Page 6 - Banking Finance October 2023
P. 6

BANK UPDATE

          nation," the PM said on microblogging  Card and Axis Bank do not allow their  spondents were from tier one, 34%
          site X, formerly Twitter.         customers to pay above the outstand-  from tier two and 22% were from tier
          The total number  of Jan Dhan ac-  ing amount on their apps.         three, four and rural districts.
          counts, as per latest reports submitted  "There is also a recent guideline that  "In summary, the findings of the sur-
          by banks, crossed 50 crore on August  asks banks to refund excess credit bal-  vey indicate that 41% of families have
          9, 2023.                          ances on cards within a certain period.  one or more individuals with bank ac-
                                            A credit card  is not a prepaid card  counts that they are not able to access
          Bank credit likely to grow        product  to  permit  loading  and  online," it said.
                                            utilisation of the instrument," they
          13-13.5% in FY24: CARE            said.                              SBI to send chocolates to
          Scheduled commercial banks' (SCBs)
          credit growth is expected to be in the  UPI wallet for foreign na-   borrowers who are likely
          range of 13.0-13.5 per cent for FY24,                                to default on monthly re-
          excluding the impact of the merger of tionals
          HDFC with HDFC Bank, according to  CheqUPI, a UPI wallet designed specifi-  payments
          CARE Ratings.                     cally for foreign nationals and Non-  State Bank of India is adopting a novel
          Credit off take  experienced robust  Resident  Indians experience digital  way to ensure timely repayments, es-
          growth of 16.2 per cent in Q1FY 24  payments in India has been launched.  pecially by  its retail borrowers, by
          and the outlook remains positive for  Despite the widespread adoption of  greeting  those likely  to default on
          FY24, per the rating agency's analysis  Unified  Payments  Interface  in the  monthly instalments with a pack of
                                                                               chocolates.
          of 30 banks, including 12 public sector  country, foreign nationals have faced
          banks and 18 private sector banks.  hurdles due to the requirement of an  The move, aimed at ensuring better
                                            Indian bank account and phone num-  collections, comes amidst rising level of
          Banks  disallow  excess           ber. CheqUPI intends to bridge this gap  retail lending in the system coupled
                                            and provide a seamless digital payment  with increasing delinquency levels on
          funds in credit card A/Cs         experience for foreign visitors, accord-  the back of the upward movement in
          Indian banks are no longer allowing  ing to a press release.         the interest rates.
          credit card users to pay more than                                   SBI's retail loan book grew over 16.46
          their outstanding amount. And in the  Online bank a/cs inacces-      percent to Rs.12,04,279 crore in the
          cases where the overpayment has                                      June 2023 quarter from Rs. 10,34,111
          been done, they are refunding the ex- sible to many due to de-
                                                                               crore in the year-ago period, making
          cess amount.                      funct credentials                  it the largest asset class for the lender
          The main reason for this is that the  Several individuals across India are  whose  total  book  stood  at  Rs.
          banks are concerned about money   unable to access their bank accounts  33,03,731 crore, growing at 13.9 per
          laundering and fraud. A bank executive  online for reasons ranging from defunct  cent on-year.
          said that there have been cases where  user credentials to account turning  In  fact  for  the  entire  system,  the
          the  excess  amount  parked  in  the  dormant, with the system of resuscitat-  double-digit loan growth of around 16
          customer's credit cards has been used  ing it an arduous process, a survey has  per cent has been led by retail loans
          for international transactions using  found.                         only.
          hacking.
                                            Community social media platform Lo-  "With two fintechs which use artificial
          The banks have put guards in their  cal Circles said after issues were re-  intelligence, we are piloting a novel
          applications  to prevent customers  ported by banking consumers over 18  way of reminding our retail borrowers
          from overpaying. It is allowed to send  months, it conducted a survey to un-  of their repayment obligations. While
          money through other banks, but in  derstand the type and magnitude of  one is doing conciliation with borrow-
          those cases, the card-issuing banks re-  difficulties faced by consumers. It re-  ers, the other is alerting us on the pro-
          turn the surplus funds within a week.  ceived 31,000 responses from 14,502  pensity of a borrower to default. And

          The report said that HDFC Bank, SBI  citizens and the platform said 44% re-  to such borrowers who are likely to

            6 | 2023 | OCTOBER                                                             | BANKING FINANCE
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