Tag: RBi policy

Fixed deposit rate hikes to see a halt soon — Is it time to rejig your investments?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The pause in the repo rate hike, coupled with surplus liquidity in the banking system, may lead bigger banks with adequate deposit mobilisation to halt their fixed deposit (FD) interest rate hikes, experts said after the Reserve Bank of India (RBI) maintained the status quo on Thursday. Before hitting the pause button for the second time, the central bank had raised the repo rate cumulatively by 250 basis points since the beginning of the rate hike cycle in May 2022.

FD rates are influenced by several factors, including the repo rate, the gap between credit growth rates, deposit growth rates, and overall liquidity in the banking system.

While rates have been paused, banks are also experiencing a surplus of liquidity as a result of the submission of Rs 2,000 notes, with a deadline for exchange and deposit set by September 30, 2023, by the general public.

Reiterating this, RBI Governor Shaktikanta Das on Thursday said that Rs 1.8 lakh crore in additional liquidity had entered the system via deposits of Rs 2,000 notes. “If the 85 percent trend holds and all Rs 2,000 notes are returned by September, we will have Rs 3 lakh crore additional liquidity,” Das said while addressing a press conference after announcing the bi-monthly monetary policy.

This influx of funds should lead to a modest decline in fixed deposit rates.

In an earlier conversation with CNBC-TV18.com, Akhil Bhardwaj, Senior Partner at Alpha Capital said there is a lack of credit offtake too which plays a crucial factor here.

This means loans are not being disbursed as anticipated due to higher rates. In such a scenario, banks have limited incentive to attract depositors with high-fixed deposit rates because they are not earning good net margins. As a result, they may choose to reduce these rates to encourage credit growth.

Here’s a look at the current FD rates of key banks

(Source: BankBazaar)

Investment strategy

Depositors can start booking FDs for longer tenures, especially if those are offered at attractive yields, said Naveen Kukreja, Co-Founder & CEO at Paisabazaar.

“Banks having more aggressive targets for their credit growth or those having relatively smaller deposit bases may resort to further FD rate hikes to achieve their targeted credit growth,” he said.

Echoing similar views, Adhil Shetty, CEO at BankBazaar, said individuals should consider reinvesting their FDs now for higher returns.

“Most banks provide rates of 7 percent or more on select deposit tenors. Smaller banks are at 7.5 percent and many small finance banks are above 8 percent. Senior citizens are being offered a premium of 25 to 75 basis points. Some government banks are offering super senior citizens (those above 80) additional premiums. Similarly, the AAA-rated deposit options remain compelling. There are many companies offering 7.75 percent or higher on select tenors. Depositors, especially senior citizens, can use these options to pad up their fixed income returns,” Shetty said.

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Long duration debt funds become attractive with RBI’s rate pause

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India’s (RBI’s) rate-setting panel has unanimously approved to keep the benchmark lending rates unchanged for the second consecutive time. Even though, RBI Governor has said that this is just a pause and not a pivot yet, Debt mutual funds managers are asking individuals to invest in longer duration bond funds. Long duration funds offer higher returns in a rate cut cycle.

The MPC since May 2022 hiked rates by 250 bps and has paused since April. RBI Governor Shaktikanta Das, on Thursday, announced that the Monetary Policy Committee (MPC) unanimously decided to keep the rate unchanged at 6.5 percent.

Mutual fund managers see this as an opportunity for debt investors to take exposure to longer duration bond funds and gilt funds. “We reiterate our views that investors should go as long as possible depending on risk appetite. Existing carry despite recent fall in yield continue to remain attractive and should not be missed out. Medium to Long Duration funds may be a preferred investment option for investors,” says Marzban Irani, CIO – Debt , LIC Mutual Fund.

Here are 3 and 5 years returns of some of the medium to long duration funds:

(Source: Moneycontrol)

Fund managers say that the decision of the MPC was in line with broader market expectations. The MPC kept the key policy rates unchanged as also retained the current stance of gradual withdrawal of accommodation. Mahendra Jajoo, head of fixed income, Mirae Asset Mutual Fund, says that even as domestic macro environment continues to improve with latest growth data surprising on the upside and inflation data surprising on the down side, global uncertainties remain in terms of entrenched services inflation, higher alert flag on El Niño and adverse geo political developments.

