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<a href="http://www.businessinsider.in/DoYou-Need-Aadhaar-Card-Govt-Says-Yes-Supreme-Court-Says-No/articleshow/22981267.cms">Controversy</a> is still raging over the mandatory use of <keyword id="144117" type="ORGANIZATION" weightage="100" keywordseo="AADHAAR">Aadhaar</keyword>, but an expert <keyword id="2006823" type="UNKNOWN" weightage="100" keywordseo="Committee-on-financial-inclusion">committee on financial inclusion</keyword> has already recommended that the <keyword id="6354335" type="CITY" weightage="100" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> should leverage the <keyword id="2006820" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-network">Aadhaar network</keyword> to ensure that every Indian has a <keyword id="2006817" type="UNKNOWN" weightage="100" keywordseo="Free-bank-account">free bank account</keyword> by January 2016. The recommendation has come from the Committee on Comprehensive <keyword id="2006821" type="UNKNOWN" weightage="100" keywordseo="Financial-Services-for-Small-Business">Financial Services for Small Business</keyword> and Low-Income Households, which is headed by <keyword id="311391" type="PERSON" weightage="100" keywordseo="Nachiket-Mor">Nachiket Mor</keyword>, an <keyword id="2006825" type="UNKNOWN" weightage="100" keywordseo="RBI-board-member">RBI board member</keyword> and former <keyword id="6653" type="CITY" weightage="100" keywordseo="ICICI-bank">ICICI Bank</keyword> executive. 
 <keyword id="30067" type="ORGANIZATION" weightage="100" keywordseo="RBI">RBI</keyword> set up the committee last September and it has now sought comments from the public on the <keyword id="1180163" type="UNKNOWN" weightage="100" keywordseo="draft-recommendations">draft recommendations</keyword> on or before January 24, 2014. Other key members of the panel include former <keyword id="44473" type="CITY" weightage="80" keywordseo="Citigroup">Citigroup</keyword> CEO <keyword id="25396" type="PERSON" weightage="100" keywordseo="Vikram-Pandit">Vikram Pandit</keyword> and <keyword id="2006826" type="UNKNOWN" weightage="100" keywordseo="Axis-Bank-CMD">Axis Bank CMD</keyword> <keyword id="6356453" type="PERSON" weightage="100" keywordseo="Shikha-Sharma">Shikha Sharma</keyword>. 
 According to the report, every Indian resident over 18 years of age should be automatically issued a “universal <keyword id="2006829" type="UNKNOWN" weightage="100" keywordseo="Electronic-bank-account">electronic bank account</keyword> at the time of receiving his/her <keyword id="485058" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-number">Aadhaar number</keyword>.” One can choose his/her <keyword id="2006832" type="COMPANY" weightage="100" keywordseo="Preferred-bank">preferred bank</keyword> from the empanelled ones and need not pay any fee for opening an account. However, the bank can levy <keyword id="162862" type="UNKNOWN" weightage="100" keywordseo="transaction-charges">transaction charges</keyword>, the committee says. It also recommends setting up of a ‘unified’ redressal agency under the <keyword id="47209" type="ORGANIZATION" weightage="100" keywordseo="Finance-Ministry">finance ministry</keyword> to deal with <keyword id="786199" type="UNKNOWN" weightage="100" keywordseo="customer-complaints">customer complaints</keyword>. 
 About 90% of small businesses have no links to a <keyword id="154831" type="ORGANIZATION" weightage="100" keywordseo="financial-institution">financial institution</keyword> and 60% of Indians do not have bank accounts, the report states. “Aadhaar is the key piece of infrastructure to enable a customer to be identified and authenticated so that repudiation and fraud risks are minimised and therefore, should become the universal basis for authentication,” it adds. 
 The panel has also suggested that a special type of <keyword id="6368751" type="PERSON" weightage="100" keywordseo="Banks">banks</keyword> should be introduced to provide payment services and deposit products to small businesses and low-income households. Such banks could be categorised as <keyword id="2006841" type="UNKNOWN" weightage="100" keywordseo="Payments-banks">payments banks</keyword> and “they will be restricted to holding a <keyword id="2006842" type="UNKNOWN" weightage="100" keywordseo="Maximum-balance">maximum balance</keyword> of Rs 50,000 per customer,” the report says. Even <keyword id="2006844" type="UNKNOWN" weightage="100" keywordseo="Existing-lenders">existing lenders</keyword> can set up these payments banks as <keyword id="4128451" type="UNKNOWN" weightage="100" keywordseo="subsidiaries">subsidiaries</keyword>. The report also recommends setting up another category of wholesale banks that will provide funds to other banks and financial institutions that directly lend to low-income households. 
 On the face of it, the recommendations to introduce a multi-layered <keyword id="6354778" type="ORGANIZATION" weightage="100" keywordseo="Banking">banking</keyword> system make sound sense as these ‘proposed’ entities will be serving the <keyword id="2006855" type="UNKNOWN" weightage="100" keywordseo="Financially-weak">financially weak</keyword> segment of the country and overall, the inclusion plan for 2013-2016 looks good. 
 
