Page 14 - Banking Finance May 2024

ROUNDUP

An auto-routing of complaints to the audit firm M/s Pathak, H.D. & Associ- 2.04 crore cards at the end of Febru-
concerned regulated entity will be fa- ates. Additionally, fines of Rs. 1 crore ary. State Bank of India was a close
cilitated to eliminate time lapses, if and Rs. 50 lakh have been imposed on second with 1.88 crore cards, with
any, in the flow of complaints. EP (Engagement Partner) CA Parimal cards increasing by 1.5 lakh. New
Kumar Jha and EQCR (Engagement cards issued by Axis Bank were 1.6 lakh
Forex card can now be Quality Control Review Partner) CA whereas those by ICICI Bank were
Vishal D Shah, respectively. Further- much lower at below 50,000.
topped-up instantly dur- more, the order stipulates that the EP Indian Bank, CSB Bank, Bank of
ing international trips and EQCR partners are to be debarred Baroda, IDBI Bank, South Indian Bank
While travelling internationally you for 10 and 5 years, respectively, from and YES Bank were the other issuers
can upload your foreign exchange card being appointed as an auditor or inter- to see strong net addition in cards in
instantly. This would be possible on the nal auditor, or from undertaking any February.
latest version of BookMyForex applica- audit pertaining to financial state-
tion. BookMyForex is a group company ments or internal audit functions and Direct selling industry
of the travel portal, MakeMyTrip. activities of any company or body cor-
porate. These sanctions are set to be- crosses Rs. 21,000-cr mark
"Running out of funds abroad is stress- come effective 30 days from the date India's direct selling industry registered
ful and relying on credit cards exacer- of issuance. over 12% growth, with its turnover
bates the issue with exorbitant conver- crossing Rs 21,000 crore in 2022-23,
sion charges, additional fees and often according to an annual survey by the
restrictive credit limits. Our instant Credit cards-in-force cross Indian Direct Selling Association (IDSA).
reload feature addresses these con- 10 crore mark in Feb even
cerns headon, removing the necessity as spends fall 10% Wellness and nutraceutical products
of resorting to credit cards and offer- remained the preferred segment, ac-
ing unparalleled peace of mind to trav- Cards in force crossed the milestone of counting for 73.5% and cosmetics and
ellers," Sudarshan Motwani, Founder 10 crore cards outstanding in February, personal care 11.3% of the gross turn-
and CEO of BookMyForex.com, said. even as spends declined by over 10 per over.
Further, this card can be purchased cent in the truncated month, as per The industry recorded an 8.3% CAGR
without the need to open a bank ac- data by the Reserve Bank of India. over four years, with the number of
count and is door delivered on the day The number of cards increased steadily active direct sellers reaching around 86
of placing the order. by 1.1 per cent in February to stand at lakh from 84 lakh in 2021-22, the sur-
10.06 crore cards at the end of the vey says.
Reliance Capital case: month. The figure was at 9.95 crore at The gross industry turnover stood at
NFRA debars two CAs for the end of January 2024, aided by HDFC Rs 21,282 crore in 2022-23.
Bank crossing 2 crore cards during the
auditing lapses, imposes month. According to the report, there has
been a comprehensive improvement in
fine of up to Rs. 3 crore Credit cards rose by 11 lakhs during all areas of the direct selling industry.
The National Financial Reporting Au- the month, slower than 16 lakh addi- Total sales have increased by Rs 2252
thority (NFRA) has taken decisive ac- tions in January and 19 lakhs in De- crore compared to the year 2021-22
tion by debarring two Chartered Ac- cember 2023. Banks such as SBM Bank which was partially marred by the
countants (CAs) for a period ranging India, Tamilnad Mercantile Bank, Karur pandemic.
from 5 to 10 years, along with impos- Vysya Bank, Union Bank, Punjab Na- The Northern region continues to take
ing fines of up to Rs. 3 crore on the tional Bank, Canara Bank and Bank of
involved parties. The case revolves Maharashtra saw a decline in their the lead with 30% turnover, followed
around a financial transaction with cards during the month. by the East with 25%, West 22%, South
15%, and North East 9%. Maharashtra
Reliance Capital, with NFRA's order Among the top four issuers, HDFC Bank
dated April 12 outlining the penalties. maintained its leadership position, with led at the top with 12%, followed by
West Bengal and Uttar Pradesh with
Notably, the NFRA has levied a mon- the highest addition of 3 lakh cards 10% each among the states, the sur-
etary penalty of Rs. 3 crore on the during the month, taking the total to vey highlights.

BANKING FINANCE | MAY | 2024 | 13