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<ul class="summary-list"><li>The <keyword id="19921999" type="General" weightage="20" keywordseo="Education-Department" source="keywords" meta.keywordsubtype="org" meta.entityname="Education Department" meta.hostid="261" meta.entityid="Education Department">Education Department</keyword> said student-loan company MOHELA failed to process <keyword id="23618290" type="General" weightage="20" keywordseo="borrower-applications" source="keywords">borrower applications</keyword> for <keyword id="23618289" type="General" weightage="20" keywordseo="income-driven-repayment" source="keywords">income-driven repayment</keyword> plans.</li><li>The department is not assigning new accounts to MOHELA until it corrects its actions.</li></ul>The Education Department notified <a target="_blank" class="" href="https://www.businessinsider.com/fire-student-loan-company-mohela-remove-borrowers-from-roster-biden-2024-5">student-loan company MOHELA</a> on Tuesday that it would be facing penalties for failing to perform the servicing obligations required in its contract. According to a document from the Education Department reviewed by Business Insider, MOHELA has failed to process over 460,000 applications for borrowers on income-driven repayment plans, preventing those borrowers from accessing more affordable <keyword id="23618291" type="General" weightage="20" keywordseo="monthly-payments" source="keywords">monthly payments</keyword>. The department also said Mohela had failed to stop capitalizing interest on borrowers' accounts, incorrectly marked some borrowers for negative credit reporting, and failed to process forgiveness in a timely manner for borrowers who met the threshold. "The Department continues to take swift action in response to errors that cause confusion or unnecessary difficulty for borrowers," Education Secretary Miguel Cardona told BI in a statement. "<keyword id="23618292" type="General" weightage="20" keywordseo="federal-student-aid" source="keywords">Federal Student Aid</keyword> has determined, through its oversight of federal <keyword id="21652556" type="General" weightage="100" keywordseo="student-loan" source="keywords">student loan</keyword> servicers, that MOHELA has not consistently met the Department's standards for serving borrowers. MOHELA's continued challenges have resulted in less-than-satisfactory quality of servicing for borrowers." The Education Department requested that MOHELA provide a "corrective action plan" within 10 business days, Cardona said, along with weekly meetings with Federal Student Aid to review the servicer's performance . In the meantime, the department will not assign new borrower accounts to MOHELA until it can demonstrate that it can properly serve borrowers, which could impact the servicer's revenue. A Mohela spokesperson told BI that the servicer "is surprised by FSA's sudden change in direction and communication" after the Education Department recently gave it new borrower accounts. "As one of FSA's critical partners and contractors, MOHELA has and will continue to work closely with FSA," the spokesperson said. Since <a target="_blank" class="" href="https://www.businessinsider.com/student-loan-repayment-issues-debt-relief-broken-industry-2023-9">student-loan payments resumed last October</a> after an over three-year pause, MOHELA has been under scrutiny from the Education Department, lawmakers, and advocates over its handling of borrowers' accounts. It was the first servicer to receive a punishment from the department last year — on October 30, 2023, the department <a target="_blank" class="" href="https://www.businessinsider.com/student-loan-company-mohela-late-statements-borrowers-biden-withholding-pay-2023-10">withheld $7.2 million in pay from MOHELA</a> over its failure to deliver on-time billing statements to 2.5 million borrowers. This is the second time Mohela has faced changes to the accounts it manages.In April, the Education Department transferred over 1 million borrowers to new servicers to allow for borrowers to have "the best service." This is the second penalty MOHELA has faced this year.In January, the department <a target="_blank" class="" href="https://www.businessinsider.com/student-loan-borrowers-missing-billing-statements-servicers-punishment-nelnet-mohela-2024-1">withheld pay from the remaining three major federal servicers</a> over failure to deliver on-time billing statements to borrowers. Still, MOHELA has remained in the spotlight as borrowers have continued to report challenges with the servicer, prompting Sen. Elizabeth Warren to hold a hearing in April over the servicer's performance and later calling for the Education Department to consider terminating the servicer's contract altogether. 'We've organized, we've held hearings, we've done everything possible to hold these student loan servicers accountable for their misconduct," Warren <a target="_blank" class="" href="https://www.businessinsider.com/student-loan-borrowers-fire-their-servicer-elizabeth-warren-mohela-navient-2024-9">previously told BI</a>. "And it's beginning to bite. Last year, the department released <a target="_blank" class="" href="https://www.businessinsider.com/student-loan-borrowers-bad-customer-service-education-department-oversight-repayment-2023-11">an accountability framework</a> that outlined enforcement actions it would take over servicers who failed to meet their obligations. It's unclear what action the department will take next over MOHELA if it does not correct its actions. Correction: October 18, 2024 — An earlier version of this story misstated one of the Education Department's accusations against Mohela. The department said the company had failed to process forgiveness in a timely manner for borrowers who met the threshold. The story was also updated to clarify who the Mohela spokesperson said was "surprised by FSA's sudden change in direction and communication." It was Mohela, not the Education Department.

