RBI has released important FAQs with respect to Default Loss Guarantee that Digital lending platforms used to provide.

This will impact lot of fintechs, NBFCs, banks, P2P industry and credit card players

A brief thread 🧵: 1) RBI has clarified that DLG cannot be given for credit cards. Few credit card fintech platforms had tied up with banks where banks would issue credit cards and fintech platforms would provide default guarantee. Its been explicitly stated in FAQs that such DLG cannot be given.

Invest in farmlands and earn tax free 15%!
Lease a car and earn 16% fixed returns!

Many alternate investment platforms have been raising money via LLP structure from retail investors and promising them fixed returns.

SEBI today in an order has taken action against such LLP vehicles which were acting as unregistered collective investment scheme.

A thread 🧵 First lets understand how the structure works:

1) A limited liability partnership is set up by the platform.
2) Retail investors invest money in the LLP and become partners in the LLP on paper.
3) However the LLP is managed by the investment platform which acts as the main partner of the LLP (designated partner)
4) LLP uses the money to invest in farmlands, do solar leasing, equipment leasing, car leasing etc
5) Investors are effectively promised/conveyed “fixed returns” of 12-20%
6) The income earned via farmland/leasing is used to make repayments to the investors

How do malls earn?

40% of the rental income comes from clothing brands.

Parking and ads make upto 10% of their total income.

Lets look at the Indian malls closely.🧵 Malls have 4 sources of income-
1) Lease Rentals

Lease rentals make up 70% of their total income.

Usually, multiplex brands are mall's highest single paying tenant with
upto 12.5% of the total rental income.

How far is Paytm from being profitable?

Paytm reported ₹2850 Cr in revenue and ₹220 Cr in loss.

In their lending segment, BNPL loans reduced and avg. ticket size for personal loans has increased.

Paytm's business model and growth🧵 Firstly let's see how does Paytm earn?

Paytm has 3 main revenue sources-

1) Payment services (UPI, Soundbox, QR code)
2) Financial services (Broking, Lending)
3) Marketing services (ticketing, ads, cloud service)

MakeMyTrip made more than ₹50,000Cr in revenue in FY23!

65% of its revenue came from flight booking.

It is the largest player in the online travel agent (OTA) industry in India.

Read more about the ₹1.25 lakh Cr industry🧵 Tourism in India is rising rapidly.

India saw 6.43 million foreign tourist arrivals (FTAs) from Jan-Sept23'.

What happens if you become a victim of online fraud?

No more lengthy processes and fear of losing your money.

Govt. plans to give a 4 hour window to modify/cancel your UPI transaction above ₹2000.

A short thread🧵 The fraud cases keep on rising with fraudsters coming up with new ways everyday.

~₹30000 Cr worth of fraud cases were reported in FY23.

This number is understated because there are so many people who don't even report the fraud.

Indian Railways had a revenue of ₹2.4 lakh Cr in FY23!

In terms of profit, East Costal Railway was the most profitable railway network in India.

Let's understand how Railways earn?🧵 Indian Railways depend heavily on transportation of goods for their revenue.

Railways earn ₹1.84 per tonne of goods travelling 1 km against ₹0.64 per passenger travelling 1 km.

No more spam SMS from companies!

Companies which send promotional SMS will have to take your consent before sending you any SMS.

You can now check which companies can/cannot send you an SMS.

A short thread 🧵 Earlier, your service provider (eg- Airtel) would not know which companies are allowed to send you a message.

So any random company could send you a promotional message and you could not do anything but get annoyed.

People think that all government and quasi government bonds are risk free.

This is not true!

For example-
Yesterday, Bond guaranteed by Government of Andhra Pradesh was downgraded to CRISIL BBB+.

Here is why?🧵 As part of the bond structure the Andhra Pradesh Capital Authority needs to maintain a minimum balance of :

- ₹300 Cr in debt service reserve account (DSRA) and
- ₹225 Cr in bond servicing account (BSA)

This is in order to meet the debt obligations on time.

Firstly what are depositories?

Indian financial markets faced problems like delays in transfers, long settlement periods, failed trades.

To overcome these, the depository system was introduced.

It allowed us to hold these securities in dematerialised form and trade in them. NSDL has 3 main sources of revenue
- Annual fees
- Custody fees
- Transaction charges

To pay through IMPS, you had to add beneficiary, account number, IFSC etc.

