Payment Banks and Small Finance Banks face business challenges in India. For Payment Banks, potential for new accounts has declined given existing account openings, so profitability will depend on transaction costs and deposit balances. Small Finance Banks are expected to increase financial inclusion and deepen connectivity. However, they must strengthen operations to serve multiple products, hire staff, and mobilize deposits to meet reserve requirements, which could impact earnings. Overall, the ability of these new banks to achieve sustainable growth will depend on overcoming structural changes and meeting regulatory requirements with adequate capital levels.
Role of New Payment banks and Small banks - Part - 6Resurgent India
RBI as a part of its push for financial inclusion, recently granted ‘in-principle’ licenses for 11 payment banks and 10 small finance banks. Apart from this, the two new universal banks- Bandhan Bank Ltd and IDFC Bank Ltd which were awarded banking licenses by the RBI recently have already begun commercial operations.
The Reserve Bank of India has proposed major reforms in banking sector with issue of guidelines for setting up “Small and Payment Banks” which will cater to marginalized sections of the Society, including migrant laborers, for collecting deposits and remitting funds.
These banks will provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation. The payments banks will offer a limited range of products such as acceptance of demand deposits and remittances of funds. They will have a widespread network of access points particularly in remote areas, either through their own branch network or through Business Correspondents (BCs)/agents or through networks provided by others.
Payment banks and small banks were introduced in India to promote financial inclusion and provide banking services to underserved populations. The Reserve Bank of India issued licenses to 11 entities to launch payments banks and 10 entities to start small banks. These banks aim to offer basic banking services like deposits and remittances while focusing on rural and low-income customers. However, as they are restricted from lending, payments banks will need to rely on fee income from high transaction volumes to be profitable. The introduction of these banks was recommended by RBI committees to expand access to financial services across India.
This document provides information on banking in India, including definitions, functions of commercial banks, and the evolving banking environment. It summarizes the introduction of banking regulations in India in 1949, the key functions of commercial banks, and how the banking sector has undergone structural changes due to financial reforms, increased competition, and technological advances. The emerging environment for banking is described as involving greater capital flow mobility, policy coordination, and financial market integration.
Local Bank Financial Constraints and Firm Access To E-Fin.pptxArunKumar332029
The document discusses the financial constraints and limited access to external capital that urban cooperative banks (UCBs) in India face. It notes that UCBs rely primarily on retained profits and member contributions to raise capital. The options to issue preference shares or long-term deposits to raise funds are not very attractive to investors. UCBs also face restrictions on their lending activities, such as limits on unsecured loans and loans to relatives of directors. The capital and lending constraints can prevent UCBs from pursuing profitable investment opportunities and lead to underinvestment.
This document discusses how new liquidity regulations under Basel III have impacted transaction banks. The key changes include stricter requirements for high-quality liquid assets (HQLA) and new ratios to measure liquidity coverage. This has increased banks' costs and made interest income less reliable. As a result, banks are working to attract more stable deposits through longer-term commitments and deeper client relationships that improve deposit volatility ratings and lower reserve requirements.
The document discusses payment banks in India. Payment banks will help further financial inclusion by providing small savings accounts and payment/remittance services. They can accept deposits up to Rs. 1 lakh and enable digital payments and money transfers through mobile phones. Eleven firms have been granted licenses to start payment banks, including telecom and retail companies. Payment banks have the potential to transform financial services access for underserved populations by leveraging technology and existing customer bases.
The banking sector in India faces significant challenges including high levels of non-performing assets (NPAs) totaling around Rs. 9.64 lakh crore as of December 2016. Public sector banks have an NPA ratio of 14.5% while overall stressed assets account for 11.5% of total assets. Reasons for rising NPAs include risky lending during periods of strong growth, increased corporate leverage, and deferred provisioning. The government and RBI have introduced policies like the Insolvency and Bankruptcy Code 2016 and Asset Quality Review to address NPAs, but challenges around capital adequacy, technology integration, and HR issues remain. Remedies proposed include credit rating agencies, efficient policy implementation, improving operational efficiency
Role of New Payment banks and Small banks - Part - 6Resurgent India
RBI as a part of its push for financial inclusion, recently granted ‘in-principle’ licenses for 11 payment banks and 10 small finance banks. Apart from this, the two new universal banks- Bandhan Bank Ltd and IDFC Bank Ltd which were awarded banking licenses by the RBI recently have already begun commercial operations.
The Reserve Bank of India has proposed major reforms in banking sector with issue of guidelines for setting up “Small and Payment Banks” which will cater to marginalized sections of the Society, including migrant laborers, for collecting deposits and remitting funds.
