PNB detects Rs 11000 cr fraud in latest bank case
Punjab National Bank (PNB) has detected fraudulent transactions worth $1.77 billion at a single Mumbai branch in a case that could affect more banks and raise fresh questions about lending procedures at Indian banks mired in soured debt. As reported by Reuters PNB, India's second-largest state-run lender with assets of $120 billion, said in a regulatory filing that the fraud benefited "a few select account holders" and that it has reported the matter to law enforcement agencies.
PNB fraud:The danger of contingent liability to banking sector
Punjab National Bank has reported a fraudulent transaction of USD 1.77 billion which is part of its contingent liabilities. In case the liability crystallizes, the bank will have to pay a heavy price. These liabilities are off balance sheet items like letter of credit , guarantees , derivative contracts etc. The latest case of PNB once again raises the danger of rising contingent liabilities in the Indian banking sector.
A lot of super rich Indians are in smaller cities, not just Delhi and Mumbai
A recent Kotak Wealth Management report focussing on the country's ultra-high net worth individuals has found there is a trend of wealthy people increasingly emerging from smaller cities-18% of them were based in Bengaluru, Ahmedabad, Pune, and Ludhiana. Having said that, 56% of the UHNHs hailed from the four metro cities - Delhi, Mumbai, Chennai and Kolkata. The report also found those people with net worth of Rs 25 crore-increased by 10% to around 1.6 lakh in 2017 with 60% of them under the age of 40 years, compared to 47% in the previous survey.
Donald Trump slams India for high customs duty on Harley-Davidson
In a move that could bring down the cost of imported motorcycles from high-end brands, the government has slashed customs duty on such bikes to 50 per cent. So far, the import duty on bikes with engine capacity of 800cc or less was 60 per cent and on bikes with capacity of 800cc or more was 75 per cent. The recent change in duty will bring down the prices of high-end motorcycles such as Harley Davidson and Triumph. The government may have slashed the duty by about 25 per cent, but it was not enough to convince US President Donald Trump who wanted India to cut import duty to zero. Trump feels that India has high import duty on products manufactured in America. According to him, US has zero tax on the import of motorcycles from India, so New Delhi should also reciprocate the same.
Whatsapp's payment service ruffles feathers
Whatsapp's digital payment service might prove to be a threat to existing players in the space. As reported by Economic Times Vijay Shekhar Sharma, the founder of India's largest digital payments company Paytm, will petition the architect of the country's unified digital payment system (UPI) for redressal of what he says is an unfair playing field accorded to messaging service provider WhatsApp, which has begun testing its payment service in the country.
Senior citizens can soon travel free in DTC buses
In a welcome move, the Delhi government has made travel for senior citizens free in all DTC buses plying in the national capital. Speaking at an event to mark the third anniversary of the Aam Aadmi Party government, Transport Minister Kailash Gahlot stated that the order with regard to the free travel for senior citizens in all the buses of Delhi Transport. At present, there are around 3,800 buses run by the DTC. The order will be implemented soon.