White label ATMs

by Harsh Vardhan.

On 20 June, RBI issued guidelines that permitted White Label ATMs (WLA) to be operated in India. These guidelines could make a very significant change in the banking business – one that would go a long way in improving penetration of banking. This was a move that was long overdue. We . . . → Read More: White label ATMs

Learn Something New Every Day …

This, in a USA Today story about the 30-year mortgage rate hitting a new record low, caught my eye (emphasis mine):

Mortgage buyer Freddie Mac says the average rate on 30-year loans fell to 3.56%. That’s down from 3.62% last week and the lowest since long-term mortgages began in the 1950s.

My immediate . . . → Read More: Learn Something New Every Day …

New moves in regulation of debit card payments

by Viral Shah.

The Reserve Bank of India has stepped in to regulate the pricing for debit card transactions. The rationale behind this regulatory change seems to be that lower transaction processing fees paid by merchants will lead to an increase in the adoption of retail electronic payments overall. Issuing banks will have to . . . → Read More: New moves in regulation of debit card payments

Why is solving India's inflation crisis important?

All of us are aware of India’s inflation crisis. It is very disappointing, how we lost our grip on stable 4-to-5 per cent inflation which was prevailing earlier. From February 2006 onwards, in every single month, the y-o-y CPI-IW inflation has exceeded the upper bound of 5 per cent.

All of us agree . . . → Read More: Why is solving India’s inflation crisis important?

How to achieve safety in payments

The technological opportunity in payments

In the old days, the field of payments was inextricably interlinked with banking. Money was only held in bank accounts; the only way to move money around was through banks.

Advances in computer technology coupled with financial innovation have changed all this. Banks are no longer the only game . . . → Read More: How to achieve safety in payments

Positive Signs

From the Grey Lady:

LAST week, Attorney General Eric H. Holder Jr. proclaimed in a speech that when it comes to fighting financial fraud, the Obama administration’s “record of success has been nothing less than historic.” Such self-congratulation is not only premature, but it also reveals a troubling lack of understanding about what is . . . → Read More: Positive Signs

Loans Aren’t the Solution

Apparently microcredit has not lived up to its hype:

There has been enough time and evidence now to explore the full impact of microcredit in depth, and, set against its vaunted reputation, my verdict is dour: Microcredit rarely transforms lives. Some people do better after getting a small business loan, while some do worse . . . → Read More: Loans Aren’t the Solution

Banking follies in the eurozone

Edward Hugh has a brilliant analysis of recent events in the eurozone and especially how banks are leveraging the liquidity provided by the ECB to “cleanse” their balance sheet of bad assets and essentially exchanging these for freshly minted euro deposits at the ECB. I think we should be very clear what is going . . . → Read More: Banking follies in the eurozone

Unsegregated Allocated

Following on from this post from 2009 where I identified five types of storage (Segregated Allocated, Unsegregated Allocated, Unsegregated Physical Backed, Unallocated Fully Hedged, Unallocated Unhedged), we now have confirmation that “Allocated” metal at a bullion bank is unsegregated from this interview with Kyle Bass (42 minute mark) where he talks about bars being . . . → Read More: Unsegregated Allocated

How to Make Money in a 'Fugly' Stock Market: Bob Moriarty

Despite the “fugly” future that Bob Moriarty, founder of 321gold.com, talks about in this exclusive interview with The Gold Report, he’s downright bullish on the U.S. dollar for the time being. He says it’s not only a safe haven but “the best investment to be in for the last six months.” As for . . . → Read More: How to Make Money in a ‘Fugly’ Stock Market: Bob Moriarty