These banks will provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation. The payments banks will offer a limited range of products such as acceptance of demand deposits and remittances of funds. They will have a widespread network of access points particularly in remote areas, either through their own branch network or through Business Correspondents (BCs)/agents or through networks provided by others.
Payment banks and small banks were introduced in India to promote financial inclusion and provide banking services to underserved populations. The Reserve Bank of India issued licenses to 11 entities to launch payments banks and 10 entities to start small banks. These banks aim to offer basic banking services like deposits and remittances while focusing on rural and low-income customers. However, as they are restricted from lending, payments banks will need to rely on fee income from high transaction volumes to be profitable. The introduction of these banks was recommended by RBI committees to expand access to financial services across India.
This document provides information on banking in India, including definitions, functions of commercial banks, and the evolving banking environment. It summarizes the introduction of banking regulations in India in 1949, the key functions of commercial banks, and how the banking sector has undergone structural changes due to financial reforms, increased competition, and technological advances. The emerging environment for banking is described as involving greater capital flow mobility, policy coordination, and financial market integration.
Local Bank Financial Constraints and Firm Access To E-Fin.pptxArunKumar332029
The document discusses the financial constraints and limited access to external capital that urban cooperative banks (UCBs) in India face. It notes that UCBs rely primarily on retained profits and member contributions to raise capital. The options to issue preference shares or long-term deposits to raise funds are not very attractive to investors. UCBs also face restrictions on their lending activities, such as limits on unsecured loans and loans to relatives of directors. The capital and lending constraints can prevent UCBs from pursuing profitable investment opportunities and lead to underinvestment.
This document discusses how new liquidity regulations under Basel III have impacted transaction banks. The key changes include stricter requirements for high-quality liquid assets (HQLA) and new ratios to measure liquidity coverage. This has increased banks' costs and made interest income less reliable. As a result, banks are working to attract more stable deposits through longer-term commitments and deeper client relationships that improve deposit volatility ratings and lower reserve requirements.
The document discusses payment banks in India. Payment banks will help further financial inclusion by providing small savings accounts and payment/remittance services. They can accept deposits up to Rs. 1 lakh and enable digital payments and money transfers through mobile phones. Eleven firms have been granted licenses to start payment banks, including telecom and retail companies. Payment banks have the potential to transform financial services access for underserved populations by leveraging technology and existing customer bases.
The banking sector in India faces significant challenges including high levels of non-performing assets (NPAs) totaling around Rs. 9.64 lakh crore as of December 2016. Public sector banks have an NPA ratio of 14.5% while overall stressed assets account for 11.5% of total assets. Reasons for rising NPAs include risky lending during periods of strong growth, increased corporate leverage, and deferred provisioning. The government and RBI have introduced policies like the Insolvency and Bankruptcy Code 2016 and Asset Quality Review to address NPAs, but challenges around capital adequacy, technology integration, and HR issues remain. Remedies proposed include credit rating agencies, efficient policy implementation, improving operational efficiency
Making NBFCs relevant to ‘Make-in India’& ‘Start-up India, Stand-up India’ - ...Resurgent India
The dynamic and evolving NBFC sector necessitates reforms and evolution to ensure orderly growth. While NBFCs have been on the growth trajectory over the years, there are few areas of concern which need to be addressed. The key challenges have been highlighted below:
The document discusses the regulatory capital requirements for banks' retail and SME portfolios under the Basel Accords. It provides background on the CBN's 2013 framework implementing Basel II/III in Nigeria. The three pillars of Basel II & III are then explained: Pillar 1 sets minimum capital requirements; Pillar 2 involves supervisory review; and Pillar 3 promotes market discipline through disclosure. The document goes on to discuss how the Basel Accords affect retail/SME loans, including risk sensitivity, standardized vs. IRB approaches, firm size adjustments, and challenges in impact assessment due to data and definition issues. It concludes with recommendations to recalibrate Basel III to better support SMEs while containing systemic risk.
This document analyzes the SWOT of private sector banks in India. It discusses their evolution since the early 20th century and present scenario. Private banks have strengths like professional manpower, efficiency, and compliance with regulations. Their weaknesses include limited geographic reach and high employee turnover. Opportunities exist in decision making autonomy and technology, while threats include competition from foreign and public sector banks. Specific SWOT analyses are also provided for ICICI Bank, Kotak Bank, and Axis Bank.
