1,000 Accounts, 1 PAN: How Paytm Payments Bank Came Under RBI’s Radar

More than 1,000 users were found to have linked the same Permanent Account Number to their accounts.

Paytm Payments Bank is under intense scrutiny from the RBI and the Enforcement Directorate.

Hundreds of accounts created on Paytm Payments Bank without proper identification were one of the major reasons for the Reserve Bank of India to impose stringent curbs on the company, people familiar with the matter said. These accounts with inadequate Know-Your-Customer (KYC) conducted transactions worth crores of rupees on the platform, leading to fears of potential money laundering.
More than 1,000 users were found to have linked the same Permanent Account Number (PAN) to their accounts. The compliance submitted by the bank was found to be incorrect during verification processes conducted by both the RBI and auditors.

RBI is concerned that some of the accounts could have been used for money laundering, sources said. As well as informing the Enforcement Directorate, the RBI has sent its findings to the ministry of home affairs and the prime minister’s office.

The Enforcement Directorate will probe Paytm Payments Bank if any evidence of illegal activity is found, Revenue Secretary Sanjay Malhotra told Reuters.

There were also reports of non-disclosure of major transactions within the group and associated parties, further intensifying regulatory worries. The central bank’s scrutiny also unearthed loopholes in the governance standards, particularly in the linkage between Paytm Payments Bank and its parent company, One97 Communications Ltd.

Transactions routed through the parent app of Paytm raised data privacy concerns, leading to the RBI’s decision to halt transactions through Paytm Payments Bank. While user deposits in savings accounts, wallets, FASTags, and NCMC accounts are not immediately affected, the company will have to rely on third-party banks for its operations until February 29.

Source: https://www.ndtv.com/business-news/1000-accounts-1-pan-money-laundering-how-paytm-payments-bank-came-under-rbi-radar-4990243

Our Range Rovers are not UK’s most-stolen car, says Jaguar Land Rover

The boss of Jaguar Land Rover has denied that his company’s vehicles are especially vulnerable to theft.

Adrian Mardell said the Range Rover “is not ‘Britain’s most stolen vehicle'” after a series of reports about soaring insurance costs for UK owners.

He accused the insurance industry of failing to take into account all data when setting cover and premiums.

Last year, JLR launched its own insurance after some drivers were unable to get cover at all.

Speaking angrily to journalists after JLR announced its latest financial results, Mr Mardell said that vehicle theft by organised criminals was a serious issue in the UK, but his own business had been unfairly singled out.

“It is not ‘Britain’s most stolen vehicle’, as reported incorrectly”, said Mr Mardell, adding that he wanted to correct what he described as “misinformation” and a “myth” about thefts, in particular where Range Rovers were concerned.

It follows reporting, including by Bloomberg, which said the Range Rover Velar model “was the most-stolen car in the year to March 2023, with more than two out of every 100 reported stolen” citing data from the UK’s Driver and Vehicle Licensing Agency.

A wave of car thefts in recent years has concerned some carmakers that it may have a knock-on effect on demand for vehicles, particularly luxury models.

Range Rovers, often used by celebrities, politicians and even royalty, have received much of the attention.

The cars can cost anything between £40,080 to almost £200,000 for more advanced models.

Mr Mardell said thefts of Range Rovers had fallen 27% last year compared with 2022 and new models were especially secure.

Of the latest Range Rover model, he said only 11 vehicles out of a total of 12,800 sold had been stolen, according to police data.

Source : https://www.bbc.com/news/business-68188064

 

Joe Rogan Gets New Spotify Deal Worth Up to $250 Million

Hit show to be distributed broadly, including on YouTube, rather than exclusively on audio-streaming service

Spotify green up pointing triangle has reached a new deal with star podcaster Joe Rogan that will allow his hit show to be distributed broadly.

Rogan’s fresh deal—estimated to be worth as much as $250 million over its multiyear term, according to people familiar with the matter—involves an upfront minimum guarantee, plus a revenue sharing agreement based on ad sales.

Source : https://www.wsj.com/business/media/joe-rogan-podcast-spotify-deal-28eb5f74

RBI may cancel operating licence of Paytm Payments Bank next month, says report

The shares plunged by their daily limit of 20% each on Thursday and Friday, erasing $2 billion of its market value, after RBI ordered the bank to to stop its popular mobile wallet business along with other activities, citing “persistent non-compliance and supervisory concerns”.

