Tag: Reserve Bank of India

CLSA India expects first US Fed rate cut in November

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

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CLSA anticipates the first rate cut from the US Federal Reserve to happen in November.

Indranil Sengupta, Economist & Head of Research of CLSA India said that the Fed has once again adopted a hawkish stance, prompting CLSA to revise their projection for the initial Fed cut to November.

For India, Sengupta shifted his forecast for the first rate cut to October.

“Here we are having to keep rates high, because of the Fed. Our inflation numbers clearly don’t warrant 6.50% inflation rate. So I think all over the world if the present situation continues, especially for emerging markets (EMs), this cannot but affect growth beyond a point, because you are going to sit with very high real rates,” he noted.

CLSA India believes the market has largely priced in a third term for Prime Minister Narendra Modi. Their base case for the upcoming election is for political continuity.

The voting for the first phase of Lok Sabha elections began at 7 am on April 19, Friday with polling beginning at 102 parliamentary constituencies across 21 states and Union Territories.

Sengupta said, “The opinion polls clearly make a case for political continuity. I think as far as a BJP re-election is concerned, that is now broadly in the price.”

He identified two key aspects of the BJP’s policies outlined in their manifesto.

Firstly, there’s an emphasis on macro-financial stability, including continuing to build our FX reserves for external security, continue to have a preference for strong balance sheets, bank balance sheets, and finally fiscal discipline.

Secondly, he highlighted the party’s focus on infrastructure development aimed at establishing global manufacturing hubs.

Additionally, he noted that markets will also assess various other factors such as global events, the actions of the Federal Reserve, ongoing conflicts, and more.

CLSA recommends investing in largecap liquid stocks as a precautionary measure against global volatility. They highlight that their defensive largecap basket has outperformed the Nifty benchmark by 16% over the past year.

Also Read | Lok Sabha Election 2024: These stocks may benefit if PM Modi wins a third term, as per PhillipCapital

Catch all the live updates from the Lok Sabha Elections 202

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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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

CAMS receives RBI approval to operate as online payment aggregator

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

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Computer Age Management Services (CAMS) on Wednesday, April 10, received authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator, the company informed in a regulatory filing.

CAMS–India’s largest mutual fund transfer agency had received an in-principle authorisation from the central bank in February, 2023.

The company received the certificate of authorisation from RBI on Wednesday, April 10, the company said in a regulatory filing. The company’s payment business unit, CAMSPay, is currently serving mutual funds, insurance companies, banks and non-banking finance companies (NBFCs). 

“Our offerings, fortified over time, now include an expanded UPI autopay feature that has seen wide adoption by fintech channels and notable third-party applications,” the company said in a filing.

“The company’s collaboration with major Banks in the country and with the National Payments Corporation of India (NPCI) further enhances the capability to deliver a broad spectrum of payment services to the markets we serve,” it added.

In March 2024, the company achieved registration of over 1.2 million mandates for UPI autopay.

Earlier this month, the company announced that its wholly-owned subsidiary—CAMS Insurance Repository Services—will be an agency for facilitating the issuance of insurance policies in “electronic mode” as mandated by IRDAI with effect from April 1, 2024.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

Explained: What is FX Retail and why RBI wants to promote it

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

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Reserve Bank of India (RBI) Governor Shaktikanta Das asked banks on Monday, April 8, to do more to facilitate the use of the FX Retail platform, while also cautioning them against unauthorised foreign exchange trading platforms.

“Banks may need to do more to facilitate the use of the FX Retail platform. We continue to see banking channels being used by certain persons or entities to fund activities on unauthorised FX trading platforms. This warrants
enhanced vigilance by the banks,” Das said at the FIMMDA-PDAI Annual Conference in Barcelona.

Das’ comments come after last week the banking and monetary policy regulator deferred its plans on the implementation of new norms for the exchange-traded currency derivatives (ETCD) market to May 3 from the previous deadline of April 5 amid a sharp rise in volatility in the forex market.

The RBI had released the new framework for hedging of foreign exchange risks in January this year. The new rules allowed individuals to engage in long or short positions within the foreign exchange derivatives market without requiring them to demonstrate an underlying exposure. The allowance extends up to a consolidated limit of $100 million equivalent across all currency pairs involving the rupee, aggregated across all recognized stock exchanges.

However, the RBI asked stock exchanges to notify users that while they aren’t required to verify the presence of underlying exposure, they must verify the validity of any contracted exposure that hasn’t been hedged with another derivative contract and should be ready to substantiate this whenever required.