This document discusses a study on the effective factors that influence clients' trust in National Bank Limited from the perspective of one of its branches. It provides background on NBL, outlines the objectives and departments of the bank. It then describes the departments and processes of the Jurain branch in detail. The purpose of the study is to examine how certain service characteristics impact clients' trust, specifically factors related to employees (politeness, similarity) and the offerings (customization, reliability). The objectives are to determine customer perceptions of trust in NBL and identify areas for improving trust. The literature review will discuss the research variables of trust and related factors.
Payments banks will change India's financial services landscape by promoting financial inclusion. They can help underserved populations gain access to services like domestic remittances and microinsurance at lower costs than informal options. Payments banks face challenges like developing sustainable revenue models with narrow interest margins and competing with established banks and fintech firms. However, they may impact the industry by widening access through partnerships and mobile technology, helping transition India to a less-cash economy with benefits like reduced printing costs. Their success could demonstrate profitable rural banking through lower fees and transformed the underbanked segments.
The document discusses how universal banks can restore profitability and rebuild capital in response to new regulatory requirements from the Independent Commission on Banking. It identifies four key steps banks need to take: 1) Analyze the implications of ring-fencing requirements to determine their new business model, products, and services; 2) Understand their accurate cost of capital to develop a profitable pricing strategy; 3) Focus on efficiency by managing risk-weighted assets and driving operational realignments; 4) Identify growth opportunities by selecting optimal client, product, and market mixes. Taking these steps will help banks optimize their use of capital and positioning for high performance in the future regulated environment.
The document summarizes the history and development of the Indian banking system from its origins in the 18th century to recent reforms and liberalization. It describes the nationalization of major banks in 1969 and changes introduced in the 1990s that opened the sector to private competition and globalization. The summary highlights the transformation of the Indian economy and banking sector from a regulated system focused on industry to an increasingly liberalized and competitive system mirroring broader macroeconomic changes.
The document appears to be a student project report on the workings of the UMA Co-operative Bank Ltd. It includes details such as the student's name and program of study, an introduction to co-operative banks in India and their structure, an overview of UMA Bank including financial details, descriptions of various bank accounts and loan types offered, and explanations of processes like RTGS and NEFT transactions. The document contains detailed information on the operations and services provided by UMA Bank to its members.
Transaction costs are highest for traditional brick-and-mortar banking, but many customers have shifted to digital transactions after demonetization, reducing costs for banks and increasing profits. With the implementation of Basel III in 2018, banks will need to raise funds on their own while still being majority-owned by the government, except for IDBI Bank. The government's decision to reduce recapitalization funds for banks in the 2017 budget indicates banks will need to survive independently in the future.
This document provides an overview of various types of banking in India including commercial banking, unit banking, branch banking, retail banking, wholesale banking, and universal banking. It discusses the key features and merits and demerits of each type. It also summarizes the Reserve Bank of India Act of 1934 and the Banking Regulation Act of 1949, including requirements around cash reserve ratio, statutory liquidity ratio, and prudential norms. Finally, it outlines the structure of the Indian banking system.
The document discusses issues facing India's financial system including high non-performing assets, declining credit growth and profitability, and increasing bad loans. It outlines several signs of risk, including recent leadership changes at large private banks and over a dozen public sector banks being classified as potentially weak. Solutions proposed include mergers of public sector banks, giving banks more freedom over lending, and privatizing some banks. The document also covers new risks emerging in retail banking, MSME lending, and from government loan programs, as well as steps regulators are taking to strengthen oversight of non-banking financial companies.
Mercer Capital's Bank Watch | July 2015 | Small Bank Holding Companies Regula...Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Sbi loan scheme for finance, subsidy & project related support contact - 98...Radha Krishna Sahoo
This document provides information on several financing schemes offered by State Bank of India (SBI) including:
1. Commodity Backed Warehouse Receipt Financing which provides demand loans or cash credit financing against warehouse receipts for commodities stored in approved warehouses, with eligible amounts ranging from 70-80% of market value or minimum support price.
2. Surabhi Deposit Scheme which allows non-individual customers to open savings/current accounts that automatically sweep surplus funds over a threshold into term deposits while also allowing funds to be withdrawn through "reverse sweeps" if needed.
3. Debt Restructuring Mechanism for SMEs which provides restructuring relief for viable or potentially viable small and
Retail banking in India has experienced high growth in the past decade but now faces challenges constraining further growth. Key issues include declining net interest margins and fees as well as rising operating costs. Additional bottlenecks are customer saturation in urban areas, high numbers of inactive accounts, low customer loyalty leading to switching between banks, and competition from non-banking entities. To address these, banks need to improve delivery and experience through initiatives like relationship-based pricing and response times, 24/7 service availability, faster complaint resolution, and loyalty programs rewarding long-term customers. Banks should also explore new business models to profitably serve rural markets and redefine investment advisory services to directly advise customers.