Paytm went public with much fanfare in late 2021 but its stock has since slumped more than 70% as investors questioned its profit-making ability and it tussled with regulators.

Paytm Payments Bank could lose its operating licence as early as next month after customer deposits are secured. The RBI had on Wednesday ordered Paytm Payments Bank, 49% owned by Paytm’s parent company, to stop its popular mobile wallet business along with other activities, citing “persistent non-compliance and supervisory concerns”.

A Bloomberg report says the regulator could now scrap the bank’s licence after the February 29 deadline when fintech’s banking arm is required to stop customers from replenishing their savings accounts on the popular digital payment wallet.

However, no final decision has been reached and the RBI’s decision could change based on Paytm’s representation, the report added.

Paytm went public with much fanfare in late 2021 but its stock has since slumped more than 70% as investors questioned its profit-making ability and it tussled with regulators.

The shares plunged by their daily limit of 20% each on Thursday and Friday, erasing $2 billion of its market value, after the RBI order.

The proposed move is in response to violations including misuse of customer documentation rules and non-disclosure of material transactions.

Source : https://www.businesstoday.in/latest/corporate/story/rbi-may-cancel-operating-licence-of-paytm-payments-bank-next-month-says-report-416018-2024-02-03

Paytm Payments Bank reassures safety of existing balances after RBI restrictions

Paytm Payments Bank Limited is prohibited from accepting new deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more from February 29 onwards.

UPI payments

Paytm Payments Bank has reassured its customers that their existing balances are safe, following the Reserve Bank of India’s (RBI) directive restricting the bank from accepting new deposits or allowing credit transactions after February 29, 2024.

In an email and text message to customers, the bank stated that while new deposits or credit transactions will not be permitted after the specified date, there is no restriction on withdrawing money from existing balances.

“Your money is safe with the bank,” the Paytm Payments Bank said.

The central bank’s action follows a comprehensive system audit report and compliance validation by external auditors. Starting February 29, 2024, Paytm Payments Bank Limited (PPBL) is prohibited from accepting new deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more.

Customers are allowed to withdraw or use balances without restrictions, but other banking services like fund transfers and UPI facilities will be discontinued. The nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd. must be terminated by February 29, 2024.

Source: https://www.indiatvnews.com/business/news/paytm-payments-bank-reassures-safety-of-existing-balances-after-rbi-restrictions-2024-02-02-914884

The Lawyer—and Drummer—Who Felled Elon Musk’s $55.8 Billion Compensation Package

A former corporate-defense lawyer handled case that led to Tesla CEO’s pay deal being nixed

The case that brought down Elon Musk’s multibillion-dollar pay package at Tesla was driven by a lawyer who spent decades representing big companies like Goldman Sachs and 21st Century Fox, and a shareholder who played drums in a heavy-metal band.

The bombshell decision, issued Tuesday in the Delaware Court of Chancery, came more than five years after a Tesla shareholder originally filed suit, asking the state’s business-law court to cancel Musk’s pay package at the electric-car maker.

The suit, filed in 2018, alleged that Tesla’s chief executive controlled the approval process and that the board misled investors, who later approved it. Musk has said he didn’t dictate the terms of his pay plan.

The judge in the case, Chancellor Kathaleen McCormick, found that the process for securing approval of Musk’s compensation was “deeply flawed,” and agreed this week to rescind the CEO’s package, which was valued at a maximum of $55.8 billion.

“This would be as though it never happened,” said Greg Varallo, lead lawyer for the single shareholder plaintiff, Richard Tornetta, referring to the board’s decision to award the package. Varallo and his team defeated a team of lawyers led by heavyweight New York law firm Cravath, Swaine & Moore and its former chairman, Evan Chesler.

The case was originally filed by lawyers from Friedman Oster & Tejtel and Delaware-based Andrews & Springer, which also represents Tornetta in a separate lawsuit that began in 2019. That suit, which is ongoing, is challenging the sale of Pandora Media to Sirius XM.

Friedman Oster & Tejtel is based in New York, but it specializes in corporate-misconduct cases in Delaware, said principal David Tejtel. Tornetta’s lawyers at Andrews & Springer didn’t respond to requests for comments.

Varallo, 64, and several other lawyers at Bernstein, Litowitz, Berger & Grossmann, joined the litigation in 2021. At the time, Tornetta had just survived a motion to dismiss by Tesla’s board of directors, raising the likelihood that the case could go to trial. Tejtel said the original legal team recognized it was going to be a massive undertaking.