“The uncertainity globally necessitates continued caution, dampening hope of any rate cut in immediate term but still suggesting an extended pause. As the markets were beginning to price a more optimistic time frame on future rate cuts, some realignment may be warranted. Bond yields are likely to remain range bound. 10Y GOI yield may trade in 7-710 percent band. Money market rates may inch up by 10-15bps. Overall, the outlook remains constructive on fixed income,” says Jajoo.

Prashant Pimple Chief Investment Officer – Fixed Income, Baroda BNP Paribas Asset Management India, also says that the Monetary policy outcome was in line with his expectations in terms of status quo on policy rates and lowering of FY 24 CPI projections to 5.10 from 5.20 percent ; however, MPC preferred to be in a wait and watch mode with as Governor mentioned “ arjuna’s eye “ towards inflation.

“With 1 year forward real rates in a positive territory and somewhat a goldilocks economy for the domestic markets ; We expect a long pause by RBI for this calendar year. We expect the yield to bear steepen from here,” says Pimple.

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Worst over for home loan borrowers, but when will interest rates start going down

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Home loan interest rates may start dropping before the end of 2023, experts said on Thursday after the Reserve Bank of India (RBI) maintained a status quo on the repo rate as well as its policy stance. Although inflation still remains higher than the tolerance level, it has decreased over the past few months, allowing the RBI to maintain its stance. Experts believe this status quo will facilitate positive decision-making for homebuyers and lenders.

Interest rates stabilising

Currently, the repo rate stands at 6.5 percent. This is the second incidence when the RBI paused the rate. This is good news for home loan borrowers as it signals that interest rates are stabilising. However, the best is yet to come when RBI starts cutting the rate.

Before hitting the pause button for the second time, the central bank has raised the repo rate cumulatively by 250 basis points since the beginning of the rate hike cycle in May 2022. For most banks, the external benchmark to which their home loans are linked is the repo rate. So, with the hike in repo rate, all existing home loans on floating rates of interest became expensive.

Ramani Sastri, Chairman and MD at Sterling Developers said the decision to keep the repo rate unchanged was a positive development as it provides home buyers and investors with some stability and reduces uncertainty and volatility associated with interest rate fluctuations.

“Another repo rate hike by the RBI would not augur well for the real estate sector as home loan interest rates are already at a higher level. Now, we expect a continuation of existing policy rates through 2023. Undoubtedly, a further reduction in interest rates in the near future would be preferred to bolster overall market confidence and make it more enticing for home buyers and support the growth momentum in the real estate sector,” Sastri said.

Here’s a look at the current home loan rates of key banks:

(Source: Bankbazaar)

The road ahead

While experts are hinting at rate reductions in the near future, those expecting it in October should be disappointed.

In an interview with CNBC-TV18, Kaushik Das, Chief Economist at Deutsche Bank said, “The consensus is for a 6 percent growth this year, RBI is for 6.5. But if RBI’s forecasts are met, then the logic for rate cuts get pushed back and probably in April of next year is when you could expect RBI to start cutting rates and we have a prolonged extended pause for now.”

Additionally, considering the prevailing circumstances, inflation still needs to be closely monitored to bring it down to 4 percent level, potentially prompting the RBI to reconsider its stance on interest rates and achieve a balance between growth and inflation.

As Das said, “We need to maintain Arjuna’s eye on evolving inflation scenario”.

It must be noted that currently there is no indication from the RBI that the rate cycle will change anytime soon.

“The path thereon will be dependent on the evolving domestic inflation and growth dynamics and the US Fed stance,” said Amit Jain, CMD at Arkade Group.

Additionally, the progress of monsoon would be keenly watched and would be one of the significant factors in deciding the direction of inflation.

What should borrowers do?

While borrowers are still reeling under the pressure of lengthening loan tenures and rising interest rates, Adhil Shetty, CEO at Bankbazaar.com, said that those on a repo-linked loan should automatically see a reset after any repo rate change within a quarter.

