In the last few months, there have been ample reports where people got fake WhatsApp messages promising them job opportunities. In many cases, victims trusted that these messages were legitimate and ended up losing money. In a new case, a man found himself in the middle of a controversy when his personal details were used to carry out an E-Way bill fraud of Rs 250 crore. The man had uploaded his personal documents after receiving a "job offer" on WhatsApp. <h2>What exactly happened</h2>An unemployed young man from <keyword id="20003911" type="General" weightage="20" keywordseo="Muzaffarnagar" source="keywords">Muzaffarnagar</keyword> has found himself embroiled in a massive fraud involving fraudulent GST <keyword id="23036015" type="General" weightage="20" keywordseo="e-way-billing" source="keywords">e-way billing</keyword> transactions worth approximately Rs 250 crore. The case came to light when officials from the GST department visited his home to inform him of the <keyword id="20127957" type="General" weightage="20" keywordseo="fraudulent-activities" source="keywords">fraudulent activities</keyword> that had been carried out in his name. According to a report in ANI, <keyword id="21473207" type="General" weightage="20" keywordseo="Ashwani-Kumar" source="keywords">Ashwani Kumar</keyword>, a resident of Barsu village in the Ratanpuri police station area, had recently received a job offer through a WhatsApp message. Desperate for employment, Ashwani followed the instructions and sent his personal documents, including his home electricity bill and his father's Aadhaar card, to the unknown sender. He also paid Rs 1,750 as part of the job application process. However, the job never materialised. Instead, his personal details were used to create a fake company and bank account, which were then exploited in a large-scale e-way billing fraud. Senior officials revealed that the fraudulent scheme involved generating fake e-way bills worth around Rs 250 crore using Ashwani's identity. E-way bills are typically required for the transport of goods and services under GST regulations. In this case, the fake company and bank account linked to Ashwani's name were used to execute the fraudulent transactions. <h2>What does the police say?</h2>Police Superintendent Aditya Bansal provided further details on the case, saying that the massive sum of money involved has not been credited to any specific account. "Ashwani Kumar was lured with a job offer, and his documents were misused to set up a fake company and bank account. Through these, fraudulent e-way billing worth about Rs 250 crore was generated," said Bansal. Kumar also spoke about his ordeal, explaining how he was duped. "I received a WhatsApp call offering me a job, and they asked for some documents, including my home's electricity bill and my father's Aadhaar card. They also took Rs 1,750 from me. Now, I am being told that a company is operating in my name, which I have no knowledge of. The GST department informed me about the firm, and a complaint has been lodged with the police. They have recorded the calls and messages I received, but there is no GST number or any related electricity bill," he told ANI. Superintendent Bansal also mentioned that the GST department is working closely with local authorities to investigate the case further and pursue legal action against those involved. The incident highlights the dangers of sharing personal information with unknown sources and the increasing sophistication of fraud schemes that exploit vulnerable individuals.

Man gets job offer on WhatsApp, finds himself linked to Rs 250 crore GST E-way bill fraud

New Delhi, Feb 19 () An anti-evasion wing of Central-GST has detected a fraud of more than Rs 214 crore through fake invoices in Delhi, an official release said on Wednesday. A person has been arrested and sent to judicial custody of 14 days, it added. The fraud wad detected by the anti-evasion wing of CGST Delhi South Commissionerate. The alleged case of input tax credit fraud was taking place through fake invoices issued by bogus firms. Investigations found the accused had also been generating bogus e-way bills to back the fake invoices, the finance ministry said in the statement. "Over 35 entities are involved in the bogus transactions, involving fake invoicing to the tune of Rs 214.74 crore and tax evasion of Rs 38.05 crore," it said. Further investigations in the matter are in progress, the ministry said. NKD ABMABM

GST authorities detect fraud of over Rs 214 cr

New Delhi, Nov 26 () GST authorities have unearthed a tax racket and arrested one person for allegedly defrauding the government to the tune of about Rs 140 crore through fraudulent means.
 The Central Board of Indirect Taxes and Customs (CBIC) in a release said that the Central GST Delhi North Commissionerate has unearthed a racket "involving supply of goods-less invoices and invoice-less goods".
 One person has been arrested in the connection and sent to judicial custody for 14 days.
 The accused was found to be operating 10 fake firms which were created for rotation of money and fraudulent Input Tax Credit (ITC), thus defrauding the exchequer.
 "Prima facie fraudulent ITC of about Rs 140 crore has been passed on using invoices involving an amount of Rs 1,040 crore," it said.
 Giving further details, it said the modus operandi of the accused, inter alia, involved obtaining GST registration of fake firms using documents of unsuspecting individuals and generating good-less invoices and e-way bills of these firms from a premise in Tilak Bazar, Delhi.
 On preliminary scrutiny it appears that there is no nexus between inward and outward supplies of the errant firms, CBIC said.
 Further, the fake firms have passed on fraudulent ITC to a range of buyers who have availed the same to discharge their GST liability on outward supplies, thus defrauding the exchequer. NKD
RVK

GST authorities unearth racket involving Rs 140 cr tax fraud

<img class="gwt-Image" src="/photo/54676435.cms" style="width: 800px; height: 600px;" />After 7 years of deliberation and a monumental 7-hour debate, the <keyword id="48510" type="ORGANIZATION" weightage="20" keywordseo="Rajya-Sabha">Rajya Sabha</keyword> finally cleared a constitutional amendment that possibly spells the most important economic reform since the Liberalization and Privatization reforms of 1991. The Goods and <keyword id="645517" type="COMPANY" weightage="20" keywordseo="services-tax">Services Tax</keyword> (GST) <keyword id="19032" type="PERSON" weightage="20" keywordseo="Bill">Bill</keyword>, passed by the Rajya Sabha on August 3 and the <keyword id="6355187" type="ORGANIZATION" weightage="20" keywordseo="Lok-Sabha">Lok Sabha</keyword> on August 8, is being hailed as the biggest tax reform since Independence. The implementation of the GST, planned for commencing in the next financial year (beginning April 1, 2017), now depends on the ratification by a majority of the Indian states within a month. 
 