“It made sense to enlist reinforcements,” he said, on the decision to bring on Varallo. The trial began in 2022.

Source: https://www.wsj.com/business/the-lawyerand-drummerwho-felled-elon-musks-55-8-billion-compensation-package-07ce1a0a

What Is Inside Budget 2024 For Common Man; Here Are 10 Key Announcements From Nirmala Sitharaman’s Speech

While the government tax revenues have seen a significant surge, but the government seems to spend judiciously while decreasing the budget deficit to 5.1 per cent in the next financial year, which is at 5.8 per cent for the current fiscal year ending in March.

What Is Inside Budget 2024 For Common Man; Here Are 10 Key Announcements From Nirmala Sitharaman’s Speech

Finance Minister Nirmala Sitharaman in her Budget 2024 speech. Outlined a comprehensive plan for the next five years, which includes increased housing opportunities, access to free electricity, and improved medical care, particularly for women.

While the government tax revenues have seen a significant surge, but the government seems to spend judiciously while decreasing the budget deficit to 5.1 per cent in the next financial year, which is at 5.8 per cent for the current fiscal year ending in March.

In the interim budget, which preceded a new administration, Sitharaman allocated Rs 11.1 lakh crore to capital spending, which is an 11.1 per cent increase from the previous year. Sitharaman assured support for including farmers, youth, women, and the unprivileged sectors over the next five years.

Here Are Key Announcements in Budget 2024 For Common Man

The Saksham Anganwadi and Poshan 2.0 programs will be accelerated to enhance nutrition delivery, early childhood care, and development.

Pradhan Mantri Awas Yojana (Grameen)

The ongoing Pradhan Mantri Awas Yojana (Grameen) is nearing its 3 crore houses target, with an additional goal of constructing 2 crore houses set for the next five years.

Housing for Middle Class Scheme

The government planning to launch the “Housing for Middle Class” scheme, which will incentivise middle-class individuals to either purchase or construct their own homes.

Source: https://www.timesnownews.com/business-economy/budget/what-is-inside-budget-2024-for-common-man-here-are-10-key-announcements-from-nirmala-sitharamans-speech-article-107339245

Explained: Why RBI Has Put Restrictions On Paytm Payments Bank

Paytm Payments Bank has been ordered by the RBI to stop accepting fresh deposits in its accounts or popular wallets after February 29, 2024.

Paytm Payments Bank is part of one of India’s largest payment firms Paytm

New Delhi: The Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts or popular wallets after February 29, 2024.
Paytm Payments Bank, which is part of one of India’s largest payment firms Paytm, was told by the regulator that it will not be able to take fresh deposits, facilitate credit transactions, or offer fund transfers, including Unified Payments Interface (UPI) facility after February 29.

“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” Yogesh Dayal, a chief general manager with the central bank, said in a press statement.

Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance, the statement added.

Why RBI Has Put Restrictions On Paytm Payments Bank?
The RBI said it had in March 2022 asked the Paytm Payments Bank to stop adding new customers.

However, a Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action, the RBI said, without disclosing details.

The action against Paytm Payments Bank was taken under Section 35A of the Banking Regulation Act, 1949, the central bank added.

What Paytm Payments Bank Said On RBI Restrictions
Paytm Payments Bank, an associate of One 97 Communications Limited (OCL), said it is taking “immediate steps” to comply with the RBI’s directions.

OCL, as a payments company, works with various banks (not just Paytm Payments Bank), on various payments products, the fintech company said in a statement on Thursday.

Source: https://www.ndtv.com/india-news/paytm-paytm-news-explained-why-rbi-has-put-restrictions-on-paytm-payments-bank-4970845

Interim budget: With eye on polls, FM looks to meet expectations

Given that we are just months away from the Lok Sabha elections, this will be an interim budget, to lay down the government’s expenditure priorities for the April-June 2024 quarter.

Union Finance Minister Nirmala Sitharaman a day before presentation of the Interim Budget 2024, at her North Block office in New Delhi, Wednesday, Jan. 31, 2024. Credit: PTI Photo

Bengaluru: At 11 am on Thursday , Finance Minister Nirmala Sitharaman will rise to present the interim budget for the coming financial year (2024-25). This will be her sixth consecutive budget speech, a feat only achieved by the late Morarji Desai.

Given that we are just months away from the Lok Sabha elections, this will be an interim budget, to lay down the government’s expenditure priorities for the April-June 2024 quarter. The full budget for the year is likely to be presented in July, after government formation.