A major student-loan company is being punished for preventing over 460,000 borrowers from accessing cheaper monthly payments

<ul class="summary-list"><li>A Russian company will reportedly barter chickpeas and lentils for Pakistani tangerines and rice.</li><li>Russia has struggled to make payments across borders amid mounting sanctions from the US and its allies.</li></ul>Russia is continuing to feel the pressure from Western sanctions.One Russian company is planning to barter chickpeas and lentils for Pakistani tangerines, rice and potatoes, according to a Tuesday report from Russian state-run news service Tass.The agreement comes amid reports of Russian companies struggling to make payments across borders amid <a target="_blank" class="" href="https://www.businessinsider.com/russia-economy-growth-recession-labor-worker-shortage-inflation-sanctions-west-2024-9">mounting sanctions from the US and its allies</a> since Russia invaded Ukraine in 2022.Russia's Astarta-Agrotrading will trade 20,000 tons of chickpeas in exchange for the same amount of rice from Pakistan's Meskay &amp; Femtee Trading Company in an agreement signed Tuesday, Bloomberg said, citing the Tass report.The company will also trade 15,000 tons of chickpeas and 10,000 tons of lentils for 10,000 tons of potatoes and 15,000 tons of tangerines from the Pakistani company.Russia's search for alternate international trade channels isn't new.In fall 2022, months after Russia invaded Ukraine, the country <a target="_blank" href="https://www.businessinsider.com/russia-india-payment-issues-us-west-sanctions-rupees-ukraine-war-2024-9">drafted plans</a> to spend around $1 billion worth of Indian rupees secretly purchasing critical goods and investing in production in India, the Financial Times reported last month.More recently, China is reported to be in <a target="_blank" href="https://www.businessinsider.com/russia-economy-russia-china-barter-trade-us-secondary-sanctions-payments-2024-8">barter trade talks with Russia</a>, joining the likes of countries like Afghanistan and Iran who have also discussed barter trade with the Kremlin.Russia also passed a bill in July that will allow <a target="_blank" href="https://www.businessinsider.com/russia-economy-moscow-cryptocurrency-bill-digital-ruble-trade-payments-sanctions-2024-7">trade payments in crypto</a>.Russia has struggled amid increasingly tight sanctions since 2022, which have steadily cut off its access to key financial support.Even Chinese banks, the smaller of which were a key processor for Russian payments, have <a target="_blank" href="https://www.businessinsider.com/russia-economy-all-china-banks-refuse-yuan-ruble-transfers-sanctions-2024-8">stopped offering support</a> in recent months.Russia's economy has boomed throughout the war with Ukraine, but the Bank of Russia recently said its seen <a target="_blank" href="https://www.businessinsider.com/russia-economy-outlook-stagflation-recession-inflation-gdp-growth-ukraine-war-2024-9">"signs of cooling domestic demand" as inflation rises</a> — a dreaded outcome known as stagflation.

A Russian company is bartering chickpeas for Pakistani rice as sanctions stop payments

