CROSS BORDER BANK LENDING
RBI, ASEAN countries to create instant cross-border retail payments platform
The Reserve Bank of India and ASEAN nations are collaborating on "Project Nexus," aimed at establishing a platform for instant cross-border retail payments by linking fast payment systems. India joins Malaysia, Philippines, Singapore, and Thailand as founding members, with plans to expand globally by 2026, enhancing efficiency and reducing costs in international transactions.
India, four SE Asia countries plan instant retail cross-border payments
Five central banks from India, Malaysia, Thailand, Singapore, and the Philippines collaborate on Project Nexus, a cross-border retail payments platform set to launch by 2026, facilitated by the Bank for International Settlements (BIS). Nexus will integrate digital payment systems like India’s UPI and Singapore’s PayNow, potentially linking 1.7 billion people globally.
Credit growth up by 19.3%, crosses deposit growth; PVBs outpace PSBs: CareEdge
Scheduled Commercial Banks (SCBs) in India saw a significant 19.3% year-on-year credit growth in the last quarter of FY24, translating to an expansion of ₹26.6 lakh crore, reaching ₹164.3 lakh crore in total credit. This surge was driven by personal loans and lending to NBFCs. Deposit growth lagged at 13.6%, with the credit-to-deposit ratio rising to 79.7%.
NBFCs' funding costs to rise as banks cut back
The cost of funds for non-banks in Mumbai may rise by 200 to 300 basis points as banks reduce funding. Recent data shows a drop in bank funds to non-banks. RBI's actions have impacted bank loans to non-banking financial companies, leading to potential margin squeezes.
TRADERS’ CORNER: Banking major lends support for 5% rise; engineering stock makes base for 7% gain
Nifty formed its day’s high in the early minutes and then remained in a capped range. It closed with a modest gain.
US payments firm Stripe pulls back from India; cites regulatory changes
Stripe has shifted to an 'invite only' mode in India for merchants, citing strict KYC requirements. The move may indicate a shift towards cross-border payments, with support for more Indian merchants expected by the second half of 2025.
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Israel pummels Gaza as troops push into central Rafah
Israeli forces conducted air raids on targets in the Gaza Strip, particularly in the southern city of Rafah. The military operation in Rafah led to international concerns about civilian safety, with reports of casualties and destruction in multiple locations. Efforts towards a ceasefire have been stalled as both sides continue to exchange fire. The rising casualties promped calls for humanitarian aid and diplomatic intervention.
RBI to boost rupee's internationalisation, liberalise norms for non-residents
The Reserve Bank of India (RBI) is intensifying efforts to internationalize the Indian Rupee (INR) by making regulatory changes for non-residents and enhancing the appeal of the GIFT City as an international financial center. The RBI plans to liberalize regulations related to INR accounts for non-residents and allow them to open rupee accounts outside India.
How Jaipur-based AU Small Finance Bank plans to plug a $400 billion credit gap
India’s largest small finance bank has recently bulked up and is now looking to utilise its heft to increase its presence in MSME lending. How successful would it be, is the billion-dollar question.
Govt working to block international spoof calls duping Indians
The Indian Cyber Crime Coordination Centre (I4C) and the Department of Telecom (DoT) are collaborating to block spoof calls originating from outside India, particularly those claiming digital arrests by agencies like the NCB or CBI. They are also partnering with Microsoft to curb the misuse of logos of Indian enforcement agencies by scamsters. Many cases involve callers impersonating law enforcement personnel to extort money, with thousands of Skype IDs created for this purpose.
Expect significant growth from insurance income this year: City Union Bank MD
City Union Bank, led by N Kamakodi, aims for significant growth in insurance income to Rs 55 crore in FY'24, with a PAT of Rs 1,016 crore and NIM within guidance levels.
Israel took over key Gaza crossing. What next?
The Israeli flag flies over Gaza's Rafah crossing, controlled by Israeli troops for two weeks. Egypt has refused to reopen its side while under Israeli control, blocking aid to Gaza. The closure worsens the humanitarian crisis for Gaza's 2.4 million people, with warnings of famine. The crossing was taken over by Israel, accusing it of being used for terrorism. Aid deliveries through Rafah have been crucial, with most aid trucks entering Gaza through it before the closure.
To AI or not to AI? Why artificial intelligence deciding your loan application makes regulators nervous
AI & ML are now ubiquitous in banks and financial institutions as it helps the companies improve credit assessment and reduce frauds. Though these models have some risks — and the regulators are rightfully concerned — the good news is these can be resolved without much trouble.
Member of Israel's War Cabinet says he'll quit the government June 8 unless there's a new war plan
In a significant development, Benny Gantz, a key member of Israel's War Cabinet, threatened to resign if the government doesn't adopt a new plan for the Gaza conflict. His plan includes the return of hostages, ending Hamas' rule, and normalizing relations with Saudi Arabia. Gantz's departure would leave Prime Minister Benjamin Netanyahu reliant on far-right allies, potentially impacting the direction of the conflict. Meanwhile, aid distribution is set to begin in Gaza, where residents are struggling amid Israeli restrictions and heavy fighting.