“The upcoming pre-election interim budget occurs at a juncture when the overall economic landscape appears stable. This is underpinned by the easing of financial conditions, robust macroeconomic data,” said Rajani Sinha, Chief Economist at CareEdge.

“Nonetheless, the current budgeting exercise is also confronted by economic headwinds like deceleration in the global economy, pressures in the agriculture sector, and strains on the rural economy,” Sinha said.

While the Indian economy has shown remarkable resilience since the Covid-19 pandemic, a large part of the growth has been driven by government expenditure on infrastructure and rural programmes, and on schemes aimed at boosting manufacturing.

Source: https://www.deccanherald.com/business/union-budget/interim-budget-with-eye-on-polls-fm-looks-to-meet-expectations-2873891

Paytm shares plunge 20% after RBI orders payments bank unit to stop business

Payments company Paytm. Credit: Reuters File Photo

Bengaluru: Shares of Indian payments firm Paytm tumbled 20 per cent in pre-open trade on Thursday, after a move by the country’s financial regulator to halt business at Paytm’s payments bank unit sparked fears of hits to the company’s profitability and reputation.

Paytm’s stock fell to a six-week low of 609 rupees.

The Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank, an associate of Paytm, to stop accepting fresh deposits in its accounts or popular wallets from March, raising worries that the move could erode revenue from the company’s main payments business.

Source: https://www.deccanherald.com/business/companies/paytm-shares-plunge-20-after-rbi-orders-payments-bank-unit-to-stop-business-2874260 

Petrol price hiked 50 paise, diesel up 55 paise; 5th increase in 6 days

Petrol in Delhi will now cost Rs 99.11 per litre as against Rs 98.61 previously while diesel rates have gone up from Rs 89.87 per litre to Rs 90.42, according to a price notification of state fuel retailers.

Anil Ambani quits as RInfra, RPower director

Reliance Group Chairman Anil Ambani on Friday resigned as director of Reliance Power and Reliance Infrastructure, following markets regulator SEBI order restraining him from associating with any listed company.
“Anil D Ambani, non-executive director, steps down from the board of Reliance Power in compliance of SEBI (Securities and Exchange Board of India) interim order,” Reliance Power said in a BSE filing.

In a separate filing to the stock exchange, Reliance Infrastructure said that Anil Ambani has stepped down from its board “in compliance of SEBI interim order”.

Sebi in February barred Reliance Home Finance Ltd, industrialist Anil Ambani and three other individuals from the securities market for allegedly siphoning off funds from the company.

The two Reliance Group companies said that Rahul Sarin has been appointed as an Additional Director in the capacity of Independent Director for a term of five years on Friday on the boards of RPower and RInfra, subject to approval of members at the general meeting.
The board of directors of the company unanimously reposed full trust in Ambani’s leadership and invaluable contribution to steering the company through great financial challenges and towards being potentially debt-free in the course of the coming financial year, the firms said.
They also said that the boards look forward to an early closure of the matter and inviting Ambani back to provide his vision and leadership to the company in the interest of all stakeholders.

Source: https://timesofindia.indiatimes.com/business/india-business/anil-ambani-quits-as-rinfra-rpower-director/articleshow/90450623.cms

7 Women Changemakers Who Are Breaking Sexual Health Taboos With Their Brands

A gender-equal world is still a utopian concept, and while the journey of change has taken flight, there’s still a long way to go. We may be in 2022, but any discourse around menstrual hygiene and sexual wellness is often suppressed by the age-old patriarchal norms. Fortunately, there are several entrepreneurs who are ‘breaking the bias’ and shattering convention to create a safe space for women. These new-age brands cater to the needs of those with vulvas and provide them with solutions that help to enhance their quality of life.

This International Women’s Day, we caught up with some prominent changemakers, who are making a difference with their brands.

1. Neha Kant, Founder and Director — Clovia

Lingerie has always been spoken about in hushed tones in our country. It is hardly uncommon for women to be glared at, when they walk into a lingerie store to shop for innerwear. The experience is rather uncomfortable since these shops are mostly run by men.

For Neha, who grew up in Haridwar, it was her mother, who would do underwear shopping for her. Everything was based on trials and guesswork, which left the young girl devoid of confidence. When she stepped out of her hometown to pursue her higher education, started working in New Delhi and travelled abroad, Neha realised that the evolution of innerwear had not kept pace with the fast-changing outerwear fashion.

