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Tag: banking

  • Are Neobanks Really The Future of Banking?

    In this fast-pacing era where really nobody has the time or the interest to walk over to a bank branch to do banking or business, “Neobanks” are a change and, in a good way, but are they really a promising future? Let’s find out.

    What is Neobank?
    Difference Between Neobanks and Traditional Banks
    What Do The Neobanks Offer That Traditional Banks Don’t?
    How Does Neobanks Work?
    Are Neobanks The Future of Banking?
    Pros and Cons of Neobanks
    FAQs

    What is Neobank?

    Neobank
    Neobank

    Neobanks are financial institutions or digital banks that exclusively operate online and do not have any physical branches. Neobanks provide services and products that are not found in traditional banking systems and are also, very efficient. They work either directly with service providers or with already established banks as they don’t have regulatory licenses, in the Indian context. Neobanks are a wide umbrella of financial services such as faster deposits, transfer of payments, credit cards, etc.

    Neobanks had a customer base of around 7.7 million in 2018 and nearly tripled it to 20 million in 2020. In 2019, in India alone, Neobanks raised a big amount of 90 million dollars. And are expected to raise an amount of 394 billion dollars globally by 2026, according to reports of lead squared. Globally there are more than 200 Neobanks and more than 10 in India and the numbers are rapidly increasing.

    In India, the growth of Neobanks are not that fast compared to the growth around the globe, but looking at how vast the Indian Market it can take over by a storm.

    Difference Between Neobanks and Traditional Banks

    • Neobanks mostly press on solving banking issues faced by customers but lack in better overall customer experience.
    • The onboarding process of Neobanks is very simple, paperless, and less time consuming compared to traditional banks.
    • Neobanks are beneficial for small businesses whereas traditional banks prove to be very useful to millennials.

    What Do The Neobanks Offer That Traditional Banks Don’t?

    In the past few years, there’s a lot of change in the finance industry and with the introduction of UPI in India, which recorded over 4 billion transactions in October 2021, and the mobile wallets in the US and Europe we have seen tremendous amounts of transactions digitally.

    Neobanks use innovative new technologies such as AI, Cloud analytics and for their audiences, they are merely an app, unlike the traditional banks which rely on financial products and expand their large network of branches for the customer base.

    Neobanks mostly come in handy to the people who do not have much time to handle the hassles of visiting physical branches and have a busy living. They are way different than other financial institutions in certain ways such as,

    • Reduced timeline of acquiring customers and provide seamless customer services and paperless operations
    • Removing the challenges that are faced in the traditional banking system and thus, providing a brilliant user experience.
    • They have fewer regulations and are easy for customers to set up their accounts and also ensure advanced security and privacy.
    • They provide accounts and money transfers, seamless international payments. They also provide better interest rates than traditional banks because of their fewer costs and easy processes.

    How Does Neobanks Work?

    Neobanks work on the “Banking as a service” module and fix the gap between traditional banks and customer expectations. Banking as a service is an end-to-end process of operation of financial services on the internet and allows digital banks or third parties to connect with banks for better financial and banking services.

    They are completely digital and online as there are no physical branches. Neobanks have modernized platforms that help them collect data of their target audience and based on the data collected they customize their marketing strategies accordingly as a result successfully creating a cohort of customers.

    Are Neobanks The Future of Banking?

    They are changing the face of the Fintech community and one day maybe replace traditional banks but it’s not easy and one can never be sure. Neobanks are mostly like digital banks but remember “mostly”. They are much recognized as companies than banks.

    In India, the RBI still doesn’t allow banks to be 100% digital and have some physical presence. The defining and most important reason for this is and the difference between Neobanks and traditional banks is funding and not forgetting customers’ trust. Traditional banks may find it hard to compete in this tech-savvy world still the legacy can’t be weighed down so easily.

    Pros and Cons of Neobanks

    Pros of Neobanks

    • Adapting technology and no presence of credit base makes them low cost and convenient for the low-salaried customer base.
    • Neobanks are convenient as allow operations through an app from basic banking to investing and other finances.
    • Better services and benefits. Quick processing for loans and speeding other requests by ditching paperwork.

    Cons of Neobanks

    • Limited services compared to traditional banks and less regulated. No physical presence may hinder customers’ trust.
    • Keeping up with technology and advancements in trends.
    • No physical bank branches and In-person assistance access.

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    Conclusion

    Neobanks have emerged as a buzz wave in the fintech community and have been doing great in maintaining their spotlight on a global level and every day more and more businesses and banks are signing up with them. We see a new player everybody whose intention is to simplify financial services and provide additional benefits with them.

    Though it’s going to be hard to revolutionize the whole industry of banking and finance it’s gonna take time and real hard work for tech geeks. As the saying goes, “it’s the little changes that make the most important changes”.

    FAQs

    Are Neobanks banks?

    Neobanks are not banks and do not have a bank charter. Instead, these institutions generally partner with a bank to ensure their products. Before signing up with a neobank, make sure it’s FDIC insured by a partner bank.

    What is Neobank?

    Neobanks are digital banks that do not have any physical branches and provide all financial services to their consumers through apps that can be accessed through a smartphone.

    Is Neobanks secure?

    Money deposited in a neo-banking account is as secure as it would be in a regular bank account in India.

    When did Neobanks start?

    The term neobank has been in use since at least 2016 to describe fintech-based financial providers that were challenging traditional banks.

    Talking about the neobanks in the Indian context, neobanks are not directly regulated by the banking regulator. This is mainly due to the fact that RBI does not grant licenses for operating virtual banks in India.

  • Top 4 Cheap and Better Alternatives of Western Union

    In today’s time, sending money has become so much easier than ever before. You don’t have to meet someone or go to an ATM, just open your phone and click “send”. Sounds accurate, right? In a wholesome, Yes, it does sound accurate!

    The fun fact is, this smooth service isn’t limited to one’s own country, but to abroad as well. Whenever someone thinks of sending money abroad, they worry about the long hectic process and paperwork. But ever since the digitalization era took over, this has also become pretty simple.

    Just like Western Union, which is considered as one of the biggest finance companies that provides the smoothest service of international payments across the world. But there are some pretty cool and genuinely better options available in the market, as an alternative to Western Union.

    You can choose the company based on various tactics such as transfer mode, fees, incentives and what kind of currencies it’s specialized in. Analyze the best exchange rate these companies are offering, then select the most suitable International payment provider for you.

    To make this more simple for you, we have listed some of the best alternatives of Western Union across the globe. So, let’s get started!

