Demonetisation – Government of India’s Measures to Promote Cashless Transactions

government-cashless-transactions The central Government of India has announced a slew of measures for systemic adoption of digital / plastic currency. The benefits accorded to digital transactions and benefits perceived by the government are as follows,

  • Discount of 0.75% on digital payments at central government petroleum PSUs – Will benefit 45mn customers at petrol pumps everyday. The incentive can shift 30% of customers to digital payments. Reduce cash requirement by Rs 2tn at petrol pumps every year.
  • No service tax on digital Read the rest of this entry »

Demonetization Effect – New Payment Platforms Grows

india-payment-platformsWith the boldest move in the History of India, The Demonetisation of Rs 500 and Rs 1,000, the nation continues to see a gradual shift towards newer payment platforms which should help India move towards a less cash economy. Higher tax compliance as well as lower costs have the potential to accelerate this change, especially post demonetization, but we would watch the pace of change for a few more quarters.

With 200,000 ATMs and 1.4 million POS machines, Indian banks seem to getting an unexpected benefit coming through demonetization as the bulk of 711 million debit cards and Read the rest of this entry »

Digital Payments in India eat into Banks POS Business

paytm-digital-payments-in-indiaThe Indian RBI has bucked the overall Economic Trends and given wide scope for Digital Payment Platform. In this backdrop it is very important to note that PayTM Digital Payment Platform [Wallet using Pre-Paid Cash or Money Added via Debit / Credit Card, has now acquired over 600,000 merchants (compared to 300,000 for SBI, the largest among bank acquirers) within 9 months of launch. PayTM is already conducting ~ 10mn transactions a month (plans to double it over the next few months) with these merchants, compared to Read the rest of this entry »

What Should be your Ideal Credit Utilization Ratio ?

india-credit-utilization-rateCredit Cards are basically instruments introduced to extend per-approved credit line for your spend. While using them one has to be careful about Credit Utilization Ratio and impact on Credit Score. Most of our readers posed me a question on how much Credit can one use on the per-approved credit line of Cards, Personal Loans, etc without affecting one’s credit scores.

Credit Utilization Ratio is the percentage of available credit limit that one is utilizing. For example on a Card with Read the rest of this entry »

CIBIL-Transunion Tracking 525 Million Loan Accounts, Rise of Retail Lending

cibil-tracking-loan-accounts-indiaCIBIL Transunion is India’s Largest credit bureau with with data on 200mn Indian Citizens and 525mn loan accounts in its big data repository. The CIBIL management shared insights on the Rise of Retail Borrowing and Lending.

The strong trend in retail loan growth is aided by healthy growth in new account additions for both private players and NBFCs thus pointing to healthy granularity of the underlying retail loan growth. Even in microfinance space the underwriting trend is good with usage of TransUnion CIBIL/Aadhar helping minimize cases of duplicate lending

Despite steady y-o-y growth in retail segment, the underwriting trend remains good and there seems Read the rest of this entry »

Understand The Interest Free Period On Your Credit Card?

Interest Free Period On Your Credit CardThey say “Necessity is the mother of all inventions”. Credit Cards were born out of the need to provide an alternative to cash. Almost half a century back, when credit cards were introduced, they became an instant hit. Till date, people love to use their “plastic money” for they are universally accepted, quick, easy and relatively safe, help you keep a record of your purchases through monthly statements, great for bill payments and provide a host of other benefits through their loyalty points programs.

Let’s step in to the wonderful world of credit and learn on how to use credit cards to our advantage by Read the rest of this entry »