The Current Tax Scenario 
 
Presently, companies pay taxes at different stages of production as well as being taxed separately by different government authorities. The two key problems with the current tax system can be understood by the points below: 
 
Causes double taxation 
 Unlike services, goods need to be manufactured before they are consumed. The manufacturer is required to pay an indirect tax to the <keyword id="6357307" type="ORGANIZATION" weightage="20" keywordseo="Central-Government">Central Government</keyword> when the goods leave the factory. The goods then reach the retail store, where they are bought by consumers. Here is where the State Government steps in and levies the value added tax (VAT) on consumption. So, the goods are taxed both at the factory gate as well as on purchase by the final consumer. 
 
Complicates tax norms across states 
 Different states have the power to levy different tax structures within their borders. The states treat goods coming from another state as an import and levy a tax on them. Let’s say a company has a factory in <keyword id="6354766" type="COMPANY" weightage="20" keywordseo="Gujarat">Gujarat</keyword>, but uses a component or material from <keyword id="6357713" type="COMPANY" weightage="20" keywordseo="Uttar-Pradesh">Uttar Pradesh</keyword> to manufacture the final product. The company would need to bear the cost of the tax paid by the provider of the component or material to the UP state government. When the final product is ready, the company would be taxed at the factory gate by the Central Government. When the goods are bought by the consumer, tax would need to be paid to the Gujarat government. If, however, the goods are sold in another state, let’s say Delhi, the Gujarat government would treat it as an export and levy the central sales tax (CST). 
 
 
The Tax Revolution Called GST The Goods and Services Tax (GST) is the system by which a single tax would be levied on the supply of goods and services. <keyword id="3716470" type="UNKNOWN" weightage="20" keywordseo="all-central-and-state">All Central and State</keyword> level taxes on all goods and services would be subsumed within an integrated system of taxation. Thus, there would be an indirect tax levied uniformly across the country. 
 
The GST is a complete overhaul of the current tax system, impacting the tax structure, incidence, computation and payment as well as compliance, credit utilization, and reporting. 
 
The GST would replace all indirect taxes. Being a consumption-based tax system, the GST would reduce the cascading effect of tax (or double taxation) by levying taxes only where the consumption takes place. 
 
The current tax system creates borders within borders, creating obstacles in supply chains within the country. The implementation of the GST would streamline India’s fragmented tax system and unite all states into a singular market. 
 
The GST is also expected to make the tax base more comprehensive and the compliance burden less complex and less time consuming. 
 
Who Will Benefit from GST According to a research note published by <keyword id="48670" type="CITY" weightage="20" keywordseo="Morgan-Stanley">Morgan Stanley</keyword>, four sectors that would benefit from the implementation of GST are: 
• Consumption (consumer goods and services) 
• Logistics companies • <keyword id="3716469" type="UNKNOWN" weightage="20" keywordseo="manufacturers-of-house">Manufacturers of house</keyword> building materials 
• Industrial manufacturing 
 
The GST will benefit traders who supply raw materials or components to factories across the company. Distributors with a network across various states and manufacturers with facilities in many states would also benefit immensely from the new tax regime. 
Implications for the SME Sector 
While the GST is expected to have a far-reaching impact across most businesses, small and medium enterprises would particularly benefit from the new tax regime. 
 
Eliminates the Cascading Impact of Taxes 
Under the current tax regime, large enterprises were managing their infrastructure to reduce the burden of double taxation and CST. On the contrary, SMEs typically lack the infrastructure resources and have been bearing the burden of taxes that accompany interstate sales. This increases the cost of the goods being offered by SMEs, leaving them less price competitive compared to large enterprises. 
 
The GST neutralizes these impacts by uniting all states into a single market and by eliminating the cascading impact of input taxes. 
 
Eases Documentation 
SMEs that are directly catering to customers and those that have e-commerce models would particularly benefit due to the ease of cross-border transactions. Each state requires a different set of documentation for businesses to conduct transactions, which create obstacles for businesses. This resulted in the need for dedicated resources to manage clearances which further added to the cost. The hassle involved can be entirely avoided with the implementation of GST. An e-commerce company or one that provides goods directly to consumers can now benefit from a smoother supply chain and logistics network across the country. 
 
Simplification of Tax Filing 
All taxes can be filed and paid online. While existing taxpayers would not have to register afresh under GST, new companies will have a simple application form that can be filled and submitted online for registration. 
 
Less Incentive for Tax Defaults 
With the elimination of the currently huge central excise tariff, the simplification of tax filing and payments as well as the removal of different documentation needs by various states, there would be less incentive for tax frauds. 
 
Although it has several advantages, GST has a drawback too. The threshold limit for tax exemption has been reduced from Rs.150 lakhs to Rs.25 lakhs, which would impact small businesses that were so far shielded from compliance requirements. This lowering of the tax exemption not only has a cost impact but a significant working capital implication as well. 
 
Impacting India’s Business Climate 
With the GST making it easier to conduct business and allowing the free movement of goods across the country, many SMEs would look to expanding to different states. SMEs will no longer be hindered by geographical restrictions and can optimize the opportunities to scale at a geometric rate without artificial hurdles. 
 
As mentioned earlier, the manufacturing sector will benefit from GST. However, there might be flux in the near future, as all the participants in the supply chain must be incorporated to pay taxes. If a supply chain participant isn’t registered, the benefits of GST will not be transferred down the chain. The flux is expected to be temporal in nature as gradually, GST will be advantageous in streamlining payment of taxes across the supply chain and eventually adding to the country’s GDP. 
 
The service sector might experience a hit, though, due to increased taxation. This sector will need to find a response mechanism to handle the slight inflation in taxes without impacting service delivery or customer satisfaction. Services, being intangible in nature, become hard to evaluate from a consumption perspective and any increase in cost might negatively impact the perception of value by the end consumer. That being said, this might be a minor blip in the longstanding effects that GST has on Services. Early resistance from end customers notwithstanding, the unification of taxes will eradicate ambiguity in taxation, which eventually benefits the consumer. 
 
The post has been originally authored by Gaurav Hinduja, Co-founder, <keyword id="2461194" type="UNKNOWN" weightage="20" keywordseo="Capital-Float">Capital Float</keyword>.