    List of top 4 Alternatives of Western Union

    Wise
    Xoom
    PayPal
    WorldRemit
    FAQ

    Wise

    Wise Website
    Wise Website

    Wise was founded in the year 2011 and soon became an ultimate choice for the customers. It eliminated all the conventional sending money methods along with the tight expenses that it would cost.

    When they became absolutely frustrated with all the paperwork of sending money abroad, they created Wise. Yes, that’s the actual story!

    The company offered its customers the mid-market exchange rates that you can easily find on the Internet. Wise barely charges any amount of fees, but what it does is just one low percentage cost. This shows the exact fee amount to the customers for sending the money.

    Moreover, Wise offers the service of borderless multi-currency accounts. This was basically for people who travelled a lot to different countries. Wise provides a free account login for everyone and also, allows the user to store multiple currencies, transfer them across the world and digital account details for receiving money locally in the United States, Australia, Europe and the United Kingdom.

    Xoom

    Xoom Website
    Xoom Website

    Xoom is a PayPal company that provides the service of sending money very easily digitally directly to the bank account or can be added to the cash collection. Xoom supports multiple currencies across the world and the user can easily send money to different countries.

    Xoom charges minimally on its transactions. And it entirely depends on where you are sending the money or your method of fund transfer.

    When you use a card for your abroad transactions, it becomes really expensive but with Xoom (through PayPal) balance or the bank account which is linked to it, it’s quite cheaper.

    PayPal

    PayPal Website
    PayPal Website





    Click here to Try Paypal now!


    We all are familiar with the functioning and popularity of PayPal, especially for those who love to shop online. PayPal offers the users one of the best services to send money overseas.

    For getting on with PayPal, the user, as well as the receiver, will require a PayPal verified account, where you will find a wide range of fee options that you can choose based on your preferences.

    However, for sending money abroad, PayPal does charge higher as compared to the general domestic transactions.

    WorldRemit

    WorldRemit Website
    WorldRemit Website

    WorldRemit has widely counted among the best alternatives of the Western Union. The company supports a huge range of currencies across the world and makes the process of sending, receiving, transferring and payment absolutely smooth and simple. It is very quick with its services and every transaction.

    However, WorldRemit does have a small daily limitation on transactions which is around $9,000. For WorldRemit, you can pay with any method you prefer, for example, Bank transfer and Credit card.

    Conclusion

    In the end, we conclude that there are some pretty amazing companies out there in the market with great customers’ bases for sending your money abroad more smoothly.

    People often choose such a company also as they consider it the safest and the best option possible. But you also know that’s not entirely true. Being a millennial, it’s important for you to seek more fluent ways to send money abroad. Stay tuned for much more similar content.

    FAQ

    What are some of the alternatives of Western Union?

    PayPal, Wise, and Xoom are some of the alternatives of Western Union.

    Who are the competitors of Western Union?

    Western Union’s top competitors are Worldline, Wise, Ebury, Flywire, American Express, PayPal and MoneyGram.

    How much is Western Union fee?

    The transfer fee of Western Union is $4.50 to transfer up to $50 and $9.50 to send up to $900.

  • The Successful Business Model of HDFC Bank

    The corporate sector often requires major backing from banks. Private banks have always been front in targeting the blue-chip manufacturing companies in the entire Indian corporate sector. These also target small or mid-sized corporate companies and agricultural businesses.

    Private banks offer tons of transactional and banking services such as trade services, cash management, working capital finance, and transactions services. Banks facilitate the structural organization management for cash services where it gets combined with the merchant and the distributor for the smooth working supply chain management, wholly for the corporate customers.

    ‌‌Private Banks such as HDFC bank have been very upfront in providing the services of cash management and transactional banking system for the corporate customers, stock exchange members, mutual funds and banks. HDFC Bank is India’s largest private sector bank and has always been very promising. In this article, we have discussed the remarkable business model of HDFC bank and how the bank operates. Let’s get started!

    About HDFC Bank
    ‌‌Where are the branches of HDFC Bank established?
    Product and Services offered by HDFC Bank
    Business Model of HDFC Bank
    How does HDFC Bank operate?
    FAQ

    About HDFC Bank

    ‌‌HDFC bank is a very promising and secured Indian private banking and financial services company. The company is known as the largest private sector bank by marketing capitalization and assets in India. HDFC Bank was established in 1994, headquartered in Mumbai, Maharashtra, India.

    As of 2021, HDFC bank is stated as the third-largest company based on market capitalization in the Indian Stock Exchange market. HDFC bank employs around 120,000 employees in its bank and its branches, this employees count is the thirteenth-largest in India.

    ‌‌With the chairman Atanu Chakroborty and Sashidhar Jagdishan as the chairman, HDFC bank has grown immensely. HDFC Bank was established as the subsidiary of the Housing Development Finance Corporation. The bank is very promising and satisfactory with its services and has a huge customer base across India.

    ‌‌Where are the branches of HDFC Bank established?

    ‌‌HDFC Bank is the first-ever private bank in India to obtain approval from the Reserve Bank of India (RBI). HDFC Bank has grown its network vibrantly and has gained a huge customers base throughout the country. Today, HDFC Bank has established a banking network of over 5608 branches along with 14,897 ATMs in more than 2902 cities and towns.

    Product and Services offered by HDFC Bank

    ‌‌HDFC Bank has always been very promising and satisfactory to its customers. Its top services are retail banking, auto loans, wholesale banking, two-wheeler loans, treasury, consumer durable loan, personal loans, loans against property, credit cards, and lifestyle loans. Moreover, HDFC Bank also offers various digital products including SmartBUY and Payzapp.

    Business Model of HDFC Bank

    ‌‌HDFC Bank, the leading finance company in India has always been guaranteeing and fulfilling its services. The company has a very strong foothold in the market as a finance company. Following the lead, the Industrial Credit and Investment Corporation of India (ICICI) is known to be the second-largest bank in the country.

    ‌‌HDFC Bank has been revolutionary with its terms of deposits and loan disbursements, which keeps it at the top of the Finance sector market. HDFC Bank runs on a very subtle business model plan where it generates universal banking-based synergies by cross-selling the bank’s products to its subsidiaries across India, without actually incorporating any commodity.

    HDFC Bank has gained a huge customer base and enormous finance handling. With its current business model, the bank is up for dozens of more achievements and has become the first-ever most reliable, and exclusive private bank in India, with great customer support.

    Deposits of HDFC Bank Limited
    Deposits of HDFC Bank Limited

    How does HDFC Bank operate?