Except for the Aadhaar part. 
 But before we go ahead, let us have a look at Aadhaar and what all it offers. Launched by the <keyword id="86474" type="ORGANIZATION" weightage="100" keywordseo="Unique-Identification-Authority-of-India">Unique Identification Authority of India</keyword> (<keyword id="6355252" type="CITY" weightage="100" keywordseo="UIDAI">UIDAI</keyword>), the <keyword id="804646" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-scheme">Aadhaar scheme</keyword> was initially introduced to ‘promote inclusion and benefits of the <keyword id="1389586" type="UNKNOWN" weightage="100" keywordseo="marginalised-sections">marginalised sections</keyword> of the society that has no <keyword id="2006861" type="UNKNOWN" weightage="100" keywordseo="Formal-identity-proof">formal identity proof</keyword>.’ Even today, Aadhaar-enabled services are essentially linked to various <keyword id="580043" type="UNKNOWN" weightage="100" keywordseo="government-welfare-schemes">government welfare schemes</keyword> – so that its beneficiaries can access the same in a hassle-free manner. 
 However, the ‘<keyword id="2006816" type="UNKNOWN" weightage="100" keywordseo="Banking-for-all">banking for all</keyword>’ initiative in its ‘suggested’ format cannot be a marginalised movement, aimed to serve only the under-banked/unbanked regions or the weaker section or those below the <keyword id="141042" type="ORGANIZATION" weightage="100" keywordseo="poverty-line">poverty line</keyword>. It has to have a <keyword id="2006866" type="UNKNOWN" weightage="100" keywordseo="Unified-structure">unified structure</keyword> across the country – involving every Indian citizen. In other words, it will be much like the ‘<keyword id="49358" type="UNKNOWN" weightage="100" keywordseo="voter-card">voter card</keyword>’ mechanism we have in place right now. At the age of 18, an Indian is entitled to get a voter card irrespective of the <keyword id="2006868" type="UNKNOWN" weightage="100" keywordseo="Financial-divides">financial divides</keyword>. Going forward, if the central bank intends to follow the same principle and wants to bring the entire population of the country under its <keyword id="2006870" type="UNKNOWN" weightage="100" keywordseo="Inclusion-umbrella">inclusion umbrella</keyword> (after all, one cannot leave one section of the citizens out of a <keyword id="2006871" type="UNKNOWN" weightage="100" keywordseo="Mass-initiative">mass initiative</keyword> just because they are financially more stable), opening an account at the stipulated age should become mandatory and that means a mandatory <keyword id="1953676" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-validation">Aadhaar validation</keyword>. 
 And that brings us back to the basic question – what is the legal status of Aadhaar in India? Is it just a <keyword id="107911" type="ORGANIZATION" weightage="100" keywordseo="Financial-inclusion">financial inclusion</keyword> tool for the economically weak or do the government agencies intend to turn it into an ‘all-inclusive’ tool required for every social and <keyword id="672932" type="ORGANIZATION" weightage="100" keywordseo="economic-activity">economic activity</keyword> – right from <keyword id="427269" type="UNKNOWN" weightage="100" keywordseo="Marriage-registration">marriage registration</keyword> to <keyword id="854003" type="UNKNOWN" weightage="100" keywordseo="land-registration">land registration</keyword>, from banking to <keyword id="6368952" type="ORGANIZATION" weightage="100" keywordseo="shopping">shopping</keyword> and more? 
 The RBI has already asked banks to ensure <keyword id="1953683" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-authentication">Aadhaar authentication</keyword> for <a href="http://www.businessinsider.in/Now-RBI-Wants-Aadhaar-Validation-For-Card-based-Transactions/articleshow/26473660.cms">card transactions</a> at merchant locations. “All new card present infrastructure has to be enabled for both <keyword id="1953693" type="UNKNOWN" weightage="100" keywordseo="EMV-chip-and-PIN">EMV chip and PIN</keyword> and Aadhaar (<keyword id="1953679" type="UNKNOWN" weightage="100" keywordseo="Biometric-validation">biometric validation</keyword>) acceptance,” the central bank stated in a notification on November 26 last year. 
 Although the <keyword id="6354977" type="ORGANIZATION" weightage="80" keywordseo="Supreme-Court">Supreme Court</keyword> has ruled that the <keyword id="6356006" type="UNKNOWN" weightage="100" keywordseo="Aadhaar-card">Aadhaar Card</keyword> is not mandatory to get <keyword id="1739662" type="UNKNOWN" weightage="100" keywordseo="government-benefits">government benefits</keyword> and services, and the <keyword id="1878758" type="UNKNOWN" weightage="100" keywordseo="National-Identity-Authority-of-India-Bill">National Identity Authority of India Bill</keyword> is yet to get Parliamentary nod, Aadhaar seems to be enjoying a more hallowed status and getting its teeth deep into every key financial transaction one can think of. That might not be quite desirable at this stage as divulging <keyword id="441301" type="UNKNOWN" weightage="100" keywordseo="biometric-data">biometric data</keyword> (required for Aadhaar Card) is still considered voluntary and <keyword id="2006881" type="UNKNOWN" weightage="100" keywordseo="Secure-storage">secure storage</keyword> of the same cannot be guaranteed even now. 
 The rest of the recommendations by the committee dwell on the structure and requirements of the <keyword id="2006882" type="UNKNOWN" weightage="100" keywordseo="Proposed-banks">proposed banks</keyword>, <keyword id="6597293" type="UNKNOWN" weightage="100" keywordseo="priority-sector-lending">priority sector lending</keyword> and deposits, and classification of non-banking financial companies (NBFCs). 
 Interestingly, the payment banks will be required to meet the standard <keyword id="35038" type="ORGANIZATION" weightage="80" keywordseo="crr">CRR</keyword> terms and must also deposit the balance proceeds in approved <keyword id="838337" type="UNKNOWN" weightage="100" keywordseo="SLR-securities">SLR securities</keyword> with duration of no more than three months. As they won’t be permitted to assume any kind of <keyword id="854662" type="UNKNOWN" weightage="100" keywordseo="Credit-risk">credit risk</keyword>, which literally rules out any risk of default, the <keyword id="2006891" type="UNKNOWN" weightage="100" keywordseo="Minimum-entry-capital">minimum entry capital</keyword> for them will be Rs 50 crore instead of the Rs 500 crore required for full-service commercial banks in the country. Also, the wholesale banks cannot accept deposits bigger than Rs 5 crore from a single depositor. 
 The RBI had launched a three-year financial <keyword id="2006853" type="UNKNOWN" weightage="100" keywordseo="Inclusion-programme">inclusion programme</keyword> in April 2010, which prompted banks to open outlets in 200,000 villages. The current recommendations seek to deepen such access and experts even feel that the new banking licences, to be announced soon, can be categorised accordingly. But both the government and the RBI should ensure that the programme becomes ‘inclusive’ in the true sense of the term and validation issues should not throw a spanner in the works.