To adhere to the RBI’s April 5 deadline, foreign exchange brokers urged their clients to close their derivative positions before the specified timeframe to ensure compliance with regulatory requirements. Leading up to this deadline, the forex market experienced heightened volatility.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

Bandhan Bank’s Chandra Shekhar Ghosh says was ‘planning exit for two years’ | Interview

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

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Chandra Shekhar Ghosh is moving on from Bandhan Bank. The outgoing Managing Director and Chief Executive Officer of the microfinance lender said he feels this is the right time to hand over the bank to a new management and will hand-hold the bank’s new leadership over the next three months.

“Bandhan is my baby. I cannot leave it at risk. I would like to decide how my baby will be saved and accordingly, I will exit. That is my priority,” he said.

The lender announced on Friday (April 5) that the bank’s founder, and the MD and CEO for three consecutive terms since July 10, 2015, will retire on completing his current tenure on July 9, 2024.

Here are edited transcripts from Chandra Shekhar Ghosh’s interview:

Q: You founded and led Bandhan Bank since its inception 24 years ago, and as the bank CEO for nearly a decade now. Why this decision to step down? 

A: Just like a father gives away a daughter in marriage, this separation is painful. Have been associated for 24 years. Now I feel this is the right time to hand over the bank to a new team and I would like to take charge strategically at the holdco level. I have been planning this for the last couple of years.

Q: You’re saying you planned this for the last couple of years, but the board had approved your reappointment just a few months back for three years. Why this change in mind now?

A: I have divided this answer into two parts. The first is short. My wife asked the same question. She said you are living with me but I get to know from others. My answer is: I had to maintain this confidentiality as the MD and CEO.

The other part: For 24 years, I have been developing this institution from scratch. There were tough times, first the demonetisation and then the COVID-19 pandemic. So, the next focus was on recovering. We recovered more or less 70-80% but not to my satisfaction. In 2023-24, I saw good momentum and slippages have been controlled. If you recall, last year March we recruited an executive director and this whole year, I have shared a lot with him. We made some other appointments, too. So, I feel that this is the right time to hand over. After the March quarter is closed, for the rest of the three months, I would like to guide them further on how to take Bandhan Bank to the next level of growth

Also Read | ‘Decision to retire is voluntary,’ says Bandhan Bank’s CS Ghosh; to mentor new team for 3 months

Q: At senior management levels, there’s been a bit of a churn… Your retail banking head resigned, the CFO exited and all of these new people were taken in. So, one would say the senior management has been in a bit of a flux. Don’t you think your exit will add to that and create some amount of uncertainty for the bank?

A: Not everyone in the senior management team has joined recently. One senior executive director, for instance, joined over a year ago and he is already a seasoned hand now. The head of microfinance, which is the biggest part of the bank’s portfolio, has been with us for over a year. Similarly, the heads of commercial banking and the housing verticals have been around for over a year. There are people at a senior level who are now the captains and have been with me for a long time. So, the base is strong. At the mid-level, too, there are people who we have developed for more than a year now. Over the next three months, I will be able to develop their expertise further.

Bandhan Bank is my baby. I cannot put it at risk. I would like to decide how my baby will be saved and accordingly, I would like to exit. That is my priority.

Also Read | Bandhan Bank gets a 40% price target cut from Jefferies after CEO resignation

Q: You say you had this in mind for the past two years, and you did not communicate it to the board in November when they extended your term. But have there been any conversations with the RBI because their approval for your term extension was still pending… 

A: Retiring is a voluntary and personal decision. I wanted to inform the board at an opportune time because as an MD of the company, it would not have been good on my part to discuss this with anyone else.

On your other point, when the board approached the RBI with my proposal in November, we had just transitioned to our core banking system in October. I needed three to six months to stabilise the core banking system. I was apprehensive about informing of my decision as that would have left me with less time to ensure a smooth transition to the core banking system. That is why I refrained from bringing it up back then.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

‘Decision to retire is voluntary,’ says Bandhan Bank’s CS Ghosh; to mentor new team for 3 months

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

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Chandra Shekhar Ghosh, Managing Director and Chief Executive Officer (MD and CEO) of Bandhan Bank says his decision to retire is ‘totally voluntary and personal’.

In a conversation with CNBC-TV18 discussing the latest development, Ghosh said he feels it is the right time to hand over the bank to a new management, but will hand-hold bank’s new top leadership over next three months.

“Bandhan is my baby. I cannot leave it at risk. I would like to decide how my baby will be saved and accordingly, I will exit. That is my first priority,” he said.

He said while he had been planning the exit for the last two years, he informed the board only now.