GST: Uniting a Fragmented India into One Market

<ul><li>The monsoon session of the Indian Parliament is all set to begin on September 14, with over 20 bills on the agenda for discussion.</li><li>Amongst the key ones is the Companies (Amendment) Bill, 2020.</li><li>Some of the major highlights of the Bill include the decriminalization of minor offences and direct overseas listing for certain prescribed classes of companies.</li><li>The government has also proposed an evolved CSR policy, allowing companies to carry forward excess CSR spendings to future financial years.</li><li><a href="https://www.businessinsider.in/india/news/monsoon-session-2020-of-the-indian-parliament-will-debate-these-important-bills-and-ordinances/slidelist/77800892.cms">Check out the latest news and updates on Business Insider.</a></li></ul>In March 2020, the Indian government introduced the Companies (Amendment) Bill, 2020, recommending further measures aimed at improving the ease of doing business. Key amongst its recommendations include aspects like decriminalizing minor offences, allowing companies to list overseas directly, and more. With the monsoon session of the Indian Parliament all set to begin on Monday, September 14, we took a look at some of the crucial highlights of the Bill that will be tabled for legislation. “This Bill is a net positive, these are good steps and will enhance the ease of doing business,” Tarun Gulati, senior advocate, Supreme Court, told Business Insider. Also read: <a href="https://www.businessinsider.in/india/news/monsoon-session-2020-of-the-indian-parliament-will-debate-these-important-bills-and-ordinances/slidelist/77800892.cms">Monsoon session 2020 of the Indian Parliament will debate these important bills and ordinances</a> Highlights of the Companies (Amendment) Bill, 2020 Decriminalizing minor and technical offences The Bill includes 72 proposed amendments which decriminalize minor and technical offences. For example, it suggests doing away with jail time for offences which involve shareholder rights or reduction in shares, among others. It also suggests converting 23 compoundable offences which involve imprisonment, into a civil wrong with civil penalties. According to Gulati, this will improve ease of doing business and benefits startups and small companies which don’t have large teams to check compliance. It is worth noting that only those offences which are minor, technical, and do not involve fraud or affect public interest are proposed to be decriminalized. In addition to this, the government has also proposed removing penalties for certain offences and reducing penalties for others. Direct overseas listing and exclusion from listed companies The government has proposed to allow a certain class of companies to list directly in foreign jurisdictions, allowing them to raise capital easily. In addition to this, it has also proposed allowing companies to list debt securities on stock exchanges without having to list the company itself. This will allow companies to raise debt funds without attracting the compliance burden of listed companies. Set-off of excess corporate social responsibility (CSR) spending Companies that have a net worth, turnover, or profits above a specified amount are required to spend 2% of their average net profits of the last three years towards CSR in a financial year. If companies spend more than 2%, the excess amount does not count towards their past or future obligations. However, the government has now proposed that any excess amount over 2% of the current CSR obligation will be allowed to be carried forward and set off against future CSR obligations. This is likely to encourage companies to better spend on their CSR obligations instead of restricting themselves to the 2% target. Setting up of benches of National Company Law Appellate Tribunal (NCLAT) The government has proposed setting up benches of NCLAT to ease the burden and speed up the resolution of pending cases. Further, the maximum limit on the number of members in NCLAT, which is currently 11, is proposed to be dropped. Overall, Gulati believes that these proposed amendments will help in reducing the compliance burden on companies and allow them to focus on their business. It remains to be seen how effective the government’s execution is, though. SEE ALSO: <a href="https://www.businessinsider.in/india/news/this-monsoon-session-parliament-will-have-no-question-hour-weekend-breaks-or-private-members-bills/articleshow/77888123.cms">This monsoon session, Parliament will have 30-minutes of question hour, no weekend breaks or private members’ bills</a> <a href="https://www.businessinsider.in/india/news/monsoon-session-2020-of-the-indian-parliament-will-debate-these-important-bills-and-ordinances/slidelist/77800892.cms">Monsoon session 2020 of the Indian Parliament will debate these important bills and ordinances</a> <a href="https://www.businessinsider.in/india/news/governments-new-gst-compensation-formula-may-raise-unconditional-borrowing-limit-by-0-5/articleshow/78035700.cms">Government's new GST compensation formula may raise unconditional borrowing limit by 0.5%</a>

Key proposals of Companies Amendment Bill 2020 include decriminalising offences, direct overseas listing and more

New Delhi, Dec 26 () GST officials have unearthed a racket involving fake invoicing worth Rs 1,600 crore that resulted in tax evasion of Rs 241 crore, an official release said in a statement on Thursday.
 The racket was busted by the anti-evasion wing of CGST Delhi South Commissionerate.
 The main culprit was arrested and remanded to 10 days of judicial custody by a local court, the release by finance ministry said.
 The alleged racketeer had created several firms on the basis of unauthorised access to identity documents of various persons.
 The ministry said the Commissionerate discovered the case of fake invoicing and GST fraud alongside a "new modus operandi" of defrauding the exchequer by exploiting the facility of refunds given for inverted duty structure.
 "Over 120 entities who are involved in the transactions have come to light so far, involving fake invoicing of Rs 1,600 crore and tax evasion of Rs 241 crore," it added.
 It further said investigations in the case have unearthed a well organised racket of creating bogus firms, issuing fake invoices and bogus e-way bills to generate and encash tax credits.
 The new modus operandi was uncovered by a team of investigators, who worked over many weeks to unearth the maze of companies created across India, the ministry said.
 Incriminating electronic evidence have been recovered from the premises of the accused, it added. NKD NKD ANU
ANU

