Citizens' Issues
India’s first property title law comes up in Rajasthan; to ease land acquisition: report
The new law allows the state to stand as a guarantor for land titles and provide compensation in case of issues of defective title, which will ease land acquisition and project costs, says India Ratings in a report
 
The Rajasthan Urban Land (Certification of Titles) Act, 2016, passed by the state Legislative Assembly this month, will significantly smoothen the land acquisition process in urban areas, says India Ratings and Research Pvt Ltd (Ind-Ra). 
 
Rajasthan is the first state in India to enact a law on property titles, where the state will stand as a guarantor for land titles and provide compensation in case of issues of defective title. Ind-Ra says it believes that the adoption of similar laws by other states can meaningfully shorten the time taken for acquisition of urban land for infrastructure creation by public bodies or for real estate development by private players and bring down overall project cost.
 
The Act provides for the state government to stand as a guarantor for the permanent certificate of title issued for urban land by the Certification Authority after perusal of documents. The Act also provides for compensation to any person who enters in to a transaction on the basis of a permanent certificate of title, in case the title later turns out to be defective. These provisions will lead to clarity in land titles and will reduce legal challenges, thus reducing the effective cost of land and shortening execution timelines.
 
The Act is a marked improvement over the current situation where the land title is authenticated based on a series of documents of successive transfers, without any guarantee of the actual title and the buyer's investment is exposed to the risk of complete loss, in case the title later turns out to be defective. Given the uncertainty as to land title, buyers go through a long process to authenticate the titles, but often end up facing legal challenges, thus delaying the execution of projects and locking up capital.
 
This titling reform by Rajasthan comes at a time when the government has embarked on a mission to push for urbanisation with various schemes namely, development of smart cities, the Atal Mission for Rejuvenation and Urban Transformation and housing for all, Ind-Ra says.
 
Under the Act, the state government will set up an Urban Land Title Certification Authority, which will seek all the documents from the landowners, and will verify it against the records held by the state. The Authority will then issue a provisional certificate of title for a period of two years without guarantee and follow it up with a permanent certificate of title to which the government shall stand guarantor.

User

COMMENTS

manoharlalsharma

10 months ago

land title the most sought by developers to reduce time in searching and to make easy funding by investors the first state and it should be adopted by all INDIA basis.

Are Indian banks ready for the upcoming ‘Uberization’?
Existing banks and new challengers would increasingly engage, target and segment consumers on the new battleground – transactions, says a research report
 
With the Reserve Bank of India (RBI) issuing differentiated licenses, the competitive landscape for incumbent banks is changing like never before. The two biggest classic competitive advantages for incumbent banks that acted as entry barriers for challengers are redundant. Just as Uber with zero-ownership of cabs emerged as a global leader in ‘cab sharing’, it is now possible for challenger 'banks' to compete with incumbents without capital, like peer-to-peer (P2P) lending or without physical presence payment technologies. The ‘Uber’ moment for Indian banks is upon us says Motilal Oswal Securities Ltd (MOSL) wondering if the incumbents are ready for this.
 
The brokerage in a research note says, "From a near-term perspective, we believe that the Cabinet approval for promotion of payments through digital means could accelerate the pace of digitization. We believe that digitization of government payments (G2B and G2C) is a near-term catalyst, which alongside the launch of the Bharat Bill Payment System (BBPS) can also potentially disrupt the flow of working capital funds from banks to corporate India. P2P lending could also emerge as a potential game-changer for banks on both sides of the balance sheet."
 
With just over 50% of Indians having a bank account, India suffers from one of the lowest penetration rates for banking products and services. This has driven the demand for relatively more accessible and affordable 'banking' solutions to address the vast unbanked about 50% of the population and under-banked population, the report added.
 
 
There is no doubt about the immediate near-term focus on Indian banks’ asset quality challenges both known and unknown, there is a larger force at play that impact the very existence and survival of Indian banks as we know them. While challengers like payment banks and contenders have been focused on acquiring customers through cashback offers and freebies, incumbent banks have been focused on enabling and facilitating transactions. However, analytics-based cross selling of financial products remains the Holy Grail for all service providers. "We believe that technology-enabled cross-sell is the only way for banks to clock non-linear growth in customer profitability when revenue per customer will see a disproportionate rise compared to the cost per customer," the report added.
 