Aadhaar Gaining More
Teeth, To Play Key Role In ‘Banking For All’

New Delhi, Mar 11 () Yes Bank along with SBI is in discussions with a large number of investors to raise capital, RBI-appointed administrator Prashant Kumar has said while assuring bank customers that their deposits are "absolutely safe". Kumar in an email to bank customers has said that the bank is closely working with the government and the RBI towards resuming full banking services at the earliest, well before the communicated date of April 3. The cash-starved private sector lender has come under the direct oversight of the Reserve Bank with the supersession of its board last Thursday and a moratorium has been placed till April 3, during which customers are now allowed to withdraw up to Rs 50,000."With respect to capital raising, along with the State Bank of India, we are in discussions with a large number of investors and are hopeful that in the next few days, there will be complete clarity in this regard," Kumar updated bank customers in an email sent last night."Please be assured that our customers are our topmost priority and once again, I would like to re-iterate that your deposits are absolutely safe with the Bank," said the mail by Prashant Kumar - Administrator, Yes Bank (appointed by the Reserve Bank of India).Addressing the customers he said: "I understand that you are facing inconvenience owing to the unavailability of certain banking services by YES BANK."I assure you that this is temporary, and we are working closely with the government and the RBI towards resuming full banking services at the earliest, well before the communicated date of April 3, 2020," Kumar said.Meanwhile, the bank has allowed customers to pay towards their Yes Bank credit card bill and loan EMIs through IMPS, NEFT and RTGS modes.Also, the ATMs are fully up now and customers can withdraw up to Rs 50,000 from Yes Bank as well as from other banks' ATMs. "On Saturday, withdrawals from our branches and ATMs as well as other bank ATMs, using YES BANK Debit Card were enabled. In addition, inward IMPS and NEFT services have also been enabled to ensure that customers can make payments towards YES BANK credit card dues and loan obligations from other bank accounts," read the Kumar mail.Yes Bank customers on Wednesday were also allowed to make such payments through RTGS.The bank will also announce its third quarter results on March 14, 2020. The bank for the first time has delayed its results announcement, about which it had informed before the RBI action."With respect to capital raising, along with the State Bank of India, we are in discussions with a large number of investors and are hopeful that in the next few days, there will be complete clarity in this regard," Kumar told customers.During the moratorium period, Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan by infusing capital of Rs 2,450 crore.The bank's financial health is not sound and it has failed to raise enough capital under the new leadership of Ravneet Singh Gill, who took charge as the managing director and CEO from March 1, 2019.Troubles at new-generation private sector started brewing up ever since the the Reserve Bank denied extension to its co-founder Rana Kapoor -- who now is in the custody of the Enforcement Directorate on charges of financial mismanagement and money-laundering -- to continue as MD and CEO in September 2018, and had asked the lender to find a new successor.Yes Bank's administrator, Kumar, a former SBI executive, had on Monday also assured customers that the moratorium period could end by this weekend. KPM KPM MRMR

Customers deposits absolutely safe, bank in talks with investors, says RBI-appointed admin

New Delhi, The <keyword id="113282" type="COMPANY" weightage="20" keywordseo="Retailers-Association-of-India">Retailers Association of India</keyword> (RAI) has recommended the government to announce the National Retail policy and allow <keyword id="44446" type="PERSON" weightage="20" keywordseo="retailers">retailers</keyword> to register as MSME in the upcoming <keyword id="6360189" type="COMPANY" weightage="20" keywordseo="union-budget">Union Budget</keyword>. In a statement, RAI noted that the the Indian retail sector was one of the worst impacted due to the pandemic and all efforts are required to boost the local economy and help revive the retail, saving millions of jobs. RAI in its recommendation said that there is a need to expedite the formulation and implementation of the National Policy for Retail Trade. "We believe that such a step would provide a substantial boost to the retail sector and facilitate ease of doing business. We recommend government to announce the policy in <keyword id="8420431" type="UNKNOWN" weightage="20" keywordseo="budget-2021">Budget 2021</keyword>," RAI said. RAI noted that retail trade is not classified under MSME and it does not come under the priority sector. "Therefore, if a person is merely running a departmental store or a retail shop and retailing in products, not manufactured by him, he cannot obtain MSME registration," it said, urging the government to allow retailers to register as MSMEs. It also made several suggestions on taxation. RAI said that GST laws do not allow for a refund where the tax rates on inputs services are higher than that on output and this leads to accumulation of <keyword id="6354680" type="UNKNOWN" weightage="20" keywordseo="credit">credit</keyword> with the company, blocking working <keyword id="36749" type="ORGANIZATION" weightage="20" keywordseo="capital">capital</keyword>. It has recommended allowing a refund of accumulated input tax credit accrued on account of input services, capital goods. Further, as per the current scenario, GST credit is leading to blocked working capital. It said that companies should be allowed to use GST deposit or credit for payment of basic import duty. Speaking on the expectations from the Union Budget 2021-22, Kumar Rajagopalan, CEO, Retailers Association of India said: "The retail industry was almost squashed during the pandemic. It is slowly getting back on its knees with the opening up of the economy." "To get this crawling industry back to its feet and start running, we believe that the budget should address two main things that will bring in Ease of Doing Business for retailers -- freedom from various procedural strangleholds and access to funds necessary for growth," he said. SEE ALSO: <a href="https://www.businessinsider.in/defense/news/these-amazing-facts-about-the-indian-army-will-make-you-beam-with-pride/slidelist/80270052.cms">Army Day 2021: These amazing facts about the Indian Army will make you beam with pride</a> <a href="https://www.businessinsider.in/business/corporates/news/hcl-tech-clocks-in-nearly-27-jump-in-profit-crosses-the-10-billion-revenue-in-third-quarter-of-year-2020-21/articleshow/80278852.cms">HCL Tech clocks in nearly 27% jump in profit, crosses the $10 billion revenue milestone with one more quarter left</a> <a href="https://www.businessinsider.in/india/news/india-will-begin-its-covid-19-vaccination-drive-tomorrow-heres-everything-you-need-to-know/articleshow/80281740.cms">India will begin its COVID-19 vaccination drive tomorrow — here’s a look at how the world’s largest vaccine rollout is set to take place</a>