The year 2023-2024 was a year of fantastic business momentum along with slippage control, Ghosh noted, adding that “This is a right time, after closing FY24, I can leave the bank.”

The private lender on Friday (April 5) announced that the bank’s founder, and the MD and CEO for three consecutive terms since July 10, 2015, will retire from his position on completing his current tenure on July 9, 2024.

The decision was taken by the board of directors during their meeting held on April 5, 2024, Bandhan Bank said in a regulatory filing.

“After leading the bank for almost a decade, including three consecutive tenures as MD and CEO, I feel that the time has now come for me to assume a larger strategic role at Bandhan group level,” Ghosh said in a letter addressed to the board.

Bandhan Bank was launched on August 23, 2015, with 501 branches and 50 ATMs spread across 24 states.

It is the first-ever microfinance institution to become a universal bank from the eastern region.

“I have developed this institution for 24 years from scratch. In 2015, I opened the bank, and up to 2018, I have developed bank and keep people’s trust in the bank to attract the depositors,” he added.

For the March quarter, Bandhan Bank reported a 17.8% growth in loans and advances compared to the same quarter last year, while total deposits grew by 25.1% year-on-year.

The loan growth is calculated after reducing the sale of its non-performing asset (NPA) portfolio worth ₹720 crore to an Asset Reconstruction Company (ARC). This figure also includes short-term loans against fixed deposits amounting to ₹2,151 crore.

Also Read | Bandhan Bank Q4 sees double-digit growth in loans and advances

The decision has surprised investors, leading many brokerages to downgrade the stock until further clarity on the management change is provided.

Brokerage firm Jeffries downgraded the stock to ‘underperform’ from ‘buy’ cutting its price target by 40% to ₹170 from ₹290 apiece. The revised price target implies a potential downside of 14% from current levels.

Nomura also downgraded the stock to ‘reduce’ from ‘buy’, while trimming the target price to ₹175 from ₹275 apiece.

The current market capitalisation of the lender is ₹30,358.72 crore.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

Bottomline: The Great FX F&O Slumber Party!

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

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The exchange traded foreign currency derivative trading mess is a case study in regulatory oversight and all from RBI to SEBI to stock exchanges and brokerages are to blame.

How does what’s happening in a ₹500 lakh crore turnover market get missed for 14 years? That’s a question RBI, SEBI and stock exchanges must answer. And, if it wasn’t missed, why the sudden wake-up call?

On April 5, RBI Governor Shaktikanta Das clarified that there was no change in regulations on currency derivatives trading. To emphasise his point, he added: “No one can say this is new”.

The previous evening RBI in a press release stated currency derivatives regulations are guided by the Foreign Exchange Management Act, 1999, and reiterated in 2000 and 2020 which mandate: “currency derivative contracts involving the INR – both over-the-counter (OTC) and exchange traded – are permitted only for the purpose of hedging of exposure to foreign exchange rate risks.”

The release went on to add: “As announced in the Statement on Developmental and Regulatory Policies dated December 08, 2023 the regulatory framework governing the hedging of foreign exchange risks was comprehensively reviewed in 2020 with a view to ushering in a principle-based regime. Based on this comprehensive review, public consultations, feedback received from market participants and experience gained since then, the regulatory framework has been made more comprehensive in respect of all types of transactions – OTC and exchange traded – under a single Master Direction to enhance operational efficiency and ease access to foreign exchange derivatives.” What this suggests is that key stakeholders would have been consulted in 2020. So, why was no action taken for four years?

SEBI on its part also doesn’t seem out of line on its understanding of the regulations. In its annual report for FY2023, the markets regulator said: “Currency derivatives, which include futures and options contracts, are used to manage foreign exchange risks arising out of fluctuations in currency rates. In India, currency futures and options were launched in August 2008 and October 2010, respectively. Currently, these are available for trading on four currency pairs viz. US Dollars (USD-INR), Euro (EUR-INR), Great Britain Pound (GBP-INR) and Japanese Yen (JPY-INR). The cross-currency pairs such as EUR-USD, GBP-USD and USD-JPY are also permitted for trading.”

So, since 2010 trading in currency derivatives has been permitted knowing that these instruments are meant for hedging underlying exposure risk ONLY. The only relaxation provided by RBI in 2014 was in terms of disclosure. The RBI states: “For the purpose of ease of doing business, the RBI’s A.P. (DIR Series) Circular No. 147 dated June 20, 2014 permitted users of ETCDs to take positions up to USD 10 million per exchange without having to provide documentary evidence to establish the underlying exposure but did not provide any exemption from the requirement of having the exposure.”