This document provides an overview of small and medium enterprises (SMEs) in India. It defines different types of SMEs based on investment levels and discusses their importance to employment, exports, and the overall economy. The document also outlines some inherent advantages and weaknesses of SMEs, and discusses the role of the government and banks in supporting SME financing and development. It provides recommendations from various committees on improving SME access to credit.
India’s economic growth rates higher than most developed countries in recent years, a
majority of the country’s population still residue unbanked. Financial Inclusion is a relatively
new socio-economic concept in India that aspire to change this dynamic by providing
financial services at affordable costs to the underprivileged, who might not otherwise be
aware of or able to afford these services. Global trends have revealed that in order to achieve
inclusive development and growth, the expansion of financial services to all sections of society
is of utmost importance. As a whole, financial inclusion in the rural as well as financially
backward pockets of cities is a win-win opportunity for everybody involving – the
banks/NBFC’s intermediaries, and the left-out urban population. Banks will handle core
infrastructure and services while intermediaries known as Business Correspondents (BC’s)
will be the executors and act as the face of these banking & financial institutions in dealing
with end-users. Therefore, it is assumed that financial inclusion can initiate the next
revolution of growth and prosperity. In the 21st century, India has been pulling all the right
levers to advance financial inclusion and economic citizenship by channelling its own
transactions to lubricate the system. India’s journey towards economic ascension relies on
how the 65% unbanked population of India (conservative 2012 estimate by World Bank) is
enabled with financial infrastructure.
Increasing NPA In PSU Banks And Its Management Amit Sharma
The document discusses non-performing assets (NPAs) in the Indian banking system. It defines NPAs and different categories of assets based on payment delays. It notes that rising NPAs have increased banks' provisioning costs and reduced their profitability. High NPAs also constrain banks' ability to lend, potentially slowing economic growth. The document outlines some of the negative impacts of NPAs on banks and the financial system as a whole. It concludes by discussing some steps that can be taken to prevent and manage NPAs.
White paper payment banks - changing landscape of retail bankingRSM India
The RBI has recently decided to grant in-principle approval to 11 applicants for setting up ‘Payment Banks.’ This move is to enhance financial inclusion by providing access to small saving accounts and payments, migrant labour work force, small businesses in unorganized sectors, etc. The payment banks are expected to use high technology platform to provide services at low cost, thereby redefining the retail banking landscape.
We are pleased to attach our White Paper: ‘Payment Banks – Changing Landscape of Retail Banking’ and trust you will find the same useful.
Financial inclusions a pavement towards the future growthTapasya123
This document discusses financial inclusion in India and its importance for future growth. It summarizes various committees established by the Reserve Bank of India to promote financial inclusion. Key recommendations include expanding access to banking services in rural areas through business correspondents, developing differentiated banking licenses, and setting targets to provide universal access to bank accounts. However, progress on financial inclusion has been mixed as many rural villages and small businesses still lack access to formal financial services. More work is needed to make financial inclusion programs sustainable and ensure the unbanked population can benefit from banking.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Making NBFCs relevant to ‘Make-in India’& ‘Start-up India, Stand-up India’ - ...Resurgent India
The dynamic and evolving NBFC sector necessitates reforms and evolution to ensure orderly growth. While NBFCs have been on the growth trajectory over the years, there are few areas of concern which need to be addressed. The key challenges have been highlighted below:
The document discusses the regulatory capital requirements for banks' retail and SME portfolios under the Basel Accords. It provides background on the CBN's 2013 framework implementing Basel II/III in Nigeria. The three pillars of Basel II & III are then explained: Pillar 1 sets minimum capital requirements; Pillar 2 involves supervisory review; and Pillar 3 promotes market discipline through disclosure. The document goes on to discuss how the Basel Accords affect retail/SME loans, including risk sensitivity, standardized vs. IRB approaches, firm size adjustments, and challenges in impact assessment due to data and definition issues. It concludes with recommendations to recalibrate Basel III to better support SMEs while containing systemic risk.
This document analyzes the SWOT of private sector banks in India. It discusses their evolution since the early 20th century and present scenario. Private banks have strengths like professional manpower, efficiency, and compliance with regulations. Their weaknesses include limited geographic reach and high employee turnover. Opportunities exist in decision making autonomy and technology, while threats include competition from foreign and public sector banks. Specific SWOT analyses are also provided for ICICI Bank, Kotak Bank, and Axis Bank.