“The lowest rates being offered in the home loan market today are in the 8.40 percent to 8.50 percent range for eligible borrowers. Those who are paying a significantly higher rate should consider a refinance. If depositors are able to shave off 50 basis points or more off the rate, it could lead to significant savings over the long term,” Shetty said.

He added that when individuals think about their home loans, they should also think about the premium they pay over the repo. For example, at 8.50 percent, the premium over the repo is 2 percent. Prime borrowers with good credit histories and strong income credentials can borrow at the lowest premium while others will have to pay higher.

Naveen Kukreja, Co-Founder and CEO at Paisabazaar said that existing floating rate borrowers having adequate surpluses should opt for prepayment to reduce their overall interest cost. They should preferably opt for the tenure reduction option to generate higher savings in interest cost.

“Existing borrowers who have witnessed significant improvements in their credit profile can exercise balance transfer to reduce their interest cost. Their improved credit profile may make them eligible to transfer their existing loans to other lenders at much lower interest rates,” he said.

Home buying demand

Vimal Nadar, Head of Research at Colliers India, believes RBI’s decision is a significant breather for lenders, developers and homebuyers. “First-time homebuyers will be better placed to make their home buying decision in a stable lending rate regime. Fence sitters in the affordable and mid-segment will have greater visibility of their EMIs and thus affect buying,” he said.

Amit Goyal, Managing Director of India Sotheby’s International Realty, thinks the pause in rate hikes would instil a sense of optimism among borrowers and the momentum in home sales will continue.

Echoing similar views, Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd, said home loan borrowers have embraced the previous interest rate hikes, and as long as the home loan interest rates hover around 9 percent per annum, it is unlikely to have a significant impact on housing demand.

Piyush Bothra, Co-founder and CFO, of Square Yards, is firm that homebuyers know that their EMIs down the line will only decrease further. “A lot of fence sitters are expected to jump in, and the developers are likely to cash in on this pent-up demand. We firmly believe that we are at the beginning of a multi-year real estate bull market buoyed by high disposable incomes, high affordability and moderate-to-low interest rates,” he said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Rs 3 lakh crore additional liquidity may return to system if all Rs 2,000 notes are deposited/exchanged: RBI Guv

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said that Rs 1.8 lakh crore additional liquidity had entered the system via deposits of Rs 2,000 notes. “If the 85 percent trend holds and all Rs 2,000 notes are returned by September, we will have Rs 3 lakh crore additional liquidity,” Das said while addressing a press conference after announcing the bi-monthly monetary policy.

“This is in line with our expectations. While 50 percent of Rs 2,000 notes in circulation as of March 31 have come back to the system, approximately 85 percent of the notes have come back as deposits to banks. The average system liquidity is still in surplus mode and could increase as more Rs 2,000 banknotes get deposited in banks,” Das said.

The governor also urged the public not to panic for exchange or deposit of Rs 2,000 notes but should avoid last-minute rush.

He made it clear that RBI was not thinking of withdrawing Rs 500 notes, or even re-introducing notes in the Rs 1,000 denomination, and requested the public not to speculate on this.

On May 19, the RBI announced the withdrawal of Rs 2,000 denomination banknotes as part of its currency management and permitted the exchange of such notes (up to Rs 20,000 in one go) from May 23 onwards. The central bank has given the public time till September 30 to either deposit such notes in accounts or exchange them at banks.

Customers can visit the nearest branch of a bank and provide account details. As per RBI’s guidelines, even customers without bank accounts can exchange/deposit Rs 2,000 banknotes with other denominations. Banks will then provide the request slip, which must be filled by the customer. This will require basic details such as the ‘Tenderer’ name and information on the denomination such as the number of pieces and value. The customers will also have to mention the place and date of exchange.

The RBI introduced the Rs 2,000 notes in November 2016 to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time.

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RBI proposes issuance of e-rupee vouchers on behalf of individuals

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) on Thursday proposed to enable the issuance of e-rupee vouchers on behalf of individuals and to simplify the process of issuance, redemption and a few aspects of the current framework. This measure, RBI Governor Shaktikanta Das said while announcing the bi-monthly monetary policy, would make the benefits of e-rupee digital vouchers accessible to a wider set of users.

