Page 16 - Banking Finance May 2021

ROUNDUP

and provide the vital last-mile credit infrastructure in the country in the Stand-Up India Scheme:
delivery to unserved and under-served past few years.
segments of the economy including More than Rs. 25,586
agriculturists, MSME, small road Jana Small Finance Bank crore loans sanctioned in
transport operators," FIDC stated in
the letter, adding that many of these files for IPO to raise Rs. last 5 years
NBFCs are very small and do not have 700 crore The Finance Ministry has recently said
a well-developed website. that almost five years since launch, the
Jana Small Finance Bank has recently
Stand-up India scheme has seen loans
filed preliminary papers with SEBI to
Digital payments: India float an initial share-sale. The Initial sanctioned by banks in aggregate of Rs.
25,586 crore to over 1,14,322
overshadows China, US & Public Offer (IPO) comprises of fresh accounts.
issuance of equity shares worth Rs. 700
others in 2020, leads crore and an offer for sale of up to This scheme was launched on April 5,
global tally 92,53,659 shares by existing 2016 to promote entrepreneurship
Amid COVID-19, India was home to the shareholders, the Draft Red Herring amongst women, Scheduled Castes
and Scheduled Tribes category. It is
highest number of real-time online Prospectus (DRHP) filed with SEBI now extended upto the year 2025. The
transactions in 2020 ahead of stated. main objective of the scheme is to
developed countries such as China and Those selling shares in the offer-for- provide loans for setting up greenfield
the US. A total of 25.5 billion real-time sale include ICICI Prudential Life enterprises in manufacturing, services
payments transactions were processed Insurance Company, Bajaj Allianz Life or the trading sector and activities
in India, followed by 15.7 billion in Insurance Company, Hero Enterprise allied to agriculture by both ready and
China, 6 billion in South Korea, 5.2 Partner Ventures, Enam Securities, trainee borrowers.
billion in Thailand, and 2.8 billion in the North Haven Private Equity Asia
UK. Platinum Pte Ltd, Tree Line Asia Master According to an official release, the
According to a report by the UK-based Fund (Singapore) Pte Ltd., and QRG total loans sanctioned to women stood
at Rs. 21,200.77 crore (93034
payments system company ACI Enterprises. According to merchant
banking sources, the IPO is expected to accounts); the loans sanctioned to SCs
Worldwide, the transaction volume stood at Rs. 3335.87 crore (16258
share for instant payments India, fetch Rs. 1,100 crore. accounts) and STs at Rs. 1049.72 crore
among real-time transactions, was The small finance bank has proposed to (4,970 accounts).
15.6% and 22.9% for other electronic utilize the net proceeds from the fresh
payments in 2020. Importantly, paper- issue towards augmenting its Tier - 1 This scheme facilitates bank loans
based payments continued to have a capital base to meet future capital between Rs. 10 lakhs to Rs. 1 crore to
considerable share of 61.4% in India. requirements. The proceeds will also at least one scheduled caste/scheduled
India's digital payments market led by be used for meeting the expenses in tribe borrower and at least one
woman borrower per bank branch of
Paytm, PhonePe, BharatPe, Pine Labs, relation to the offer.
scheduled commercial banks.
Razorpay, and others on the B2C and Jana Small Finance Bank stated that it
B2B sides has surged during the may consider a pre-IPO placement of
pandemic even as incentives such as an aggregate amount not exceeding RTGS & NEFT membership to
cash backs, rewards, and offers have Rs. 500 crore, including by way of a be allowed for non-banking
helped businesses to attract more proposed further issue to its promoters
customers. Moreover, policy for an amount of up to Rs. 400 crore. payment institutions
frameworks such as Pre-Paid The pre-IPO placement, if undertaken, RBI has recently said that National
Instruments, Universal Payment will be completed prior to filing of the Electronic Funds Transfer (NEFT) and
Interface by the NPCI apart from DRHP with the Registrar of Companies Real-Time Gross Settlement (RTGS)
Aadhar, and the launch of BHIM-app (RoC). In case the pre-IPO placement facilities will now be extended to non-
have driven the financial inclusion and is undertaken, the amount raised will bank payment institutions, expanding
improved the payment acceptance be reduced from the fresh issue. the reach of the payment systems.

16 | 2021 | MAY | BANKING FINANCE