MHA warns against cybercriminals posing as police officials
The Union home ministry warns against cyber fraud by criminals posing as law enforcement agencies, leading to financial losses for victims. Fraudsters use various tactics, including 'digital arrests', and impersonate government bodies like CBI and RBI. The fraud is part of online economic crime by syndicates.
As Israel pushes deeper into Rafah, Hamas regroups elsewhere in ungoverned Gaza
Israeli forces battle Palestinian militants in Gaza, risking Egypt peace treaty. Heavy bombardment reported in Jabaliya and Zeitoun. Civilians flee to Khan Younis and Mawasi. Lack of a postwar governance plan in Gaza.
Namdev Finvest's assets under management cross Rs 1,200 cr-mark in FY24
Namdev Finvest, a non-banking financial company specializing in small business lending, reported significant growth in its assets under management (AUM), which nearly doubled to over Rs 1,200 crore during the fiscal year 2023-24. The Jaipur-based company witnessed a remarkable 92.62 percent increase in AUM, reaching Rs 410 crore in net worth. Operating across eight states in northwest India, Namdev Finvest expanded its presence and received funding totaling USD 41.5 million, including a recent USD 19 million investment from Maj Invest in its Pre-Series C round.
Brazilian payment company Ebanx set to start India operations with Yes Bank
Ebanx helps nearly 300 brands process payments in multiple countries across Latin America and Africa. It now wants to enter India, which will be its first market in Asia. It will offer payments infrastructure for global brands looking to sell to Indian consumers, who can use Ebanx to pay through the local currency and by using local payment methods.
Citi targets clients with a ‘digital nexus’, high transaction volumes
Citi is strategically targeting high transaction volume sectors in India like industrials, auto supply chains, clean energy, mobility, consumer, and healthcare. The bank aims to maintain its lead in funding digital disruptors and supporting startups in navigating market conditions.
Cross-border payments platform BriskPe raises $5 million seed funding from PayU
Fintech Briskpe will use the capital to strengthen its product and service offerings, build up its team, and scale its reach to enable more Indian businesses to set off on their global journey with seamless cross-border payments.
PayU invests $5M in BRISKPE to boost cross-border payments ecosystem for MSME merchants
This investment underscores the importance of seamless international payments as part of PayU India’s strategy.
From Russian funds with love: Plan mooted to tap rupee balance in special accounts
Russian financial institutions have been negotiating with the Reserve Bank of India (RBI) to use the rupees in special accounts in India for investment in stocks and securities. Currently, 10 Russian institutions, including its largest lender, have registered as foreign portfolio investors (FPIs) with Sebi. However, they have made little investments due to US sanctions in the wake of Russia's war with Ukraine.
Rise and shine, how to gain currency
There is an emerging need for energy-importing economies like India and China to try to delink international trade from the dollar. But it is not an easy job. The dollar is at one end of nearly 90% of all foreign exchange trades. The greenback constitutes around 60% of forex reserves held by central banks globally. Foreign governments and private investors hold over 30% of US treasuries.
Fintechs push for cross-border payments; Chiratae’s $70 million portfolio sale
Happy Wednesday! Razorpay, Cashfree, PayGlocal and other fintech startups are seeking a licence for facilitating cross-border payments from the RBI. This and more in today’s ETtech Morning Dispatch.
Fintech is making global payments its business
Razorpay, Cashfree, PayGlocal, and new entrants rush for RBI's PA-CB licence to tap into lucrative B2B cross-border payments market. Fintechs eye big share of $250B SME exports, focusing on high margins and expanding services.
Indian lenders and Gazprombank in talks for deepening banking services
Indian lenders and Russia's Gazprombank are in early-stage discussions to establish correspondent banking services for cross-border payments and trade support. Gazprombank aims to expand its operations in India and has engaged with Indian bankers to explore strengthening banking ties. The talks come amid challenges in international trade due to US-led sanctions on Russia. Gazprombank shared details on sanctions and compliance protocols, while Indian banks discussed exploring bilateral payments through the special rupee vostro account (SRVA) mechanism, permitted by the RBI to promote bilateral trade in local currencies.
RBI, Bank of Indonesia sign MoU promoting use of local currencies for trade
The Reserve Bank of India and the Bank of Indonesia signed a MoU to promote the use of local currencies for cross-border transactions, enabling exporters and importers to invoice and pay in their respective domestic currencies, optimizing costs and settlement time for transactions.
India, Bangladesh to hold DG-level border talks in Dhaka from today
India and Bangladesh will discuss a wide range of issues related to border management at the 54th BSF-BGB Director General level border coordination conference from March 5-9.
PayPal registers with FIU under anti-money laundering law
American online payments gateway service provider PayPal has registered its operations with the Financial Intelligence Unit of India, about six years after a protracted legal battle ensued between the two entities.
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