<ul class="summary-list"><li><keyword id="19935006" type="General" weightage="100" keywordseo="Guyana" source="keywords">Guyana</keyword>, the tiny South American nation, plans to give $500 to every citizen aged 18 and over.</li><li>Its president said the <keyword id="21044249" type="General" weightage="20" keywordseo="cash-payments" source="keywords">cash payments</keyword> aim to narrow disparities and help with higher living costs.</li></ul>The world's fastest-growing economy is giving the equivalent of $500 to each of its adult citizens as it works to share its newfound oil wealth and soften the sting of higher living costs. President <keyword id="21170274" type="General" weightage="20" keywordseo="Mohamed-Irfaan-Ali" source="keywords">Mohamed Irfaan Ali</keyword> of Guyana, the South American country with just 800,000 people, announced the move last week and said his government would begin distributing the cash immediately. He previously said each household would receive the Guyanese-dollar equivalent of $1,000, but switched to an individual payment after locals raised concerns about how a household would be defined and how the money would be shared within each home. "This is how we are promoting prosperity, ownership, distribution of wealth," Ali said. "This is how the resources and revenue of this country are being spent every single day to lift the lives of people, to expand national wealth, coastal wealth, and community wealth." Guyanese authorities have taken other steps to combat the rising cost of living, the post noted. They've removed more than 200 taxes and fees, including the excise tax on fuel and VAT on water, electricity, and some basic foods. They also gave a one-time, tax-free grant worth about $120 a person to a group that included teachers and public servants last year. Nicolas Suarez, a senior economist at S&amp;P Global Market Intelligence who covers Latin America, told Business Insider the original plan would "increase the average household's disposable income, alleviating some budget constraints." He estimated the initial program's scale at 1.5% of national GDP and 7.9% of Guyana's Natural Resource Fund, which officials set up in 2019 to prudently manage the country's oil revenues. The scale of the updated plan is less clear. World Health Organization data suggests there are about 711,000 Guyanese aged 15 and over, so if we assume the 18+ population is 660,000 people and all of them receive $500 each, the program could cost $330 million —not far off the government's estimate of $290 million for the original household payout. "In the short term, this measure could boost private consumption growth, but it may not ease <keyword id="19895000" type="General" weightage="20" keywordseo="inflation" source="keywords">inflation</keyword>ary pressures," Suarez said about the previous plan. "On the contrary, higher government expenditures could lead to significant inflationary pressures over the next 12 months." He noted that inflation in Guyana has climbed from a pre-pandemic average of 2.3% a year to 3.3% in August. He noted that <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/what-is-inflation">inflation</a> in Guyana has climbed from a pre-pandemic average of 2.3% a year to 3.3% in August. <h2>Riding an oil wave</h2>Guyana, an English-speaking former colony that gained independence from Britain in 1966, borders Venezuela to the west, Brazil to the south, and Suriname to the east. Its natural resource fund is similar to <a target="_blank" class="" href="https://www.businessinsider.com/norway-sovereign-wealth-fund-to-dump-russian-assets-ukraine-invasion-2022-2">Norway's oil fund</a>, set up in the 1990s to invest profits from the Scandinavian nation's oil-and-gas sector, protect the economy from fluctuations in energy revenues, and serve as a financial reserve and long-term savings plan for Norwegians. Norway's gas-powered sovereign wealth fund has helped to make it one of the world's wealthiest countries with an estimated population of 5.5 million and a GDP per capita of about $88,000 last year, according to World Bank data. Its oil fund held over $1.7 trillion of assets at the end of June, or more than $300,000 per Norwegian citizen. <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/warren-buffett-chevron-hess-guyana-oil-economy-berkshire-hathaway-stock-2023-10">Exxon</a>, which has discovered an estimated <a target="_blank" class="" href="https://markets.businessinsider.com/news/commodities/oil-market-outlook-opec-price-cuts-us-crude-production-guyana-2023-12">11 billion barrels of oil equivalent</a> off Guyana's coastsince 2015, forecasts the country will produce about 1.3 million barrels a day once the company's six projects are online in 2027. That amount rivals Qatar's current output and would rank Guyana among the world's 20 largest oil producers. Guyana ramped up production to more than 600,000 barrels a day earlier this year, fueling roughly 50% <a target="_blank" class="" href="https://www.businessinsider.com/oil-market-guyana-economy-crude-production-outlook-opec-price-cuts-2023-12">GDP growth</a> in the first half and putting Guyana on track to grow about 43% this year, Ali said in an August webcast. Real GDP soared by about 62% in 2022 then 33% in 2023, while GDP per capita has surged from $7,000 in 2020 to around $26,000 this year, International Monetary Fund data shows. <h2>Sharing the wealth</h2>Guyana's payment to its people "sounds like great news," Karl Widerquist, a philosophy professor at Georgetown University-Qatar and the author of several books about universal basic income (UBI) told BI. He described the one-time distribution as "basic capital" or a "stakeholder grant" instead of a basic income, but said "it's a big step in that direction if they go through with it." UBI typically refers to a recurring cash payment made to every individual in a society regardless of their wealth, with no restrictions on <a target="_blank" class="" href="https://www.businessinsider.com/how-people-spend-universal-basic-income-ubi-food-housing-transportation-2024-4">how the money is spent</a> and no requirement to pay it back. Proponents hail it as a safety net against poverty that relieves financial strain and frees people to change jobs, start businesses, and weather periods of bad luck without stressing about paying their bills. Guyana's one-off, unconditional cash grant is a "positive step," Cleo Goodman, the basic income lead at the Autonomy Institute think tank, told BI. "This is a welcome injection of cash for citizens." However, she noted a guaranteed, regular income would be a "much more comprehensive commitment to redistributing this newfound wealth." Guyana was colonized by the Netherlands before Britain gained control in the late 18th century. The nation, which shares borders with Venezuela, Brazil and Suriname, became independent in 1966. Correction: October 18, 2024 — An earlier version of this story mistakenly reported an outdated version of the policy. Guyana announced Wednesday it had decided to give the equivalent of $500 to every adult, rather than a higher amount to each household as previously planned. The story also misstated the value of the previously announced figure in US dollars. It was $1,000 a household, not $2,000.

This tiny country says it will give $500 to every adult as an Exxon oil boom supercharges its economy

Shares of fintech firm <keyword id="181441" type="General" weightage="20" keywordseo="One97-Communications" source="Orion">One97 Communications</keyword> -- the owner of <keyword id="19898109" type="General" weightage="100" keywordseo="Paytm" source="keywords">Paytm</keyword> brand -- jumped 5 per cent on Thursday morning after the company received the government's approval for downstream investment in wholly-owned subsidiary <keyword id="22960487" type="General" weightage="20" keywordseo="Paytm-Payments-Services-Ltd-" source="keywords" meta.keywordsubtype="org" meta.entityname="Paytm Payments Services Ltd." meta.hostid="261" meta.entityid="Paytm Payments Services Ltd.">Paytm Payments Services Ltd.</keyword> The stock climbed 5 per cent to Rs 565 on the BSE. At the NSE, it surged 4.98 per cent to Rs 564.80. The company will reapply for a <keyword id="6640986" type="General" weightage="20" keywordseo="payment-aggregator" source="Orion">payment aggregator</keyword> (PA) licence, a regulatory filing said on Wednesday. "We would like to inform you that <keyword id="20410230" type="General" weightage="20" keywordseo="PPSL" source="keywords">PPSL</keyword> has received approval from the government of India, <keyword id="156153" type="General" weightage="20" keywordseo="Ministry-of-Finance" source="Orion">Ministry of Finance</keyword>, Department of Financial Services, vide its letter dated August 27, 2024, for downstream investment from the company into PPSL. "With this approval in place, PPSL will proceed to resubmit its PA application. In the meantime, PPSL will continue to provide online payment aggregation services to existing partners," Paytm filing said. The Reserve Bank of India (RBI) had rejected Paytm's PA licence permit application in November 2022 and instructed the company to reapply with Press Note 3 compliance under the foreign direct investment norms. As per Press Note 3, the government had made its prior approval mandatory for investments from nations that share land borders with India.