Budget 2021: India's retail association seeks a national policy for the battered sector

<ul><li>The total amount of <keyword id="6496248" type="UNKNOWN" weightage="20" keywordseo="deposits">deposits</keyword> by Indians rose 50% to a little over 1 billion Swiss francs (₹70 billion), according to data from the Swiss National Bank. </li><li>Last year marked the first time since 2013 that the funds belonging to Indians in Swiss bank accounts actually increased. </li><li>Indian assets in Swiss banks reached an all-time high of 6.46 billion Swiss francs in 2006, but have steadily declined following the imposition of strict controls on tax avoidance and bank secrecy by Swiss authorities. </li></ul>For the more genteel among us, the country of <keyword id="103" type="COUNTRY" weightage="20" keywordseo="Switzerland">Switzerland</keyword> is synonymous with chocolate, cheese, political neutrality and Roger Federer. For the more financially astute, it is synonymous with <keyword id="6663163" type="UNKNOWN" weightage="20" keywordseo="Tax-dodging">tax dodging</keyword>. While Swiss banking authorities have made efforts to clean up the sector and make it more compliant, the country is still an attractive location for the world’s wealthy in search of a safe place to park their assets. In fact, 2017 marked the first time since 2013 that the funds belonging to Indians in Swiss bank accounts actually increased. The total amount of deposits by Indians rose 50% to a little over 1 billion Swiss francs (₹70 billion), according to <a href="https://data.snb.ch/en/publishingSet/BIDS">data</a> from the Swiss National Bank, the country’s central bank. The increase signifies the impact of the Reserve Bank of <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>’s Liberalised Remittance Scheme, under which the limits on remittances from overseas have eased, as well as the gains domestic investors made in India’s stock markets last year. In comparison, the total amount of foreign-owned assets in Swiss banks inched 3% higher to 1.46 trillion Swiss francs in 2017. A clampdown on secrecy Indian assets in Swiss banks reached an all-time high of 6.46 billion Swiss francs in 2006, but have steadily declined following the imposition of strict controls on tax avoidance and bank secrecy by Swiss authorities. Hence, wealthy Indians have shifted funds to other tax havens like Mauritius and Singapore as a result. At home, the Modi administration has made the crackdown on <keyword id="6356023" type="UNKNOWN" weightage="20" keywordseo="black-money">black money</keyword> and repatriation of funds stashed abroad a top priority, which has also resulted in the decline in Indian deposits in Swiss banks in the last few years. Famously, this was the stated aim of the government’s “demonetisation” initiative in November 2016. In 2015, the government also implemented the Undisclosed Foreign Income and Assets Act, allowing individuals a one-time offer to disclose the value of their assets held abroad. This resulted in the declaration of ₹41 billion worth of assets. In December 2017, Switzerland and India agreed to start sharing tax-related information with each other. This relates to all accounts held by Indians and financial transactions conducted from January 1st, 2018 onwards. The information will likely be made available to Indian authorities on an automatic basis starting in the middle of 2019.