But not anymore!

Now you can easily send money through IMPS by just entering the mobile number and bank name.

A short thread on the new IMPS rule (🧵) Earlier you could send money direct to a bank account my adding account number, bank name and IFSC through IMPS.

You could also send money to a person by adding your and receiver's MMID (unique code called mobile money identifier issued by the bank)

Airports are becoming shopping malls!

Delhi airport earns more from duty free and shop rentals than actual flight-related income.

64% of its revenue comes from shop rentals, F&B, advertisements etc.

A short thread 🧵 Airport revenues are divided into 2 parts:

-Aeronautical revenue: flight landing, baggage X-ray charges etc.
-Non-aeronautical revenue: space rentals, ads, parking etc.

Aeronautical revenue can cover the cost of day to day operations but not the investment and financing costs.

What if people are using your name to buy SIM cards?

The government has introduced a portal named Sanchar Saathi, where you can find and report fraud numbers registered under your name!!

How to check:
1) Visit
2) Log in through OTP
3) Select the fraud number if any
4) Select 'Not My Number' and Report!bit.ly/sancharsaathi-…

To stop SIM frauds, government has also come up with-

- Strict checks like police verification for vendors of SIM cards
- No bulk purchase for individuals and strict KYC for businesses.
- Compulsory registration of PoS
- Improved KYC for buyers to avoid misuse

If an investor dies, their family members/nominees face a lot of problems in getting the shares they hold.

But not anymore!

Today, SEBI announced a mechanism to report an investor's death through KYC Registration Agencies (KRA).

A short thread on how it will work🧵 The death of an investor can be reported by :

- joint account holder(s)
- nominee(s)
- legal representative
- family members.

This should be reported to agencies like NSE, BSE along with the death certificate and PAN of the deceased investor.

Your bank will now have to pay you ₹5,000 daily, if it fails to return your property documents on time after you've settled your loan completely.

For better service after closing your loan,
RBI has released this note for banks🧵 In case of loan against collateral, it was found that banks did not release the property documents and charges related to the loan, even after paying off the loan.

From 1st Dec 2023, it will be compulsory to return the documents to you within 30 days of full repayment.

Did you know more than 50% of India's gold reserves are held abroad!

India has ~795 tonnes of gold reserves, out of which 437.22 tonnes is held abroad.

But why are gold reserves held outside? 🧵 Indian Gold is held with the Bank of England and the Bank of International Settlements (BIS).

These banks provide a sense of security.

Holding Gold in different locations helps diversify risk.

There are 80+ million outstanding credit cards in India.

Almost 10% of them are Amazon ICICI and Axis Flipkart cards.

Axis Flipkart cards make up almost 30% of their total credit card portfolio.

Why are co-branded cards so successful? 🧵 First, let's see how a typical credit card works:

Get a card and earn points with every purchase.
Enjoy a 30-45 day repayment cycle.
Pay bills on time.

As simple as it gets!

India has ₹35,000 crores as unclaimed bank deposits.

To solve this problem,
RBI has launched its UDGAM portal where you can find your unclaimed deposits.

Short thread on how this works 🧵 Many savings/current accounts in India are inactive.

If an account is inoperative for 10 years, the balance is considered to be an unclaimed deposit.

The same goes for FDs and RDs that are not claimed within 10 years of maturity.

Hero Electric is the third biggest player in the 2 wheeler EV market with ~15% share.

On Monday it defaulted on its debt and its rating was downgraded to CRISIL D!

A short thread on what exactly happened 🧵 The EV industry is at a nascent stage!

There is a very limited customer base and lack of infrastructure.

Income tax data for FY23 has been released by the Income Tax Dept.

A short thread 🧵 In FY21, the number of individuals in the 5L bracket was higher at 5+ Cr.

But in the last 2 years, individuals in the higher income bracket have increased.

And overall the total number of filers has also increased.

How SEBI plans to prevent another Franklin Templeton fiasco!

A thread on the Corporate Debt Market Development Fund

In image - Hon'ble FM inaugurating the Fund If you follow Indian debt markets, you will know how illiquid they are.

In times of market stress, liquidity disappears. And when markets crash, investors panic and try to sell their mutual fund holdings.