 
According to MOSL, forces at play are likely to reduce cash intensity in Indian economy. "While the Indian economy continues to be dominated by cash (12% of India’s GDP and 70% of consumer payments by value), a combination of policy and consumer behaviour is seeking to reduce the economy’s dependence on cash. Given the RBI’s stated intention of reducing the share of cash transactions in the economy (policy push factor) and the consumer’s need for convenience (customer pull factor), the cash intensity of the Indian economy is expected to reduce to 40% of consumer payments in value terms by 2019." it added.
 
Digitally-enabled consumers are looking to complete the awareness-to-purchase loop on digital platforms, which is the reason for mushrooming of multiple payment systems, MOSL says, adding, with smartphone penetration in India at about 17% and rising at an exponential 45% CAGR, the digitally-enabled Indian consumer is increasingly looking to fulfil the decision-making loop on the digital platform itself. 
 
An increasing proportion of the consumer’s decision-making process, beginning with awareness followed by research, comparison, choice and ending with the eventual purchase, is beginning to migrate to the digital world. Consequently, the payments ecosystem in India has witnessed frenzied activity over the past year, with two-three digital banking apps or mobile wallets being launched every other month.
 
 
With increasing digitization of financial services, MOSL feels that transactions of small and medium enterprises (SMEs) would be the new battle ground in the new game, where transaction market share will determine deposit market share. It says, "Our analysis suggests a strong positive correlation between the number of non-bank transactions from a savings account, and the average balances maintained in such accounts. As this behaviour entrenches itself further, we expect incumbent banks and challengers to increasingly engage, target and segment consumers on the new battleground – transactions. We also expect 'mid-sized businesses' to be a hotly-contested segment, as banks look to build a protective 'network effect'."
 
According to MOSL, while all banks are launching their own digital platforms, non-linear benefits will only accrue to banks that are able to build superior cross-sell capabilities to monetize their customers better. "We expect the top-quartile banks to generate a RoA alpha of around 100 basis points (bp) from the current levels of 80bp over the sector average at an operating profit level over the next five years. Nearly all of this return on assets (ROA) alpha will be driven by cross-sell fee income and higher customer profitability," it added.
 
The brokerage says it has developed an industry-first, proprietary Motilal Oswal Digital Quotient (MODQ) score to identify early movers across three key categories, scale, transaction activity and product capabilities. As per MODQ analysis of 10 largest banks, Kotak Mahindra Bank, HDFC Bank among the private banks and State Bank of India (SBI) among public sector banks (PSBs) as best positioned plays on digital banking. 
 
It says, "The private sector banks have been far more successful in encouraging transaction activity levels and float, which is crucial for revenue generating opportunities. In general, we believe that the eventual winners in digital banking will be entities that master the 'small value, high volume' transactions war".
 
The evolution of the quasi-corporate private sector lenders is also worth highlighting, MOSL feels. "Axis Bank has been prolific in adding merchants but there is a lot more groundwork that needs to be done in terms of raising activity levels and digital maturity levels of its individual customers. ICICI Bank offers a host of digital choices to customers that are high on recall and customer convenience - the bank now needs to find a way to monetize these digital offerings. Yes Bank, despite being a late convert to the utility of a retail franchise, has been commendable in its pace of merchant acquisition and its use of business correspondents - however, the bank appears to be in an investment phase since activity levels are sporadic at best,” it concluded.

User

COMMENTS

Gurudutt Mundkur

10 months ago

A few banks are withdrawing benefits to Senior Citizens. Is is the road to "change" and be prepared for the future of Banks?

Sudhakar Ojha

10 months ago

Only the Nimble entrepreneur style private players will be able to take advantage og the new playing fields.

May actually help PSUs by helping them shed the accounts which for them are unremunerative (and downsize) but would be a paying customer for the new setups.

manoharlalsharma

10 months ago

Smarter bankers curtailed staff first by replacing TECHNOLOGY but not EDUCATED a/c holders made elder to depend on their children for SERVICE of bills and put financial burden to buy SMART cell phones.It should be EDUCATED to GENERAL public by PRINT MEDIA.