While this limit was consequently raised to $100 million, there was no relaxation in the rules on hedging. This begs the question: Didn’t SEBI, Stock Exchanges, Brokers know that they couldn’t trade in such contracts without underlying exposure? To expect that they were unaware requires a leap of faith.

THE PROPRIETARY FLAG

One big red flag is the share of proprietary trades in the total turnover on stock exchanges. Data published in SEBI’s annual report of FY2023 reveals that these account for almost 88% of the total turnover on NSE, the exchange with 85% share of the total turnover in such contracts. It would also seem odd that such published information was not noticed by anyone at RBI.

The least one would have expected any of the regulating bodies—Stock Exchanges, SEBI or RBI—to do is enquire into the nature of such trades to ascertain whether these were done to hedge underlying exposures.

Source: SEBI Annual Report FY2023

Also, it isn’t like this segment was so small to not have drawn any regulatory attention. The sharp jump in turnover and the size of the market should have been enough cause to invite scrutiny. The turnover in the currency derivatives segment jumped by over 60% to Rs 446 lakh crore in FY2023.

Source: SEBI Annual Report FY2023

THE SPOILS OF OVERSIGHT

Who gained from this convenient oversight? This is also something to be aware of. No, it’s not just the brokers. Stock Exchanges led by NSE have earned transaction charges on every trade. Even SEBI has got a share of the spoils as has the Government via GST. And all this for years on end from something that is fundamentally illegal. That’s astounding.

#On Brokerage + SEBI Charges + transaction charges | Source: Zerodha.com

TIME FOR INTROSPECTION

Given how things have panned out, it is time for regulators to take a closer look at what is going on under their watch. Are there other areas where norms are similarly being violated at scale? How is it they missed this violation in the currency derivatives market? Do they need to review their supervisory systems and practices?

The currency derivatives mess is not about the death of a market segment on stock exchanges. It is about the complete failure of our watchdogs to ensure that rules under their watch are followed.

We only hope another oversight of such scale won’t occur again.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

RBI slaps a penalty of ₹1 crore on IDFC First Bank for violating norms

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

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The Reserve Bank of India (RBI) imposed a penalty of ₹1 crore on IDFC First Bank on Friday, April 5, for non-compliance with ‘Loans and Advances—Statutory and Other Restrictions’ for an infrastructure loan granted to a public sector undertaking (PSU) in 2016 and 2017.

The lender revealed that the full loan had already been repaid with no loss to the bank. The loan has been closed in the books of the bank as of September 2023.

“We would like to mention that the bank does not undertake infrastructure project financing since 2019 as a part of its lending strategy,” the bank added in a regulatory filing. 

The lender said that it has taken necessary preventive actions with regard to its procedures to avoid recurrence in the future after scrutinising them in detail.

Meanwhile, the central bank also levied a penalty of ₹49.70 lakh on LIC Housing Finance on Friday for violating certain norms.

On Friday, the shares of IDFC First Bank closed at ₹80.68 apiece on BSE, a hike of 1.48% from the previous close of ₹79.50.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

Bankers and economists weigh in on RBI’s April monetary policy

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

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Leading bankers and economists shared their take on the Reserve Bank of India’s (RBI’s) first monetary policy of the year, focusing on the central bank’s growth and inflation predictions, rate cut schedules, and how the US Federal Reserve’s actions might affect India’s interest rates.

The RBI’s Monetary Policy Committee left key rates unchanged for the seventh straight time while retaining the ‘withdrawal of accommodation’ stance.

In his address, Governor Shaktikanta Das said that while inflation is moving closer to target, the last mile of inflation is turning out to be challenging.

As a result, the central bank has left the Consumer Price Inflation (CPI) forecast unchanged at 4.5%.

According to Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank there are a fair amount of risks on the food inflation side and that is the reason there seems very limited room for RBI to act in the near term.

“So, they will be looking very cautiously at most of the inflation-linked data, and of course, the global cues and that is when they can consider a change but that doesn’t happen in the first half of the year (H1) at all,” Bhardwaj said.

For Kaushik Das, Chief Economist at Deutsche Bank, the tweaks in the central bank’s inflation forecasts came as a surprise.

The central bank has revised the inflation forecast downward to 4.9% from 5% despite the predictions of heatwaves across the country between April and June.

Similarly, for July-September, the forecast has been revised to 3.8% from 4%, and for January-March 2025, it is now at 4.5% versus 4.7%.

“If you are hawkish on inflation, then they should not have touched the inflation forecast as whatever was there was okay, and there was no need for tweaking at this point of time,” he added.