“To bridge the existing gap in the lingerie space, I decided to dive into the business with the help of my husband and was ably supported by a tech specialist and an experienced lingerie expert. That’s how Clovia was born in 2013,” she says.

The brand believes in bringing world-class products to Indian customers at the right price point. They have a proprietary algorithm based on ‘Clovia’s Fit Test’, which asks women five questions about their body type and accordingly recommends the right bra.

“Earlier this year, we also launched Bra-Bot, an online AI-based chatbot curated to help one buy the right innerwear and other categories. This is part of Clovia’s continued effort to bring its online shopping experience closer to an assisted offline store experience,” she adds.

Clovia launches 200+ styles per month and over 75% of the inventory is less than 30 days old. They also offer 75+ sizes across 12+ categories and address 18 body types.

The brand has also recently ventured into the personal care category to cater to the needs of new moms and urban millennial women.

2. Tanvi Johri, Co-founder and CEO — Carmesi

Like several other women, Tanvi, too, was a victim of rashes caused by sanitary napkins and would dread her period every month. Although she tried looking for alternatives, there was no solution in sight. Another issue that troubled her was the unhygienic disposal of sanitary napkins.

“I started researching more about these things, and that’s when I realised that rashes are taken seriously only when they appear on the face or are associated with beauty. These allergies are triggered by the use of certain ingredients in sanitary napkins. This is what I wanted to change with Carmesi,” she says.

The eco-conscious brand makes biodegradable sanitary napkins using plant-based materials like corn fibre that are devoid of harsh chemicals. These sanitary napkins also come with a disposable bag made from oxo-biodegradable material.

Carmesi has always been big on innovation and has also launched products that may be too niche, but try and provide a solution to women’s problems.

“We created the world’s first and only solution to bra stress called BREASE, after taking into account the challenges of women in our office. The product may not be getting us too much revenue, but our customers love it,” she says, adding that they have also launched a natural deodorant roller with 95% natural ingredients, and an entire skincare range for hormonal acne.

Apart from selling other period care and intimate care products, Carmesi has also made inroads into hair removal, and the health and nutrition category. As they continue to grow by leaps and bounds, Carmesi also plans to make its presence felt in the offline space.

3. Aruna Chawla, Founder — Salad Condoms

How many times have you felt awkward walking up to a pharmacist, and asking for a condom? The feeling is all too familiar, right? This is exactly what happened with Aruna. As a consumer psychologist, she studied purchase patterns and buying behaviour closely and came up with Salad, a non-toxic, eco-conscious, and ultra-thin vegan condom brand.

As the youngest woman to start a condom brand in India, she had her fair share of challenges and was subjected to lewd remarks on social media. It wasn’t just trolling that she had to deal with — it was a hard task to convince manufacturers to associate with her brand, but eventually, she succeeded.

Aruna has been “open and transparent” in her approach and that reflects in everything Salad does. Scan the QR code on the packaging, and you can read all about the ingredients that go into making the condom. Moreover, Salad is the only condom brand that not only focuses on pleasure but also emphasises on the health angle. “Salad has committed 15% of its profits to enable sex education in schools and colleges in India. We are also building a new product that’s under beta testing right now that will help users learn the language of their bodies anytime, anywhere,” says Aruna.

4. Sujata Pawar, Founder — Avni

Sujata had an unpleasant encounter with commercially-available sanitary pads that resulted in rashes eight years ago. When she started looking for options, there was nothing skin-friendly and environmentally-friendly that was available.  That’s when she and her husband (also the co-founder), Apurv Agrawal, worked together to create Avni, a reusable cloth pad that is also India’s first tested cloth pad.

Sujata believes that increased awareness around menstrual hygiene and wellness has helped women in both urban and rural areas to look for sustainable period care. Today, Avni is also aggressively engaging with NGOs and menstrual educators across India to provide education, awareness, and product distribution in rural areas.“Our pads are fully hand-stitched by rural women, and we are also enabling livelihood generation. The company isn’t simply interested in being a personal care brand; it also wants to make menstrual health ‘normal,” says Sujata.

The brand has already attracted over 18,000 clients since its start. They have also developed India’s first 24×7 period helpline to ease the transition and assist women in developing a long-term period habit.