This document discusses a study on the effective factors that influence clients' trust in National Bank Limited from the perspective of one of its branches. It provides background on NBL, outlines the objectives and departments of the bank. It then describes the departments and processes of the Jurain branch in detail. The purpose of the study is to examine how certain service characteristics impact clients' trust, specifically factors related to employees (politeness, similarity) and the offerings (customization, reliability). The objectives are to determine customer perceptions of trust in NBL and identify areas for improving trust. The literature review will discuss the research variables of trust and related factors.
Payments banks will change India's financial services landscape by promoting financial inclusion. They can help underserved populations gain access to services like domestic remittances and microinsurance at lower costs than informal options. Payments banks face challenges like developing sustainable revenue models with narrow interest margins and competing with established banks and fintech firms. However, they may impact the industry by widening access through partnerships and mobile technology, helping transition India to a less-cash economy with benefits like reduced printing costs. Their success could demonstrate profitable rural banking through lower fees and transformed the underbanked segments.
The document discusses how universal banks can restore profitability and rebuild capital in response to new regulatory requirements from the Independent Commission on Banking. It identifies four key steps banks need to take: 1) Analyze the implications of ring-fencing requirements to determine their new business model, products, and services; 2) Understand their accurate cost of capital to develop a profitable pricing strategy; 3) Focus on efficiency by managing risk-weighted assets and driving operational realignments; 4) Identify growth opportunities by selecting optimal client, product, and market mixes. Taking these steps will help banks optimize their use of capital and positioning for high performance in the future regulated environment.
The document summarizes the history and development of the Indian banking system from its origins in the 18th century to recent reforms and liberalization. It describes the nationalization of major banks in 1969 and changes introduced in the 1990s that opened the sector to private competition and globalization. The summary highlights the transformation of the Indian economy and banking sector from a regulated system focused on industry to an increasingly liberalized and competitive system mirroring broader macroeconomic changes.
The document appears to be a student project report on the workings of the UMA Co-operative Bank Ltd. It includes details such as the student's name and program of study, an introduction to co-operative banks in India and their structure, an overview of UMA Bank including financial details, descriptions of various bank accounts and loan types offered, and explanations of processes like RTGS and NEFT transactions. The document contains detailed information on the operations and services provided by UMA Bank to its members.
Transaction costs are highest for traditional brick-and-mortar banking, but many customers have shifted to digital transactions after demonetization, reducing costs for banks and increasing profits. With the implementation of Basel III in 2018, banks will need to raise funds on their own while still being majority-owned by the government, except for IDBI Bank. The government's decision to reduce recapitalization funds for banks in the 2017 budget indicates banks will need to survive independently in the future.
This document provides an overview of various types of banking in India including commercial banking, unit banking, branch banking, retail banking, wholesale banking, and universal banking. It discusses the key features and merits and demerits of each type. It also summarizes the Reserve Bank of India Act of 1934 and the Banking Regulation Act of 1949, including requirements around cash reserve ratio, statutory liquidity ratio, and prudential norms. Finally, it outlines the structure of the Indian banking system.
The document discusses issues facing India's financial system including high non-performing assets, declining credit growth and profitability, and increasing bad loans. It outlines several signs of risk, including recent leadership changes at large private banks and over a dozen public sector banks being classified as potentially weak. Solutions proposed include mergers of public sector banks, giving banks more freedom over lending, and privatizing some banks. The document also covers new risks emerging in retail banking, MSME lending, and from government loan programs, as well as steps regulators are taking to strengthen oversight of non-banking financial companies.
Mercer Capital's Bank Watch | July 2015 | Small Bank Holding Companies Regula...Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Sbi loan scheme for finance, subsidy & project related support contact - 98...Radha Krishna Sahoo
This document provides information on several financing schemes offered by State Bank of India (SBI) including:
1. Commodity Backed Warehouse Receipt Financing which provides demand loans or cash credit financing against warehouse receipts for commodities stored in approved warehouses, with eligible amounts ranging from 70-80% of market value or minimum support price.
2. Surabhi Deposit Scheme which allows non-individual customers to open savings/current accounts that automatically sweep surplus funds over a threshold into term deposits while also allowing funds to be withdrawn through "reverse sweeps" if needed.