“At present, purpose-specific e-rupee digital vouchers are issued by banks. It is now proposed to expand it by permitting non-bank prepaid payment instruments (PPI) issuers to issue e-rupee vouchers and enabling the issuance of e-rupee vouchers on behalf of individuals,” he said.

E-rupee voucher, a digital voucher which was launched in August 2021, is a wholly cashless and no-contact electronic payment instrument that is delivered to beneficiaries’ mobile devices (even mobile devices that are non-android or iOS) as either a QR code or an SMS-based e-voucher.

Currently, purpose-specific vouchers are issued by some banks on behalf of central and state governments and to a limited extent on behalf of corporations. These are issued in partnership with the National Payments Corporation of India (NPCI) for specific reasons such as payment of hospital bills, etc.

The central bank also said it had decided to permit banks to issue Rupay prepaid foreign exchange (forex) cards for Indians travelling abroad. This will expand the payment options for Indians going abroad. The RBI governor said Rupay cards would also be enabled for issuance in foreign jurisdictions.

Meanwhile, the central bank opted for a pause for the second time in a row, maintaining the key benchmark policy rate at 6.5 percent as inflation moderates. The rate increase cycle was paused in April after six consecutive rate hikes aggregating to 250 basis points since May 2022. While keeping the interest rate intact, Das said headline inflation still remains above RBI’s target of 4 percent and is expected to remain so during the rest of the year.

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Fixed deposit rates may remain steady — but repo rate not the only reason

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The repo rate has seen a continuous stream of hikes since May 22, resulting in a corresponding rise in fixed deposit (FD) rates. However, RBI hit a pause button in April. With inflation under control, it is reasonable to anticipate a status quo in Thursday (June 8) monetary policy as well. A pause in repo rates hikes would likely maintain or even slightly decrease FD rates due to two factors currently at play.

First, banks are experiencing a surplus of liquidity as a result of submission of Rs 2,000 notes, with a deadline for exchange and deposit set by September 30, 2023 by general public.

“This influx of funds should lead to a modest decline in fixed deposit rates,” said Akhil Bhardwaj, Senior Partner at Alpha Capital while talking to CNBC-TV18.com.

“Secondly, there is a lack of credit offtake, meaning that loans are not being disbursed as anticipated due to higher rates. In such a scenario, banks have limited incentive to attract depositors with high fixed deposit rates because they are not earning good net margins. As a result, they may choose to reduce these rates to encourage credit growth,” he said.

Hence, the overall direction of policy is likely to be focused on stimulating the credit market and expanding the economy. By maintaining the pause in repo rate and possibly even reducing fixed deposit rates, Bhardwaj said, RBI aims to encourage credit growth, which are essential for economic growth.

This strategy aligns with the goal of boosting the credit market and facilitating a robust expansion of the economy.

While these may be the major considerations, much would also depend on the RBI’s approach towards liquidity.

“As surplus liquidity in the banking system can have inflationary effects, a proactive approach from the RBI for reducing the system liquidity cannot be ruled out. Thus, if the system liquidity continues to remain in surplus, bigger banks having adequate deposit mobilisation to fund their credit growth may stop increasing their FD rates. However, banks having more aggressive targets for their credit growth or those having relatively smaller deposit bases may resort to FD rate hikes to achieve their credit growth target,” Naveen Kukreja, Co-Founder and CEO at Paisabazaar told CNBC-TV18.com.

So, what should depositors do?

Depositors can start booking FDs offering higher yields, especially if those are offered for longer tenures, Kukreja said.

“Currently, many small finance banks and some private sector banks are offering FD yields of 8 percent and above. These banks have also been classified as scheduled banks by the RBI, which covers each depositor of these banks under the deposit insurance programme, for cumulative deposits (including fixed deposits, recurring deposit, current account and savings account) of up to Rs 5 lakh,” he told CNBC-TV18.com.

Here’s a look at current FD rates of key banks:

(Source: Bankbazaar)

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MPC meeting: Chetan Ahya expects RBI to hit pause button on interest rate hike

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Monetary Policy Committee (MPC) is likely to maintain the status quo as inflation remains within the comfort zone of the Reserve Bank of India (RBI). After raising rates six times in the current cycle, the MPC took a pause in April.