Paytm shares jump 5% on receiving government's nod for investment in Paytm Payments Services

For many professionals out there, <keyword id="19902762" type="General" weightage="100" keywordseo="Google" source="keywords" meta.keywordsubtype="org" meta.entityname="Google" meta.hostid="261" meta.entityid="Google">Google</keyword> continues being the dream company that they want to land a job at. Even though the company carried multiple rounds of layoffs since 2023, it remains one of the highest paying <keyword id="20000550" type="General" weightage="20" keywordseo="tech-companies" source="keywords">tech companies</keyword> in the world. This is why landing a <keyword id="23527633" type="General" weightage="20" keywordseo="job-at-Google" source="keywords">job at Google</keyword> at the beginning of their careers is huge for people. Hence, any news related to Google quickly goes viral and people are always curious to know about what's happening at the tech giant. Now, according to a Reuters report, Google has filed a request with a California federal judge to delay a court order that mandates the company to open up its Play Store to increased competition. In a court filing submitted on Friday, the tech giant argued that the injunction, set to take effect on November 1, poses “serious safety, security, and privacy risks” to the Android ecosystem. Google urged U.S. District Judge James Donato to pause the ruling while it appeals the decision. <h2>About the case </h2> The injunction stems from a case filed by Epic Games, the maker of “Fortnite.” In October 2023, a jury ruled that Google had been illegally monopolising the way consumers download apps and make in-app purchases on Android devices. Judge Donato’s ruling, issued on October 7, forces Google to allow third-party app stores and payment methods on its platform. Additionally, the order bars Google from paying device manufacturers to preinstall its Play Store and from sharing revenue generated through it with other app distributors. Google claims the ruling could introduce significant risks to Android users, and is fighting to delay its implementation while pursuing a legal appeal. <h2><keyword id="19954681" type="General" weightage="20" keywordseo="Sundar-Pichai" source="keywords">Sundar Pichai</keyword> on what it takes to join Google </h2> On another note, Google boss Sundar Pichai recently shed light on what it takes to join Google’s coveted ranks, especially for those aiming at engineering roles. In an episode of The David Rubenstein Show: Peer to Peer Conversations, Pichai opened up about the attributes Google looks for in its employees, giving hopeful candidates a clearer picture of what it takes to be part of the tech behemoth. According to Pichai, <keyword id="22767045" type="General" weightage="20" keywordseo="technical-excellence" source="keywords">technical excellence</keyword> is just the starting point. It’s the foundation, yes, but not the full package. What truly sets candidates apart is their adaptability and eagerness to learn in an ever-changing, dynamic environment. “We’re looking for superstar <keyword id="19959624" type="General" weightage="20" keywordseo="software-engineers" source="keywords">software engineers</keyword>,” Pichai noted, saying that in a world of rapidly evolving technology, the ability to remain curious and agile is essential. He also highlighted Google’s tradition of offering free meals to employees—not just as a perk but as a deliberate initiative to foster community and spark spontaneous moments of creativity. He also recalled his early days at Google, where informal chats in the café sometimes led to breakthrough ideas. “It’s about creating the conditions for people to connect and think outside the box,” he shared. (With Reuters inputs)

Google Seeks to delay judge’s ruling on App Store competition over security concerns