3. Debt Restructuring Mechanism for SMEs which provides restructuring relief for viable or potentially viable small and
Retail banking in India has experienced high growth in the past decade but now faces challenges constraining further growth. Key issues include declining net interest margins and fees as well as rising operating costs. Additional bottlenecks are customer saturation in urban areas, high numbers of inactive accounts, low customer loyalty leading to switching between banks, and competition from non-banking entities. To address these, banks need to improve delivery and experience through initiatives like relationship-based pricing and response times, 24/7 service availability, faster complaint resolution, and loyalty programs rewarding long-term customers. Banks should also explore new business models to profitably serve rural markets and redefine investment advisory services to directly advise customers.
This document provides an overview of small and medium enterprises (SMEs) in India. It defines different types of SMEs based on investment levels and discusses their importance to employment, exports, and the overall economy. The document also outlines some inherent advantages and weaknesses of SMEs, and discusses the role of the government and banks in supporting SME financing and development. It provides recommendations from various committees on improving SME access to credit.
India’s economic growth rates higher than most developed countries in recent years, a
majority of the country’s population still residue unbanked. Financial Inclusion is a relatively
new socio-economic concept in India that aspire to change this dynamic by providing
financial services at affordable costs to the underprivileged, who might not otherwise be
aware of or able to afford these services. Global trends have revealed that in order to achieve
inclusive development and growth, the expansion of financial services to all sections of society
is of utmost importance. As a whole, financial inclusion in the rural as well as financially
backward pockets of cities is a win-win opportunity for everybody involving – the
banks/NBFC’s intermediaries, and the left-out urban population. Banks will handle core
infrastructure and services while intermediaries known as Business Correspondents (BC’s)
will be the executors and act as the face of these banking & financial institutions in dealing
with end-users. Therefore, it is assumed that financial inclusion can initiate the next
revolution of growth and prosperity. In the 21st century, India has been pulling all the right
levers to advance financial inclusion and economic citizenship by channelling its own
transactions to lubricate the system. India’s journey towards economic ascension relies on
how the 65% unbanked population of India (conservative 2012 estimate by World Bank) is
enabled with financial infrastructure.
Increasing NPA In PSU Banks And Its Management Amit Sharma
The document discusses non-performing assets (NPAs) in the Indian banking system. It defines NPAs and different categories of assets based on payment delays. It notes that rising NPAs have increased banks' provisioning costs and reduced their profitability. High NPAs also constrain banks' ability to lend, potentially slowing economic growth. The document outlines some of the negative impacts of NPAs on banks and the financial system as a whole. It concludes by discussing some steps that can be taken to prevent and manage NPAs.
White paper payment banks - changing landscape of retail bankingRSM India
The RBI has recently decided to grant in-principle approval to 11 applicants for setting up ‘Payment Banks.’ This move is to enhance financial inclusion by providing access to small saving accounts and payments, migrant labour work force, small businesses in unorganized sectors, etc. The payment banks are expected to use high technology platform to provide services at low cost, thereby redefining the retail banking landscape.
We are pleased to attach our White Paper: ‘Payment Banks – Changing Landscape of Retail Banking’ and trust you will find the same useful.
Financial inclusions a pavement towards the future growthTapasya123
This document discusses financial inclusion in India and its importance for future growth. It summarizes various committees established by the Reserve Bank of India to promote financial inclusion. Key recommendations include expanding access to banking services in rural areas through business correspondents, developing differentiated banking licenses, and setting targets to provide universal access to bank accounts. However, progress on financial inclusion has been mixed as many rural villages and small businesses still lack access to formal financial services. More work is needed to make financial inclusion programs sustainable and ensure the unbanked population can benefit from banking.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
The Impact of Generative AI and 4th Industrial RevolutionPaolo Maresca
This infographic explores the transformative power of Generative AI, a key driver of the 4th Industrial Revolution. Discover how Generative AI is revolutionizing industries, accelerating innovation, and shaping the future of work.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
Discover essential details about Thailand's recent visa policy changes, tailored for tourists and students. Amit Kakkar Easy Visa provides a comprehensive overview of new requirements, application processes, and tips to ensure a smooth transition for all travelers.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
1. Analysis of viability of the business
models of Payment Banks and Small
Finance Banks
2. Payment Banks
• The Reserve Bank of India (RBI) on August 19, 2015 granted “in principle” approval to 11
applicants (out of 41) to set up Payments Banks. Given that Payments Banks will not
undertake lending activities and will thus not face the same business risks as a full-service
bank, the RBI has selected entities with experience in different sectors and with different
capabilities so that different service models can be tried out. Of the 11 entities selected, five
are telecom companies (or telecom joint ventures/tie up), one a mobile wallet company, one
an IT company, one the Indian postal department, one a non-banking finance company
(NBFC), and the rest two entities with good delivery channels.