Indians deposited 50% more funds in Swiss banks last year

<ul><li>The <keyword id="44011" type="CITY" weightage="20" keywordseo="power">power</keyword> sector roughly constitutes 20% of all the bad loans on the balance sheets of Indian banks. </li><li>While the resolution of stressed power assets is an urgent priority, the government is also preparing <keyword id="6447217" type="UNKNOWN" weightage="20" keywordseo="reforms">reforms</keyword> to ensure the long-term viability of the sector. </li><li>These include the implementation of a <keyword id="6357205" type="UNKNOWN" weightage="20" keywordseo="direct-benefit-transfer">direct benefit transfer</keyword> scheme for consumer subsidies and the separation of production and distribution operations of power companies. </li></ul>Much has been made of the growing pile of non-performing assets emanating from India’s power sector. A number of power companies such as Jindal India Thermal Power and Lanco Anpara are expected to be referred to insolvency courts following the expiry of a deadline for the resolution of ₹1.7 trillion worth of bad loans from the sector. This is roughly 20% of all the bad loans on the balance sheets of India’s banks. Recognising the problems that are unique to the power sector - like a liquidity crunch and a dearth of power-purchase agreements - and the need to ensure these coal-fuelled projects don’t undergo liquidation, the Indian government is planning to establish <a href="https://www.livemint.com/Industry/H2ttLugifLjwv91QYdnPFM/REC-to-seek-central-banks-nod-for-Pariwartan-ARC.html">an asset reconstruction company</a> (ARC) to resolve stressed power assets. Under its Pariwartan scheme, the state-owned Rural Electrification Corp will set up the ARC to clean up the sector in anticipation of a future revival in demand. Bigger reforms in the works However, the power sector’s problems go well beyond bad loans. While the resolution of bad loans is an urgent priority, the Indian government is also planning to implement a series of reforms to ensure the long-term viability of the sector and its participants. A number of amendments to the Electricity Act of 2003 are in the works. First, the government is looking to establish a direct benefit transfer (DBT) scheme for the targeted distribution of subsidies. The reason power producers and distribution companies are racking up so much debt is because state governments aren’t being able to allocate subsidies to consumers efficiently. A DBT will see the subsidy amount deposited in the bank account of a consumer. Second, the government is also looking to mandate the separation of production and supply operations of power companies, which means that power producers will not supply the electricity they generate. This reduces the complexity of operations and also gives consumers greater choice. Third, it also plans to exempt <keyword id="34553" type="ORGANIZATION" weightage="20" keywordseo="renewable-energy">renewable energy</keyword> producers from licensing requirements in order to encourage thermal power generators to diversify their operations. Finally, payments security protocols are being devised for agreements between producers and distributors to prevent non-payment of dues. The reforms will be a much-needed step. In order to prevent any future pile-up in bad loans, the government needs to improve the supporting <keyword id="17408" type="DOMAIN" weightage="20" keywordseo="infrastructure">infrastructure</keyword> and legislation for the power sector so that projects are capable of generating revenue.

Indian government is planning a package of reforms for the power sector

Even as the <a href="http://www.businessinsider.in/Budget-2016-One-of-Indias-biggest-realtor-Surendra-Hiranandani-says-the-sector-needs-Industry-status-to-survive/articleshow/50929511.cms">Real Estate Sector</a> market is stagnated, the rise in rental housing demand is giving a new face to the metropolitan cities. An analysis of the national rental market of the top 11 cities, by Magic Bricks, showed that demand for residential properties on lease was the highest in <keyword id="6354321" type="CITY" weightage="100" keywordseo="Bengaluru">Bengaluru</keyword> followed by Mumbai and Pune. Large job market in Bengaluru and Pune, high cost of owning a home in Mumbai, increasing migration of people to the city led to the growth. 

	But the rise is just recent, over the past few months. The <a href="http://www.businessinsider.in/Budget-2016-Impact-of-FDI-in-real-estate-sector-and-future-expectations/articleshow/50866872.cms">problem</a> is not so much with supply as it is with the shortage of demand. As the country faces a shortage of 19 million houses, around 10.2 million completed units are lying vacant, which can be absorbed under rental housing programme for weaker sections, a recent report by CBRE stated.
 

	According to CBRE, around 56 per cent of the shortage of 19 million units is from the economically weaker section (EWS) with an average annual household income of up to Rs 1 lakh, while around 40 per cent in the lower income group (LIG) with an income of Rs 1-2 lakh.
 

	A major reason which has been holding back its growth is the lack of any regulatory framework.
 

	Factors leading to shortage of demand
 

	1. No generalisation of rent- There are no framework to regulate rent and as a result individuals ask rent according to his will. High rent scares away prospective customers.
 

	2. No fixed framework for the Deposit money
 

	“Sometimes owners ask three months deposit, sometimes they ask 10 months deposit. This hinders the growth of demand,” said Sudarshan Purohit, CEO and co-founder of Zenify.in.
 

	3. There is no regulation for brokers also. 
 

	“Today anybody can become a broker. There should be licensing and background check done for every broker,” said Sudarshan.
 

	4. No fixed framework for rent agreement- anything and everything is included in a rent agreement, from the high hike in rent to cost of damage control. This fends off the customers too.
 

	5. Lack of any regulation on the hike of rent 
	 
	The supply in the sector is why <a href="http://www.businessinsider.in/Heres-why-Budget-2016-is-crucial-for-the-real-estate-sector/articleshow/50835775.cms">Budget 2016</a> should give utmost importance to this particular section of the sector.
 

	Recommendations for <keyword id="2783177" type="UNKNOWN" weightage="100" keywordseo="Budget-2016">Budget 2016</keyword>
 

	1. When ‘<a href="http://www.businessinsider.in/Housing-for-All-Budget-2016-expectations/articleshow/50901695.cms">Housing for All 2022</a>’ was finally launched by the NDA government last year, it was only about providing 20 million houses on ownership basis by 2022 with an approximate central commitment of Rs 3 lakh crore. There was no mention about ensuring 20 % of the units should be for rental housing, as was proposed earlier. This should be looked into on priority.
 

	2. The government should fast track the process of preparing the Draft National Urban Rental Policy 2015 and Draft Model Tenancy Act 2015.
 