5. Swathi Kulkarni, Co-founder and CEO — Elda Health

Elda was conceived out of personal experiences of the founders, navigating through puberty, pregnancy, to midlife concerns. Since women play foundational roles in families, and even workplaces, their health often takes a back seat. That’s what Swathi wanted to address with Elda.

“Elda educates women around their midlife concerns. Our app hosts a spectrum of audio, video, and text content that’s specifically tailored for Indian women. We believe normalising these concerns is the first step to making them better. Moreover, women have access to scientific tools to assess themselves and follow interventions through Elda’s predictive technology,” she shares.

The holistic team at Elda also provides programs that help manage menopause, weight, stress, and other symptom-specific concerns. “Technology enables us to reach out to millions of women today to educate them about their health concerns, and provide them with tools to manage themselves better,” concludes Swathi.

Source: https://zeezest.com/health/7-women-changemakers-who-are-breaking-sexual-health-taboos-with-their-brands-1461

 

How India’s exports crossed $400 billion for the first time ever

A massive rise in oil prices, across-the-board uptick in global prices of industrial commodities, a resurgent agri-sector and a higher share of manufactured goods are the main reasons behind India reaching the government’s annual export target.

(Representative image)

India has, for the first time, met the government’s annual export target since 2014. The country crossed the crucial threshold of $400-billion annual merchandise export target.

“India set an ambitious goods export target of $400 billion and achieved it for the first time. I congratulate our farmers, weavers, MSMEs, manufacturers and exporters for this success,” Prime Minister Narendra Modi tweeted.

Pointing out the target was achieved nine days ahead of schedule, Modi tweeted that this translated to $33 billion worth of exports every month, $1 billion of exports every day, and $ 46 million worth of exports every hour of the year.

The Commerce Department is expected to release further details later in the day, but available data shows that cumulative exports had grown by 45.8 percent in April-February FY22 (2021-22) as compared to the same period of FY20 (2019-20). Total exports stood at $374 billion till February, up from $256.5 billion in 2019-20. Only the last two months had seen an economic downturn, owing to COVID.

After a difficult FY21, marked by lockdowns and restrictions, exports had started rising at the end of the financial year. In the current financial year, they have risen every month till February. All major categories of exports have risen consistently. Moneycontrol takes a deep dive into India’s export sector to see what went right.

Govt to close toll booths within 60 km of national highways; I-T dept conducts raids at Hiranandani group; Russia bans Facebook, Instagram

The Income Tax department conducted raids at Hiranandani group at 24 locations across Chennai, Bengaluru, and Mumbai in the foreign assets case. In Lok Sabha, Union minister of road transport and highways Nitin Gadkari said that all toll collecting points which are within 60 kilometre of each other on the national highways will be closed in the next three months. Meanwhile, a Russian court banned Meta-controlled Facebook and Instagram in the country on March 21, calling its parent company “extremist.”

Moneycontrol Daily: Your Essential 7

A daily round-up of the most interesting articles to help jump-start the day.

Automobile giants assure of flex engines in six months

Representative picture. Credit: Reuters Photo

Automobile giants Toyota, Maruti Suzuki and Hyundai have assured the government they will bring flex engine vehicles in six months, a move that can reduce India’s dependence on crude oil, shorten a huge import bill and also lessen emissions.

Flex engines allow vehicles to run on 100 per cent petrol or 100 per cent ethanol.

Union Minister for Road, Transport and Highways Nitin Gadkari at a sugar and ethanol conference Sunday said the Centre was also exploring ways to increase the use of ethanol in the aviation sector in order to reduce transportation energy costs. To this end, he called upon sugar factories to make a shift to the conversion of sugar into ethanol.

“If sugar production goes ahead as it does now, it will be harmful for the industry in times to come,” he warned leaders of sugar and allied industries saying, “what is good for our future is to reduce the production of sugar and increase production of ethanol.”

source : https://www.deccanherald.com/business/business-news/automobile-giants-assure-of-flex-engines-in-six-months-1093061.html

More trouble for crypto investors? Govt mulls GST rate for digital tokens

The government is working to bring cryptocurrencies under the ambit of Goods & Services Tax ( GST ) in order to tax the entire value of transactions. Crypto exchanges are currently taxed at 18% slab of GST on services provided to users under the financial services category.

Gautam Adani’s Wealth Jumps By $49 Billion, Higher Than Jeff Bezos, Elon Musk: Report

Gautam Adani added $49 billion to his wealth last year – more than the net addition of wealth by Elon Musk, Jeff Bezos and Bernard Arnault.