GST officials unearth Rs 241-cr tax evasion racket

New Delhi, Jan 2 () Revenue Secretary Ajay Bhushan Pandey will hold a day-long meeting on January 7 with tax commissioners to discuss ways for streamlining the GST system and plugging leakages due to fraud.
Besides, sources said, this meeting with Commissioners of State Tax and Chief Commissioners of Central Tax will also deliberate on enhancing GST compliance by plugging loopholes and discourage tax evaders, those gaming or misusing the system. 
The meeting assumes significance as the GST Council in its last meeting held on December 18 wanted a detailed study on these issues before taking any call on rate hike on items.
Meanwhile, in an encouraging sign, the GST collection for December came in at around Rs 1.03 lakh crore. This was the second month in a row when the GST mop-up was over Rs 1 lakh crore.
Sources said, this multi-faceted brainstorming meeting is being organised with the purpose of curbing fraud and evasion, checking fake or huge input tax credit claims, seeking bank account details of businesses to tally with their filings, misuse of refund and sharing best practices in revenue augmentation.
Discussions in the meeting would focus on the road ahead with e-invoicing, new return system and feedback, e-way bill linking with Fastag, pendency of refunds, linkage of Aadhaar to GST registration, enforcement module use without overreach and the QR code, sources said. 
A detailed review of further use of data analytics and artificial intelligence in the process of enforcement and red-flagging the tax evaders and fake refund claimants would also be taken up to augment revenue and better compliance without overreach, sources said. 
 It would also examine the processes designed to give due role to the collating and combined study of data from the third parties like banks/IFU-India, sources said. 
This meeting would be attended by the senior officers of Central Board of Indirect Taxes and Customs, Central Board of Direct Taxes, Financial Intelligence Unit (FIU), Directorate General of Analytics and Risk Management and GSTN officials.
 Targeted approach to stop tax evasion without any overreach or harassment to the genuine taxpayers will be deliberated with concerned field officers and also the enforcement wings, sources added. DP MKJ

Revenue secy to hold meeting with officials on GST system streamlining, plugging leakages on Jan 7

<img class="gwt-Image" src="/photo/56664957.cms" />An <keyword id="3098877" type="UNKNOWN" weightage="20" keywordseo="EY-report">EY report</keyword> reveals that government initiatives, strong domestic demand and rapid inflow of foreign direct investment led India on an upward growth trajectory this year. 
 
The recent demonetization drive, introduction of new regulations such as the Bankruptcy code and push toward a digital economy have had a profound impact on businesses and consumers alike. 
 
While the short-term situation could be challenging, these moves have the ability to<a href="http://www.businessinsider.in/Signs-to-tell-if-your-employee-is-indulging-in-fraud/articleshow/53978165.cms"> quash fraud and corruption</a>, raise compliance standards, focus on individual accountability and increase investor confidence in the long run. 
 <keyword id="3960789" type="UNKNOWN" weightage="20" keywordseo="ey-fraud-investigation-dispute-services">EY Fraud Investigation &amp; Dispute Services</keyword> highlighted key trends in its Forensic Outlook 2017 for companies to enhance compliance, stimulate business growth and redefine the Indian business diaspora. 
 
Arpinder Singh, Partner and National Leader, Fraud Investigation &amp; Dispute Services, EY India said, “The growth, profitability and sustainability of businesses depends on many factors, and compliance is a critical component in an organization’s success matrix. With cases of fraud and corruption on the rise, companies need to enhance the state of compliance through robust internal controls, due diligence processes and integrity trainings for internal and external stakeholders.” 
 
He added – “The use of technology will be a key factor to strengthen anti-fraud and anti-corruption frameworks and mitigate fraud, waste and abuse.” 
 
Here are key findings of the report: 
 
Continued crackdown on bribery and corruption 
 
Globally, there has been an upswing in regulations as well as enforcement actions by Governments, according to the report. 
 In India, the crackdown on bribery and corruption has been through improved reforms such as the recommendations suggested by the Rajya Sabha Committee for the Prevention of Corruption Amendment Bill 2013, demonetization drive to uncover unaccounted black money, upcoming Goods and <keyword id="645517" type="COMPANY" weightage="20" keywordseo="services-tax">Services Tax</keyword>, Income Disclosure Scheme and many others. 
 
2017 prediction: 
 
In 2017, the battle against corruption is expected to accelerate as India strives to keep pace with global standards. Procedures to simplify the ease of doing business will see an uptick, corporates will turn to adopt global leading practices such as ISO 37001 standard which is the first international standard on anti-bribery management systems. Compliance programs will be more visible, technologically-led and enforcement actions by local authorities to penalise perpetrators will grow stronger. 
 
Curbing financial crime in the banking and financial services sector 
 
The banking and financial services sector has been struggling with the non-performing assets crisis, and saw more challenges in the form of unaccounted black money, counterfeit currency, ATM fraud and money laundering activities. Building robust systems, conducting proactive checks and adopting digitized payment methods turned out to be the need of the hour. In 2017, it will be imperative to deploy preventive and detective measures to address potential financial crime risks, at the systemic as well as organization levels. Priority areas include effective management of red flag NPA accounts, identification of early warning signals, stronger controls to mitigate data leakage and mis-utilization of propriety data sets. There will also be a focus on newer solutions such as robotics or automation within lesser explored areas such as Know Your Customer during customer on-boarding and transaction monitoring to enhance efficiency. Technology upgradation to meet regulatory requirements as well as reducing overall compliance costs would be vital. 
 
Leveraging technology for compliance 
 The widespread use and dependence on technology is transforming the compliance landscape. As large volumes of information continue to be exchanged over networks, the risk quotient with respect to data leakage, data theft and cyber-attacks has augmented. The adoption of sophisticated technologies is crucial as India moves toward a digitally-driven economy. In 2017, the use of technology to fuel compliance and combat risks will be instrumental. <keyword id="3214170" type="UNKNOWN" weightage="20" keywordseo="forensic-data-analytics">Forensic Data Analytics</keyword> will play a critical role to identify early warning signals, spot unusual and potentially suspicious patterns in transactions. The C-suite will turn to deploying dashboards to present results from analytics as it is a much more interactive and dynamic alternative. Companies could also look to integrate high-end robotics with artificial system intelligence to automatically detect signatures or patterns associated with execution of malwares or other malicious codes. 
 
Compliance with food safety standards 
 
Global regulators have taken various steps in updating laws and guidelines for the food industry. In India, the Food Safety &amp; Standards Act 2006 regulates the sector, focusing on increasing consumer awareness and enforcing regulatory standards. With the quality of food products being deemed questionable in recent times, there have been a reasonable number of concerns and the regulator has issued a number of advisories as well as imposed fines on large brands. In 2017, food business operators will have to conduct food safety audits and periodic testing during the entire product life cycle to enable compliance with quality and ensure seamless functioning of the business. 
 