	3. Increase <a href="http://www.businessinsider.in/Budget-2016-Tax-breaks-will-increase-penetration-of-Digital-Literacy-says-Bhaskar-Choudhuri-of-Lenovo/articleshow/50916483.cms">Tax</a> exemption for rental income from 30 % to 50 % while giving woman headed households full exemption

	 
	 
	(Image credits: indiatimes)

Budget 2016: Why rental housing is the next big thing in the realty sector

Mumbai, <keyword id="21027898" type="General" weightage="20" keywordseo="indian-real-estate-investment-trust" source="keywords">Indian Real Estate Investment Trust</keyword> (REIT) industry on Wednesday pitched for the entities to get access to direct bank lending and classification as equities. At present, such vehicles can issue bonds or borrow from non-bank lenders or mutual funds, but are prohibited to borrow from banks, said the <keyword id="21027897" type="General" weightage="20" keywordseo="indian-reits-association" source="keywords">Indian REITs Association</keyword> (IRA), a newly formed umbrella body for the five-year-old sector, which comprises four listed entities. The body's Chairman and Embassy REIT's Chief Executive <keyword id="21027895" type="General" weightage="20" keywordseo="arvind-maiya" source="keywords">Arvind Maiya</keyword> told reporters it is in touch with the RBI (<keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword>) for allowing banks to lend to such vehicles. The real estate industry is asset-heavy and needs funds regularly to buy assets for which it should be allowed to borrow directly from banks, he added. Typically, banks have access to deposits which brings down the cost of funds, and hence, the cost of borrowing can become softer for a borrowing entity. <keyword id="21027894" type="General" weightage="20" keywordseo="alok-aggarwal" source="keywords">Alok Aggarwal</keyword>, the Managing Director and Chief Executive of Brookfield India Real Estate Trust, said, at present REITs are classified as a "hybrid" instrument which creates confusion in the minds of the investors. <keyword id="21027896" type="General" weightage="20" keywordseo="maiya" source="keywords">Maiya</keyword> said classification as equities will lead to passive money coming into REITs as the instrument gets included in indices. Other geographies like Singapore, which has inspired the Indian REIT regulations, as well as the US, treat the instrument as equity, he said, stressing that all the features of the instrument are similar to equity. An industry participant said the tax advantages which it gets courtesy of the hybrid status will continue even if it is classified as equity, while another hoped that it can also get gains from a taxation front courtesy of the Long Term Capital Gains (LTCG) which is applicable for equity. The IRA said there are lots of opportunities for the REITs sector to grow in the country, both from a supply side, where the demand for real estate is bound to keep growing and also on the demand for such instruments as Indians look for newer asset classes. <keyword id="20375329" type="General" weightage="20" keywordseo="ramesh-nair" source="keywords">Ramesh Nair</keyword>, the Chief Executive of Mindspace REIT, said the <keyword id="20069427" type="General" weightage="20" keywordseo="global-capability-centres" source="keywords">Global Capability Centres</keyword> (GCCs) of multinationals alone present a very handsome opportunity for the REITS story in the country. Citing the experience in the US, industry executives said there will be dedicated REITs for specific aspects like warehousing and residential properties. When asked about the lack of demand in the residential space till now -- three Indian REITs are in commercial space while the fourth is in retail -- an industry executive said the yields are very low at 2-3 per cent which prevents REITs' play. Nair said the sector wants to reach out to mutual funds' lobby grouping Amfi to learn and partner with them, given that the REIT's current priority is also to create awareness among the investors.

Real estate investment trust pitch for direct bank lending, classification as equity

<ul class="summary-list"><li>As chaos rips through the banking sector, Mike Novogratz said the case for crypto is more prominent now.</li><li>Banks have been sitting on an "orgy of debt," the Galaxy CEO said, leaving customers exposed.</li></ul>Galaxy Digital CEO Mike Novogratz said the bull case for cryptocurrencies is even more prominent now as turmoil in the banking sector continues to unfold.The slew of bank failures within the past month has highlighted weaknesses in the traditional monetary system and bitcoin's ability to eliminate many of its financial woes, he said at the <a href="https://www.youtube.com/watch?v=IR3xfQvdBRw&amp;t=2s" target="_blank" rel="noopener">FII Priority summit.</a>"In a lot of ways, this is crypto's moment," Novogratz said.He alluded to bitcoin's often-cited use case as an inflation hedge because the crypto's finite supply of 21 million will help it retain value.And unlike the Federal Reserve in the US, the digital currency is a peer-to-peer transaction system on a public ledger that lacks a centralized authority, making it less subject to decisions from a single source."We've just had a banking crisis in the United States, right? Satoshi started the Bitcoin white paper because he saw populism coming," Novogratz said, referencing the writing of the crypto's pseudonymous founder in 2008. "He didn't trust [that the] governments could control themselves so they would spend and spend and would debase fiat currency."In theory, the government cannot devalue the currency because there's no single authoritative body. Users can also hold their crypto in a digital wallet and avoid the risk of a bank run. "We just had an episode where we looked around and we're like: 'Oh my goodness. Our regional banks [and] our money-centered banks all have been on this orgy of debt.' [They've had extremely] low interest rates for too long," he said. "There's trillions of dollars of bad debt out there."Silicon Valley Bank's failure earlier this month highlighted the massive unrealized losses sitting in the balance sheets of other banks, which bought up government-backed debt then saw their value drop as the Fed hiked interest rates. On the other hand, government intervention and regulation can help investors recoup losses. If there's a fraudulent project or an insolvent crypto exchange like Sam Bankman-Fried's FTX, the Federal Deposit Insurance Corporation won't be able to step in and backstop customers.

