The mobile payment services users were 1.1 crore in May 2011 compared to 400 users in August last year and the value of transaction is estimated to be Rs1.6 crore
Mobile payment service, which is estimated to be $350 billion of payments and banking transactions by 2015, could generate about Rs20,250 crore as fee income for banks and telecoms, according to a report by the Boston Consulting Group (BCG). “It is far less costly to offer banking and payments services using mobile technology than to build new branches,” BCG India partner and director, Neeraj Aggarwal, told reporters after releasing the study ‘The Rush to Mobile Money: Madness or Master Stroke?’.
“Mobile-enabled business correspondents, who are authorised to conduct business on behalf of banks, can service a customer for less than 50 paise far below than Rs40-Rs60 at a branch,” he added. The mobile payment services users were 1.1 crore in May 2011 compared to 400 users in August last year and the value of transaction is estimated to be Rs1.6 crore.
The favourable regulation, unique identification initiative, consumer readiness to accept technology, electronification of payments would augur well for the mobile money payment, Aggarwal said. BCG expects 70% of the Rs20,250 crore to come from urban areas and envisages $40 billion payments by the government to the rural area, including the disbursements under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
The person to person transaction is expected to be $70 billion for domestic and international remittances, it said. Going forward, BCG expects interconnectivity between the service providers and banks, to facilitate transfer of cash, as presently person to person transaction can take place if they both are users of the same platform provider. “Right now the telecom operators might think other subscribers should not transfer money in the banks where they have partnership but it will change when the market opens up,” BCG India partner and director Arvind Subramanian said. The report estimates that bill payments and point of sales purchases would account for $40- billion by 2015.
“With every mobile handset potentially acting as a debit card, this is likely to emerge as the second largest category,” it said, adding that business payments towards employees and other firms could be $60 billion by 2015. The consumer banking segment is expected to be $150 billion by 2015, it added. The digital market (mobile and telephony market) was Rs2.7 lakh- crore market in 2010, according to BCG, and it expects the opportunity to scale up to Rs4-Rs4.7 lakh crore market by 2015. Subramanian said the number of mobile phone users in India was likely to be 900 million by 2015, from the current 500 million users.
ICICI Prudential Mutual Fund new issue closes on 21st July
ICICI Prudential Mutual Fund has launched ICICI Prudential Fixed Maturity Plan-Series 58-2 Year Plan C, a close-ended income scheme.
The investment objective of the plan under the scheme is to generate regular returns by investing in a portfolio of fixed income securities/debt instruments maturing on or before the maturity of the plan. The tenure of the plan is two years.
The new issue closes on 21st July. The minimum investment amount is Rs5,000.
Crisil Composite Bond Fund Index is the benchmark Index. Chaitanya Pande is the fund manager.
The RBI has already hiked key policy rates ten times since March 2010 to curb demand and tame inflation. With headline inflation remaining high, as shown by the latest numbers, it may go in for another hike at its 26th July quarterly review
New Delhi: Headline inflation rose to 9.44% in June on the back of rising prices of fuel and manufactured products, which may prompt the Reserve Bank of India (RBI) to raise key rates again in its quarterly policy review later this month, reports PTI.
Inflation, as measured by the Wholesale Price Index (WPI), stood at 9.06% in May. It was 10.25% in June 2010.
Meanwhile, as per data released by the government today, the overall inflation figure for April this year has been revised upward to 9.74% from the provisional estimate of 8.66%.
The rise in inflation can partly be attributed to the hike in prices of diesel, cooking gas and kerosene announced by the government on 24th May.
The higher prices of petroleum goods, according to experts, is adding to supply side constraints.
The index for the fuel and power segment, which has a weight of almost 15% in the WPI basket, stood at 12.85% year-on-year in June. This was up from 12.32% in the previous month.
LPG became 12.17% more expensive on an annual basis, while high speed diesel was up 6.58%. Petrol, whose prices were hiked in April, also became dearer by 30.61%.
Prices of manufactured products, which have a weight of around 65% in the WPI basket, went up by 7.43% year-on-year in June.
Inflation in manufactured products has been steadily rising since February this year, when it crossed the 6% mark. It was 7.27% in May.
During the month under review, primary articles witnessed inflation of 12.22% on an annual basis, as against 11.30% in the previous month. Primary articles have a share of around 20% in the overall WPI basket.
Within the primary articles segment, food articles became 8.38% more expensive, while prices of non-food primary articles went up by 18.57%.
The RBI has already hiked key policy rates ten times since March 2010, to curb demand and tame inflation. With headline inflation remaining high, as shown by the latest numbers, it may go in for another hike at its 26th July quarterly review.
Experts have said that such action is inevitable and the RBI had also maintained that taming inflation was a priority for the central bank.
However, the latest numbers are in line with the RBI's projection of a high inflation rate in the first half of the fiscal.
In its monetary policy for 2011-12, the central bank had said that continued high prices of global commodities, particularly oil, would continue to drive the rate of price rise.
The RBI had projected inflation to average 9% for the first six months of 2011-12 before moderating to around 6% by the year-end.
Both the RBI and other experts had also said that inflationary pressure during the next few months would be more from commodity prices, rather than on account of food items, as was the case in 2010.
Headline inflation has been above 8% since January 2010.