Re-engineering the CFO 
 
The role of the modern day Chief Financial Officer (CFO) is unique, and goes beyond financial leadership to drive governance and maintain an ethical tone at the top. Today, CFOs are expected to spearhead investment decisions, stay updated on regulations, be technologically inclined and break stereotypes. But changing regulations can lead to compliance inadvertently taking a back seat. This is because maximum energy and resources are arranged to handle the business due to a dynamic external environment. In 2017, CFOs will have to prepare for the anticipated reforms such as the GST implementation, updates in the demonetization drive and others in the pipeline; but at the same time, keeping compliance at the centre of all activities and decisions. As the cost of fraud and corruption continues to escalate, non-compliance could potentially result in companies shelling out millions in penalties and damaging reputation which could have an adverse impact on the bottom-line.

Everything you should know about India’s economic growth in 2016, and the way forward

<ul><li>Delhi Police has filed an FIR against former <keyword id="7349800" type="General" weightage="80" keywordseo="bharatpe" source="Orion">BharatPe</keyword> co-founder Ashneer <keyword id="3433" type="General" weightage="100" keywordseo="grover" source="Orion">Grover</keyword>, his wife <keyword id="10739150" type="General" weightage="50" keywordseo="madhuri-jain" source="Orion">Madhuri Jain</keyword> Grover.</li><li>The FIR, a copy of which has been seen by PTI, was filed under eight sections of the Indian Penal Code, including 406 that deals with criminal breach of trust, 420 (cheating and dishonesty), 467 and 468 (forgery).</li></ul>New Delhi, The Economic Offences Wing of the Delhi Police has filed an FIR against former BharatPe co-founder Ashneer Grover, his wife Madhuri Jain Grover and family members Deepak Gupta, <keyword id="346867" type="General" weightage="50" keywordseo="suresh-jain" source="Orion">Suresh Jain</keyword> and Shwetank Jain for an alleged Rs 81 crore fraud after a complaint by the fintech unicorn. The FIR, a copy of which has been seen by PTI, was filed under eight sections of the Indian Penal Code, including 406 that deals with criminal breach of trust, 420 (cheating and dishonesty), 467 and 468 (forgery). BharatPe in the complaint alleged that Grover and his family caused damages of about Rs 81.3 crore through illegitimate payments to bogus human resource consultants, inflated and undue payments through passthrough vendors connected to the accused, sham transactions in input tax credit and payment of penalty to GST authorities, illegal payment to travel agencies, forged invoices by Madhuri Jain and destruction of evidence. If convicted, Grover, Madhuri and others can face up to anything between 10 years to life imprisonment. EOW now has the power to arrest all the accused. BharatPe welcomed the registration of FIR saying, "For the last 15 months, the company has been facing a vicious and malicious campaign run by Grover against the company, the board and its employees". "The registration of the FIR is a step in the right direction, which unearths various suspicious transactions made by the family for their personal pecuniary gains," it said in a statement. The FIR, it said, will now enable law enforcement agencies to investigate deeper into the criminality and bring the culprits to books. "We have full faith in our country's judicial and law enforcement systems and are optimistic that this case will reach its logical conclusion. We will continue to extend all possible cooperation to the authorities," it added. In December 2022, BharatPe filed a criminal complaint against Grover and his family with the EOW of Delhi Police, alleging fraud of Rs 81.28 crore, criminal breach of trust, conspiracy, cheating, forgery and destruction of evidence. The same month, it also filed a civil suit with the Delhi High Court against its former MD and co-founder Grover and his family, seeking up to Rs 88.67 crore in damages for alleged cheating and embezzlement of funds. The suit, running into 2,800 pages, alleges that Grover, his wife Madhuri Jain and other family members created fake bills, enlisted fictitious vendors to provide services to the company and overcharged the company for recruitment. Madhuri Jain was the head of controls at BharatPe and was fired earlier in 2022 after a forensic audit revealed several irregularities. Subsequently, Ashneer Grover resigned as CEO in March 2022. BharatPe, last year, hit the headlines when Grover was accused of using inappropriate language and threatening a Kotak Group employee for failing to secure an allotment and funding for the Nykaa IPO for himself and his wife Madhuri Jain Grover. Thereafter, BharatPe appointed Alvarez and Marsal, Shardul Amarchand Mangaldas and PwC to conduct a corporate governance review and determine whether Grover had committed willful misconduct. This led to the ouster of Jain and Grover from the company and its board in March. On May 10, 2022, BharatPe said that after the detailed review, the company had decided to take steps against employees involved in misconduct and claw back Ashneer Grover's restricted shares. "The complaint was received at EOW and enquiry has been conducted into the allegations levelled against alleged persons. From the contents of the complaint and enquiry conducted so far, prima-facie offences punishable under Sections 406/408/ 409/420/467/468/471/120B IPC (Indian penal code) are made out," the FIR copy reads. BharatPe had filed an arbitration claim in Singapore to claw back restricted shares (1.4 per cent) allotted to Grover and prevent him from using the title of a founder. In January this year, Koladiya sued Grover reclaiming the shares transferred in December 2018. Last month, the company's co-founder <keyword id="10222571" type="General" weightage="50" keywordseo="shashvat-nakrani" source="Orion">Shashvat Nakrani</keyword> sued Grover over "unpaid shares". MZM Legal is advising BharatPe on the criminal complaint. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/is-whatsapp-secretly-listening-to-your-private-conversations-heres-how-to-check/articleshow/100155980.cms">Is WhatsApp secretly listening to your private conversations? Here’s how to check</a> <a href="https://www.businessinsider.in/tech/news/artificial-intelligence-takes-center-stage-at-google-i/o-here-are-all-the-ai-announcements-made-at-the-annual-conference/articleshow/100151380.cms">Artificial Intelligence takes center stage at Google I/O: Here are all the AI announcements made at the annual conference</a>