Mike Novogratz says it's crypto's moment to shine as markets watch trillions of bad debt spark a global banking fiasco

Union Minister for Road Transport and Highways, <keyword id="26680" type="General" weightage="50" keywordseo="nitin-gadkari" source="Orion">Nitin Gadkari</keyword> on Tuesday launched <keyword id="3367686" type="General" weightage="100" keywordseo="bharat-ncap" source="Orion">Bharat NCAP</keyword>, India's own crash testing safety programme, saying that it was a historic day for the country and that requests have been received for crash testing of 30 models. Addressing a gathering following the launching of Bharat NCAP, <keyword id="6361025" type="General" weightage="80" keywordseo="gadkari" source="Orion">Gadkari</keyword> said: "Today is a very important day in the history of Indian automobile industry but even also it is important for the society. I really appreciate the way in which the Indian automobile industry cooperates and because of their cooperation today it is a time for all of us that we are launching the Bharat NCAP programme." Regarding the programme, the Minister said: "It was a mission of the government. Cost of testing from abroad is Rs 2.5 crore and in India under the Bharat NCAP it is Rs 60 lakhs. And with global standards your market is going to increase. I am really happy that it is helpful for the consumers. By the star rating people can understand the quality of the product and now we are going to create awareness in the mind of the people." He also said that there is a huge demand for higher star rating vehicles. "People are cautious about safety, pollution. People want to use different type of fuel. If anywhere there is a new alternative available then they are ready to use," he said. "Today we have got a request to test and certify 30 models from several manufacturers. We have received 30 vehicles for the rating under Bharat NCAP and I am happy with the response." Gadkari also highlighted that India is facing two important challenges -- one is road accidents and another is air pollution, and "in some way our Ministry is responsible for that". He said that every year 5 lakh accidents and 1.5 lakh deaths takes place in India. "Every day 1,100 accidents and 400 deaths and every hour 47 accidents and 18 deaths. 70 per cent death is of 18 to 34 years and loss of GDP is 3.14 per cent." He also said head on collisions killed 27,000 people, while 18,000 died due to side collisions. Emphasising on saving lives, Gadkari said that "this is the time we have highest priority for how we can save the lives of the people and road safety is the most important thing for that". "But it is not that only the automobile industry is responsible, somewhere road engineering is a big problem." The Minister further said that at the same time the other important factor is automobile engineering. But these are the things we need to improve. He also said that now the market is not only cost-centric but quality centric. "Now the most important thing which I feel is that the market, the market is not cost centric, but it quality centric. The automotive market in India has been changing lately with consumer's focus shifting from being cost-centric to quality-centric," he said. He also said that "our dream is to make Indian Automobile industry above Rs 15 lakh crore". "When I had taken charge as the Minister, our industry in the world was at number seven. Now just two to three months before we have surpassed Japan and now are at number three. First is China and second is US." Gadkari also said that many of the Indian brands of two wheelers are already exporting 50 per cent of their production and there is also a lot of technologically changes particularly in the form of using different type of fuels. "I am very sure about it that as far as cost is concerned we are very very competitive in the world and in the quality point of view if you are equal to that anywhere whatever the cost maybe in US even I am confident that a day will come that we will be equally reasonable with China also and day will come that people will prefer cost wise and quality wise that they will prefer our vehicle first," he said, adding that for that reason there is huge potential available for the export. "The dream of Prime Minister (<keyword id="6354477" type="General" weightage="50" keywordseo="narendra-modi" source="Orion">Narendra Modi</keyword>) to make India a 5 trillion economy is the basic backbone of the automobile industry, which is one of the largest employers, biggest export and biggest tax payer sector for the government. This industry is giving maximum GST to the state and the Central government. He also asserted that the mission is to make India number one in manufacturing hub in the world." SEE ALSO: <a href="https://www.businessinsider.in/personal-finance/news/how-to-find-unclaimed-bank-deposits-using-udgam-portal/articleshow/102830161.cms">Have unclaimed bank deposits? Here’s how to find it using UDGAM portal</a> <a href="https://www.businessinsider.in/tech/news/indian-pc-market-declines-for-fourth-consecutive-quarter-reports-15-decline/articleshow/102822733.cms">Indian PC market declines for fourth consecutive quarter, reports 15% decline</a> <a href="https://www.businessinsider.in/tech/apps/news/gboard-checkout-upcoming-features-of-google-app/articleshow/102649444.cms">Gboard to onboard AI for stickers, proofreading and more</a>

