Page 40 - Banking Finance July 2017

ARTICLE

vest in buying the PoS machine as it allows the merchants Banks offering Bharat QR Code
to receive digital payments without the use of PoS machine.
14 banks are a part of Bharat QR Code platform as of now.
With no PoS machine, merchants will also be able to do away
The 14 banks are- SBI, Yes Bank, Axis Bank, Bank of Baroda,
with the transaction fees charged by the banks for using the
Bank of India, Citi Union Bank, HDFC Bank, IDBI Bank, ICICI
PoS terminal. The payment will take place via IMPS and the
Bank, Union Bank of India, RBL Bank, Development Credit
money will get credited into their bank account instantly.
Bank, Karur Vyshya Bank and Vijaya Bank. Soon more banks
Moreover, the merchants will also not face the problems are expected to join the forum.
with regard to limits on the amount of money that they can
accept every month through Bharat QR Code unlike Paytm, Conclusion
Freecharge or Mobikwik. The hassle of transferring money It is evident that Bharat QR Code is one of the biggest
from wallet to bank account will be eliminated as well fur- achievements of GoI in promoting and encouraging cash-
ther making it easier to accept digital money.It will also allow less payments in the economy. Addressing one of the big
the customers of any bank to make payment by using their complaints during demonetization i.e. inter operability, the
debit/credit cards. GoI has ensured that there is enough options for the con-
sumer, as also, the merchants to carry out seamless trans-
Security benefits of Bharat QR Code actions.
Currently, when you give your credit / debit card to swipe,
there is small though negligible possibilities of someone cap- The further success depends upon making it reach all levels
turing crucial details such as card number, expiry date and of the society and this can be done by educating the people.
CVV. While OTP option is enabled for two-step-verification Given that you can convert the 250 million smartphones into
before authenticating transaction, the risk of exposing your payment terminals, the system can benefit all. Also, with
card details still remains. In case of Bharat QR code, the trans- the government instituting AadhaarPay, Bharat QR can be
action is completed with enhanced security, and card details a force multiplier. It will be important to see how wallet
remain in customer's control, which is a big advantage. companies like Paytm deals with this. T

Insolvency rules for small units, start-ups

The Insolvency and Bankruptcy Board of India has come out with regulations to fast-track the process for small com-
panies, unlisted firms and start-ups. The notified regulation gives a 90-day timeline to complete the exercise with an
extension of 45 days. The norms have also been notified.
"The process in these cases shall be completed within a period of 90 days, as against 180 days in other cases. However,
the adjudicating authority may, if satisfied, extend the period of 90 days by a further period up to 45 days for comple-
tion of the process," a statement from the ministry of corporate affairs said.

"The idea behind the new regulation is to lower the time required for resolution for smaller entities such as small
companies with paid up capital of less than Rs 50 lakh, startups (turnover of less than Rs 25 crore) and unlisted com-
panies with reported total assets not exceeding Rs 1 crore," said IBBI chairman M.S. Sahoo on the sidelines of an event
of the Merchants' Chamber of Commerce and Industry.
Short-term crop loans at 4% if returned within 1 year

The Centre has increased the quantum of its ongoing scheme of cheaper loans for farmers from Rs 15,000 crore to Rs
20,339 crore to control the violence in Mandsaur and farmer protests in Maharashtra. The proposal states that the
measure is intended to help farmers withstand the pressure of distress sale of produce by accessing concessional lend-
ing where they get short-term loans up to Rs 3 lakh at an interest rate of 4% if they return the amount on time within
a year. The proposal for an increase in the budget for such loans was framed on June 7.

40 | 2017 | JULY | BANKING FINANCE

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