    ‌‌Banks are considered the safest house for people to conserve their money and funds. With the growing technology, private banks are putting everything in their power to provide the best services to their customers and gain their loyalty.

    HDFC Bank operates through various segments such as:

    Retail Banking

    The bank offers an assorted range of finance products and services to its customers via a developing HDFC branch or its ATM or through various digital channels including Phone Banking, Netbanking, and MobileBanking.

    Treasury

    Through the Treasury services, the Bank guides businesses in generating great outcomes on their funding and financial management risk. Treasury includes the product services of the local currency market and debt securities, foreign derivatives and exchange, and capitals.

    Wholesale Banking

    The bank offers a broad gamut of transactional and commercial banking services to various businesses and organizations regardless of their size. These services are trade services, cash management, working capital finance, and transactional services.

    Conclusion‌‌

    HDFC Bank has provided tons of promising services to its customers. Being a private bank, the company has earned absolute trust from its customers and gained a huge customer base throughout the country.

    The bank engages with various financial and banking services such as Treasury operations and commercial banking. HDFC Bank facilitates the banking services of various upper and middle-income people and organizations across India. The bank has a very strong position in the market and is considered the most reliable and reasonable private bank in India, later followed by ICICI bank.

    HDFC bank follows a pretty bold as well as a subtle business model which has brought tremendous growth and development to the bank and its services.

    FAQ

    What is the revenue of HDFC Bank?

    The revenue of HDFC Bank is 1.56 lakh crores INR in 2020.

    Who is the CEO of HDFC Bank?

    Sashidhar Jagdishan is the current CEO of HDFC Bank.

    Is HDFC a foreign bank?

    No, HDFC Bank is an Indian banking company.

  • The Intriguing Psychology Behind the Business Model of Banks

    Nowadays we all have a bank account. This might sound a bit awkward but there are people out there who don’t have one. Try to remember how long did it took to open a bank account? Probably a couple of hours or weeks in some cases.

    Do we know what happens with our money? Nobody knows. Because once you deposit, it’s not yours anymore it becomes the bank’s money. Banks just aggregates all that capital and invests or loans it out. Your account balance is just a number in the bank’s ledger. Whenever you make a transaction, banks instruct the ledger to move to the second person.

    Before I go into detail, let us first look at the brief history of the banking system:

    The dawn of the banking system
    Business model of Banks
    How do Banks earn Revenue?
    How do Banks generate revenue now?
    Current scenario of Banks
    FAQ

    The dawn of the banking system

    Banking may appear complex now, yet it was created to make life easier. Italy was the epicenter of European trade in the 11th century. Merchants from across the continent intended to trade their goods, but there was one concern: there were too many currencies in circulation.

    Merchants in Pisa had to cope with seven distinct types of coins and often exchange their money. The word bank comes from the Italian word “banco,” which means “bench.” This exchange transaction often was conducted outside on benches.

    People were concerned about the perils of going with counterfeit money and the difficulty of getting alone. It was time for a change: home brokers began extending loans to entrepreneurs, and Genovese shoes pioneered cashless transactions. Bank networks were strewn across Europe, extending credit to the church and European rulers.

    Business model of Banks

    When it comes to building a value proposition, banks face a unique challenge since they must encourage clients to trust them with their money while also making them feel like they are getting the best value for their money. Once consumers have invested with a bank, the bank must endeavor to retain them and persuade them to purchase more products.

    Their business model is customer-centric meaning being consistently striven for and develop an excellent reputation for transparency, trust, integrity, and being responsive to customer needs. They offer financial products and advice that is aligned with your financial goals. Their emphasis on corporate governance and CSR initiatives is something to look forward to as their entire business model is based on the services they offer.

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    How do Banks earn Revenue?

    Interest from loans:

    Let’s imagine ten people each put $100 million into a bank. The Reserve Bank of India (RBI) has now imposed two restrictions, namely, SLR and CRR. In essence, the CRR (cash reserve ratio) is a modest percentage (4%) of the entire deposit under RBI’s jurisdiction. The statutory liquidity ratio (SLR) is the proportion (19.5%) of the amount deposited that you keep or invest in liquid assets such as cash, gold, or government securities, among other things.

    The RBI imposes certain restrictions to protect your funds. The remaining 76.5 percent of the entire sum is offered to you as loans. In summary, banks make loans at a rate of 12 percent interest from the 76.5 percent, and those who deposit $100 million will receive a 4 percent return, leaving the bank with an 8 percent profit. This circulation of money is also known as a fractional reserve requirement.

    Interchange fees:

    When you pay for things, let’s take an example of a supermarket like D-mart with a debit or credit card, D-mart receives the money first. A tiny percentage of the proceeds is subsequently distributed to merchant banks, from which D-mart purchased their card swipe machine. The merchant banks keep a portion of the money and then transfer the balance to your account. These are known as interchange fees.

    Service fees:

    It is the fees imposed by banks for services such as locker (for holding gold), NEFT/RTGS, debit/credit card, internet banking, and Demat account.

    Charging fees:

    Low bank balances, lost debit/credit cards reissued, cheque bounces, overdrafts, and transaction fees (if you withdraw 4 or 5 times a month from an ATM) all result in banks charging fees.

    Insurance & Mutual funds:

    Typically, banks sell insurance plans on behalf of firms, such as life insurance, health insurance, and automobile insurance, for a commission. They also distribute mutual funds and are compensated by fund houses.

    Trading in the financial market:

    Most banks, particularly investment banks, are listed on the stock exchange, which provides them with an additional source of revenue. They also profit from foreign currency exchange, which means they buy a currency when the rate falls and sell it when the rate rises. They invest in the bond and commodity markets and profit from them as well.

    Investment advice:

    Investment banks charge high fees for the advice they give to corporations or public institutions when it comes to issuing bonds or shares.

    How do Banks generate revenue now?

    Banks are involved in risk management. People deposit their money in banks and get a nominal interest. This money is taken by the bank and lent out at substantially higher interest rates. It is a calculated risk as some people might default on repayment. This process is critical to our economy because it offers resources for people to purchase items like houses and for businesses to expand and grow. As a result, banks take money that savers aren’t using and turn it into money that society can use.

    The main issue with banks today is that many of them have abandoned their original position as long-term financial product suppliers in favor of short-term rewards that come with far larger risks.

    During the financial boom, most big banks created complex financial structures and conducted their trading to make quick money and reward their executives and traders millions in bonuses.

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    Current scenario of Banks

    Other forms of funding are rapidly gaining traction today. They are:

    New investment banks

    New investment banks charge a yearly fee and do not receive commissions on sales, giving them an incentive to operate in their clients’ best interests.

    Credit union systems

    To avoid credit sharks, credit unions were founded in the nineteenth century as cooperative efforts. In short, they prioritize shared value over profitability. The mission is to assist members in establishing small enterprises, expanding farms, and building family homes while also investing in the community. Their members are in charge, and the board of directors is democratically elected.

    Worldwide Credit unions range in size from a few hundred members to multibillion-dollar corporations with tens of thousands of members. Credit unions’ emphasis on member benefits influences the level of risk they are willing to take, which explains why, despite their difficulties, credit unions fared better than traditional banks during the recent financial crisis.

    Crowdfunding

    Not to mention the recent boom of crowdfunding. Aside from making fantastic video games feasible, platforms evolved that allow people to obtain loans from large groups of smaller investors without having to go into a bank. But it also works in the business world.

    On Kickstarter or Indiegogo, a lot of innovative technology startups emerged. The funding individual gains the joy of being a part of something bigger, and they may invest tonight as they believe in while spreading the risk so evenly that the damage is minimal if the project fails.

    Microcredits

    Last but not least, there are microcredits. In developing countries, many extremely small loans that help people transcend poverty were met with skepticism. People who previously couldn’t receive the funds they needed to establish a business because they weren’t thought to be worth the time. Microcredit lending has grown into a multibillion-dollar industry.

    Final Thoughts

    While banking may not be your cup of tea, the role of banks in providing funds to individuals and businesses is critical to our society and must be carried out.

    That’s all for today, folks.

    FAQ

    What is the main business model of a commercial bank?

    Commercial banks make money by providing and earning interest from loans such as auto loans, business loans, and personal loans.

    How do banks make their money?

    Banks make money from service charges and they also earn money from interest they earn by lending out money to other clients.

    What is the largest source of revenue for banks?

    One of the largest sources of revenue for banks is interest received from customers who take loans.

  • What changes we might see in Banking after the pandemic?

    The pandemic has changed the face of all systems that existed. The world is now divided into two parts – Pre and Post Covid. It highlighted many aspects of everyday activities that can be changed for the better. This pandemic is going to result in entire societies being transformed in the years ahead.

    The Banking sector is not untouched by the pandemic. Although it was fully functional even when most services closed, it still underwent immense crisis during the pandemic. The banking sector, just like any other industry, has to implement newer methods into its system to stand the test of time.

    Digitization
    New Revenue Drivers
    Newer Models for Risk Management
    More user-friendly Experience
    Incorporating AI in Banking
    FAQ

    What changes will follow the pandemic?

    Digitization

    The Banking sector prides itself on the digital functionality that it has built over the years. But Covid challenge their beliefs and established the fact they need more digitization.

    In India, e-wallets and online money managing software gain pace but they are popular only in urban areas. In most rural areas, people still need to go to banks for basic deposits and withdrawals.

    The world is moving towards voice-based artificial intelligence, personal smart assistants, built into our homes and mobiles. Therefore, the design of banks to fit in this world requires rethinking banking from the ground up.

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    New Revenue Drivers

    Bank much start looking for new product launch opportunities, as well as generate newer offerings toward an advisory and protection focus. Advanced analytics helps them in identifying relevant ideas for growth, but it should be combined with an alteration of digital sales journeys and marketing.

    Newer Models for Risk Management

    Banks obtain their credit risk modelling from traditional credit bureaus that are both historical and static on the other hand new models are already established to assess small businesses in various contexts, for example, the supply chains that they serve along with  the communities that they belong to. So, the risk management model for banks will change over time to be a relevant creditor to small businesses, that are rapidly increasing.

    More user-friendly Experience

    The banks have an image of being unpleasant and excessively difficult. They have to work towards changing in order to serve society. Private banks are providing more options to customers where agents will be on hand to guide them through transactions on their own devices, and the space will be renewed to more casual seating areas for important conversations. Changing the style and interior of branches also supports social distancing.

    Casual Seating Areas in Banks
    Casual Seating Areas in Banks

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    Incorporating AI in Banking

    AI will be a crucial change as banks move forward from using these not only to monitor transactions but also to assist customers via “conversational banking”. Banks will be combining human and digital channels to help the customers which will be quick and cost-effective. As the love for instant messages grows and demand for 24/7 banking services picks pace, conversational banking involving AI chatbots enables banks to engage in a personalized manner.

    Conclusion

    We all are a part of the post-Covid world now and both consumers and creators in every sector understand that changes have to be made. Banking will evolve and become more user-friendly and they realize they depend on the society that they serve and not the other way around. Since users have more options to handle money now, banks have to pick up the pace to implement these changes into their systems.

    FAQ

    How are banks using augmented reality?

    Banks are employing AR apps that help customers to find the nearest banks and ATMs.

    Is Digital banking the future?

    Yes, Covid 19 has also given a rise to Digital banking as it has eliminated the need for consumers to physically visit a bank branch.

    What will bank branches look like in 10 years?

    According to the experts, Bank branches will have fewer staff and will deploy more powerful ATM machines.

  • What are the Revised ATM Cash Withdrawal charges and List of all the charges revised by RBI

    The Reserve Bank of India has announced a considerable number of changes in regards to the financial and non-financial transactions related to the ATMs in the country. The Central Bank has provided the permission for the banks to increases the charges from their customers. Let’s look at the latest Financial service Fees and charges revised by RBI.

    RBI Revised Financial Charges – Latest News
    Interchange Fee charged by the Banks revised by RBI
    Interchange Fees for Customers revised by RBI
    Reason for the increase in the charges by RBI
    The Committee that revised the ATM charges
    List of Financial Charges revised by the RBI
    FAQ

    RBI Revised Financial Charges – Latest News

    A banking charge will be applicable from 1 January 2022 where the bank customers will have to pay an amount of INR 21 if they exceed the monthly limits of the withdrawal from the ATM. The ATM charges which were in existence were around INR 20 per customer if they exceed the monthly limits of the free transactions provided by the bank.

    On 10 June 2021, the Reserve Bank of India has provided the permission for the banks to increase the charges regarding cash and non-cash Automated Teller Machine for exceeding the number of free financial transactions available on a monthly basis from next year i.e., 2022.

    Interchange Fee charged by the Banks Revised by RBI

    The circular contained the information regarding the interchange fee charged by the Banks for the ATM transactions. The interchange fee for the ATM transactions is increased from INR 15 to INR 17 for each financial transaction and the interchange fee for the non-financial transactions is increased from INR 5 to INR 6, which will be effective August 1, 2021.

    An interchange fee is paid by the banks to the operator of the ATM when a customer makes a transaction at an ATM that does not belong to the card-issuing bank.

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    Interchange Fees for Customers revised by RBI

    The Interchange fee has been revised by the RBI from INR 20 to INR 21 if the customers exceed the monthly limits of the withdrawal from the ATM.

    RBI added that the customers will continue to enjoy the benefits of free 5 transactions every month which will be inclusive of financial and non financial transactions. The free transactions will be available every month through the ATMs of the banks with which they have an account.

    The customers will also be eligible to do transactions in the ATMs of other banks with a limit of 3 free transactions in the metro cities and in the non-metro cities the customers will be eligible for 5 free transactions from the ATMs of another bank.

    RBI conveyed in a statement that in order to compensate the banks for the higher fee charges for interchange and due to the general increase in the costs, the Reserve Bank of India has allowed the Banks to increase the charges on ATM transactions to INR 21.

    Number of ATM's in India
    Number of ATM’s in India

    Reason for the increase in the charges by RBI

    The Reserve Bank of India has conveyed that the reasons for letting banks increase the fee and charges for the transactions were mainly due to the increase in the cost towards the maintenance of the ATMs and also the increase in the cost for the deployment of the ATMs.

    The maintenance cost incurred by the banks and the white label ATM providers is considered to have the necessity to balance the expectations of the stakeholders of the financial institutions as well as providing a convenience to the customers.

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    Citi Bank had recently announced that it will exit retail banking operations inIndia and 12 other countries. The other countries include Australia, Indonesia,Korea, Bahrain, Malaysia, Philippines, Poland, Taiwan, Russia, Thailand andVietnam. Citi bank is one of the largest foreign banks in India.…
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    The Committee that revised the ATM charges

    The committee which decided on the ATM charges was established by the Reserve Bank of India back in the year 2019 in the month of June. The committee was set up under the chairmanship of VG Kannan who was the chairman of the Indian Banks’ association. The main aim for the setting up of the committee was to review the entire range of the ATM charges.

    The recommendations of the committee were announced to the public by the Reserve Bank of India in the year 202o in the month of July and the recommendation was to use the population as a metric in order to measure the calculations for the ATM charges.

    The Reserve Bank of India had also conveyed that the recommendations from the panel were examined in detail.

    List of Financial Charges revised by the RBI

    From January 1 2022, Customers will be charged INR 21 per ATM transaction after exhausting limit of free transactions which a customer is eligible to conduct from other banks’ ATMs. The interchange fee is hiked from the existing INR 20 to INR 21 per transaction.

    The interchange fee for the ATM transactions for the Banks is increased from INR 15 to INR 17 for each financial transaction and for the non-financial transactions is increased from INR 5 to INR 6, which will be effective August 1, 2021.

    Conclusion

    The last change in the interchange fee in regards to the transactions of the ATMs was in the year 2012 and the charges that were paid by the customers were revised in the year August 2014. There has been a lot of time since there was a change in the charges on the customers regarding the use of ATMs and the transaction fees.

    FAQ

    Why has RBI revised Cash withdrawal charges?

    The Reserve Bank of India has conveyed that the reasons for letting banks increase the fee and charges for the transactions were mainly due to the increase in the cost towards the maintenance of the ATMs and also the increase in the cost for the deployment of the ATMs.

    What are the revised charges by RBI?

    Customers will be charged INR 21 per ATM transaction after exhausting limit of free transactions and The interchange fee for the ATM transactions for the Banks is increased from INR 15 to INR 17 for each financial transaction and for the non-financial transactions is increased from INR 5 to INR 6.

    What is interchange fee ATM?

    An interchange fee is paid by the banks to the operator of the ATM when a customer makes a transaction at an ATM that does not belong to the card-issuing bank.

  • Motilal Oswal – Its Business Model and How You Can Be a Business Partner Today!

    Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. The company was founded by Motilal Oswal and Raamdeo Agarwal in 1987 as a small sub-broking unit, with just 2 people running the show. The company is listed on BSE and NSE stock exchanges. The company offers loans for home, construction, composite, improvement, and extension in India

    The company entered into investment banking in 2005, followed by private equity fund in 2006. The company focuses on customer-first attitude, ethical and transparent business practices, respect for professionalism, research based value investing and implementation of cutting edge technology. Which have enabled the company to blossom into an over 6000 member team. On January 2010, Motilal Oswal Financial Services Ltd. set up Mutual fund business named as Motilal Oswal Asset Management Company (MOAMC).

    Today we are a well-diversified financial services firm offering a range of financial products and services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, and Home Finance.

    They have a diversified client base that includes retail customers, mutual funds, foreign institutional investors, financial institutions and corporate clients. They are headquartered in Mumbai and as of September 2020, had a network spread over 550 cities and towns comprising 2500 plus Business Locations operated by their Business Partners.

    Read on to know more about the different Motilal Oswal business models and how you can work with them!

    The Business Model of Motilal Oswal
    Partnership Business Models of Motilal Oswal
    Motilal Oswal – FAQs

    The Business Model of Motilal Oswal

    Motilal Oswal Franchise model is one of the multiple business models this full service stockbroker has to offer to potential business takers. The broker claims to have a presence in around 570 cities and 2200 plus locations across different parts of the country. Furthermore, there are around 2300 business partners associated falling in one business model or the other. It entered into the foray of franchising in the year 1999.

    Motilal Oswal has a partner strength of more than 1400 through its various business models and provides services at both retail and institutional levels such as Motilal Oswal Demat Account opening Motilal Oswal offers sub broker business models through which their approach towards business partners is that of being an extension of their brand and an extension of the family. This full service stockbroker claims to provide the following benefits to its business partners:

    • Back office Support – Helps in Risk management and Business operation Assistance.
    • Stock market research and advice – helps in research reports, Advisory, strategies.
    • Business development opportunities – helps in onboarding assistance, mentorship programs and Technology support through an exclusive mobile app.
    • Technology assistance through trading products – helps in trading platforms and portfolio tools.

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    Partnership Business Models of Motilal Oswal

    You can be a Motilal Oswal business partner in the following ways:

    Franchise

    Individual or businesses that are looking to expand their financial footprint can opt for the Motilal Oswal franchise model. You need to have a requisite office space along with a small team that can handled day to day operations. Entrepreneurs who think they have a dream to grow big and have the passion and the capability to pursue the journey towards their dream. With all the initial expenses taken care of, you get a revenue sharing of 60% of the brokerage generate by them.

    The eligibility for this model are good and consistent reputation in the financial space, a refundable deposit of INR 3 lakh to be made to the full service stockbroker and an experience of 2 to 3 years in the streams of broker or sub broker. They must also have a minimum investment of INR 5 lakh to INR 10 lakh at the onset with reasonable wallet for infrastructure related expenses and an area of 150 to 200 sq. ft. to set up an office in a year.

    Benefits of joining Motilal Oswal are:

    • Comprehensive Business development Initiatives.
    • Strong Mentorship form Senior Management.
    • Robust Back Office and Operations Support.
    • Solid Research and Solid Advice.

    How Motilal Oswal will build your business:

    • Superior Technology Platform for Multiple Products.
    • Dedicated Onboarding and Engagement Services.
    • Time tested and proven New client Acquisition strategies.
    • Full proof client shifting/business migration process.

    Employee to Entrepreneur

    This program is specifically for people who are either an employee at a stockbroking house or have a reasonable experience in the stock market. The eligibility criteria for this business model is that you must either be an employee of any stockbroking company or must be direct stockbroking experience. It’s for those who want to start their own business. Even in this model you get to keep a specific percentage of the overall revenue generated through your addition to the program. This percentage can range from 30% to 40% of the overall revenue.

    The benefits under this model are:

    • No limits to your career growth.
    • Opportunity to create a legacy for your future generations.
    • Extend your working life with your own business.
    • Customize your business according to your area of expertise.

    How Motilal Oswal can help in the employee to entrepreneurs sector:

    • Get insights from our entrepreneurial experience of growing a broking business.
    • Get a product suite to fulfill every need of your client.
    • Get access to our famed Solid Research and Advice.
    • Get readymade Back Office Infrastructure and Risk Management Systems.

    Remisier

    This business model of Motilal Oswal does not require any upfront capital expenditure to set up the business. An individual looking to spend nothing on the office infrastructure cost may try out this business model. The idea is simple, they provide interested business leads to Motilal Oswal and brokerage generated from the converted clients will have a share for the remisier. However the broker claims that it will provide all kinds of tools, research and other related assistance for client/lead acquisition.

    The eligible criteria for setting up a remisier business model with Motilal Oswal are reasonable reputation and hold of potential client base in the financial space, sales experience of at least 2 to 3 years of financial products, an operational expense capacity of INR 1 lakh. Entrepreneurs wanting to set up their business at no capital cost and largely work independently.

    The benefits of this model are:

    • Build your business with minimal costs.
    • Complete infrastructure support available.
    • No initial set up costs. Robust advisory support.
    • Dealing support at branches.

    How Motilal Oswal can help set up their business:

    • Zero Infrastructure and support costs.
    • Superior Technology Platform for multiple products.
    • Support at local branches for dealing.
    • Support for new client acquisition.
    The products and services offered by Motilal Oswal
    Motilal Oswal Products and Services

    Channel Partner

    This business model of Motilal Oswal channel partner is more of a collaboration with the broker rather than working under the broker. In case you are already working with a specific set of clients for stock market trading, then you may choose to opt for this business model. The idea, in this case is to offer the existing client base of yours with other potential investment opportunities apart from the ones they are already into.

    The eligibility criteria in case of a channel partner program is an active set of clients trading or investing in the stock market. Since channel partners are going to bring investor base to the full service broker, they get better revenue sharing on new investment products sold (which is anything from 50% to 60%). Those who would like to collaborate with us to cater to a wider range of clients and partake in the revenue pie of the complete financial intermedia on opportunity.

    Benefits of being Motilal Oswal channel partner:

    • Comprehensive business development initiatives.
    • Strong mentorship from senior management.
    • Robust back-office and operations support.
    • Solid research, advice and advisory products.

    How Motilal Oswal help build your business:

    • Superior technology platform for multiple products.
    • Dedicated customer acquisition and Engagement Services.
    • Staffing & training support.
    • Multiple Assets – one stop shop for your clients.

    Digi Partner

    It is a unique partnership model where you’re end to end business right from acquiring clients, account opening, business operations, product suggestions, advisory product Investments, and moderation is done digitally. As the name suggests, Digi-Partner is a unique partnership model where you’re End to end business right from acquiring clients, account opening, business operations, product suggestions, advisory product Investments and moderation is done digitally.

    Benefits of joining Motilal Oswal Digi Partner:

    • No compulsion of office infrastructure.
    • Online Funds & Securities pay-in and pay-out facility.
    • Call-N-Trade dealing service support.
    • Easy client account opening plus lucrative brokerage.

    How the company can help you build your business:

    • Extended business development support.
    • Dedicated reactivation desk.
    • Technology support with Uppermost.
    • Multiple asset classes to cross sell.

    Motilal Oswal – FAQs

    What is Motilal Oswal Sub Broker Commission?

    Taking into account the entitlements, precisely in terms of the revenue, there is a higher ratio of revenue that you will retain. There is a flexible revenue sharing provided by the stockbroking house, where 60% – 80% is provided to the sub-broker.

    Which is the cheapest brokerage in India?

    5Paisa is a part of IIFL (India Infoline) and offers the cheapest stock brokerage in India. IIFL launched 5Paisa to offer a lower brokerage platform for its clients and to compete with the fast-growing discount broking industry.

    What is the lowest brokerage charges in India?

    The minimum brokerage charge by the full-service brokers is the minimum commission they charge for trading with them. With a brokerage of 0.50%, if the total trade value is less than INR 7000, you will pay the minimum brokerage amount of INR 35.

    Which broker is best in India?

    Zerodha is one of the best brokers in India.

    Who owns Motilal Oswal?

    Passionate Investment Management Private Limited is the parent organisation of Motilal Oswal.

  • Mehul Choksi – How he lost the sparkle? [Case Study]

    The 63 year old diamond trader is wanted by the Indian legislative authorities for the charges of money laundering, criminal conspiracy, corruption, cheating  and dishonesty. He is also accused in the PNB scam case. He is an Indian born citizen who later took citizenship in Antigua and Barbuda in 2017. He owns the Gitanjali Group, which is a retail jewellery group with an extensive network of showrooms across India.

    It was in 1985 that he took over Gitanjali Gems from his father which was the beginning of all the frauds to unfold. From various credible sources, it can be learnt that he is admitted in the Dominica China Friendship hospital in Roseau as of 30th May 2021.

    On 26th May, after lots of efforts from law enforcement authorities, the scammer cum trader was arrested in the island country of Dominica.

    Mehul Choksi – Latest News
    The Beginning of the End for Mehul Choksi
    The Final Escape of Mehul Choksi
    The Story Now of Mehul Choksi
    Mehul Choksi Timeline
    FAQ

    Mehul Choksi – Latest News

    31 May 2021

    Mehul Choksi was admitted to the hospital after he tests negative for Covid -19.

    29 May 2021

    Mehul Choksi was seen in custody with his left hand and eyes bruised.

    27 May 2021

    Mehul Choksi’s lawyer clarifies that he can only be deported to Antigua and not to India according to Immigration and Passport Act Section 17 and 23 since he is an antiguan citizen.

    27 May 2021

    The Antiguan Prime Minister Gaston Browne has requested Dominica to deport Choksi directly to India. If he is deported to Antigua, then he will be able to enjoy the protections given for a citizen.

    23 May 2021

    Mehul Choski goes missing from Antigua and Barbada. His lawyer and himself says that he was abducted.

    The Beginning of the End for Mehul Choksi

    The history of a long drawn out bank fraud came into light as PMLA issued non-bailable arrest warrants against Mehul Choksi, Nirav Modi and Neeshal Deepak Modi. They have been involved in a $1.8 billion scam in the second largest public sector bank, Punjab National Bank. The bank claims that Choksi along with Nirav Modi colluded with the employees to illegally obtain money from the bank.

    Although he claims to be innocent even in an open letter, it does not go along with the fact that he left to the Carribean nation Antigua and Barbada just before the scam was disclosed.

    His oath taking as a citizen of the same country a few days the after disclosure further adds oil to the fire. Later, the PMLA authorities responsible for the investigation found out that 41 properties that were held by the Enforcement Directorate in the name of Mehul Choksi were money laundering assets.

    They ordered for the attachment of these properties worth 1210 crore. Following the order, a mall in Kolkata, 15 flats and 17 office premises in Mumbai, a four-acre farm house in Alibaug and 231 acres of land at locations like Nashik, Nagpur, Panvel in Maharashtra and Villupuram in Tamil Nadu were attached by the ED in keeping up with the Prevention of Money Laundering Act.

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    The Final Escape of Mehul Choksi

    There was confirmed information that Mehul Choksi was there in Antigua and Barbuda. However, he went missing on May 23,2021. His car was later discovered in the Jolly Harbour area which strengthened the assumptions that  he escaped to Cuba. However, the truth was revealed as he was confirmed to be in the Carribean country of Dominica.

    Since he was trying to flee to Cuba, this attempt can be used by the CBI to strengthen their claims for extradition. Another twist to the plot came when Choksi’s advocate alleged that he was kidnapped by someone who Choksi believes to be an Indian and Antiguan police into Dominica in a boat.

    The Story Now of Mehul Choksi

    The High Court of Justice Commonwealth of Dominica has stayed the extradition order of the scammer. The pictures of his swollen eyes and injured left hand are flooding the social media.

    The efforts of Indian agencies have not ceased. They continued to call the Antiguan government to extradite him by claiming that he is in fact an Indian citizen and has an Interpol Red Corner Notice issued in his name. Another group of people says that the Red Corner Notice cannot be used in this case since the task of locating the criminal is already done.

    At the same time, the Antiguan opposition party is clearly making use of this opportunity to support Choksi against the extradition claims of India. It is widely perceived as their attempts to later procure campaign funding from Choksi as a return gift.

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    Mehul Choksi Timeline

    January 2018

    • Mehul Choksi leaves India for the USA. He fled through Mumbai International Airport
    • Punjab National Bank files complaint against Mehul Choksi and Nirav Modi for defrauding the bank by colluding with the bank employees
    • CBI files probe against the scammers (Mehul Choksi, Nirav Modi, Nishal Modi). Raids and searches were also done.

    February 2018

    • The amount involved in the fraud was disclosed to be $1.7 billion.
    • CBI files case against the Gitanjali group.
    • PNB CEO announces that the losses are hoped to be compensated in 6 months.
    • Union Bank of India announces its exposure of $300 million in association with the PNB scam while of State Bank of India, it was $212 million.
    • Choksi claims to be innocent.

    July 2018

    • Interpol at the request of CBI issues Red Corner Notice against Mehul Choksi.
    • Choksi reaches Antigua after taking oath of citizenship earlier in 2018.

    March 2019

    • The UK Home Secretary accepts the extradition request of CBI and the files were to Westminster court.

    May 2021

    • Mehul Choksi goes missing.
    • Later he gets caught in Dominica.
    • CBI is waiting for the clearance of extradition.

    FAQ

    What did Mehul Choksi do?

    Mehul Choksi and his nephew Nirav Modi are the key accused in the 2018-Punjab National Bank (PNB) scam which was estimated to be around ₹13,500 crores.

    When did Mehul Choksi leave India?

    Mehul Choksi left India on 7 January, 2018 and few days later, the PNB scam was disclosed.

    Where is Mehul Choksi right now?

    Mehul Choksi had been staying in Antigua and Barbuda since January 2018.

  • Why did RBI restricted American Express, Diners Club from adding more customers

    On 23 April 2021, the Reserve Bank of India had barred American Express and Diners Club International Limited from onboarding new customers to their platform. The ban is expected to come into effect from May 1. Let’s look at why both the payment system operators American Express and Diners Club International Limited were banned by RBI from adding new customers.

    About the RBI Ban
    American Express Banking Corp
    Diners Club International Ltd
    Why did RBI restricted American Express, Diners Club from adding more customers
    FAQ

    About the RBI Ban

    The Reserve Bank of India had initiated a ban for the payment system operators from onboarding new customers into their network as they were not able to follow the norms with the data storage put forth by the RBI.

    The Reserve Bank of India in a statement said that both the entities have been found to be non-compliant in respect to the directions on storage of data of the payment systems. The RBI has added that the action towards both the entities was taken based on the powers which are under Section 17 of the PSS Act.

    American Express Banking Corp and Diners Club International Ltd are payment system operators in the country who has the authorization to operate card networks in India under PSS Act (Payment and Settlement Systems Act), 2007.

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    American Express Banking Corp

    American Express Banking Corp is a multinational company that focuses on financial services. It is located in New York, the United States. The company was founded in the year 1850. American Express is considered to be the 23rd most valuable brand in the world according to the Forbes 2017 list.

    Some of the products offered by the company are Charge Cards, Traveler’s cheque, Credit Cards, corporate banking, etc. In India according to a report by Financial Express, American Express has a market share of around 2.53 % of the total market with around 15.6 lakh credit cards outstanding.

    Diners Club International Ltd

    Diners Club International is also known as DCI is a charge card company. It is a finance-based company that has its headquarters in the United States. The company was founded in the year 1950. Diner Club International was the first payment card company in the world.

    The company is owned by Discover Financial Services. Some of the products of Diner Club International are charge cards and credit cards. In India, Diners Club International distributes its cards exclusively through HDFC Bank and the exact number of active users is unknown.

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    Why did RBI restricted American Express, Diners Club from adding more customers

    In the year 2018, in a notification, the Reserve Bank of India had noticed that all the payment system providers did not stored the data of the payments in the country. The notification said that there was a significant growth witnessed by India in the payment ecosystem and such systems depend completely on technology.

    The notification added that such an ecosystem has a necessity for a continuous measure of safety and security that were best in class.

    The Reserve Bank of India had then directed all the system providers to ensure that the entire data which are related to payment systems should be stored in a system that is only in India.

    The data which are stored should include the full end-to-end transaction details, information, carried, collected, and processed as part of the message or payment instruction. This was mentioned by RBI in its notification.

    If there is any foreign transaction, those data can be stored in the foreign country if it is required. The compliances with the new rules were supposed to be followed by the system providers within 6 months and they had to report the same to the Reserve Bank of India.

    In addition to this, they were also required to submit a report which should be approved by the board a System Audit Report (SAR). It should be conducted by the CERT-In empanelled auditor within the time duration that is specified.

    The ban of American Express Banking Corp and Diners Club International Ltd by RBI is because they have failed to follow the statement given by RBI in regards to storing the data which was issued two years ago.

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    FAQ

    What does American Express do in India?

    In India, American Express offers a full range of travel, financial and network service products.

    What type of credit card is Diners Club?

    Diners Club is an International Credit Card.

    Who owns RBI?

    RBI has been fully owned by the Government of India since its nationalisation in 1949.

    Conclusion

    The ban on both the entities would not affect the existing customers. The Reserve Bank of India had clarified in a statement that the ban will have no impact on the customers of both the companies.

  • Why is Citibank leaving Indian Consumer Banking market

    Citi Bank had recently announced that it will exit retail banking operations in India and 12 other countries. The other countries include Australia, Indonesia, Korea, Bahrain, Malaysia, Philippines, Poland, Taiwan, Russia, Thailand and Vietnam. Citi bank is one of the largest foreign banks in India. Let’s look at the below article to understand why Citi bank is leaving the Indian Consumer banking market.

    About Citibank
    Reasons Why Citibank is leaving Indian consumer banking market
    Other Reasons for the exit from Indian banking market
    Future Plans of Citibank
    FAQ

    About Citibank

    Citibank had entered Indian retail banking in the year 1902. The business of Citi Bank in India consists of Credit Card business, retail banking, wealth management and home loans. The company has around 35 branches across India and around 29 lakh retail customers.

    As of March 2020, Citi bank has around 12 lakh bank accounts and about 22 lakh credit card accounts. The bank has around 5.9% market share in the digital payments and around 6 % market share in credit card spends.

    According to FY2020 Citi bank has a 15.4 % share in the market share of loans among the foreign banks in India. As of 31 March 2020, the total deposits in the bank were around INR 1.57 trillion which includes the deposits from other banks as well as customers.

    It is estimated that around 26% of the foreign portfolio investments are through Citi bank India.

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    Reasons Why Citibank is leaving Indian consumer banking market

    American based banking major Citi bank is reducing its consumer operations as part of a broader strategic review. The new Chief Executive Officer, Jane Fraser is slimming down the operations in order to focus on the wealth management business since Citibank lacks the scale to compete in the retail banking operations.

    Jane Fraser while announcing Citi bank’s quarterly results said that they have decided that they are going to double down on wealth as a result of the ongoing refresh of their strategy. He said that, while all the 13 markets including India have excellent business, Citi Bank doesn’t have the scale they require to compete.

    Jane Fraser added on saying they believe that their capital, investment dollars and other resources are deployed better against the higher returning opportunities which include the wealth management and the institutional businesses in India.

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    Other Reasons for the exit from Indian banking market

    One of the other reasons for the exit from the retail market in India syncs with the trend of full or part exit of foreign banks in India from the year 2009. This is mainly because of the high capital and various other regulatory requirements in India.

    These factors have pushed various foreign banks to retreat into their domestic markets in order to protect their profitability. Certain foreign banks such as Barclays, HSBC, Standard Chartered bank, etc. have curbed their operations in India and other banks such as J.P Morgan, Goldman Sachs, etc. have surrendered their banking licenses.

    In addition to it, foreign banks do not find the small number of profits received from retail banks in India commercially attractive. This is one of the major reasons to exit the retail market when the domestic banks are in the process of finding more retail customers.

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    Future Plans of Citibank

    Citigroup has said that it will now focus on operating its global consumer banking business solely from four markets such as Singapore, Hong Kong, London and the UAE. The company said that it would continue its corporate and institutional banking business in the markets where it is ending planning to end the consumer operations.

    In India, Citigroup will focus on offshoring or global business support rendering its services from major centers in Mumbai, Pune, Bengaluru, Chennai and Gurugram.

    Ashu Khullar who is the CEO of Citi India said that India is a strategic talent hub for Citi and he added on saying that they will continue to tap into the rich talent pool which is available in the country to grow Citi’s five solution centers which are a support for their global footprint.

    He also added that, there was no immediate change to their operations and there wouldn’t be any immediate impact to the colleagues as a result of this announcement.

    Citi is not closing down its business in India but it is changing hands after it gets a requisite regulatory approval and a proper buyer. The bank said that till the time of the sale there will be no impact for their customer as well as their 21,000 employees.

    FAQ

    Does Citibank have branches in India?

    Citibank currently has 35 branches in India with 19,235 employees.

    Is Citi and Citigroup the same?

    Citigroup Inc. or Citi (stylized as citi) is an American multinational investment bank and financial services corporation headquartered in New York City. Citigroup owns Citicorp, the holding company for Citibank, as well as several international subsidiaries.

    Who is the CEO of Citibank India?

    Ashu Khullar is the current CEO of Citibank India.

    Conclusion

    Citi had become one of the largest foreign banks in India over the years and its decision to close down the consumer business in the country marks the end of an era.