Hello everyone! Good day!
Let us dive into some news from past week
RBI puts restrictions on the subsidiary of Paytm, Paytm Payments Bank
Paytm Payments Bank is restricted by RBI from accepting fresh deposits in its accounts and wallets after February 29, 2024. The Central Bank came cracking down on the payments bank due to ‘persistent non-compliance and continued material supervisory concerns in the bank.’
What are these non-compliances?
Paytm has acknowledged the shortcomings, but neither the company nor RBI has specified the nature of non-compliance. The industry speculations include data security threats, overlap between Paytm and the payments bank business, etc.
Should customers worry about their money?
Apparently not. The customers are free to utilize their available balance in the savings and current accounts, prepaid instruments, FASTags, National Common Mobility Cards without any restrictions. Interest, cashbacks or refunds may be added anytime, the RBI added. No top ups or fresh deposits into the bank account or wallet within the payments bank is allowed post the deadline.
Additionally, merchants who have QR codes linked to bank accounts hosted by Paytm Payments Bank need to migrate to other banks.
What are the steps to be taken by Paytm?
Paytm Payments Bank acts as the financial backbone for Paytm, housing all 330 million user funds from its popular digital wallets, essentially functioning as their key banking partner. In a statement, Paytm said it will move completely from its payments subsidiary to their banking partners. In the next phase of expansion of Paytm, it will only work with other banks.
Disney Board Shake-Up by Nelson Peltz
Nelson Peltz, via Trian Partners, aims to alter Disney's board by proposing himself and ex-Disney CFO Jay Rasulo as directors, triggering a looming proxy fight with CEO Bob Iger. Disney reiterated that CEO Bob Iger, resumed the position and Peltz targets the removal of Michael Froman and Maria Elena Lagomasino, citing Froman's limited directorial experience outside Disney. Trian, controlling $3 billion in Disney shares, urges shareholders to withhold votes for Froman, emphasizing five reform areas including corporate governance and streaming profitability. Despite Disney's reassurance, Peltz remains critical, urging cost-cutting, profitable streaming, studio enhancement, and succession planning improvements. The board, active in succession planning, adds James Gorman to aid in CEO search, receiving reports from advisors and search firms.
Finance Minister presented the Interim Budget in Parliament
FM Nirmala Sitaraman presented the Interim Budget on Thursday. A full-fledged budget is expected in the month of July post the General Elections.
The fiscal deficit target for 2024-25 is 5.1% against 5.8% for the current fiscal year. In the direct and indirect tax front, the budget doesn’t propose any changes.
With the aim of making India a developed nation by 2047, the FM shared the vision for ‘Viksit Bharat’, a Prosperous Bharat in harmony with nature, with modern infrastructure, and providing opportunities for all citizens and all regions to reach their potential.
Want to know more about the Budget announcements? Check out the reel below:
More news from the week ...
India drops in Corruption Index: India slips to 93rd place on the 2023 Corruption Perception Index, down 8 spots from the previous year's 85th rank, despite nearly unchanged scores. Denmark maintains its top position, with Somalia at the bottom, underscoring ongoing global challenges in combating corruption.
China tops Japan in Exports: China surpassed Japan in vehicle exports last year, with 4.91 million vehicles shipped compared to Japan's 4.42 million. This growth in China's auto sector is mainly due to investments in electric cars while Japanese companies focus on hybrids.
Deloitte under Scrutiny: Deloitte, under regulatory scrutiny again, certified Nigerian firm Tingo's $462 million cash balance. However, a Securities and Exchange Commission probe found only $50, per Forbes.
Elon Musk’s compensation exorbitant and unfair– Recently, a state judge of US State, Delaware ruled the $55 billion pay package of Tesla founder as exorbitant and unfair. The package was approved by the Board in 2018 after Tesla achieved several growth goals, but the judge mentioned most of the Board consisted of Musk’s friends and family. Currently, 70% of Fortune 500 companies are incorporated in the state bringing $2 billion to the state.
Check out the awesome content from Ambrela
Visual of the Week
After a prolonged wait, snow has finally returned to parts of Jammu and Kashmir and Himachal Pradesh, bringing joy to locals and tourists. However, in some areas, the snowfall has disrupted normal life, particularly in Himachal Pradesh's tribal areas and high reaches, where the first heavy snowfall of the year occurred, leading to the closure of 134 roads, including four national highways. The local Meteorological Department has issued an orange warning in response.
Test you knowledge !
Now you know there are 6 payments banks in India. Can you find out the service not offered by a payments bank from below?
[A] Accept deposits
[B] Receive cross border remittances
[C] Issue credit cards
[D] Issue debit cards
Payments bank can accept deposits up to a limit of Rs 2 lakh. They have to park such funds in government securities and deposits of scheduled commercial banks. These banks can receive cross border remittances on current accounts. They can even issue debit cards. However, payments banks are not allowed to issue credit cards or issue loans.
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