Mahesh S Bhatt

10 months ago

Great article but somewhere security is not all addressed Mahesh

Gurudutt Mundkur

10 months ago

Indian Bank had better upgrade their technology to meet the new developments. Or else they will go the way of some private sector banks and several co-operative Banks.

Country's first 'Karigar University' on cards
New Delhi : The country's first "Karigar University" to impart professional skills' training to artisans like potters, carpenters and ironsmiths may soon come up in Wardha in Maharashtra, the erstwhile 'karmabhoomi' (workplace) of Mahatma Gandhi.
 
The Maharashtra government and the Narendra Modi government at the centre could soon initiate steps to set up the proposed 'karigar university' to give a boost to the prime minister's skill-development mission.
 
"It will not be skill development per se as we understand by the term in the modern education sense. It is beyond white collared jobs and computers. A village potter or neighbourhood ironsmith in a small town and kasba are also skills. It is high time such work is encouraged and given respect," a senior Bharatiya Janata Party (BJP) leader told IANS here.
 
A delegation of BJP leaders and representatives from the Rashtriya Swayamsevak Sangh (RSS)-affiliated organisations made the suggestion to Maharashtra Chief Minister Devendra Fadnavis during a recent meeting in Mumbai.
 
"In fact, a detailed project report with study background has been submitted to the chief minister who showed keen interest. The matter is likely to be taken up formally by the state government with the Prime Minister's Office (PMO)," a source said.
 
The proposed university to promote such crucial but low-profile professions is likely to come up at Wardha's Sevagram.
 
The project is being linked to Wardha and Mahatma Gandhi. Sevagram and Wardha had been important milestones of Gandhiji's life. Many decisions on important national matters and movements were taken at Sevagram. In April 1936, Gandhiji established his residence in a village on the outskirts of Wardha, which he renamed as Sevagram -- meaning a 'village of service'. This year it will be the 80th year of establishment of Sevagram.
 
"In the agricultural age, unlike the industrial age, focus shifted to land and landowners reigned. In the contemporary setting, knowledge is the asset and those who have the best of tools will rule. The skill development essentially should address this," the BJP leader added.
 
"The idea of such a university for traditional non-conventional skilled people has perhaps become all the more important as agriculture alone cannot sustain rural people. In villages, for a family of four brothers, a realisation is dawning that there is a need for alternative job avenues. The craze for white collar jobs is taking us nowhere," the leader said.
 
He added that the Maharashtra government and the central government in Delhi understand that the present low level of rural employment is essentially due to the absence of market-driven employment generation in the Indian agriculture sector.
 
The union ministry of skill development is also working on a road map to shift the entire job scenario from 'qualification based' to 'skill based'.
 
Echoing the same spirit, a senior BJP office-bearer from Maharashtra said: "The new generation skill development should be based on the process of more than mere learning. It should involve a key process of re-learning and enhancing an individual's skills."
 
India's job creation ability has been very dismal, and all blame cannot be shifted to the door steps of the central government, and that too on the present dispensation, another BJP leader said.
 
In the last three decades, studies claim the country has created only about seven million jobs every year, whereas the need is for over 22 million jobs annually.
 
Compared to China, only two percent of Indian workers -- about 10 million -- are formally skilled, according to reports.
 
In vocational courses too, India has only about 5.5 million individuals enrolled every year, compared to many more in China, it is noted.
 
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.

User

COMMENTS

manoharlalsharma

10 months ago

Its' most required one in large country like INDIA 'Country's first 'Karigar University' on cards'to improve crafts'men on demand where as nothing done so far only we should be thankful to the IDEA.

Jyoti Dua

10 months ago

Excellent idea. The time has come to shift the job orientation from Qualification based to Skill based.
In developed country, if you need the services of a trade man, he will drive in carrying all tools, testing instruments and basic material in his van. To meet the end, all artisans who qualify from Karigar University should be supported with loan by Banks, to turn them into an entrepreneur. The services of artisans are required in each village. This type of skill development will surely generate emploment too.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)