Gautam Adani adds $49 bn wealth in 2021, higher than Jeff Bezos, Elon Musk

New Delhi: 

Gautam Adani, India’s and Asia’s second-richest person, added $49 billion to his wealth last year – more than the net addition of wealth by the top three global billionaires Elon Musk, Jeff Bezos and Bernard Arnault, the 2022 M3M Hurun Global Rich List said on Wednesday.

Mukesh Ambani, who runs the oil-to-retail conglomerate Reliance Industries, continues to be the richest Indian with a wealth of $103 billion, a 24 per cent rise year on year.

Adani, the head of the ports-to-energy conglomerate Adani Group, is a close second, with his wealth surging 153 per cent to $81 billion.

In the last 10 years, while Ambani’s wealth has grown 400 per cent, Adani has seen a 1,830 per cent increase, the list said.

HCL’s Shiv Nadar is ranked third with USD 28 billion wealth, followed by Serum Institute’s Cyrus Poonawalla (USD 26 billion) and steel magnate Lakshmi N Mittal ($25 billion).

“Gautam Adani, 59, is the biggest gainer in the M3M Hurun Global List 2022 and added USD 49 billion to his wealth last year,” M3M Hurun Global Rich List said in a statement. His net wealth addition is “more than top three global billionaires such as Elon Musk, Jeff Bezos and Bernard Arnault.”

LIC IPO Likely to Come in May, Govt to Wait for Markets to Calm Down; Details Here

LIC had, on February 13, filed the draft red herring prospectus (DRHP) for LIC IPO (REUTERS/Dado Ruvic)

LIC IPO: With stock markets still facing headwinds amid uncertainties around the Ukraine conflict, the Centre has decided to put on hold its LIC IPO decision for some time and wait for the financial market to stabilize. The LIC IPO will now happen only in the next financial year, chances are that the issue may hit the market by mid-May if market conditions are stable. However, any further delay could will require additional regulatory requirements, sources told News18.com.

Since Russia’s invasion, uncertainty has been surrounding the country’s biggest IPO. The government’s sale of about 31.6 crore shares or a 5 per cent stake in Life Insurance Corporation (LIC), which was estimated to fetch around Rs 60,000 crore to the exchequer, was originally planned to be launched in March.

The government has time till May 12 to launch the initial public offering without filing fresh papers with regulator Sebi, according to sources. The only additional requirement till then will be an addendum to the draft red herring prospectus on the insurer’s December quarter results, News18 has learned from sources.

Source: https://www.news18.com/news/business/markets/lic-ipo-likely-to-come-in-may-govt-to-wait-for-markets-to-calm-down-details-here-4872764.html

Paytm Payments Bank Denies Report Claiming Data Leak To China, Says Fully Compliant With RBI Rules

Paytm Payments Bank: Paytm Payments Bank will be allowed to add new customers only after reviewing the central bank’s IT audit reports.

Indian cellphone-based digital payment platform Paytm (AFP photo)

New Delhi: After the RBI directed it to stop opening new accounts, Paytm Payments Bank said on Monday that a report claiming it had leaked data to Chinese firms was “false and sensationalist”. Paytm Payments Bank said it was fully compliant with the data localisation rules of the RBI and the entire data of the bank resides in the country.

Last week, the RBI directed Vijay Shekhar Sharma- promoted Paytm Payments Bank Ltd (PPBL) to stop opening new accounts amid “material supervisory concerns” observed in the bank.

Paytm Payments Bank said that this moratorium will not affect any existing customers of Payments Bank. However, users cannot sign up for Payments Bank’s service until further notice. Meanwhile, existing customers can continue to transact on the Paytm platform.

“All of the Bank’s data resides within the country. We are true believers of the Digital India initiative, and remain committed to driving financial inclusion in the country,” PPBL said in a statement as quoted by news agency PTI.

The Reserve Bank of India (RBI) has ordered an IT audit of Paytm Payments Bank. IT audit means that the company’s IT infrastructure i.e. software is capable of bearing the burden of many customers, what are the flaws in it and why they are coming, all these will be investigated.

According to the statement issued by RBI, Paytm Payments Bank will have to first take RBI’s permission to add new customers, then it can add new customers with itself. The bank will be allowed to add new customers only after reviewing the central bank’s IT audit reports.