FIR against BharatPe co-founder Ashneer Grover, his wife, family

<ul><li>Indians investors will now be able to participate in the emerging blockchain industry growing worldwide through this mutual fund.</li><li>Invesco CoinShares Global Blockchain ETF Fund of Fund is India’s first mutual fund scheme to offer investment in the blockchain ecosystem.</li><li>These are details you need to know about the new fund offer and steps on how to invest.</li></ul>For those who are nervous about investing in a <keyword id="6357017" type="General" weightage="20" keywordseo="cryptocurrency" source="Orion">cryptocurrency</keyword> but believe that large businesses can benefit from the blockchain technology, here is a chance to invest in such companies. The new fund offer opens on December 8. Recently, financial market regulator Securities and Exchange Board of India (SEBI) gave a nod to Invesco Mutual Fund’s Invesco CoinShares Global Blockchain ETF Fund of Fund (FoF). This fund is India’s first mutual fund scheme that invests in global companies in the blockchain ecosystem. The fund is investing in a global fund that invests in upto 50 companies that are into the blockchain ecosystem. Some of this companies include: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Industry description </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Companies </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Blockchain technology solution providers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IBM, Oracle </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cypocurrent exchange platform </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Coinbase, CME Group </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Blockchain payment systems </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Square </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mining hardware company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">AMD </td></tr></tbody><tbody></tbody><tbody></tbody></table> Interestingly, 15 Indian banks including ICICI Bank, Axis Bank, Bajaj Allianz, SBI, Kotak Mahindra Bank have reportedly planned to adopt blockchain technology to start <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/15-banks-to-start-new-trade-finance-system-using-blockchain-tech/articleshow/83545043.cms">a new trade finance system</a>. Reports say the new system will verify data using invoices on goods and services tax (GST) and e-way bills which will quicken transactions and also eliminate risk of frauds. What is Invesco CoinShares Global Blockchain ETF Fund of Fund ? Invesco CoinShares Global Blockchain is a global exchange traded fund (ETF) that invests in a portfolio of companies that are involved in the blockchain ecosystem directly or indirectly. The Indian fund will invest in the underlying global fund and try to duplicate the return. The fund has delivered 96% in the last one year. Here is how to invest in <keyword id="12539690" type="General" weightage="20" keywordseo="invesco-coinshares-global-blockchain-etf-fof" source="Orion">Invesco CoinShares Global Blockchain ETF FoF</keyword> and important details related to the fund. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fund opening dates </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NFO opens on November 24 and closes on December 8 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Minimum lump sum investment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,000 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Minimum SIP investment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹500 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Minimum quarterly investment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,500 </td></tr></tbody><tbody></tbody><tbody></tbody></table> Way to invest in this global fund is just like investing in a mutual fund. There are a list of new age fintech startups like Groww, Upstox, Zerodha Coin wherein you can start your investment easily in a few clicks. Just one thing mandatory for any investment in financial markets is having a demat account. If you do not have an account with any fintech mobile application, then you can directly create an account with the mutual fund house whose fund you wish to invest in. In this case, you can make an account with <a href="https://invescomutualfund.com/">Invesco MF</a>. <ul><li>Go the concerned MF website and click on ‘invest now’ or ‘invest online’</li><li>Complete you eKYC by submitting your PAN and Aadhaar details</li><li>Mention the amount you want to invest and choose frequency of investment</li><li>You can also give online instructions to your bank to transfer the decided amount to the fund house in case of SIP. </li></ul>SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/a-big-vc-backing-oyo-sharechat-and-epic-games-is-investing-in-cryptocurrency-and-he-is-not-alone/articleshow/87710161.cms">The partner at a VC firm backing OYO, ShareChat and Epic Games explains why it’s betting big money on crypto ⁠— and he’s not alone</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/here-are-the-five-ipos-that-doubled-investors-money-on-listing-in-2021/slidelist/87713646.cms"></a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/here-are-the-five-ipos-that-doubled-investors-money-on-listing-in-2021/slidelist/87713646.cms">Sigachi broke Paras Defence’s record⁠—these are the five IPOs that doubled investors’ money on listing in 2021</a>

Now you can invest in global blockchain companies through this mutual fund ⁠— here's how to do it