New Delhi: 78 per cent of consumers now prefer to do most of their banking digitally through <keyword id="19915384" type="General" weightage="20" keywordseo="mobile-apps" source="keywords">mobile apps</keyword> or websites, according to the Alkami report. This shift is part of a broader trend towards <keyword id="21227659" type="General" weightage="20" keywordseo="cashless-transactions" source="keywords">cashless transactions</keyword> and <keyword id="21012835" type="General" weightage="20" keywordseo="contactless-payments" source="keywords">contactless payments</keyword>, which have become the default for many, especially since the COVID-19 pandemic. According to the report, nearly 80 per cent of financial institutions have seen an increase in cashless transactions over the past two years. This change has been accelerated by the pandemic, with many consumers opting for digital payments to avoid handling cash. About 60 per cent of these institutions noted that the volume of cashless transactions has surged by more than 20 per cent. Cashless payments aren't a new concept--personal checks and credit cards have been around for decades. However, today's digital payments, whether made through a smartphone, laptop, or tablet, are quickly becoming the standard. The convenience and safety of these transactions, especially in a post-pandemic world, have made them more popular than ever. Allison Cerra, Chief Marketing Officer at Alkami Technology, said, "The banking leaders of the future will be those that can harness data for the best use, gain a holistic view of their relationships, and meet the rapidly changing needs of digital consumers." With more people turning to <keyword id="20028215" type="General" weightage="20" keywordseo="digital-banking" source="keywords">digital banking</keyword>, there's been a noticeable decline in the use of ATMs and checks. Chad Rogers, Executive Vice President at Connexus Credit Union, noted that even millennials are moving away from traditional banking methods. "What we're seeing, even with our millennial users, is that they're no longer ordering checks, or making cash withdrawals from our ATMs as we would expect. Instead, they are self-serving from home or wherever they are. They're moving money through our digital banking platform," he said. Interestingly, even though fewer people are visiting bank branches in person, their overall engagement with banks has increased. Thanks to the ease of mobile and <keyword id="19998466" type="General" weightage="20" keywordseo="online-banking" source="keywords">online banking</keyword>, customers are now interacting with their banks more frequently, often on a daily basis. While cashless transactions are on the rise, the adoption of cryptocurrency is growing more slowly. Around 21 per cent of financial institutions reported that their customers are asking for Bitcoin products and services. Although this is still a relatively small percentage, 35 per cent of banks believe that offering cryptocurrency options could give them a competitive edge. Banks are also feeling the heat from fintech companies like PayPal, Stripe, and Venmo. Jamie Dimon, CEO of JPMorgan Chase, has called these fintechs "enormous competitive threats" to traditional banking. The popularity of fintechs has only increased during the pandemic, with many consumers turning to these platforms for their financial needs. Despite the competition, some banks are partnering with fintechs to stay relevant. According to the report, 50 per cent of banks and 40 per cent of credit unions have teamed up with fintech companies in the past three years to enhance their digital offerings. Looking ahead, many experts believe that the future of banking will revolve around personalised experiences. However, only about a quarter of financial institutions are currently using hyperpersonalization to gain a competitive advantage. There's a growing opportunity for banks to leverage personalised recommendations and offers to better serve their customers. Data is also playing a crucial role in this digital transformation. Most banks are now using data analysis to improve customer experiences, guide decision-making, and reduce development time and costs. By unlocking the potential of customer data, banks can better anticipate their clients' needs and offer tailored solutions. Allison Cerra Chief Marketing Officer at Alkami Technology, said, "We are now at a place where technology has democratised financial advice and counsel. It is no longer just the privileged upper class who can afford to get financially fit and prepare for the future."

78 pc of consumers choose digital banking over cash transactions

<keyword id="20190045" type="General" weightage="20" keywordseo="Industry-body" source="keywords">Industry body</keyword> <keyword id="21568150" type="General" weightage="20" keywordseo="SME-Chamber-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="SME Chamber of India" meta.hostid="261" meta.entityid="SME Chamber of India">SME Chamber of India</keyword> has urged <keyword id="19956758" type="General" weightage="20" keywordseo="Finance-Minister" source="keywords">Finance Minister</keyword> <keyword id="19916618" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> to continue the 45-day <keyword id="21233021" type="General" weightage="100" keywordseo="MSME-payment-rule" source="keywords">MSME payment rule</keyword> for <keyword id="20008810" type="General" weightage="20" keywordseo="corporates" source="keywords">corporates</keyword> and other buyers. According to Section 43B(h) of the <keyword id="19936187" type="General" weightage="20" keywordseo="Income-Tax-Act" source="keywords">Income Tax Act</keyword>, introduced through the <keyword id="19955404" type="General" weightage="20" keywordseo="finance" source="keywords">Finance</keyword> Act 2023, if a larger company does not pay an MSME on time -- within 45 days in case of written agreements -- it cannot deduct that expense from its taxable income, leading to potentially higher taxes. The government in last year's Budget added a new clause under Section 43B of the Income Tax Act to address the challenge of delayed payments faced by MSMEs in the country. "We are pursuing not to change the 45-day MSME payment rules imposed by the Department under the pressure of corporates or multinational companies to save the life span of the MSME sector. Section 43B(h) of the Income Tax Act reinforces the importance of timely payments by mandating that companies settle payments to MSME vendors within 45 days to qualify for deductions," SME Chamber said in a statement addressed to Sitharaman. The industry body argued that this provision serves as a powerful incentive for companies to adhere to payment timelines, thereby supporting the financial health of MSMEs. "Many MSMEs are NPA victims of corporates, who are buying from them and not dealing through the TReDs platform. Most of the corporates and multinational companies are forcefully insisting to deregister from the Udyam Portal and insisting not to deal through the TReDs platform," SME Chamber stated. The industry body also urged the finance minister to consider providing Rs 5 crore loans under the "Differential Rate of Interest" scheme for micro and <keyword id="20569966" type="General" weightage="20" keywordseo="small-enterprises" source="keywords">small enterprises</keyword>. It suggested changing the NPA definition from 90 days to 180 days for the MSME sector. The chamber also sought the setting up of a task force to review various issues, hurdles, grievances and difficulties faced by MSMEs for availing credit facilities and the lack of approach by the financial institutions towards enhancement of credit flow to the MSME sector.