Nitin Gadkari launches Bharat NCAP, India's car crash test programme

<ul class="summary-list"><li>UBS has agreed to acquire Credit Suisse for $3.2 billion, as the banking crisis rages on.</li><li>The Swiss megadeal has implications for US banks, markets, the economy, and interest rates.</li></ul><a href="https://markets.businessinsider.com/stocks/ubs-stock">UBS</a> has agreed to acquire <a href="https://markets.businessinsider.com/stocks/csgkf-stock">Credit Suisse</a> for 3 billion Swiss francs ($3.2 billion). The government-brokered deal aims to calm jittery investors and depositors, and halt the burgeoning banking crisis before it spirals out of control.The <a href="https://www.businessinsider.com/credit-suisse-ubs-offers-up-to-billion-rescue-deal-report-2023-3">planned mega-merger</a> is just the latest development in a dramatic couple of weeks. Three US banks have folded, regulators have rushed to contain the fallout with emergency measures, and Warren Buffett has <a href="https://www.businessinsider.com/warren-buffett-white-house-investment-in-regional-banks-2023-3">reportedly spoken</a> to senior White House officials about potentially stepping in to save the day.The Swiss agreement has major implications for US investors. They range from its impact on financial markets and the banking sector, to its potential effect on the American economy and interest rates.Here's a closer look at what the deal could mean.<h2>What pressures led to the deal?</h2>Credit Suisse has <a href="https://markets.businessinsider.com/news/stocks/credit-suisse-svb-bank-financial-crisis-stock-price-cds-saudi-2023-3">faced a series of scandals</a> in recent years, ranging from bad bets to corporate espionage. Recently, the Swiss banking giant revealed there were "material weaknesses" in its financial reporting.Investors got worried it could be caught up in the turmoil driven by the US bank failures. Their reaction tanked its stock and bonds, and drove up the cost of insuring against the bank defaulting on its debt.Swiss authorities determined the lender was at risk, and pushed UBS to acquire it. The Swiss National Bank has agreed to lend UBS the equivalent of $108 billion to help it see through the merger.Meanwhile, Switzerland's financial regulator has wiped out $17 billion worth of Credit Suisse bonds and removed the need for UBS shareholders to approve the transaction.<h2>What does it say about the threat to banks right now?</h2>Swiss officials' involvement in the deal, and the substantial sweeteners they've provided to make it happen, suggest they're deeply concerned about the ongoing banking crisis.Those growing worries are reflected in the concerted effort taken by the US Federal Reserve and other central banks at the weekend. They've come together to help foreign banks get access to US dollars by <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20230319a.htm" target="_blank" rel="noopener">offering swap operations every day</a> through April, rather than once a week. The mega-takeover also has clear parallels with the banking deals sealed during and after the 2008 financial crisis. That's when JP Morgan scooped up Bear Stearns and Washington Mutual, Bank of America acquired Merrill Lynch, and Wells Fargo bought Wachovia.If more deals lead to more consolidation in the banking industry, that could reflect pressures on smaller lenders are growing, forcing them to seek safety in the arms of larger, wealthier peers.<h2>What sparked the concerns about banks?</h2>The current turmoil was touched off by Silicon Valley Bank, Signature Bank, and Silvergate all shutting down in the past couple of weeks.In SVB's case, it <a href="https://www.businessinsider.com/silicon-valley-bank-failure-what-happened-bank-run-explained-2023-3">ran into trouble</a> because it had a high percentage of uninsured deposits. It also invested in long-dated bonds that have plunged in price over the past year, as the Fed hiked interest rates.The bank's cash-hungry, venture-capital-backed customers rushed to pull their money out after SVB sold bonds at a loss and tried to raise fresh capital. They were worried the bank could fail, and they would lose most of their cash.The wave of withdrawals overwhelmed the bank, spurring the Federal Deposit Insurance Corp. (FDIC) to take control and later guarantee all of its deposits. The FDIC also took the same action at Signature, while Silvergate voluntarily closed down.Meanwhile, the Fed established an emergency lending program to help banks easily access capital to weather any further pressures. The banks' challenges, and authorities' efforts so far in response to them, made investors sour on global banks, paving the way for UBS to acquire Credit Suisse.<h2>How could the Swiss deal affect markets?</h2>Governments worldwide will be hoping the UBS takeover of Credit Suisse will calm fears about the chance of more bank failures. The Swiss government's "whatever it takes" approach could also help restore faith in the financial system.But investors could interpret the rushed deal — seen as a bailout by some — as a sign of desperation in the face of a real threat to vulnerable banks. On Monday morning, UBS shares slumped 7% and the Euro Stoxx Bank Index slid 1%. That suggest the Swiss bank's shareholders aren't impressed by the deal terms, and that the market isn't reassured about the prospects for other lenders.<h2>What does the transaction mean for the US economy and interest rates?</h2>The UBS-Credit Suisse deal may be a mixed blessing for Americans. It could help to cool inflation, but might also raise the odds of a recession.US inflation spiked to a 40-year high last year, spurring the Fed to lift interest rates from nearly zero to upwards of 4.5% over the past 12 months — and it could raise them again at its meeting this week.Rate hikes help curb price increases as they make borrowing more costly and encourage people to save instead of spend. But at the same time, they can dampen consumer demand and weigh on the prices of stocks and other assets. They can also lift the risk of a recession by pushing unemployment higher.Americans could see the UBS-Credit Suisse deal as evidence of serious underlying problems in banks and the wider financial system.As a result, they might become more conservative in their spending, investing, and hiring — and that might not change until they're certain more banks aren't going to fail. They need to be reassured they aren't going to lose their jobs or suffer a big blow to their retirement savings.That could help the Fed in its inflation fight, but might pose to a risk to financial stability and employment — two other priorities for the central bank.Fed officials could face a situation where they want to hike rates further to crush inflation, but doing so could heap further pressure on lenders and exacerbate the banking crisis, increasing the risk of a broader economic downturn.<h2>What does this all mean for the current banking crisis?</h2>American investors may well see the UBS-Credit Suisse deal as evidence of a mad scramble to shore up liquidity among lenders and combine different banks.Also, they may view it as a harbinger of more bad news to come — the first in a wave of tie-ups. That's especially a risk given how things played out during the financial crisis.That means US stockpickers and bondholders will be watching for more red flags at domestic banks. They're also likely to keep a close eye on what the authorities do next, to gauge just how serious the current challenges are.Without an unlimited blanket guarantee on bank deposits, it's easy to imagine customers will be wary that more banks could fail. They could seek to park their funds in safer places.The turmoil could weaken inflationary pressures by leading banks to tighten their lending, and by confidence among consumers and businesses.But it could also mean the Fed faces a double whammy: stubborn inflation against a backdrop of fragile growth and employment.That would give it an impossible choice: halt its interest rate hikes and let prices keep rising, or march foward with rate increases that threaten to ramp up pressure on banks and drag the economy into a recession.In short, there are several reasons to think the UBS-Credit Suisse merger could spook investors and exacerbate the banking crisis.

You Searched For "Priority sector deposit" and got 10 results

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