Live with Money

The Introduction of GST is hailed as one of the boldest move towards a single tax regime. GST coupled with Demonitization exercise has changed the nature of Indian Retail Ecosystem. The reports suggest that more and more customers are pronged into organised retail system, and the usage of Plastic Money has gone up. The impact of GST confusion is evident from the empty racks of Super Markets. Various FMCG items are now not available.  The reports says that the confusion may continue for some more time. The India’s economic system is predominantly cash based and was expected to continue so, till the turbulence of demonetization hit the streets.  The giants of organised retail markets such as Walmart, Metro, DMart, More, Reliance etc have seen a rise in their memberships. The consumer is shifting from unorganised sector to organised sector, mainly ease of transaction. The retailer who fails to offer the technological convenience to that of an organised retailer, has t...

The JIO led movement is going to further disrupt the telecom market, which is already under disruption. Even this post is aided by use of JIOs network. The proposed induction of “FREE MOBILE”;  return of deposit amount of Rs 1500 after three years, is a trap. Jio has a long term plan, Jio has developed Data Market, by offering free services : which had increased the per head consumption of data usage by nearly 15 times. People flocked to subscribe to Jio's schemes, as the existing telecoms (airtel, vodafone, idea etc) were charging us very high. It almost killed competition by slashing rates , and there by cornering 125Mn consumers within a short span. Thereby it creates a monopoly, which will make other companies difficult to enter. FDIs will not come, as they are already scared of the fate of investments done by Hutch, Vodafone, Maxis etc. It now introduces a low cost phone ; with an offer of refund of deposit amount after three years, which is nothing but an exc...

Demonetization has started thinking about eradication of Cash Based economy, the real currency notes. The digital banking is really gonna happen. A country without currency notes. Tellers will sooner become extinct species. The digital wallets are going to be the soul of next generation. We have to move our development of wallets to that direction. The wallet but also comes with threats, the Virus. It can turn a person to penniless overnight. The frauds will have no bounderies. The international transactions has to be filtered with mechanisms that are foulproof and constantly updated. The banking is Going to see a radical change in the coming decade and that also pose challenges to employees with conventional attitude.

Gold Metal Loans are used by the Jewellers in order to secure sufficient stock of gold for manufacturing for the purpose of exports and domestic sales. The leverage offered by the scheme is duly recognised by the leading players in the market. However, due to the inherent risk associated with the metal, has cautioned banks to have a cautious approach while allowing gold metal loans.  The inadequate data with RBI also made the banks to be wary of such scheme. Hence RBI has permitted only few banks (known as nominated banks*), that have permission to import gold, to issue GML. However, the customers of other banks, can avail this facility by submitting a standalone LC/BG to the nominated Banks. Though a lot of conditions were generally put forward by RBI in its original scheme, only few are applicable to customers point of view. Tenor of the scheme will be 270 days maximum. The borrower has to clear the dues within that period. The period is meant for the purpose of manuf...