Continue 45-day MSME payment rule: Industry body to Finance Minister Nirmala Sitharaman

<ul class="summary-list"><li>The American Federation of Teachers filed a lawsuit against student-loan company MOHELA.</li><li>The lawsuit accused MOHELA of mismanaging borrowers' accounts, blocking them from accurate payments and relief.</li></ul>A <a target="_blank" class="" href="https://www.businessinsider.com/mohela-student-loan-borrowers-missed-payments-forbearance-debt-education-department-2023-11">major student-loan company</a> just got hit with a lawsuit over claims it harmed the millions of borrowers it services.On Monday, the American Federal of Teachers filed a <a target="_blank" class="" href="https://protectborrowers.org/mohela_lawsuit/">lawsuit</a> against <a target="_blank" class="" href="https://www.businessinsider.com/fire-student-loan-company-mohela-remove-borrowers-from-roster-biden-2024-5">servicer MOHELA</a>, accusing it of illegally overcharging borrowers on their monthly payments, failing to process paperwork in a timely manner, and giving borrowers inaccurate billing information that kept them from receiving lower payments and debt cancellation.The lawsuit claims that <a target="_blank" class="" href="https://www.businessinsider.com/student-loan-company-mohela-extensive-servicing-delays-repayment-borrowers-warren-2023-9">MOHELA's mismanagement</a> has harmed the 8 million borrowers it services and requests that a judgment be entered requiring MOHELA to provide relief to harmed borrowers for violating consumer protection law."MOHELA was hired by the federal government to help borrowers pay down debt, but instead it hung them out to dry to line its own pockets," AFT President Randi Weingarten said in a statement. "Rather than fulfill its responsibilities, MOHELA has abdicated and deflected them—and it's well past time it's held to account."AFT is one of the largest teacher unions in the US, representing 1.8 million teachers and early childhood educators — many of whom have student debt that qualifies for a major relief program called Public Service Loan Forgiveness.In October 2023, after student-loan payments resumed for federal borrowers after an over three-year pause, MOHELA was the first servicer to have its pay withheld from the Education Department over its <a target="_blank" class="" href="https://www.businessinsider.com/student-loan-company-mohela-late-statements-borrowers-biden-withholding-pay-2023-10">failure to send on-time billing statements</a> to 2.5 million borrowers.The lawsuit claimed that MOHELA did not properly explain the situation to borrowers, resulting in confusion as to how much they should owe, if at all. Additionally, the lawsuit accused MOHELA of <a target="_blank" class="" href="https://www.businessinsider.com/student-loan-bills-are-wrong-borrowers-servicers-fixing-errors-education-2023-11">poor customer service</a> that has left borrowers with unresolved questions that have kept many of them from earning relief through income-driven repayment plans or Public Service Loan Forgiveness."Individually, any one of MOHELA's failings would be sufficient to cause financial, mental, and emotional distress," the lawsuit said. "Collectively, they result in a Kafkaesque experience and make it practically impossible for borrowers to correct account errors, make important decisions to protect their economic well-being, or even confirm basic information about their student loans."MOHELA did not immediately respond to a request for comment from Business Insider on the lawsuit's claims. It previously sent a cease-and-desist letter to the advocacy group Student Borrower Protection Center — one of the groups representing AFT in the lawsuit — following a report from the group on MOHELA's customer service, saying that "any claims that MOHELA does not act in the best interest of the borrowers we serve as a federal contractor is simply not true.""Intentionally spreading false information and narratives about MOHELA's work on behalf of Federal Student Aid does nothing to improve the experience for students and borrowers navigating the federal student loan program and the repayment of their federally owned loans," a MOHELA spokesperson said in April.Democratic lawmakers have also previously targeted MOHELA over failing to fulfill its contractual obligations. In February, Sens. Elizabeth Warren, Chuck Schumer, and Bernie Sanders <a target="_blank" class="" href="https://www.businessinsider.com/student-loans-mohela-schumer-warren-sanders-invesigation-debt-cancellation-mismanagement-2024-2">called for an investigation into the company</a>, and Warren <a target="_blank" class="" href="https://www.businessinsider.com/elizabeth-warren-slams-student-loan-company-mohela-ceo-congress-testimony-2024-4">held a hearing in April</a> on how MOHELA has serviced borrowers."Every borrower in the country has the right to servicing free from unfair and deceptive conduct," SBPC Legal Director Winston Berkman-Breen said in a statement. "Each time MOHELA sends an inaccurate bill, gives wrong advice, or catches a borrower in a customer service doom loop, it violates those rights. Today, on behalf of AFT, we're asking the court to recognize these rights. MOHELA can no longer profit at borrowers' expense."

