farmers and migrant work force.”
 
Highlights of the India Post Payments Bank:
 
* It will offer basic banking, payments of direct benefit transfers, utility bills, collection of taxes and fees, remittances.
 
* It will also provide easy access to loans, collect EMIs, provide insurance (life, health, accident, two-wheeler/auto, crop, etc), pensions, investment opportunities like mutual funds, forex etc. in tie up with third party financial service providers.
 
* It will have a focus on rural, semi-urban, unbanked areas and among the under-banked segments of the society.
 
* India Post Payments Bank will usher in state of the art internet and mobile banking platforms, digital wallets, use emerging technologies such as Unified Payments Interface (UPI), e-KYC and catalyse the shift from a cash dominant to a less cash economy. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Shirish Sadanand Shanbhag

6 months ago

Considering the fact that Post Office offers its Savings bank facility to more than 1.5 lakh branches in India, creation of Payment Bank will popularise Post Office Savings Bank facility in India.
In order to populariser its savings Bank facility, maximum balance be increased to Rs.2.5 lakh in single name and 5 lakh in joint name. It should also provide Savings Bank facility to business houses, and details of cheque be printed in the pass book.
A cheque drawn in the name of Post Office Savings Bank (POSB) A/c holder be encashable in his/her/their POSB.

Telecom regulator launches app to take pesky call complaints
The Indian telecom watchdog on Wednesday launched a mobile application to file complaints about unsolicited commercial communications.
 
“It is called DND Services. It is available in Google App Store and Mobile Seva App Store now and soon will be available in Apple iOS,” Telecom Regulatory Authority of India (TRAI) Chairman R.S. Sharma told reporters in a press meet.
 
“It is done keeping in mind consumer interest. It will make the complaining process easier,” he added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Chandragupta Acharya

6 months ago

I downloaded the app, it gave an error stating it does not recognize my number! I think it works only for BSNL subscribers probably.

saji cherian

6 months ago

Commendable initiative!

Humungous jump in Tata Motors trading volume on NSE in the last 30 minutes on Tuesday
Updated on 2 June 2016 10.25am to include response from NSE
 
In what market participants allege as algo or high frequency trading (HFT) gone 'rogue', there was a massive spurt in Tata Motors Ltd's trading volume and turnover mainly on the National Stock Exchange (NSE) and to a much smaller extent in the BSE during last half hour of trading on 31 May 2016. In fact, the turnover in the scrip jumped five times on BSE and over 13 times on NSE, when compared with the average of past 10 trading sessions.
 
Past 10 day's average trading volume of Tata Motors on the BSE is 7,11,421 (7.11 lakh) with the average turnover of Rs28.09 crore. On 31 May 2016, the scrip recorded trading volume of 32,31,089, (32.31 lakh) 4.5 times higher, when compared with past 10 day's averages. 
 
 
A much bigger jump happened on the NSE, where the 10-day average trading volume of Tata Motors is 96,43,203 (96.43 lakh) with an average turnover of Rs381.65 crore. On 31 May 2016, the scrip recorded trading volume of 11,07,44,326 (11.07 crore) almost 11 times higher.  
 
 
A look at the hour-by-hour volume will tell you this strange story. It seems to be a fit case of investigation by the market regulator. 
 
 
There was nothing by way of news to warrant this kind of crazy volumes. Our emails sent to top executives of BSE and market regulator Securities and Exchange Board of India (SEBI) remained unanswered till writing the story. We will include their responses as and when we receive it.
 
Update: Replying to our mail, an official from NSE says, "Please note that we did not notice anything wrong as was indicated in your email. Also as you may know we do not comment on fundamental reasons, traders behaviours, market perceptions etc attached to any price movements of listed entities / instruments, unless of course asked by appropriate authorities."
 
According to market players, such extraordinary volume is the fingerprint of algo trading or HFT. The Indian market opened up to this controversial form of trading when NSE started it in 2010. This form of high-speed trading rose 12% on the BSE, to account for almost 30% of total trades. Its share is higher in the NSE, with nearly 46% of trades happening on the platform from HFT, according to a report from The Huffington Post. Higher volumes, of course, translate directly into higher revenues and profits for the exchanges, which are now completely bottomline-oriented.
 
The Financial Stability Report (FSR) for June 2015 released by RBI on 25 June 2015, warns against the rising popularity of superfast algorithm trading, saying its complex coding and ultra-low latency due to its advanced communication platforms increase risks of erroneous trades and manipulations in stock markets. Further, the fact that the share of algo orders in total orders and the share of cancelled algo orders in the total number of cancelled orders is around 90% creates concerns relating to systemic risks, the FSR says.
 
Global regulators, in a report last year had warned that rapid-fire trading firms’ use of increasingly complicated computerised trading programs may pose risks to the financial system, says a report from Wall Street Journal. 'Regulators’ growing concerns about algorithmic traders’ relentless push for speed intensified in the wake of market shocks such as the “flash crash” of May 6, 2010—when markets swung wildly amid a flurry of technology glitches and heavy selling by computer-driven firms—as well as the loss of more than $400 million in less than an hour by electronic-trading firm Knight Capital Group Inc. in August 2012, the report added.
 
 

 

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COMMENTS

Suketu Shah

6 months ago

Ever since Cyrus Mistry has taken over ,the Tata group shares have been entire retail investor unfriendly.The whole idea is to ensure retail investors donot earn money since last 4 yrs under Mistry.TYou ask any broker-the first name he wl say is of tata scripts .Tata shares have reached such level that clearly they rely on high commission to brokers to fool retail investors.Real solid companies donot need any promotion via brokers like MRF,etc.If one is looking to make good money via good scripts in India,one shd avoid all Tata Scripts.

Vinay Isloorkar

6 months ago

Buoyed by Jaguar sales, Tata Motors profit has jumped many fold. Did this HFT take place before the announcement of results? Is it a case of insider trading ?

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