• Banks have already opened a large number of savings deposit accounts (the number has even
outpaced the addition to mobile subscribers over the last few years) during the last few
years, and especially since the launch of Pradhan Mantri Jan Dhan Yojna (PMJDY) in August
2014.Given this fact, the potential for the Payments Banks to get new accounts has declined.
However, while PMJDY scheme has achieved opening of massive number of saving deposit
accounts, Payments Banks are expected to increase the usage of banking accounts by
reaching out to the transactors/depositors. Therefore, their ability to keep transaction costs
extremely low and get adequate deposit balances would be critical for their sustainability.
While payment banks are likely to complement full-service banks by increasing the number of
transactions and saving footprint to a bigger population, they may end up competing with
small banks, as there would be some depositor overlap between the two.
3. Impacts/Challenges of Payment Banks
• Payments Banks unlikely to be a threat for full
fledge commercial banks
• Large number of licenses (11) could intensify
competition in low income space however is not
likely to impact the deposits profile of full fledge
commercial banks in a significant way given the
restriction on maximum deposit per customer (Rs
1 lac) and most likely, unlike some private sector
banks, Payments Banks would not be able to offer
higher interest on saving deposits given their thin
interest spreads.
4. Impacts/Challenges of Payment Banks
• Profitability metrics for Payments Banks will depend upon scalability and ability to maintain
lower operating cost to serve customers
o As the Payments Banks are not allowed to undertake lending activities, their activities will be
restricted to acceptance of demand deposits (saving & current deposits) and provision of payment
and remittance services, their income profile would remain more concentrated vs. full fledge
commercial bank.
o In the longer run, Payment Banks’ interest spreads are not expected to be more than 3-4%.
Payments Banks’ ability to serve customers through a low operating cost structure (through BC
centric model of Payments Bank and through use of technology) and to build adequate
infrastructure(number of BCs as well as technology to provide convenient & safe transactions)
would be a key for achieving profitability. This apart, Payments Banks ability to grow balance sheet
in a significant way would have critical bearing on their profitability levels.
o The profitability of the Payments Bank would be highly sensitive to short term interest rate as the
Payment Bank would need to deploy minimum 75% of its deposits in Government
Securities/Treasury Bills of up to one year and balance maximum 25% in time/fixed deposits with
other scheduled commercial banks.
o Payments Banks are also allowed to become a Business Correspondents (BC) of another bank as
well as could undertake distribution of non-risk sharingsimple financial products like mutual fund
units and insurance products, etc. These activities could support earnings profile of Payments
Banks.
5. Impacts/Challenges of Payment Banks
• High leverage ratio may help to achieve
reasonable return on equity
o As Payments Banks are not allowed to
undertake lending activities, they are allowed
to maintain higher leverage (maximum 33.33
times). This may help Payments Banks achieve
reasonable return on equity.
6. • Payments Banks are expected to deepen last mile connectivity
(penetration/availability of payments points/ service outlets) in a significant way.
o Relatively moderate level of financial penetration, specifically in rural & sub-urban
areas, and limited number of payment points provides in relation to large number
of saving deposit accounts and population, expected to provide adequate growth
opportunities to Payments Banks.
o While large number of accounts opened under PMJDY scheme have lowered the
potential for Payments Banks, these banks are expected to improve last mile
connectivity, penetration of payments points/ service outlets in a significant way
(through business correspondent structure and through use of technology).
Several of these applicants (specifically telcos, Indian Post, NBFCs, mobile wallet
companies) have very strong franchise (in rural and semi urban areas as well) as
well as large number of customers which supports their ability to grow in a
significant way. Such last mile connectivity will provide Payments Banks edge in
payments/remittance services as well as attracting new customers/depositors.
Additionally, Payments Banks could also serve existing depositors of full fledge
commercial banks, if these banks can offer transactions at more competitive rates.
7. Small Finance Banks
• The Reserve Bank of India (RBI) on September 16, 2015 granted “in principle” approval to 10
applicants (out of 72 applicants ) to set up Small Finance Banks(SFB) under the “ Guidelines for
Licensing of Small Finance Banks” issued on November 27, 2014. The list of successful applicants
being dominated by NBFC MFIs (7), one Core Investment Company (with 3 entities as subsidiaries
operating in Housing Finance, Microfinance and Vehicle Finance space) and one Local area bank is
likely to increase financial inclusion as most of the new in principle licensees have been operating
in a space not very well covered by the existing banks. While the new players have in any case been
lending to their target segments, a banking licence would help them offer full-fledged services to
their customers. This could lead to expansion in banking assets with newer customers getting into
the banking net.