A major student-loan company is being sued over claims it mismanaged 8 million borrowers' accounts, blocking them from lower payments and debt relief

<ul class="summary-list"><li>Private equity is sharing profits with employees to boost returns.</li><li>Earlier this year, <keyword id="20144468" type="General" weightage="100" keywordseo="blackstone" source="keywords">Blackstone</keyword> rolled out an ownership plan for employees of HVAC company <keyword id="23252568" type="General" weightage="20" keywordseo="copeland" source="keywords">Copeland</keyword>.</li></ul>The <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/private-equity-investment">private-equity industry</a> is famous for taking control of companies to maximize returns for investors. But when a firm exits a deal, employees are often left with nothing but a new owner. The newest rage in <a target="_blank" class="" href="https://www.businessinsider.com/wall-street-private-equity-woes-debt-stock-market-interest-rates-2023-12">private equity</a> seeks to flip that model on its head by offering employees equity on top of their regular salaries. By giving employees a share of potential profits, the thinking goes, everyone is incentivized to meet the goals required to sell the company or take it public through an IPO, which could lead to a larger return faster. But how do these programs work? Which employees stand to gain? How much money might they make? <a target="_blank" class="" href="https://www.businessinsider.com/how-to-succeed-at-blackstone-schwarzman-gray-career-advice-2024-8">Blackstone</a> discussed these and other questions at a September event at its New York City headquarters, and Business Insider was on hand to take notes. The topic of discussion was an employee-ownership program <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-stock-price-private-equity-steve-schwarzman-kkr-apollo-2024-5">Blackstone recently rolled out at Copeland</a>, one of the largest manufacturers of compressors used in heating and cooling applications like HVAC and refrigeration. Copeland's CEO said that the program, which doled out stock to some 18,000 employees, was one of the largest for any private-equity-owned company and that it had already helpedboost employee engagement. Here's a look at Blackstone's employee-ownership program at Copeland, including how it works and why employee ownership isspreading like wildfire at private-equity-owned companies. <h2>The rollout</h2>Blackstone acquired Copeland in May 2023 in a deal that valued it at $14 billion. Copeland had previously been a unit of publicly traded Emerson Climate Technology but was spun out as part of the sale to Blackstone. In May 2024, Blackstone rolled out an employee-ownership program to Copeland's 18,000 employees — the first of a larger initiative to start offering stock to employees of any new US-based company controls, according to a Blackstone memo to investors obtained by BI. At a careers event at Blackstone's headquarters in September, Copeland's CEO, <keyword id="23618352" type="General" weightage="20" keywordseo="ross-shuster" source="keywords">Ross Shuster</keyword>, said the HVAC company's employee-ownership program's 18,000 employees are spread across 43 countries, creating logistical challenges. "So as we were looking at deploying this, we were stewarding the team, talking to unions and works councils, and making sure we didn't inadvertently trigger a tax consequence for someone with a grant," he said. <div type="image" title="Many employees sitting in a cafeteria, with a sign that says Copeland Cafe, as they are spoken to by a man on the stage." height="432" width="768" msid="114324041" hostid="261"></div><h2>Inside the plan</h2>The biggest challenge, <keyword id="23618349" type="General" weightage="20" keywordseo="shuster" source="keywords">Shuster</keyword> said, was making sure that all 18,000 employees understood the model. To do that, Copeland shut down all of its plants one day so that every employee could watch a roughly half-hour video explaining the program, dubbed in eight languages, followed by additional communications to employees. Copeland's employees learned that they stand to receive a cash bonus payment or stock grant from the company when Blackstone sells the company or brings it public — as long as they're still employed at the firm. The size of any individual employee's stake will depend on several factors, including their rank, their tenure at the company, and most importantly, the overall success of the deal. Success in<a target="_blank" class="" href="https://www.businessinsider.com/more-startups-get-bought-up-by-private-equity-vc-2024-8"> private equity</a> is often evaluated by how much money a deal generates compared to the initial investment. The higher the multiple on invested capital, the higher the payout. The video, Shuster said, explained how to value a company and technical concepts like EBITDA, valuation, and cash flow. It also spoke to employees about how they, personally, might play a role in generating a bigger return. "How do you impact those things if you're in procurement? How do you impact cost and cashflow through contractual terms," Shuster said. "If you're on the production floor, how do you have an impact on customer satisfaction and productivity." Copeland's Chief Human Resources Officer <keyword id="23618351" type="General" weightage="20" keywordseo="stuart-dalgleish" source="keywords">Stuart Dalgleish</keyword> said that after the rollout, 56% of the firm's employees said they understood the program — a number that Shuster said was "as expected for a program of this nature," and that they are focused on increasing it over time. <div type="image" title="Three men in business suits sit on a couch with an audience in the foreground and text in the back that reads Blackstone Career Pathways 2024 Summit" height="5760" width="8640" msid="114324040" hostid="261"></div><h2>Early signs of success</h2>Despite the program's recent launch, Copeland is already seeing results. The company's employee engagement results went from the 25th percentile at the time Copeland was carved out from Emerson Electric to the 90th percentile in the span of a year, which Dalgleish said is "an incredibly rare feat to which this program contributed." Speaking at the Blackstone event in Manhattan, Shuster said that a supervisor told him that the program had completely changed his conversations with direct reports. The supervisor said conversations are now more of "an open discussion." He went on to explain: "These are the great things we're doing in the business to make a better company, and we're all going to win from this. These are the things that aren't going so well, and we've got to improve on." "The discussion is different when you're talking to individuals who don't have a financial stake," Shuster added. Employees are also starting to ask more financial questions, Shuster said. "I got questions at the level that I would expect to get from the board coming from production," Shuster said. "That's the culture you want to build." <h2>Why now?