<ul><li>Some of the biggest banks in India are joining hands to create a new company that will leverage the power of <keyword id="6357624" type="UNKNOWN" weightage="20" keywordseo="blockchain-technology">blockchain technology</keyword> to speed up the processing of Letters of Credit (LCs).</li><li><keyword id="36838" type="COMPANY" weightage="20" keywordseo="indian-banks">Indian Banks</keyword>' Blockchain Infrastructure Company Private Limited (IBBIC) is a coalition of 15 banks, including <keyword id="6653" type="CITY" weightage="20" keywordseo="ICICI-bank">ICICI Bank</keyword>, <keyword id="6357149" type="COMPANY" weightage="20" keywordseo="hdfc-bank">HDFC Bank</keyword>, <keyword id="2179992" type="PERSON" weightage="20" keywordseo="RBL-Bank">RBL Bank</keyword>, SBI and Canara Bank.</li><li>The system will be based on Infosys’ Finacle Connect, a blockchain-based platform that enables digitisation and automation of trade-related finance processes.</li></ul>Banks in India are coming together to use blockchain technology to solve a central problem in traditional banking — the processing of Letters of Credit (LCs), GST invoices, and e-way bills. India’s largest public sector bank, the State Bank of India (SBI), along with ICICI Bank, Kotak Mahindra, Axis Bank, and 11 others have <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/15-banks-to-start-new-trade-finance-system-using-blockchain-tech/articleshow/83545043.cms?from=mdr">formed</a> a new company called the Indian Banks’ Blockchain Infrastructure Company Private Limited (IBBIC) that will be at the helm of this transformation. The move is expected to eliminate paperwork, reduce transaction processing time, and offer a secure environment. Moreover, it could be a boon for medium and small-scale enterprises (MSMEs). For those who aren’t familiar with LCs, these are letters from a bank that guarantee that a buyer will pay the seller on time, and for the correct amount. Currently, the process of issuing an LC is relatively slow and requires human intervention to prevent frauds, authenticate transactions, and balance the ledger. Using blockchain to issue LCs would potentially solve these issues. Even elemental fraud like the issuance of two LCs on a single invoice can be easily prevented with the help of this blockchain technology. <div type="ExtQuote" text="“Disbursements on domestic LCs, which used to take four to five days, can be done in four hours.”" auname="Varun Bakshi, head of products and transaction banking at RBL Bank, said in a statement"></div> The new system is expected to go live within a year and each bank has an equal stakeholdership of 6.66%. It’ll be designed to be open, making it seamless for other banks to join anytime in the future. What do MSMEs have to gain from this? The technology is purely based on the concept of tokenisation. This helps turn sensitive data into nonsensitive data that can be leveraged by multiple parties in a series. It also helps preserve the authenticity of data and indirectly enables digitisation. Simply put, a basic invoice can be turned into a token, which can then be used to settle payments, overheads, and other adjustments. For medium and small scale enterprises (MSMEs), this could be a game-changing innovation. Through all of its transactions, assets, liabilities, and more, tokenisation would make approvals quick, disbursements and settlements would be instantaneous, and the chances of fraud are minimised. The incorporation of IBBIC is starkly similar to that of the National Payments Corporation of India (NPCI), which is an umbrella organization that handles critical real-time products like RuPay, UPI, and FASTag. It was formed in 2008 and initially had just 10 banks as stakeholders. The cooperative model has been widely acclaimed as banks kept aside their individual ambitions and collaborated at an unprecedented scale. With the adoption of <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">blockchain</a>, banks are again presenting a unified front. And, as the industry benefits, each bank will have something to gain as well. If they try to undermine each other, nobody wins. <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">Cryptocurrencies</a>, which are based on this technology, have grown exponentially in the last year. However, conventional financial intuitions are yet to take advantage of it. While the authorities figure out a way to <a href="https://www.businessinsider.in/cryptocurrency/news/infosys-co-founder-nandan-nilekani-wants-crypto-in-india-to-be-treated-as-an-asset-class-but-not-a-currency/articleshow/83311045.cms">regulate cryptocurrencies</a>, banks are taking a step forward and bridging the gap from a technology point of view. Who are the stakeholders? Out of the 15 banks, eleven are privately held by investors while four are public sector units. The private banks include HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IndusInd Bank, Yes Bank, RBL Bank, IDFC Bank, South Indian Bank, and Federal Bank. And, the public sector units encompass Bank of Baroda, SBI, Canara Bank, and Indian Bank. American lender Standard Chartered is the only international player in the consortium. The system will be based on Infosys’ Finacle Connect, a blockchain-based platform that enables digitisation and automation of trade-related finance processes. The technology has already been deployed or piloted by the likes of SBI and Axis Bank at an individual scale, but an industry-wide alliance is a first. Letters of Credit are only the beginning Domestic LCs are just the tip of the iceberg. The industry has been exploring more complex use-cases such as collateralised loan disbursal, deeper credit rating, and even transaction traceability. Tokenisation of assets like stocks, bonds, registration certificates, and more can make them instantly available as collateral, making deals far safer for lenders. At the same time, smart contracts ensure frauds are minimal. While these case studies are still in a nascent form, the future looks promising as the traditional institutions converge with millennial engineers and the cutting-edge of technology. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/dodla-dairy-ipo-price-gmp-should-you-subscribe/articleshow/83548332.cms">Dodla Dairy IPO – find out if you should subscribe to this Hyderabad-based dairy company’s stock</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/kims-ipo-price-gmp-should-you-subscribe/articleshow/83547843.cms">KIMS IPO – most analysts are bullish on the hospital chain’s prospects</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/policy/news/china-will-not-buy-iron-copper-aluminum-zinc-and-some-other-commodities-from-foreign-countries/articleshow/83565216.cms">China has decided to take global commodity bulls by their horns ⁠— to protect the profit margins of its small businesses</a>

SBI, HDFC, ICICI and 12 others banks are joining forces to use blockchain to power Letters of Credit — a move that could be a boon for MSMEs

New Delhi, Dec 11 () Following are the top business stories at 1820 hours:
 
DEL64 BIZ-LD-ADB-INDIA-GROWTH
ADB cuts India's growth forecast to 5.1pc for FY2019; projects 6.5 pc for next year
New Delhi: Asian Development Bank (ADB) on Wednesday lowered India's economic growth forecast for FY2019 to 5.1 per cent on slowing job prospects, rural distress exacerbated by poor harvest and credit crunch. 
 
DCM23 BIZ-GST
GST rates may go up for various items to meet revenue shortfall
New Delhi: With pressure on revenue collection, the goods and services tax (GST) rates and slabs may be raised during the GST Council meeting next week. 
 
DEL84 BIZ-LD STOCKS
Markets back to winning ways as bank, IT stocks shine
Mumbai: Equity benchmarks resumed their upward march on Wednesday, propelled by fag-end buying in bank, IT and auto stocks amid lacklustre global cues.
 
DCM30 BIZ-INDIA-US-OIL
US replaces Kuwait as India's 6th biggest oil supplier
New Delhi: The United States has surpassed Kuwait to become India's sixth largest oil supplier as it supplied 70 per cent more crude to the world's third largest energy consumer during April-September.
 
DEL85 BIZ-RUPEE-CLOSE
Rupee extends winning run for 6th day against US dollar, gains 7 paise
Mumbai: The rupee appreciated by 7 paise to settle at a fresh one-month high of 70.85 against the US dollar on Wednesday on the back of firm domestic equities and easing crude oil prices, extending its winning run for the sixth straight session. 

DCM42 BIZ-DATA PROTECTION BILL-REAX
Sweeping powers to govt under data protection Bill a step backwards, say experts
New Delhi: The Personal Data Protection Bill giving investigating agencies unbridled powers to carry out surveillance on private data has spooked companies and experts who argue that such overarching access is against established principles and is a dramatic step backwards.
 
DCM14 BIZ-ADANI-QATAR
Qatar sovereign wealth fund QIA buys 25.1 pc stake in Adani Electricity Mumbai for Rs 3,200 cr
New Delhi: Qatar Investment Authority has agreed to buy a 25.1 per cent stake in Adani Electricity Mumbai Ltd - the firm that distributes power to three million consumers in Mumbai - for Rs 3,200 crore.
 
DCM3 BIZ-CGPOWER-SFIO
SFIO begins probe against CG Power and Industrial Solutions, 15 group firms
New Delhi: The Serious Fraud Investigation Office (SFIO) has started probe into the alleged irregularities at CG Power and Industrial Solutions Ltd and its 15 group companies. 
 
