Page 7 - Banking Finance April 2025
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BANK UPDATE

         attempt to strip Kolkata of its pivotal  Airtel Payments Bank crosses one billion transaction
         role in SBI's forex operations. Two de-
         cades  ago,  a  similar  move  was   mark
         thwarted through the collective resis-  Airtel Payments Bank has surpassed one billion transactions on its platform
         tance of employees and officers. The  in January 2025, reflecting a 47 per cent year-on-year growth in transac-
         spokesperson  of  the  organisation,  tion volume across businesses, according to a top official.
         Ashok Mukherjee, said state govt, too,  Anubrata Biswas, MD and CEO at Airtel Payments Bank told that the "mile-
         would lose revenue if the unit was   stone" underscores increasing adoption of digital banking and payment so-
         moved.                               lutions. It also highlights the diverse business model that the bank has built
                                              over the years.
         Middle-Income  Group                 The  bank  caters  to  three  key  customer  segments,  urban  digital,

         driving home loan growth:            underbanked, and industries and institutions. In addition, the Bank is log-
                                              ging a strong uptake for its RuPay NCMC-enabled cards, having issued over
         NHB                                  2 million cards to date.

         The middle income group (MIG) has
         solidified its position as the backbone
                                            section (EWS) and low income group  low-value UPI transactions, which has
         of the country's home loan market,
                                            (LIG), which collectively accounted for  been approved by the Cabinet, will
         accounting for 44 per cent of outstand-
                                            39 percent of outstanding individual  encourage digital payments and fur-
         ing individual housing loans as of Sep-
                                            home loans. The high income group  ther 'Ease of Living'," Prime Minister
         tember 2024, according to the Na-
                                            (HIG) represented 17 per cent of total  Narendra Modi said in a post on X.
         tional Housing Bank's (NHB) latest re-
                                            outstanding home loans.
         port, 'Trend and Progress of Housing in                               Incentives will be routed through ac-
         India 2024'.                                                          quiring banks, which will then distrib-
                                            Cabinet okays Rs. 1,500 cr         ute them among issuer banks, pay-
         With individual housing loans surging
         14 per cent year-on-year to Rs. 33.53 incentives to boost UPI         ment service providers, and app opera-
                                                                               tors. The disbursement follows a struc-
         lakh crore as of September 30, 2024,  The Union cabinet approved an incen-  tured model: 80% of the claim is re-
         the data reflect the increasing aspira-  tive scheme  to  promote low-value  leased unconditionally, while the re-
         tion  for  homeownership,  rapid   BHIM-UPI transactions, focusing on
                                                                               maining 20% depends on performance.
         urbanisation, and the role of support-  payments made to merchants. The Rs
                                                                               Banks meeting a technical decline rate
         ive government policies in fuelling this  1,500 crore initiative, running from  below 0.75% receive 10%, with an-
         demand.                            April 1, 2024, to March 31, 2025, aims
                                                                               other 10% for system uptime exceed-
         While  housing  finance  companies  to boost digital adoption among small  ing 99.5%.
         (HFCs) recorded a 13.93 per cent year-  businesses.
         on-year growth in loan disbursements  Under  the  scheme, person-to-mer-
         as of September 2024, public sector  chant (M) transactions up to Rs 2,000         Join
         banks led with a 17.42 per cent rise,  will be incentivised. Small merchants
         followed by private banks at 10.42 per  will pay no merchant discount rate  Online Certificate
         cent. This robust expansion under-  (MDR) and banks will receive an incen-
         scores the crucial role of lending insti-  tive of 0.15% per transaction. Large  Course on
         tutions  in  meeting  India's  growing  merchants will also benefit from zero
         housing needs.                     MDR but will not be eligible for incen-  Motor Insurance
         The NHB report highlights how the  tives. Transactions above Rs. 2,000 will
         MIG segment remains the dominant   remain MDR-free but without incen-      For details please visit
         force in the housing market, followed  tives.
         closely by the economically weaker  "The incentive scheme on promoting  www.smartonlinecourse.co.in


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