</h2>This wasn't Blackstone's first employee-ownership deal. The firm has implemented employee ownership at <a target="_blank" href="http://Ancestry.com">Ancestry.com</a> and <a target="_blank" class="" href="https://www.businessinsider.com/theme-parks-dynamic-pricing-legoland-madame-tussauds-merlin-entertainments-2024-3">theme-park operator</a> Merlin Entertainment, among others. The 2005 Merlin Entertainment initiative created 2,000 employee-owners when Blackstone took the company public in 2012, a number that's since grown to 5,000. But Joe Baratta, global head of private equity at Blackstone, said the time had come to be much more "intentional and systematic" across the private-equity group's operations. <div type="image" title="Man in suit in front of brown background" height="3510" width="2700" msid="114324038" hostid="261"></div>Across the industry, high interest rates have squeezed returns and exit opportunities. As a result, firms have been searching for novel ways to create more value by <a target="_blank" href="https://www.businessinsider.com/portfolio-operations-jobs-rising-stars-of-private-equity-2024-8">drilling down on company operations</a>. Employee ownership offers yet another way to create value by aligning investors, employees, and the portfolio company. "This is the right thing to do for our 18,000 colleagues, but it is also an investment for business," Copeland's Shuster said. "And with any investment, there is also an expected return on that investment." Blackstone's current initiative, which grew out of a talent development and employee engagement program called<a target="_blank" href="https://www.businessinsider.com/blackstone-career-pathways-training-internships-data-center-talent-portfolio-companies-2024-9"> Career Pathways</a>, comes amid an industry-wide push led by <keyword id="19924483" type="General" weightage="20" keywordseo="kkr" source="keywords">KKR</keyword>. KKR drastically expanded its <a target="_blank" href="https://www.businessinsider.com/top-wall-street-executives-rising-stars-investing-trading-2024#alissa-song-31-kkr-1">employee-ownership program</a> after seeing outsized returns at garage-door manufacturer CHI Overhead Doors in 2015. The firm has since awarded billions of dollars of equity to over 120,000 nonsenior management employees across more than 55 portfolio companies. KKR's global cohead of private equity, Pete Stavros, also helped found the nonprofit Organizing Works to encourage the adoption of this model across the private equity industry and beyond. A KKR spokesperson said the company's portfolio currently boasts nearly 100,000 employee-owners, and its single-largest program has 20,000 people enrolled. "This has become an industry-wide movement," the spokesperson said. <h2>The payouts</h2>Blackstone didn't specify the size of the stakes granted to Copeland's employees, but payouts have been substantial in some well-publicized deals at other firms. When <a target="_blank" class="" href="https://www.businessinsider.com/top-wall-street-executives-rising-stars-investing-trading-2024#alissa-song-31-kkr-1">KKR launched its employee-ownership program</a> at CHI, the firm told employees that if KKR hit its goals, employees could earn about a year's salary, KKR's Stavros recently told NPR's "<keyword id="23618350" type="General" weightage="20" keywordseo="ted-radio-hour" source="keywords">Ted Radio Hour</keyword>." The CHI deal eventually led to a return of 10 times the firm's initial investment, one of KKR's best-performing deals of all time, resulting in average payouts of $175,000 for "frontline" factory workers. The longest-tenured employees ended up with much more, or six and a half times their annual income. "We had factory floor workers make half a million dollars," Stavros said. "Some truck drivers made $800,000." One factory worker, Josh Ryan, told NPR that he was able to start college funds for all four of his children, renovate his family's house, and pay down some of his mortgage. KKR's September sale of GeoStabilization International to Leonard Green &amp; Partners led to a five times return on investment, resulting in a <a target="_blank" class="" href="https://www.businessinsider.com/workers-kkr-company-geostabilization-payouts-private-equity-ownership-works-2024-9">$75 million equity payout</a> being shared among the company's non-management employees. The company's longest-tenured hourly employees will receive at least $325,000 in cash payouts when the deal is finalized. Such payouts may prove the exception, however. The amount any one employee might receive is determined by far more than the size of the return, including how much equity is put aside for workers and the number of employees splitting that money. A KKR spokesperson told BI that payouts across their portfolio so far have averaged about a year's worth of pay, with more tenured employees earning more than that. When setting up an employee-ownership plan, the firm typically aims for payouts equal to nine months' salary with a minimum goal of six-months' worth of pay. Copeland executives are hopeful that its program will have a major impact on the firm's 18,000 employees. "I really want to get to a point where, through the benefits of the program, people can maybe put their kids through school, or they might put a deposit on a house purchase," Dalgleish said. KKR has a stake in Business Insider's parent company, Axel Springer. Correction: October 18, 2024 — An earlier version of this article said Copeland was the largest employee-shareholder program for a private-equity-owned company. It is one of the largest.

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