 
 
 
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Business highlights

<ul><li><keyword id="6986952" type="UNKNOWN" weightage="20" keywordseo="IDFC-First-Bank">IDFC First Bank</keyword> has temporarily halted services to crypto companies as it explores ‘enhanced due diligence.’</li><li>IDFC First Bank isn't the only one, as ICICI Bank, Yes Bank, and Paytm Payments Bank have taken similar decisions since May.</li><li>Cryptocurrencies were banned by the Reserve Bank of India (RBI) in 2018, but India’s top court overturned the decision in 2020.</li><li>For banks, cryptocurrencies are a concern since they're often a preferred instrument for money laundering, illegal purchases, and transactions relating to contraband.</li></ul>A host of Indian banks are reluctant to service the crypto industry and have opted to take matters into their own hands even though there is no official ban in place. The latest institution to reportedly join the bandwagon is IDFC First Bank. It has halted services to crypto companies sometime during the last one week, sources told <a href="https://www.livemint.com/companies/news/now-idfc-first-bank-halts-banking-services-to-crypto-industry-11624537138102.html">Livemint.</a> The report claims that the move is temporary while the bank explores 'enhanced due diligence’ regarding banking support to <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">crypto</a> exchanges. IDFC First Bank isn't the only one to keep its distance from the volatile markets. ICICI Bank, Yes Bank, and Paytm Payments Bank have taken similar decisions since May. Big wigs HDFC Bank and State Bank of India (SBI) have also cautioned their users against the risks of dealing in unregulated digital currencies like <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">Bitcoin</a>. Such moves further add to the confusion for customers who are caught in the middle. The banks’ decisions are internal with no transparency or any direct communication that alerts users to the change. There’s no official ban on cryptocurrencies in India, and the RBI has confirmed it Last month, the RBI <a href="https://www.businessinsider.in/cryptocurrency/news/rbi-2018-cryptocurrency-circular-not-valid-crypto-exchanges-wazirx-say-deposits-should-resume-soon/articleshow/83117245.cms">clarified</a> that banks and other regulated entities should not cite its <a href="https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI15465B741A10B0E45E896C62A9C83AB938F.PDF">April 2018 order</a> banning banks from engaging with virtual currencies. The directive no longer holds true as it was set aside by the <a href="https://www.businessinsider.in/finance/news/cryptocurrency-in-india-is-legal-but-a-pending-bill-with-the-government-could-change-things/articleshow/74521104.cms">Supreme Court of India</a> in 2020. Since then, the crypto industry has been entirely unregulated, <a href="https://markets.businessinsider.com/currencies/news/india-central-bank-lenders-cryptocurrency-exchanges-traders-rbi-bitcoin-ban-2021-5-1030426343">making it tricky</a> for regulated financial players to decide the end outcome. For banks, <a href="https://wazirx.com/signup?invite=2kpah6gr&amp;utm_source=business-insider&amp;utm_medium=referral&amp;utm_campaign=microsite">cryptocurrencies</a> are a concern since they're often a preferred instrument for money laundering, illegal purchases, and transactions relating to contraband. While RBI's clarification gave relief to crypto investors, banks are caught in the middle as they can neither entirely support crypto nor claim absolute immunity from its future fallouts or issues. <h2 style="line-height:1.38;margin-top:0pt;margin-bottom:0pt;">Self-regulation is the only short-term solution for exchanges</h2> As the Indian government mulls over whether or not to bring in new laws to deal with cryptocurrencies, <keyword id="6422582" type="UNKNOWN" weightage="20" keywordseo="Crypto-Exchanges">crypto exchanges</keyword> have <a href="https://www.businessinsider.in/cryptocurrency/news/wazirx-zebpay-crypto-and-others-are-setting-up-their-own-self-regulation-board-in-india/articleshow/83203195.cms">agreed</a> to self-regulation under the patronage of the Internet and Mobile Association of India (IAMAI). It includes a code of conduct that will see all crypto exchange members voluntarily complying with KYC, tax and other norms. Crypto exchanges are also <a href="https://www.businessinsider.in/cryptocurrency/news/indian-crypto-exchanges-are-eyeing-more-industry-bodies-to-expand-influence/articleshow/83742929.cms">reportedly</a> setting up a second lobby — of which Zebpay is a confirmed member — under the helm of IndiaTech, an industry body representing the country's leading internet startups like Ola, MakeMyTrip, Nykaa, Dream11, and more. With a formal setup, the board and exchanges will develop protocols to accommodate regular audits and inspections, customer redressal mechanism, and fraud protection. The collective effort, they claim, will also help crypto exchanges keep an eye out for money laundering, illegal transactions, and more. It's <a href="https://fortune.com/2021/06/02/india-bitcoin-ban-crypto-exchange-investors-crackdown-rbi/">estimated</a> that India has 15 million crypto investors with ₹10,000 crore worth of digital assets. For an industry that has zero regulations, that's a lot of money at stake. Even though cryptocurrencies are a concern, the underlying technology of blockchain is being welcomed. Recently, 15 private and state-run banks <a href="https://www.businessinsider.in/cryptocurrency/news/sbi-hdfc-icici-and-12-others-banks-are-joining-forces-to-use-blockchain-to-power-letters-of-credit-a-move-that-could-be-a-boon-for-msmes/articleshow/83570874.cms">teamed up</a> in India to form a new group called Indian Banks' Blockchain Infrastructure Company Private Limited (IBBIC). Initially, they plan to process Letters of Credit (LCs), GST invoices, and e-way bills via blockchain to help speed up the existing system. <a target="_blank" class="c-link" href="https://forum.businessinsider.in/">For a more in-depth discussion, come on over to Business Insider Cryptosphere</a> — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve. SEE ALSO: <a href="https://www.businessinsider.in/cryptocurrency/news/heres-how-chinas-2021-crypto-crackdown-in-2021-differs-from-the-2017-ban/articleshow/83802778.cms">Here’s how China’s 2021 crypto crackdown in 2021 differs from the 2017 ban</a> <a href="https://www.businessinsider.in/business/startups/news/zomato-is-seeking-a-8-billion-valuation-in-its-ipo-does-it-make-sense/articleshow/83801848.cms">There are a few reasons why Zomato wants $8 billion valuation from its IPO -- here's a look at if it makes sense</a>

You Searched For "GST billing fraud" and got 13 results

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Business highlights

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