In a recent interview with CNBC-TV18, Chetan Ahya, Chief Asia Economist at Morgan Stanley, shed light on the Reserve Bank of India’s (RBI) approach, as well as the potential alignment between India and the United States in terms of economic trends.

According to Chetan Ahya, the RBI is expected to maintain its current interest rates for the time being. However, he believes that a rate cut may be on the horizon, specifically in the first quarter of the following year.

“We are not expecting another rate hike in our base case. We think that they will get the data points which will be allowing them to take this pause in a longer-term manner and then take a rate cut in the first quarter of 2024,” he said.

This projection suggests that the central bank may adopt a cautious approach in the near term, assessing the economic landscape before making any significant adjustments.

While discussing the monetary policies of central banks, Ahya emphasized the need for the US Federal Reserve to maintain a tighter stance. This perspective indicates that he anticipates the US central bank will continue its efforts to rein in inflation and maintain a more disciplined approach to monetary policy. The actions taken by the Federal Reserve will likely have implications for the global economy, including India.

Ahya also highlighted the potential correlation between services sector exports in India and the United States. Ahya expects India’s services sector to mirror the performance of its US counterpart.

For more details, watch the accompanying video

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RBI interest rate decision, global trends to drive markets this week: Analysts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India’s interest rate decision, domestic macroeconomic data and global trends will dictate terms in the equity markets this week, analysts said. Trading activity of Foreign Portfolio Investors (FPIs) will also influence markets, they added.

”The Indian market will be closely monitoring the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting scheduled for June 6to 8, 2023. Aside from that, market participants will be keeping an eye on the progress of monsoon,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd. Gour further said that the movement of the rupee against the dollar and crude oil prices will remain in focus.

”These factors will be closely monitored, as they have the potential to influence market sentiment. Additionally, macroeconomic indicators will play a significant role in shaping the market mood in the near-term,” Gour said. Domestic investors would track the Purchasing Managers’ Index (PMI) data for the services sector, scheduled to be announced, on Monday.

Shrikant Chouhan, Head of Equities Research (Retail), Kotak Securities Ltd, said, domestic market participants will keep an eye on the upcoming Reserve Bank of India (RBI) policy meet and monsoon progress. Last week, the BSE benchmark gained 45.42 points or 0.07 per cent, and the Nifty climbed 34.75 points or 0.18 per cent.

”This week is going to be an eventful one as we have the MPC’s monetary policy meeting outcome scheduled on June 8. Before that, on the macroeconomic front, S&P Global services PMI on June 5 will also be on participants’ radar for cues,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd, said. The 30-share BSE Sensex climbed 118.57 points or 0.19 per cent to settle at 62,547.11 on Friday. The Nifty advanced 46.35 points or 0.25 per cent to finish at 18,534.10.

”As we enter a new month, investors are anticipating the release of data points such as PMI and US payroll data, in addition to the outcome of the central banks’ monetary policy meeting,” said Vinod Nair, Head of Research at Geojit Financial Services. Contrary to the global trend, domestic indicators favour bullish sentiment, Nair said.

”The release of domestic GDP data, surpassing expectations, and robust Q4 earnings bolstered the growth prospects of the domestic market. Additionally, auto sales for the month of May displayed a sequential recovery, boosting sentiment across the sector,” he added.

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RBI to develop online portal for unclaimed deposits of all banks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India’s (RBI’s) Shaktikanta Das on Thursday said that the central bank has decided to develop a web portal to enable search across multiple banks to claim unclaimed deposits. At present, bank customers have to go through websites of multiple banks to claim these deposits. This new web portal will help bank customers to find their unclaimed deposit at a single point, Das said while announcing the bi-monthly monetary policy.

A deposit is considered to be unclaimed if there has been no activity on it for ten years or longer. These amounts are transferred by banks to “Depositor Education and Awareness” (DEA) Fund maintained by the RBI. The depositors are, however, still entitled to claim the deposits at a later date from the bank(s) where such deposits were held along with interest, as applicable.