Source: https://news.abplive.com/business/fully-compliant-with-rbi-data-localisation-directions-paytm-payments-bank-1519574

Gold in India trading at six-year high discounts

Physical gold dealers in India were forced to offer the steepest discount in six years last week to lure customers put off by a jump in domestic prices, with some people in top Asian hubs selling their bhttps://readselective.com/india/gold-in-india-tr…r-high-discounts/ullion to cash in on the rally.

Appreciating asset: Gold coins and bars sit on a tray inside a jewellery store in Mumbai. A bullion dealer says some consumers are selling their old jewellery to take advantage of elevated prices. — Bloomberg

Earlier last week, global benchmark spot gold prices rose to near an all-time high of US$2,020.47 (RM8,474.86) as investors sought refuge from uncertainties spurred by the Ukraine crisis.

Local gold prices in India, traditionally the biggest gold consumer after China, jumped to 55,558 rupees (RM3,036) per 10 grammes, not far from the all-time high of 56,191 rupees (RM3,071) hit in 2020.

The price surge hammered demand and prompted dealers to offer discounts as high as US$77 (RM322.98) an ounce over official domestic prices – inclusive of 10.75% import and 3% sales levies – versus US$27 (RM113.25) in the week prior to last week.

China Locks Down iPhone, Tech Hub Shenzhen as Covid Cases Jump

China placed the 17.5 million residents of the southern city of Shenzhen into lockdown for at least a week, seeking to halt a growing Covid-19 outbreak with a move that could cause disruption and production delays in the key technology hub and port.

The lockdown, which came after virus cases doubled nationwide to nearly 3,400, will be accompanied by three rounds of city-wide, mass testing, according to a government notice. The measure, announced Sunday, followed earlier restrictions placed on Shenzhen’s central business district, and will last until March 20.

All bus and subway systems were shut, and businesses, except those providing essential services, have been closed. Employees were told to work from home if they can. Residents will be barred from leaving Shenzhen — home to the headquarters of giants Huawei Technologies Co. and Tencent Holdings Ltd., as well as one of China’s busiest ports — except in limited situations.

The city is home to the China headquarters and a key manufacturing facility of Hon Hai Precision Industry Co., Apple Inc.’s main maker of the iPhone and other products. The surge in infections in the city is thought to be linked to an unbridled outbreak in neighboring Hong Kong, where about 300,000 people are currently in isolation or under home quarantine. A Covid flareup in Shanghai has also seen most schools returned to online learning and travel into the city restricted. Bus services from other provinces were halted, and China’s aviation regulator is in discussion with airlines about diverting all international flights into the financial center, Bloomberg News reported Friday.

Source: https://www.bloombergquint.com/business/china-places-all-shenzhen-residents-under-lockdown-afp

Ashneer Grover bought Porsche, told BharatPe staff he spent $130K on dining table

Ashneer Grover, who quit fintech platform ‘BharatPe’ that he co-founded amid serious allegations of financial wrongdoings against him and his wife Madhuri Jain Grover, allegedly “purchased a Porsche” when he was at BharatPe and “told multiple people at the company that he spent $130,000 on a dining table”, media report said.

According to Bloomberg, office frugality clashed with the couple’s apparently glitzy lifestyle, rubbing some employees the wrong way.

Grover and his wife upgraded their modest home for a rented penthouse and renovated another luxury property.

He also purchased a Porsche and told multiple people at the company that he spent $130,000 on a dining table, the report said citing employees.

As the startup expanded, the company’s staff said Grover pushed them relentlessly.

source: https://www.businessinsider.in/business/startups/news/ashneer-grover-bought-porsche-told-bharatpe-staff-he-spent-130k-on-dining-table-report/articleshow/90128539.cms

8 Missed Calls From Mom? Ola’s Marketing Stunt Draws Twitter’s Ire

Nothing could have prepared Ola customers for the alarming notification that popped up on their mobile phones yesterday. The cab aggregator company — in a move that has been widely criticised on social media — decided to share a notification reading “8 missed calls from mom” with several of their customers. Needless to say, the clickbait not go down well. Where a single missed call from one’s mother is enough to induce anxiety, Ola’s notification had people panicking until they realised it was nothing more than a marketing ploy promoting a 40 per cent discount on certain services.

“‘8 missed calls from mom’, followed by a 40% off promo! This is a terrible clickbait by Ola,” one Twitter user wrote while sharing a screenshot of the notification.

Source: https://www.ndtv.com/offbeat/8-missed-calls-from-mom-olas-marketing-stunt-draws-twitters-ire-2814844

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