Also Read | RBI Monetary Policy 2024: Interest rates unchanged for the seventh time in a row

According to CS Setty, Managing Director of SBI said, while the policy was broadly on the expected lines, Governor Shaktikanta Das’ commentary on liquidity was reassuring.

“We could witness in the last few weeks that the liquidity is not constrained in the system and whenever liquidity is excess, the absorption was done and when the shortfall is noticed, the injection was done. So, to that extent, what the Governor has assured us in terms of being nimble and flexible is reassuring,” Setty said.

Also Read | MPC meeting: Real Estate stocks cheer RBI’s decision to keep repo rate unchanged

Shobhit Mehrothra, Head-Fixed Income at HDFC AMC sees the potential for a first rate cut by the RBI in August, well after the US Fed starts easing rates.

“If the Fed is going to perhaps start the easing cycle with the first-rate cut in June, I would guess that perhaps RBI could consider an August cut if inflation moves inline as per expectations in the next few prints.”

Also Read | RBI MPC leaves inflation projection for FY25 unchanged at 4.5%, assuming a normal monsoon

Sandeep Yadav, Head of Fixed Income, DSP Mutual Fund agrees with Mehrothra.

The RBI’s decision on when to cut interest rates for the first time will mostly depend on when the US Federal Reserve cuts rates for the first time.

It’s all about the data, whether it’s from India or the US, says Mehrothra.

Also Watch: Neeraj Gambhir, Group Executive & Head-Treasury at Axis Bank; Pranjul Bhandari, Chief India Economist at HSBC, Ashhish Vaidya, MD & Head of Treasury & Markets at DBS Bank India and Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India, in an interview with CNBC-TV18, assessed and analyse the RBI Monetary Policy.

For the entire discussion, watch the accompanying video

Catch all the latest updates from the stock market here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

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

A new app will allow you to buy government bonds directly

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

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The Reserve Bank of India (RBI) has proposed to launch a mobile application to enhance retail participation in the government securities (G-sec) market, Governor Shaktikanta Das said during the inaugural monetary policy review of the fiscal year 2025 on Friday, April 5.

The RBI Retail Direct Scheme was initiated in November 2021. Under this, retail individual investors were allowed to easily open a Retail Direct Gilt (RDG) Account with the Reserve Bank of India through a dedicated online portal rbiretaildirect.org.in.

Adding an app for easing the opening of gilt accounts, Das said would streamline access to the Retail Direct portal. “It will enhance convenience for retail investors and foster deeper engagement with the G-sec market,” he said.

Investment avenues under the scheme encompass both primary and secondary markets. In the primary issuance of government securities, investors can participate through the non-competitive scheme in government securities auctions, adhering to the procedural guidelines for SGB issuance.

Meanwhile, in the secondary market, investors can engage in buying and selling government securities via the Negotiated Dealing System – Order Matching (NDS-OM) platform, encompassing the ‘Odd Lot’ and ‘Request for Quotes’ segments.

Facilitating seamless transactions, payments can be conveniently executed through savings bank accounts via Internet Banking or UPI.

The investor services under the scheme include provisions for transaction and balance statements, nomination facilities, pledges or lien of securities, and gift transactions. Importantly, no fees will be levied for the facilities provided under the scheme.

Also Read: RBI MPC meet: Reserve Bank leaves inflation projection for FY25 unchanged at 4.5%, assuming a normal monsoon

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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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

Soon you’ll be able to deposit cash into your bank account using UPI

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

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The cash deposit machine allows people to deposit cash directly into the bank account using the debit card, instead of having to visiting the branch.

It’s similar to an ATM (automated teller machine) but instead of giving out cash, a cash deposit machine takes in cash.

The Reserve Bank of India (RBI) has said that it would allow people to use the unified payments interface (UPI) instead of the debit card.

ALSO READ: RBI MPC cuts FY25 inflation forecast to 4.5% and hopes for a normal monsoon

How it would work?

The cash deposit machine has a slot that reads the debit card. Customers will now have the option of using the UPI interface instead of debit card if they wish to.

Once the customer is identified, there’s another slot to count the cash that’s being deposited using sensors.

Once it’s verified, the amount is credited to the customer’s bank account. “Given the experience gained from cardless cash withdrawal using UPI at the ATMs, it is now proposed to facilitate deposit of cash in cash deposit machines using UPI. This measure will further enhance customer convenience and make currency handling process at banks more efficient,” RBI Governor Shaktikanta Das said.

Cardless cash deposit is available even now

Even now customers can deposit cash without using a debit card.

Once the customer has entered the bank account number on the cash deposit machine, it asks for the registered mobile number for confirmation before allowing you to drop the cash.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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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