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The total amount of unclaimed deposits transferred to the Reserve Bank of India (RBI) by public sector banks (PSBs) was Rs 35,012 crore till February 2023, minister of state for finance Bhagwat Karad said in a written reply to Parliament.

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According to RBI, the growing volume of unclaimed deposits arise mainly due to non-closure of savings/current accounts which depositors do not intend to operate anymore or due to not submitting redemption claims with banks for matured fixed deposits. There are also cases of accounts belonging to deceased depositors, where the nominees/legal heirs do not come forward to make a claim on the bank(s) concerned.

To help such depositors or the nominees/legal heirs of deceased depositors identify and claim the deposits, banks already host the list of unclaimed deposits on their website with some identifiable details. Members of public are encouraged to identify and approach the bank concerned for claiming such deposits.

Currently, State Bank of India (SBI) tops the chart of unclaimed deposits worth Rs 8,086 crore followed by Punjab National Bank Rs 5,340 crore, Canara Bank Rs 4,558 crore and Bank of Baroda Rs 3,904 crore, according to Press Trust of India (PTI) report.

Catch key highlights from RBI policy here

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI to allow pre-sanctioned credit lines via UPI — Here’s what it means

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India’s (RBI’s) governor Shaktikanta Das on Thursday proposed to expand scope of United Payments Interface (UPI) by permitting operations of pre-sanctioned credit lines by banks through UPI. This initiative will encourage innovations and widen footprints of UPI, Das said while announcing the bi-monthly monetary policy.

“We have been making lot of announcements relating to UPI in past policies. UPI’s robustness has been leveraged to develop new products and features from time to time,” he added.

What this essentially means?

RBI’s announcement on UPI means that borrowers will now have access to digital credit lines from banks via UPI.

According to Shivaji Thapliyal, Head of Research and Lead Analyst at YES Securities, banks will now be able to offer credit products and, essentially, mimic credit card offerings from a credit perspective, without actually issuing a physical credit card or requiring bulky and expensive physical acceptance infrastructure such as POS/swipe machines.

“While credit cards had earlier been allowed on UPI rails, it was done so only for the RuPay settlement system, which is not in vogue for private sector banks. Since most of the credit cards issued by private sector banks were on the Visa and Mastercard settlement systems, allowance of RuPay credit cards did not move the needle for private sector banks. However, with pre-sanctioned credit lines now proposed to be allowed, private sector banks can now simply offer credit card-like products to anyone who has a UPI relationship with the bank and at any merchant that has a lightweight and low-cost QR code or other acceptance infrastructure and, also, for online merchants,” Thapliyal said.

In simple words, pre-sanctioned credit lines implies pre-approved credit, which is essentially credit that banks would have approved for customers based on data analytics carried out on internal deposit customers. However, this may also include non-customers whose credit bureau and other information may have been analysed by the banks.

Prima facie, private sector banks would target both internal liability customers and new-to-bank customers. New-to-bank customers could be the ones which are using a given bank’s app as the interface to carry out UPI transactions from another bank’s deposit account.

How will customers benefit?

The move will reduce number of cards customers have to carry and make transactions via UPI.

Rajsri Rengan, India Head of Development, Banking and Payments at FIS said that this will help in reduction of the time and effort required for customers to secure loans.

“This will ultimately drive economic growth and development,” Rangan said.

According to Harish Prasad, Head of Banking, India at FIS, access to pre-sanctioned credit lines via UPI will re-ignite the digital lending and BNPL space too.

Earlier, restrictions were imposed on disbursements into prepaid wallets and cards from credit-lines and loans. Many BNPL players had to resort to tenuous work-arounds to continue to deliver a seamless purchase experience.

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“With the UPI channel opened up for access to credit lines, the point-of-purchase credit experience becomes seamless and opens up avenues to use credit across a much larger merchant base. This has the potential to drive transformational growth for the BNPL lending sector,” Prasad said.

UPI numbers

According to National Payments Corporation of India (NPCI), transactions on the UPI platform advanced by 60 percent year-on-year in March to a record 8.7 billion. In terms of value, payments on the platform rose 46 pe cent YoY to Rs 14.05 trillion.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow