The merger of Housing Development Finance Corporation Limited and HDFC Bank, which came into effect from July 1, has led to the bank’s entry into the world's top 10 financial institutions. In a LinkedIn post titled 'Revisiting The Story Of HDFC Bank And Early Days Of HDFC', veteran business journalist Tamal Bandyopadhyay delved into HDFC Bank’s initial journey, based on an extract from his book 'A Bank for the Buck'.

Picking out the key players

The story began on a February morning in 1994, when Parekh made a phone call to Aditya Puri, an old friend and the&nbsp;CEO of the Malaysia operations of Citibank. Parekh flew to Kuala Lumpur and told Puri that HDFC was in the process of obtaining a license from the Reserve Bank of India (RBI) to start a bank and that he was looking for a CEO.&nbsp;

Parekh had decided that Puri was the one capable enough to lead and build a top-notch private bank in the newly liberalised environment in India; one that&nbsp;could compete with other global banks. Puri considered Parekh’s offer after he promised Puri a good share of the institution’s stock.

Before Puri, Parekh had contacted SS Thakur, who previously served as the Controller of Foreign Exchanges in India. Parekh asked Thakur to be the bank’s Founder-Chairman. Thakur eventually joined HDFC Bank in January 1994. He was the one who helped the newly-launched bank gather bulk deposits as people were unwilling to put deposits along with home loans.

Lastly, Parekh had appealled&nbsp;to Vinod Yennemadi, a close friend and a corporate executive, to join him in Bombay to establish the bank. Initially, Yennemadi declined the offer saying that he wasn’t a banker. But Parekh convinced him to join, arguing that he could learn on the job.&nbsp;He eventually joined the bank in April 1994.

Selecting a name

Bank of Bombay (BoB) was the initial name decided for the upcoming bank, which directly clashed with the well-known Bank of Baroda (BoB). Bombay Bank, Greater Bank of Bombay, Everest Bank of India and Bombay International Bank were other names suggested by Parekh.

Eventually, the bank was named HDFC Bank after a majority voted for the name. Initially, Parekh was not in favour of naming the bank HDFC, as he believed that the brand would suffer if the bank failed to take off. But it was also argued that HDFC was already a renowned brand and would help the new bank cash-in on the brand's goodwill.

The merger of Housing Development Finance Corporation Limited and HDFC Bank, which came into effect from July 1, has led to the bank’s entry into the world's top 10 financial institutions.

The merger of Housing Development Finance Corporation Limited and HDFC Bank, which came into effect from July 1, has led to the bank’s entry into the world's top 10 financial institutions. In a LinkedIn post titled 'Revisiting The Story Of HDFC Bank And Early Days Of HDFC', veteran business journalist Tamal Bandyopadhyay delved into HDFC Bank’s initial journey, based on an extract from his book 'A Bank for the Buck'. Picking out the key players The story began on a February morning in 1994, when Parekh made a phone call to Aditya Puri, an old friend and the CEO of the Malaysia operations of Citibank. Parekh flew to Kuala Lumpur and told Puri that HDFC was in the process of obtaining a license from the Reserve Bank of India (RBI) to start a bank and that he was looking for a CEO. Parekh had decided that Puri was the one capable enough to lead and build a top-notch private bank in the newly liberalised environment in India; one that could compete with other global banks. Puri considered Parekh’s offer after he promised Puri a good share of the institution’s stock. Before Puri, Parekh had contacted SS Thakur, who previously served as the Controller of Foreign Exchanges in India. Parekh asked Thakur to be the bank’s Founder-Chairman. Thakur eventually joined HDFC Bank in January 1994. He was the one who helped the newly-launched bank gather bulk deposits as people were unwilling to put deposits along with home loans. Lastly, Parekh had appealled to Vinod Yennemadi, a close friend and a corporate executive, to join him in Bombay to establish the bank. Initially, Yennemadi declined the offer saying that he wasn’t a banker. But Parekh convinced him to join, arguing that he could learn on the job. He eventually joined the bank in April 1994. Selecting a name Bank of Bombay (BoB) was the initial name decided for the upcoming bank, which directly clashed with the well-known Bank of Baroda (BoB). Bombay Bank, Greater Bank of Bombay, Everest Bank of India and Bombay International Bank were other names suggested by Parekh. Eventually, the bank was named HDFC Bank after a majority voted for the name. Initially, Parekh was not in favour of naming the bank HDFC, as he believed that the brand would suffer if the bank failed to take off. But it was also argued that HDFC was already a renowned brand and would help the new bank cash-in on the brand's goodwill.

Flashback Friday: How HDFC entered the banking business

In a push to become a manufacturing hub, the Indian government is considering Production Linked Incentive (PLI) schemes for domestic manufacturing of chemicals and petrochemicals, MoneyControl reported on Thursday.&nbsp;

“We are in favour of having India becoming a manufacturing hub and, of course, we’ll consider the PLI also for chemicals and petrochemicals,"&nbsp;Indian Finance Minister Nirmala&nbsp;Sitharaman said at&nbsp;the global chemicals and petrochemicals summit.&nbsp;&nbsp;

The finance minister also emphasised the importance of increasing domestic production to balance out the trade imbalance in the petrochemical and chemical industries.&nbsp;

In 2022–2023, India's combined exports of chemicals and petrochemicals were valued at roughly $9 billion, while imports of similar products were valued at $13.33 billion, resulting in a trade deficit of more than $4 billion.

The PLI scheme was introduced in April 2020 to assist manufacturing in a few chosen industries. Under the scheme, the government provides businesses with incentives based on additional sales of goods produced domestically. It aims to reduce India's reliance on imports and strengthen its industrial capacity.

With a $26 billion incentive outlay, the benefits of this scheme have already expanded to 14 sectors. Among the important industries that have received benefits under the PLI plan are telecommunications, electronics, white goods, textiles, and pharmaceuticals.&nbsp;

Sitharaman pushes for sustainability&nbsp;

Sitharaman also spoke about the rising sustainability concerns in the chemicals and petrochemicals industry regarding, carbon emissions, general pollution, and groundwater contamination.&nbsp;&nbsp;

“We should remember that India has set its sights on becoming energy independent by 2047 and achieving net zero [carbon emissions] by 2070," MoneyControl quoted her as saying.&nbsp;&nbsp;

Sitharaman said that achieving net zero emissions will require efforts from every industry, including petrochemicals and chemicals. She claimed that India is highly motivated to promote green growth and lower carbon intensity.&nbsp;&nbsp;

She advised the industry not to rely on fossil fuels for their upcoming projects as India is expected to add 500 Giga-Watts (GW) of non-fossil energy generation capacity.&nbsp;&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

In a push to become a manufacturing hub, the Indian government is considering Production Linked Incentive (PLI) schemes for domestic manufacturing of chemicals and petrochemicals, MoneyControl reported on Thursday.

In a push to become a manufacturing hub, the Indian government is considering Production Linked Incentive (PLI) schemes for domestic manufacturing of chemicals and petrochemicals, MoneyControl reported on Thursday. “We are in favour of having India becoming a manufacturing hub and, of course, we’ll consider the PLI also for chemicals and petrochemicals," Indian Finance Minister Nirmala Sitharaman said at the global chemicals and petrochemicals summit. The finance minister also emphasised the importance of increasing domestic production to balance out the trade imbalance in the petrochemical and chemical industries. In 2022–2023, India's combined exports of chemicals and petrochemicals were valued at roughly $9 billion, while imports of similar products were valued at $13.33 billion, resulting in a trade deficit of more than $4 billion. The PLI scheme was introduced in April 2020 to assist manufacturing in a few chosen industries. Under the scheme, the government provides businesses with incentives based on additional sales of goods produced domestically. It aims to reduce India's reliance on imports and strengthen its industrial capacity. With a $26 billion incentive outlay, the benefits of this scheme have already expanded to 14 sectors. Among the important industries that have received benefits under the PLI plan are telecommunications, electronics, white goods, textiles, and pharmaceuticals. Sitharaman pushes for sustainability Sitharaman also spoke about the rising sustainability concerns in the chemicals and petrochemicals industry regarding, carbon emissions, general pollution, and groundwater contamination. “We should remember that India has set its sights on becoming energy independent by 2047 and achieving net zero [carbon emissions] by 2070," MoneyControl quoted her as saying. Sitharaman said that achieving net zero emissions will require efforts from every industry, including petrochemicals and chemicals. She claimed that India is highly motivated to promote green growth and lower carbon intensity. She advised the industry not to rely on fossil fuels for their upcoming projects as India is expected to add 500 Giga-Watts (GW) of non-fossil energy generation capacity. WATCH WION LIVE HERE

India to consider PLI scheme for chemicals and petrochemicals: Nirmala Sitharaman  

According to a recent report by the McKinsey Global Institute, more women are likely to lose their jobs by the next decade, as industries shrink due to swift progress in generative artificial intelligence (AI) and automation technology.

With the rapid development of AI, it is predicted that about a third of the working hours across the US economy could be automated by 2030. Industries like customer service, office support and food services are expected to shrink further while the demand for STEM, construction, creative, legal and business professionals will be on the rise.

The report said that about 12 million people will have to abandon shrinking occupations by 2030. The economy may shift in favour of higher-paying jobs, with workers in lower-paying jobs 14 times more likely to switch careers in comparison to those with higher-paying jobs.

Women are 1.5 times more likely than men to change jobs as they are overrepresented in the rapidly shrinking customer service, office support and food service industries, as per the report by McKinsey.

The report added that occupational shifts can be traced back to the Covid-19 pandemic when the US labour market saw 8.6 million changing their jobs.

Based on the report, the impact of AI on women’s jobs can be identified under five broad categories.

1. More women to lose their present jobs

Women make up for a major portion of workers who fall under the lowest wage quintiles (those who earn between $30,800 to $38,200 and less in a year). With the office support and customer service industries shrinking, women engaged in these industries are more likely to lose their jobs by 2030. These shrinking industries presently employ those with relatively less education, including women and people of colour, with Black and Hispanic workers being highly concentrated in production work and food services.

2. Women may be encouraged to stick to family obligations

Looking back at the pandemic, more women left the workforce than men and it took about three years for the number of working women to come on par with the pre-pandemic workforce in the US. Women engaged in lower-wage work often have family obligations, which may discourage them from switching careers and trying a new occupation.

3. Women may need to switch industries

While food, customer and office service industries continue to shrink due to AI, former male dominated fields like construction are facing labour shortages. These gaps can be filled by women, addressing issues regarding diversity in construction. With the US population ageing, there is also an increasing demand for health-care workers which is was also attributed by the structural changes brought about by the pandemic. “We anticipate that the two fastest-growing occupations through the end of this decade will be nurses and home healthcare aides,” the authors said in the report.

4. Women may require to upskill

In order to switch careers, women need to add new skills to their existing skill set. This calls for training programs, effective job matching, different hiring and training practices by employers. Additionally, education among women needs to be prioritised.

5. More women could potentially engage in higher paying jobs

“While our analysis shows a decrease of 1.1 million jobs in the two lowest wage quintiles by 2030, jobs in the highest wage quintile could grow sharply, by 3.8 million,” the authors said. In that respect, although training workers for a desired skill set is difficult for employers, there are chances to recruit from "overlooked populations", including workers without college degrees and workers with employment gaps. This could potentially indicate an increase the number of women employed in higher-paying jobs.

&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

According to a recent report by the McKinsey Global Institute, more women are likely to lose their jobs by the next decade, as industries shrink due to swift progress in generative artificial intelligence (AI) and automation technology.

According to a recent report by the McKinsey Global Institute, more women are likely to lose their jobs by the next decade, as industries shrink due to swift progress in generative artificial intelligence (AI) and automation technology. With the rapid development of AI, it is predicted that about a third of the working hours across the US economy could be automated by 2030. Industries like customer service, office support and food services are expected to shrink further while the demand for STEM, construction, creative, legal and business professionals will be on the rise. The report said that about 12 million people will have to abandon shrinking occupations by 2030. The economy may shift in favour of higher-paying jobs, with workers in lower-paying jobs 14 times more likely to switch careers in comparison to those with higher-paying jobs. Women are 1.5 times more likely than men to change jobs as they are overrepresented in the rapidly shrinking customer service, office support and food service industries, as per the report by McKinsey. The report added that occupational shifts can be traced back to the Covid-19 pandemic when the US labour market saw 8.6 million changing their jobs. Based on the report, the impact of AI on women’s jobs can be identified under five broad categories. 1. More women to lose their present jobs Women make up for a major portion of workers who fall under the lowest wage quintiles (those who earn between $30,800 to $38,200 and less in a year). With the office support and customer service industries shrinking, women engaged in these industries are more likely to lose their jobs by 2030. These shrinking industries presently employ those with relatively less education, including women and people of colour, with Black and Hispanic workers being highly concentrated in production work and food services. 2. Women may be encouraged to stick to family obligations Looking back at the pandemic, more women left the workforce than men and it took about three years for the number of working women to come on par with the pre-pandemic workforce in the US. Women engaged in lower-wage work often have family obligations, which may discourage them from switching careers and trying a new occupation. 3. Women may need to switch industries While food, customer and office service industries continue to shrink due to AI, former male dominated fields like construction are facing labour shortages. These gaps can be filled by women, addressing issues regarding diversity in construction. With the US population ageing, there is also an increasing demand for health-care workers which is was also attributed by the structural changes brought about by the pandemic. “We anticipate that the two fastest-growing occupations through the end of this decade will be nurses and home healthcare aides,” the authors said in the report. 4. Women may require to upskill In order to switch careers, women need to add new skills to their existing skill set. This calls for training programs, effective job matching, different hiring and training practices by employers. Additionally, education among women needs to be prioritised. 5. More women could potentially engage in higher paying jobs “While our analysis shows a decrease of 1.1 million jobs in the two lowest wage quintiles by 2030, jobs in the highest wage quintile could grow sharply, by 3.8 million,” the authors said. In that respect, although training workers for a desired skill set is difficult for employers, there are chances to recruit from "overlooked populations", including workers without college degrees and workers with employment gaps. This could potentially indicate an increase the number of women employed in higher-paying jobs. WATCH WION LIVE HERE

Artificial Intelligence to impact more women than men in the US. Here's why 

Foxconn Industrial Internet (FII), a&nbsp;subsidiary of the Taiwanese electronics manufacturing giant Foxconn, is proposing an investment of up to $200 million to establish an electronic components plant in the southern Indian city of Chennai.

According to Reuters, the CEO of FII, Brand Cheng, and other corporate representatives met last week with MK Stalin, Chief Minister of Tamil Nadu, and other government leaders are to discuss the investment.

The Taiwan-based corporation plans to finish constructing the plant by 2024, followed by additional expenditures anticipated. However, the final decision is yet to be concluded.

Currently, Foxconn assembles iPhones for Apple at a unit not far from Chennai.

This development comes a week after the south Indian state of Karnataka announced that FII had agreed to invest $1.07 billion in a new facility. Foxconn is also in discussion with officials from the western Indian state of Gujarat, where it looks to enter India’s semiconductor sector.

Just a few weeks back, Foxconn had withdrawn from a $19.5 billion semiconductor&nbsp;joint venture with Vedanta, a company supported by billionaire Anil Agarwal, claiming “the project was not moving fast enough”.&nbsp;&nbsp;

The Taiwanese electronics manufacturer stated that it was attempting to submit a separate application for the establishment of a semiconductor facility in India.

(With inputs from Reuters)&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

Foxconn Industrial Internet (FII), a subsidiary of the Taiwanese electronics manufacturing giant Foxconn, is proposing an investment of up to $200 million to establish an electronic components plant in the southern Indian city of Chennai.

Foxconn Industrial Internet (FII), a subsidiary of the Taiwanese electronics manufacturing giant Foxconn, is proposing an investment of up to $200 million to establish an electronic components plant in the southern Indian city of Chennai. According to Reuters, the CEO of FII, Brand Cheng, and other corporate representatives met last week with MK Stalin, Chief Minister of Tamil Nadu, and other government leaders are to discuss the investment. The Taiwan-based corporation plans to finish constructing the plant by 2024, followed by additional expenditures anticipated. However, the final decision is yet to be concluded. Currently, Foxconn assembles iPhones for Apple at a unit not far from Chennai. This development comes a week after the south Indian state of Karnataka announced that FII had agreed to invest $1.07 billion in a new facility. Foxconn is also in discussion with officials from the western Indian state of Gujarat, where it looks to enter India’s semiconductor sector. Just a few weeks back, Foxconn had withdrawn from a $19.5 billion semiconductor joint venture with Vedanta, a company supported by billionaire Anil Agarwal, claiming “the project was not moving fast enough”. The Taiwanese electronics manufacturer stated that it was attempting to submit a separate application for the establishment of a semiconductor facility in India. (With inputs from Reuters) WATCH WION LIVE HERE

Foxconn to invest $200 million to establish electronic components plant in Tamil Nadu

American multinational investment company, BlackRock, entered into a joint venture with Jio Financial Services, the financial services division of Indian tycoon Mukesh Ambani's empire, to launch a digital-first asset manager to serve the expanding investor population in India.

Jio BlackRock will be the name of the joint enterprise.

According to a statement released on Wednesday, BlackRock and Jio Financial Services each intend to spend up to $150 million in the 50-50 venture. BlackRock had $9.4 trillion in assets under management at the end of June.

In a LinkedIn post, Larry Fink, chairman and CEO of BlackRock, said, "Today marks a major move for BlackRock&nbsp;as we work to expand our footprint through a forthcoming joint venture in India with Jio Financial Services, a company built by Reliance Industries Limited."&nbsp;

While many Indian households have traditionally preferred real estate and jewelry as their primary assets, the joint venture seeks to benefit from the growing number of savers who are integrating financial items in their retirement plans.

The partnership will “deliver our combined expertise and scale to unlock the power of investing for millions of people in India,” Fink said.

Analysts anticipate that Ambani’s Jio mobile phone network, which has the largest user base in India, will provide Jio Financial Services with access to massive troves of customer data. The trading of Jio Financial Services' shares is anticipated to begin this quarter.

According to chief executive of Jio Financial Services, Hitesh Sethia, the joint venure “will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products."&nbsp;

This is the BlackRock’s second attempt to break into the Indian retail sector. This is after it pulled out of a joint venture with the DSP Group in 2018.

(With inputs from Reuters)

&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

American multinational investment company, BlackRock, entered into a joint venture with Jio Financial Services, the financial services division of Indian tycoon Mukesh Ambani's empire, to launch a digital-first asset manager to serve the expanding investor population in India.

American multinational investment company, BlackRock, entered into a joint venture with Jio Financial Services, the financial services division of Indian tycoon Mukesh Ambani's empire, to launch a digital-first asset manager to serve the expanding investor population in India. Jio BlackRock will be the name of the joint enterprise. According to a statement released on Wednesday, BlackRock and Jio Financial Services each intend to spend up to $150 million in the 50-50 venture. BlackRock had $9.4 trillion in assets under management at the end of June. In a LinkedIn post, Larry Fink, chairman and CEO of BlackRock, said, "Today marks a major move for BlackRock as we work to expand our footprint through a forthcoming joint venture in India with Jio Financial Services, a company built by Reliance Industries Limited." While many Indian households have traditionally preferred real estate and jewelry as their primary assets, the joint venture seeks to benefit from the growing number of savers who are integrating financial items in their retirement plans. The partnership will “deliver our combined expertise and scale to unlock the power of investing for millions of people in India,” Fink said. Analysts anticipate that Ambani’s Jio mobile phone network, which has the largest user base in India, will provide Jio Financial Services with access to massive troves of customer data. The trading of Jio Financial Services' shares is anticipated to begin this quarter. According to chief executive of Jio Financial Services, Hitesh Sethia, the joint venure “will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products." This is the BlackRock’s second attempt to break into the Indian retail sector. This is after it pulled out of a joint venture with the DSP Group in 2018. (With inputs from Reuters) WATCH WION LIVE HERE

BlackRock joins hands with Jio Financial Services to launch digital-first asset manager

India's securities regulator SEBI has said that there will soon be a mechanism to facilitate real-time settlement of transactions in India’s stock exchanges. This would address the lag that comes between trade and settlement involving the transfer of funds and securities on the same date. This announcement made by the SEBI chairperson Madhabi Puri Buch comes months after the regulator cut the settlement cycle from trade-plus-two (T+2) to T+1.

The settlement process is presently delayed by a day, which means the settlement date and the trade date are different. Trade settlements are complete when the seller receives the money and the securities bought are delivered to the buyer.

The ‘T+1’ cycle was introduced in January this year. This indicates that settlements can be complete within 24 hours of the actual transaction instead of the earlier 48 hours after the transaction. This revised cycle intends to improve operational efficiency, speedy fund remittances, share delivery and an overall simplification of transactions for stock market participants. After China, India became the second country to implement the T+1 settlement cycle for top listed securities.

SEBI is developing a method such that trade settlements in the securities market can be made on the same day. Such settlements (T+0) are to be made possible via Unified Payments Interface (UPI), online depositaries and technology stack.

“Certainly, one of the things that we think is not very far off is the instantaneous settlement on the stock exchanges. We are currently working on that. We are also engaged with the ecosystem. We believe that in future we will have a mechanism which will facilitate instantaneous settlement of transactions on stock exchanges,” media reports quoted Buch as saying.

Currently, if an investor sells shares under the T+1 settlement cycle, the money gets credited to their account the next day. In comparison, investors will receive immediate payment under the T+0 settlement cycle, while buyers will receive the shares in their demat account on the same day.

The SEBI chairperson further said that full migration to the T+0 settlement cycle would take time. She added that if the Application Supported by Blocked Amount (ASBA) framework, which aims to bring transparency and safeguard investor’s money held by stock brokers, succeeds then the next action would be “instantaneous settlement”.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

India's securities regulator SEBI has said that there will soon be a mechanism to facilitate real-time settlement of transactions in India’s stock exchanges. This would address the lag that comes between trade and settlement involving the transfer of funds and securities on the same date.

India's securities regulator SEBI has said that there will soon be a mechanism to facilitate real-time settlement of transactions in India’s stock exchanges. This would address the lag that comes between trade and settlement involving the transfer of funds and securities on the same date. This announcement made by the SEBI chairperson Madhabi Puri Buch comes months after the regulator cut the settlement cycle from trade-plus-two (T+2) to T+1. The settlement process is presently delayed by a day, which means the settlement date and the trade date are different. Trade settlements are complete when the seller receives the money and the securities bought are delivered to the buyer. The ‘T+1’ cycle was introduced in January this year. This indicates that settlements can be complete within 24 hours of the actual transaction instead of the earlier 48 hours after the transaction. This revised cycle intends to improve operational efficiency, speedy fund remittances, share delivery and an overall simplification of transactions for stock market participants. After China, India became the second country to implement the T+1 settlement cycle for top listed securities. SEBI is developing a method such that trade settlements in the securities market can be made on the same day. Such settlements (T+0) are to be made possible via Unified Payments Interface (UPI), online depositaries and technology stack. “Certainly, one of the things that we think is not very far off is the instantaneous settlement on the stock exchanges. We are currently working on that. We are also engaged with the ecosystem. We believe that in future we will have a mechanism which will facilitate instantaneous settlement of transactions on stock exchanges,” media reports quoted Buch as saying. Currently, if an investor sells shares under the T+1 settlement cycle, the money gets credited to their account the next day. In comparison, investors will receive immediate payment under the T+0 settlement cycle, while buyers will receive the shares in their demat account on the same day. The SEBI chairperson further said that full migration to the T+0 settlement cycle would take time. She added that if the Application Supported by Blocked Amount (ASBA) framework, which aims to bring transparency and safeguard investor’s money held by stock brokers, succeeds then the next action would be “instantaneous settlement”. WATCH WION LIVE HERE

Mechanism for immediate settlement of trades in progress: SEBI chief

The International Monetary Fund (IMF) has encouraged India to remove restrictions on export of non-basmati rice, saying that the country’s decision would put additional pressure global inflation.

The Indian government had banned the export of non-basmati white rice on July 20, in order to enhance domestic supply and stabilise local retail prices during the approaching festive season. The export policy was amended from ‘Free with export duty of 20%’ to ‘Prohibited’ immediately.

IMF’s chief economist, Pierre-Oliver Gourinchas, said in a press conference that given the environment, restriction in the export of rice would increase food prices globally. This could also lead to counter measures.

"So, they are certainly something that we would encourage the removal of these types of export restrictions, because they can be harmful globally,” PTI quoted Gourinchas as saying.

In a statement, India’s food ministry had said that no changes would be made in the export policy of par-boiled and basmati rice, which constitutes a major chunk of rice exports from the country.

Total exports of non- basmati rice from India in financial year 2022-23 was $4.2 million in comparison to $2.62 million last year. Non-basmati white rice accounts for about 25 per cent of the total rice exported from India, with major exports to the US, Thailand, Italy, Spain and Sri Lanka.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

&nbsp;

The International Monetary Fund (IMF) has encouraged India to remove restrictions on export of non-basmati rice, saying that the country’s decision would put additional pressure global inflation.

The International Monetary Fund (IMF) has encouraged India to remove restrictions on export of non-basmati rice, saying that the country’s decision would put additional pressure global inflation. The Indian government had banned the export of non-basmati white rice on July 20, in order to enhance domestic supply and stabilise local retail prices during the approaching festive season. The export policy was amended from ‘Free with export duty of 20%’ to ‘Prohibited’ immediately. IMF’s chief economist, Pierre-Oliver Gourinchas, said in a press conference that given the environment, restriction in the export of rice would increase food prices globally. This could also lead to counter measures. "So, they are certainly something that we would encourage the removal of these types of export restrictions, because they can be harmful globally,” PTI quoted Gourinchas as saying. In a statement, India’s food ministry had said that no changes would be made in the export policy of par-boiled and basmati rice, which constitutes a major chunk of rice exports from the country. Total exports of non- basmati rice from India in financial year 2022-23 was $4.2 million in comparison to $2.62 million last year. Non-basmati white rice accounts for about 25 per cent of the total rice exported from India, with major exports to the US, Thailand, Italy, Spain and Sri Lanka. WATCH WION LIVE HERE

IMF urges India to remove restrictions on rice exports over global inflation concerns

Union Finance Minister Nirmala Sitharaman on Monday instructed public and private banks to refrain from threatening borrowers during the process of loan recovery and added that they need to deal with the situation in a humane and sensitive manner.

“I have heard complaints about how mercilessly loan repayments have been followed up by some banks. The government has instructed all banks, both public and private, that harsh steps should not be taken when it comes to the process of loan repayment, and they should approach the matter with humanity and sensitivity in mind,” she said while making an intervention during the Question Hour in the Lok Sabha when asked to address a question relating to repayment of loans by small borrowers.

Along similar lines, the Madras High Court had emphasised that outstanding loan amounts were to be recovered in accordance to procedures established by the law. It had added that the recovery of amounts through private agents was prohibited and that banks must not resort to muscle power.

In 2008, the Reserve Bank of India had informed banks that employing recovery agents would be banned should there be any complaints regarding the agents. Banks were also asked to check their recovery mechanism and provide points for improvement in their guidelines.

Several circulars have been issued by the central bank to stop recovery agents from harassing borrowers. In March, RBL Bank Ltd was fined about (Rs 2.27 crore) $280,000 for noncompliance of guidelines for loan recovery agents. Penalties have also been imposed on cooperative banks for infringement of legal directives.

Last year, in August, the RBI had barred recovery agents from threatening borrowers and calling them before 8 am and after 7 pm.

&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

Union Finance Minister Nirmala Sitharaman on Monday instructed public and private banks to refrain from threatening borrowers during the process of loan recovery and added that they need to deal with the situation in a humane and sensitive manner.

Union Finance Minister Nirmala Sitharaman on Monday instructed public and private banks to refrain from threatening borrowers during the process of loan recovery and added that they need to deal with the situation in a humane and sensitive manner. “I have heard complaints about how mercilessly loan repayments have been followed up by some banks. The government has instructed all banks, both public and private, that harsh steps should not be taken when it comes to the process of loan repayment, and they should approach the matter with humanity and sensitivity in mind,” she said while making an intervention during the Question Hour in the Lok Sabha when asked to address a question relating to repayment of loans by small borrowers. Along similar lines, the Madras High Court had emphasised that outstanding loan amounts were to be recovered in accordance to procedures established by the law. It had added that the recovery of amounts through private agents was prohibited and that banks must not resort to muscle power. In 2008, the Reserve Bank of India had informed banks that employing recovery agents would be banned should there be any complaints regarding the agents. Banks were also asked to check their recovery mechanism and provide points for improvement in their guidelines. Several circulars have been issued by the central bank to stop recovery agents from harassing borrowers. In March, RBL Bank Ltd was fined about (Rs 2.27 crore) $280,000 for noncompliance of guidelines for loan recovery agents. Penalties have also been imposed on cooperative banks for infringement of legal directives. Last year, in August, the RBI had barred recovery agents from threatening borrowers and calling them before 8 am and after 7 pm. WATCH WION LIVE HERE

"Approach with humanity...": Nirmala Sitharaman to banks on loan recovery

As tensions escalate between Russia and Ukraine, Russia’s foreign currency reserve of $300 billion was frozen while Russian banks have been restricted from the Swift international payment system. This however created a strong wave for the 'de-dollarisation' of global trade, with BRICS and other countries already mulling an alternative payment mechanism.

As the name suggests, 'de-dollarisation' refers to an initiative under which countries attempt to limit their dependency on the US dollar the pre-dominant currency for conducting international trade.

Since World War II, the US dollar has exerted its dominance as a reserve currency. According to the International Monetary Fund, the dollar is the most-used currency for trade and that about 60 per cent of international reserves are kept in assets that are dollar-denominated.

As the West attempts to financially restrict Russia in the global market due to its ongoing war with Ukraine, other nations are becoming increasingly aware of the possible repercussions of being overdependent on the US dollar.

It comes as no surprise that countries including Brazil, Argentina, Bangladesh and India are now looking to use Chinese Yuan and bitcoin to backup currencies and assets and use that for international trade and payments.

According to reports, there are three major reasons for countries increasingly looking to de-dollarise.

1. The US monetary policy has significant control over the rest of the world

According to the Wilson Centre think tank, the dollar is often overvalued because of its hold on the world economy which results from the US being the issuer of the world’s reserve currency. This, in turn, makes the dollar governing currency in international trade and payment systems. &nbsp;The late Valéry Giscard d’Estang, the president of France from 1974 to 1981, believed this gave the US “exorbitant privilege” as the US could potentially avoid a crisis despite not being able to pay its debts. This is because Washington could issue more money should there be a fall in the dollar’s value. However, countries like India do not want to be limited by the world's largest economy's monetary policies. Subsequently, Reserve Bank of India has been pushing for the Indian Rupee to be used for trade.

2. The dollar is expensive for emerging nations

As the dollar gains more strength, imports become expensive for emerging nations. In Argentina’s case, inflation was a result of a fall in US-dollar reserves triggered by declining exports and political pressures. A Reuters report later said that Argentina resorted to trading in Yuan instead of the US dollars for Chinese imports.

Economists at an international financial services firm, Allianz, stated that if access to the US dollar becomes expensive, borrowers will look to trade in other currencies. Along those lines, Brazilian President Luiz Inácio Lula da Silva called for alternative trade settlements by requesting Brazil, India, Russia, China and South Africa to move away from the US dollar.

3. Changing demands in global trade and oil

A major reason for why the US dollar became a reserve currency was because Gulf countries in the Middle East used the currency for trading oil. In 1945, Saudi Arabia and the US had a formal agreement wherein oil was to be sold exclusively in dollars. Eventually, with exports of shale oil, US became energy independent.

Apart from the change in demand for oil, foreign relations remain unstable between the US and Saudi Arabia as seen from an instance where former US president Donald Trump criticized Saudi Arabia for not paying the US a reasonable price for its defense. &nbsp;Another such instance was when President Joe Biden confronted Crown Price Mohammed bin Salman over the murder of a journalist.

Due to these tensions and the shale energy revolution, Saudi Arabia may eventually decide to stop pricing its oil in US dollars, according to Sarah Miller from the energy information company, Energy Intelligence.

&nbsp;

&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

As tensions escalate between Russia and Ukraine, Russia’s foreign currency reserve of $300 billion was frozen while Russian banks have been restricted from the Swift international payment system.

As tensions escalate between Russia and Ukraine, Russia’s foreign currency reserve of $300 billion was frozen while Russian banks have been restricted from the Swift international payment system. This however created a strong wave for the 'de-dollarisation' of global trade, with BRICS and other countries already mulling an alternative payment mechanism. As the name suggests, 'de-dollarisation' refers to an initiative under which countries attempt to limit their dependency on the US dollar the pre-dominant currency for conducting international trade. Since World War II, the US dollar has exerted its dominance as a reserve currency. According to the International Monetary Fund, the dollar is the most-used currency for trade and that about 60 per cent of international reserves are kept in assets that are dollar-denominated. As the West attempts to financially restrict Russia in the global market due to its ongoing war with Ukraine, other nations are becoming increasingly aware of the possible repercussions of being overdependent on the US dollar. It comes as no surprise that countries including Brazil, Argentina, Bangladesh and India are now looking to use Chinese Yuan and bitcoin to backup currencies and assets and use that for international trade and payments. According to reports, there are three major reasons for countries increasingly looking to de-dollarise. 1. The US monetary policy has significant control over the rest of the world According to the Wilson Centre think tank, the dollar is often overvalued because of its hold on the world economy which results from the US being the issuer of the world’s reserve currency. This, in turn, makes the dollar governing currency in international trade and payment systems. The late Valéry Giscard d’Estang, the president of France from 1974 to 1981, believed this gave the US “exorbitant privilege” as the US could potentially avoid a crisis despite not being able to pay its debts. This is because Washington could issue more money should there be a fall in the dollar’s value. However, countries like India do not want to be limited by the world's largest economy's monetary policies. Subsequently, Reserve Bank of India has been pushing for the Indian Rupee to be used for trade. 2. The dollar is expensive for emerging nations As the dollar gains more strength, imports become expensive for emerging nations. In Argentina’s case, inflation was a result of a fall in US-dollar reserves triggered by declining exports and political pressures. A Reuters report later said that Argentina resorted to trading in Yuan instead of the US dollars for Chinese imports. Economists at an international financial services firm, Allianz, stated that if access to the US dollar becomes expensive, borrowers will look to trade in other currencies. Along those lines, Brazilian President Luiz Inácio Lula da Silva called for alternative trade settlements by requesting Brazil, India, Russia, China and South Africa to move away from the US dollar. 3. Changing demands in global trade and oil A major reason for why the US dollar became a reserve currency was because Gulf countries in the Middle East used the currency for trading oil. In 1945, Saudi Arabia and the US had a formal agreement wherein oil was to be sold exclusively in dollars. Eventually, with exports of shale oil, US became energy independent. Apart from the change in demand for oil, foreign relations remain unstable between the US and Saudi Arabia as seen from an instance where former US president Donald Trump criticized Saudi Arabia for not paying the US a reasonable price for its defense. Another such instance was when President Joe Biden confronted Crown Price Mohammed bin Salman over the murder of a journalist. Due to these tensions and the shale energy revolution, Saudi Arabia may eventually decide to stop pricing its oil in US dollars, according to Sarah Miller from the energy information company, Energy Intelligence. WATCH WION LIVE HERE

'De-dollarisation' gathers steam amid Russia-Ukraine war

The Federal Deposit Insurance Corporation (FDIC) on Monday asked banks to amend their financial statements that “incorrectly” indicate uninsured deposits. The FDIC's warning comes after banks objected to a fee that was imposed with an intention to recover losses from the failures of Silicon Valley Bank and other firms.

The special fee, proposed by the FDIC in May, would be calculated in accordance to the amount of uninsured deposits held by banks at the end of 2022. The regulator did not take the name of any bank but said that certain banks were “not reporting estimated uninsured deposits in accordance with the instructions". &nbsp;

The FDIC was referring to decreases in the total amount of uninsured money held by banks at the end of 2022. According to an S&amp;P Global report from July, 55 banks, more than double the average, lowered their fourth-quarter uninsured deposits in FDIC reports.

The regulator specifically reminded banks that they must report uninsured deposits maintained at their own subsidiaries as well as uninsured deposits secured by pledged assets. It further said, “If your institution incorrectly reduced the amount of reported uninsured deposits, for example, to reflect collateralisation of deposits by pledged assets or by excluding intercompany deposit balances of subsidiaries, those reports are inaccurate.”

Paul Burdiss, the chief financial officer of Zions Bancorporation, criticised the FDIC’s strategy in a letter of comment on July 17.&nbsp;

In order to exclude intra-bank accounts as uninsured deposits, Bank of America amended its uninsured deposits reported to the FDIC in May downward by 13.8 per cent to $783.92 billion, according to the S&amp;P report.

Bill Halldin, a Bank of America spokesman, said that the bank had identified some internal or intra-bank accounts that should not have been reported. The bank has no plans to alter the most recent figure it provided to the FDIC.

It was also noted in the S&amp;P report that Huntington National Bank decreased its uninsured deposits by 39.9 per cent after review. This was the largest percentage decline that analysts noted. The bank refused to respond amid requests for comments.

Larger firms criticised the FDIC in comment letters saying that they would not benefit from the government’s efforts to backstop depositors at smaller lenders as the news fee would heavily fall on them. &nbsp;

On 21st July, the Bank Policy Institute said there were flaws in the FDIC’s rationale for the special assessment methodology. It further stated that their assessment methodology could not be supported by the analysis by the FDIC.

(With inputs from agencies)

&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

The Federal Deposit Insurance Corporation (FDIC) on Monday asked banks to amend their financial statements that “incorrectly” indicate uninsured deposits. The FDIC's warning comes after banks objected to a fee that was imposed with an intention to recover losses from the failures of Silicon Valley Bank and other firms.

The Federal Deposit Insurance Corporation (FDIC) on Monday asked banks to amend their financial statements that “incorrectly” indicate uninsured deposits. The FDIC's warning comes after banks objected to a fee that was imposed with an intention to recover losses from the failures of Silicon Valley Bank and other firms. The special fee, proposed by the FDIC in May, would be calculated in accordance to the amount of uninsured deposits held by banks at the end of 2022. The regulator did not take the name of any bank but said that certain banks were “not reporting estimated uninsured deposits in accordance with the instructions". The FDIC was referring to decreases in the total amount of uninsured money held by banks at the end of 2022. According to an S&P Global report from July, 55 banks, more than double the average, lowered their fourth-quarter uninsured deposits in FDIC reports. The regulator specifically reminded banks that they must report uninsured deposits maintained at their own subsidiaries as well as uninsured deposits secured by pledged assets. It further said, “If your institution incorrectly reduced the amount of reported uninsured deposits, for example, to reflect collateralisation of deposits by pledged assets or by excluding intercompany deposit balances of subsidiaries, those reports are inaccurate.” Paul Burdiss, the chief financial officer of Zions Bancorporation, criticised the FDIC’s strategy in a letter of comment on July 17. In order to exclude intra-bank accounts as uninsured deposits, Bank of America amended its uninsured deposits reported to the FDIC in May downward by 13.8 per cent to $783.92 billion, according to the S&P report. Bill Halldin, a Bank of America spokesman, said that the bank had identified some internal or intra-bank accounts that should not have been reported. The bank has no plans to alter the most recent figure it provided to the FDIC. It was also noted in the S&P report that Huntington National Bank decreased its uninsured deposits by 39.9 per cent after review. This was the largest percentage decline that analysts noted. The bank refused to respond amid requests for comments. Larger firms criticised the FDIC in comment letters saying that they would not benefit from the government’s efforts to backstop depositors at smaller lenders as the news fee would heavily fall on them. On 21st July, the Bank Policy Institute said there were flaws in the FDIC’s rationale for the special assessment methodology. It further stated that their assessment methodology could not be supported by the analysis by the FDIC. (With inputs from agencies) WATCH WION LIVE HERE

US banks pressed to rectify ‘inaccurate’ financial statements. Here's why

Popular Indian coffeehouse chain Café Coffee Day’s operator Coffee Day Global has been admitted for corporate insolvency by India’s National Company Law Tribunal, an&nbsp;Economic Times report said on Monday.

Coffee Day Global was admitted for insolvency proceedings based on a petition filed by IndusInd Bank. However, the Coffee Day Group has still not released an official statement on the matter.

Coffee Day Enterprises, which owns Coffee Day Global , was promoted by the late VG Siddhartha, who committed suicide in 2019. According to reports, his suicide note addressed to the board of directors and the Coffee Day family revealed he was under heavy debt burden.

The company’s recent annual report indicated that on March 31, 2022, its outstanding debt from IndusInd Bank stood at over $8 million.

Reports said that the company was dragged to the court after discussions between the Coffee Day Group and IndusInd Bank broke down.

Café Coffee Day, a subsidiary of Coffee Day Global Limited, was founded in 1996 by VG Siddhartha. With its headquarters in Bengaluru, Café Coffee Day has over 1,000 outlets across India. 
&nbsp;

Popular Indian coffeehouse chain Café Coffee Day’s operator Coffee Day Global has been admitted for corporate insolvency by India’s National Company Law Tribunal, an Economic Times report said on Monday.

Popular Indian coffeehouse chain Café Coffee Day’s operator Coffee Day Global has been admitted for corporate insolvency by India’s National Company Law Tribunal, an Economic Times report said on Monday. Coffee Day Global was admitted for insolvency proceedings based on a petition filed by IndusInd Bank. However, the Coffee Day Group has still not released an official statement on the matter. Coffee Day Enterprises, which owns Coffee Day Global , was promoted by the late VG Siddhartha, who committed suicide in 2019. According to reports, his suicide note addressed to the board of directors and the Coffee Day family revealed he was under heavy debt burden. The company’s recent annual report indicated that on March 31, 2022, its outstanding debt from IndusInd Bank stood at over $8 million. Reports said that the company was dragged to the court after discussions between the Coffee Day Group and IndusInd Bank broke down. Café Coffee Day, a subsidiary of Coffee Day Global Limited, was founded in 1996 by VG Siddhartha. With its headquarters in Bengaluru, Café Coffee Day has over 1,000 outlets across India.

Indian coffeehouse chain Café Coffee Day faces bankruptcy

Tesla’s market shares on Thursday plummet by about 10 per cent as Elon Musk looks to forgo present margins for the sake of superior margins when full-self driving (FSD) software is integrated into Tesla cars.&nbsp;

Musk looks to follow price cuts to compete with other electronic vehicle (EV) manufacturers despite its fall in gross margins. The fall in share prices has blotted out Tesla’s market value by about $90 million.&nbsp;

Gene Munster, a managing partner at Deepwater Asset Management and also a Tesla investor stated that the margin outlook may be a disappointment for some, as investors hope for improved margins this year.

"The short-term variances in gross margin and profitability really are minor relative to the long-term picture. Autonomy will make all these numbers look silly," Musk said on Wednesday.

As per Reuters calculations, Tesla’s automotive gross margin fell from 19.0 per cent in the first quarter to 18.1 per cent in the second quarter, which is indicative of a steep decline from 26 per cent last year.

For Tesla, the focus on increasing the number of cars driven on the roads would ensure that it maintains a dominant share in the US market. This will in turn provide usage data, vital for the development of artificial intelligence models to contribute and enhance its self-driving technology.

However, investors continue to question whether sacrificing current profitability is a good move since returns have been particularly unstable for years due to missed targets and regulatory constraints after several crash reports surfaced for Tesla vehicles.

Musk continues to believe that self-driving technology will cover for most of Tesla’s value in the future, giving it an edge over other EV manufacturers. As per analysts, the margin weakness could possibly impact the stocks which have doubled as a result of the emergent adoption of the company’s charging system this year.

As Tesla remains in dialogue to license the FSD technology, seven analysts suggest a positive outcome as stock get optimised to the maximum.

Regardless, financial analyst Danni Hewson at AJ Bell said that it is difficult to predict when FSD will be achieved. The major question remains with regard to how long it will take to get the regulators’ approval as issues surrounding safety need time to be resolved.

(With inputs from Reuters)

Tesla’s market shares on Thursday plummet by about 10 per cent as Elon Musk looks to forgo present margins for the sake of superior margins when full-self driving (FSD) software is integrated into Tesla cars.

Tesla’s market shares on Thursday plummet by about 10 per cent as Elon Musk looks to forgo present margins for the sake of superior margins when full-self driving (FSD) software is integrated into Tesla cars. Musk looks to follow price cuts to compete with other electronic vehicle (EV) manufacturers despite its fall in gross margins. The fall in share prices has blotted out Tesla’s market value by about $90 million. Gene Munster, a managing partner at Deepwater Asset Management and also a Tesla investor stated that the margin outlook may be a disappointment for some, as investors hope for improved margins this year. "The short-term variances in gross margin and profitability really are minor relative to the long-term picture. Autonomy will make all these numbers look silly," Musk said on Wednesday. As per Reuters calculations, Tesla’s automotive gross margin fell from 19.0 per cent in the first quarter to 18.1 per cent in the second quarter, which is indicative of a steep decline from 26 per cent last year. For Tesla, the focus on increasing the number of cars driven on the roads would ensure that it maintains a dominant share in the US market. This will in turn provide usage data, vital for the development of artificial intelligence models to contribute and enhance its self-driving technology. However, investors continue to question whether sacrificing current profitability is a good move since returns have been particularly unstable for years due to missed targets and regulatory constraints after several crash reports surfaced for Tesla vehicles. Musk continues to believe that self-driving technology will cover for most of Tesla’s value in the future, giving it an edge over other EV manufacturers. As per analysts, the margin weakness could possibly impact the stocks which have doubled as a result of the emergent adoption of the company’s charging system this year. As Tesla remains in dialogue to license the FSD technology, seven analysts suggest a positive outcome as stock get optimised to the maximum. Regardless, financial analyst Danni Hewson at AJ Bell said that it is difficult to predict when FSD will be achieved. The major question remains with regard to how long it will take to get the regulators’ approval as issues surrounding safety need time to be resolved. (With inputs from Reuters)

Tesla shares fall as Elon Musk backs self-driving cars

Author

Zee News Rajasthan

Editor

Shashwat Sankranti

Home

Live Tv

Latest

World

India

Business

Entertainment

Sports

Opinions

Videos

Photos

Gravitas

Lifestyle

Science

Tech

Rajasthan News in Hindi: In-depth coverage of Rajasthan Crime, Political News, Education, Rajasthan Weather Update and Latest Rajasthan News on Zee News Rajasthan.