• While the expansion of banking is a positive step, the ability of small banks to achieve sustainable
growth would be linked to several structural changes, such as realignment of shareholding (to bring
foreign shareholding below 50%), organizations strengthening, and development of processes to
serve customers for multiple products. The operations-related challenges would include hiring and
training of manpower and reduction in attrition rates, which currently exceed 25%. Further, the
new small banks would need to mobilize deposits to meet the cash reserve ratio (CRR) and
statutory liquidity ratio (SLR) requirements, replace maturing liabilities, and support growth. The
additional reserve requirement would also have a negative impact on earnings as these banks may
have to deploy 16-17% of their total funds (21.5% of deposits, which are 80% of total funds) in low
earning government securities (G-secs) and 3% in ”non-interest yielding” CRR. If the small banks
succeed in meeting these challenges, their credit profile will benefit from improved liquidity and
more resilient earnings with more diversity and better credit risk management.
8. Impact/Challenges for Small Finance
Banks
• Asset mix likely to diversify further
o Most of the players so far have been offering one or two loan products and some
fee based distribution products due to regulatory restrictions. Though the under
banked customers need a variety of products to meet their financial needs (such
as home improvement loans, education loans, higher value business loans), funds
transfer, deposit products, insurance etc, the MFIs/NBFCs remained constrained in
offering multiple products to their customers owing to the guidelines in place.
Therefore, despite a sizeable customer base and demand for these products, these
entities could not exploit their franchise to its complete potential.
o Upon conversion to small banks, these entities will be able to diversify their asset
mix too, within the limits imposed on SFBs that is priority sector requirements of
75% and 50% of the loan portfolio of the ticket size upto Rs 2.5 million.
o Consequently, the riskiness of the product mix could change, depending on the
basket of products the small bank develops (for example focus on secured loans
such as secured housing loans could be risk neutral, whereas an increase in the
share of unsecured higher ticket microenterprise loans could lead to a riskier
product mix).
9. Impact/Challenges for Small Finance
Banks
• Overall equity requirement to be high in the medium term
o Apart from meeting the CRR/SLR requirement (in the event of non
mobilization of targeted deposits), the successful applicants would require
additional capital requirement for the following:
o Reduce foreign shareholding below 50%
o Tie-up capital to support growth
• Small Finance Banks would require sizeable growth capital as well.
o The cumulative equity requirement for the successful applicants assuming
25% CAGR over the next five years is expected to be ~ Rs. 26-28 billion.2
However, if the SFBs are able to raise equity upfront to reduce the foreign
shareholding as discussed, it would be sufficient to meet the growth
requirements as well. As far as reported capital adequacy is concerned, it
is unlikely to be a challenge for the new small banks as their current
Capital to Risk (Weighted) Assets Ratio (CRAR) exceeds 15% with minimum
Tier I at over 7.5%.
10. Impact/Challenges for Small Finance
Banks
• Cost of funds may remain high over short term
o With a relatively large customer base and reach, though there is potential
to develop a sizeable deposit base, however low ticket sizes are likely to
keep the cost of deposit mobilization high in the initial years, partially
negating the cost benefit arising out of relatively lower interest cost on
deposits vis-à-vis wholesale funding sources. Key factors influencing the
Profitability metrics of a small bank would be as follows:
o CRR and SLR requirements to be met without any regulatory for bearance
o Cost of institutional funding sources
o Share of retail deposits in overall funds (especially current and saving
accounts (CASA)
o Ticket size of deposits mobilized
o Ability to offer a larger bouquet of services to customers to increase
productivity and fee based income
11. Impact/Challenges for Small Finance
Banks
• SFBs could face following resource mobilization challenges with
institutional funding:
o There are caps on interbank lending upto 200%/300% of Net Worth.
Further this source is too short term in nature.
o If banks were to invest in Certificates of Deposits of these small finance
banks, these lines would also be less than 1 year in nature, which could
create Asset Liability Mismatch issues for the small finance banks.
o Risk Appetite of Scheduled commercial banks to extent credit lines to
small finance banks could be limited owing to their credit risk profile and
these facilities being subordinated to deposits. Therefore, access to a
refinance line from SIDBI, MUDRA Bank, NABARD as well as securitization
may remain an important route for such small banks to raise funds in the
short to medium term. Over the long term, the buildup of retail as well as
bulk deposit franchises would be a key determinant of the growth rates of
these small finance banks.