Page 5 - Banking Finance January 2025

BANK UPDATE

National Rural Livelihoods Mission
(NRLM) on December 6, disbursing Rs.
10.7 crore in loans to various Self-Help
Groups (SHGs). The event was at-
tended by key officials, including PNB
Burdwan Circle Head Buddhadev Saha,
Deputy Circle Head Pradeep Chandra
Ò»©­ Prabhat, and Baikunthpur-II Gram
Panchayat Deputy Pradhan Uttam
Kumar Ghosh. The initiative aims to
empower rural communities and en-
hance financial inclusion.

UPI Drives Financial Access
Lok Sabha Passes Bill Allowing Up to Four Bank Ac-
and Credit Growth, Study
count Nominees
Reveals
The Lok Sabha has passed the Banking Laws (Amendment) Bill, 2024, en-
abling bank account holders to nominate up to four individuals as succes- A research paper by IIM and ISB pro-
sors, either simultaneously or successively, with specified shares. This mea- fessors highlights the transformative
sure is aimed at streamlining the inheritance process and minimizing un- impact of the Unified Payments Inter-
claimed deposits after an account holder's demise. face (UPI) on financial inclusion in In-
dia. Since its launch in 2016, UPI has
Union Finance Minister Nirmala Sitharaman stated that the amendments facilitated digital transactions for over
would enhance governance in the banking sector while improving customer
convenience. The bill also introduces regulatory reforms, including deadlines 300 million individuals and 50 million
merchants, accounting for 75% of re-
for statutory reports and streamlined auditing processes for banks, particu-
larly multi-state cooperatives offering banking services. These changes are tail digital payments by October 2023.
expected to bolster the Indian banking system's efficiency and protect con- The study notes UPI's role in enabling
sumer interests, strengthening the sector's overall governance framework. underserved groups, including new-to-
credit and subprime borrowers, to ac-
cess formal credit. Regions with high
IBA Voices Concern Over particularly for zero-sugar and fruit- UPI adoption saw a 4% increase in
based products, which are taxed at the loans to new borrowers and an 8% rise
Proposed GST Hike on same rate as sugary drinks. The IBA has for subprime borrowers. Affordable
Aerated Drinks made several representations to the internet access and the rise of fintech

The Indian Beverage Association (IBA) government, urging reconsideration of lenders, who outpaced traditional
has raised objections to a proposed in- the taxation structure, which it claims banks, have been pivotal in this
crease in the GST rate on aerated bev- hinders growth and innovation in the growth, with the average fintech loan
erages to 35%, following recommen- beverage industry. amounting to Rs. 27,778.
dations by a group of ministers on sin
goods. The hike would add to the cur- PNB Disburses Rs. 10.7 Canara Bank to Launch
rent 28% GST and 12% compensation
cess, taking the effective tax burden to Crore Loans to Self-Help IPOs for AMC and Insur-
40%. Groups ance Subsidiaries

C.K. Jaipuria, Vice Chairman of IBA, Punjab National Bank's Ghordourchatti Canara Bank has received approval
emphasized the industry's struggle, Branch hosted a mega camp under the from the Reserve Bank of India to di-

BANKING FINANCE | JANUARY | 2025 | 5