Page 7 - Banking Finance April 2025

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

BANKING FINANCE | APRIL | 2025 | 7