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SBI Card imposes Rs 100 fee on cheque payments

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Mumbai: In a bid to discourage cheque payment, SBI Card has decided to impose a charge of Rs 100 on payments below Rs 2,000 made through the cheque drop box.

The fees would not be levied to SBI account holders as cheques are cleared as an intrabank transfer in such cases. However, non-SBI cheques would attract a fee even if deposited across the counter in branches.

SBI Card MD and CEO Vijay Jasuja said, “We are only looking at recovering clearing cost. When we are talking about digitisation and all modes are available, what is the need of paying by cheque?.”

He cited a problem, wherein the company loses out every month in the process. He said, “A large number of cheques were being dropped late into the boxes and subsequently disputes were raised on late payment charges. We have done a deep analysis. It is not possible that every month the bank is making a mistake in cheque collection”.

He further said that 92% of cardholders settle their bills through non-cheque mode and only 8% use cheques for payment. He added, of these 8%, around 6% have bills of over Rs 2,000 and it is only the remaining 2% who are going to get affected by the decision.

While the company is disincentivising cheques, it is providing incentives to those paying online by way of higher reward points.

SBI Cards currently have 14 modes of bill payments and most of these modes need internet over mobile or desktop.

After cash disincentivising, cheque disincentivising would come as a long hit to consumers. Using cheques is a popular choice for paying monthly bills and fees.

Wefornews Bureau

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Global cues subdue equity indices; metal stocks fall

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Mumbai, June 18: Weak international markets and concerns of a resurgent global trade war depressed the key Indian equity indices on Monday.

According to market analysts, heavy selling was witnessed in the metal, consumer durables and IT stocks.

At 3.30 p.m., the wider Nifty50 of the National Stock Exchange (NSE) provisionally closed at 10,799.85 points, down 17.85 points or 0.17 per cent from the previous close of 10,817.70 points.

Similarly, the barometer 30-scrip Sensitive Index (Sensex) of the BSE, which had opened at 35,698.43 points, closed at 35,548.26 points (3.30 p.m.) — down 73.88 points or 0.21 per cent from its previous session’s close of 35,622.14 points.

The Sensex touched a high of 35,721.55 points and a low of 35,518.73 points. The BSE market breadth was bearish with 1,709 declines and 934 advances.

The top gainers on the Sensex were ICICI Bank, Tata Motors, Tata Motors (DVR), Bajaj Auto and Maruti Suzuki whereas Vedanta, Kotak Bank, Bharti Airtel, Coal India and Axis Bank were the major losers.

On the NSE, Hindustan Petroleum, Indian Oil Corp and ICICI Bank were the highest gainers while, Hindalco Industries, Tata Steel and Vedanta lost the most.

IANS

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Audi CEO ‘Rupert Stadler’ arrested in diesel emissions probe

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Audi CEO Rupert Stadler (File Photo)

Madrid, June 18: Rupert Stadler, the Chief Executive of German carmaker Audi, was arrested on Monday in connection with an investigation into the diesel emissions scandal.

German prosecutors named Stadler and one other Audi executive as suspects for fraud and false advertisement in the car maker’s continuing emissions scandal, Efe news reported.

Nicolai Laude, a spokesperson for Audi’s parent company Volkswagen, confirmed that Stadler had been arrested but he declined to comment on the investigation. He said the company’s supervisory board would soon discuss the matter.

“The principle of the presumption of innocence continues to apply to Stadler,” he added.

Munich prosecutors said they had acted because of risk that Stadler might seek to suppress evidence, CNN said. They added that Stadler would be questioned by Wednesday, once he had spoken to his lawyers.

Shares in Volkswagen dropped by 2 per cent in Frankfurt. Prosecutors said last week they had searched Stadler’s home for evidence as part of an investigation that has been underway for over a year.

The arrest came just days after Germany imposed a $1.2 billion penalty on Volkswagen for rigging diesel engine emissions worldwide.

Volkswagen first admitted in 2015 it had rigged millions of diesel engines to cheat on emissions tests. Diesel cars from Volkswagen and its Audi subsidiary cheated on clean air rules with software that made emissions look less toxic than they actually were.

Martin Winterkorn, the former chief executive officer of Volkswagen, was indicted in May by US prosecutors. He was charged with wire fraud and conspiracy to defraud American customers and violate the Clean Air Act.

IANS

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Market Review: Higher industrial output, Kim-Trump meet lift equity indices

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Sensex Nifty Equity

Mumbai, June 16: Healthy industrial production data and an encouraging geo-political scenario aided the key Indian equity indices to rise for the fourth consecutive week.

The gains in the week ended Friday, however, were limited by a number of global factors including the interest rate hike in the US, and US President Donald Trump’s approval to tariffs on $50 billion of Chinese exports.

Additionally, domestic factors such as a rise in retail and wholesale inflation also arrested the gains.

Index-wise, the barometer 30-scrip Sensitive Index (Sensex) of the BSE rose by 178.47 points or 0.50 per cent to close at 35,622.14 points on a weekly basis.

The wider Nifty50 of the NSE closed the week’s trade at 10,817.70 points — up 50.05 points or 0.46 per cent — from its previous close.

According to analysts, market breadth was positive in only two of the five trading sessions.

“Markets ended the week with modest gains after a sharp bounce back from the lows of 10,755 points (Nifty50),” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Hem Securities’ Director Prateek Jain said: “Last week indices extended their winning streak to the fourth consecutive week. The upswing was seen despite retail inflation rising to 4.9 per cent for the month of May compared to the previous month.”

According to Rahul Sharma, Senior Research Analyst at Equity99, “It was an eventful week on the global front too, with US President Donald Trump and North Korean leader Kim Jong Un signing a joint agreement for the denuclearisation of the Korean Peninsula.”

“Further, the Fed (US Federal Reserve) has again done what it was expected to do as it raised benchmark interest rates hinting at a little more aggression in tightening monetary policy this year,” Sharma said.

“Another event, which kept investors sentiments on the toe was reports that President Donald Trump’s administration has cleared tariffs on tens of billions of dollars’ worth of Chinese goods”

On the currency front, the rupee closed at 68.02 against the US dollar depreciating by 51 paise from its previous week’s close of 67.51 per greenback.

In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrip worth Rs 5,294 crore, while the domestic institutional investors purchased stocks worth Rs 4,014.25 crore during the week.

Figures from the National Securities Depository (NSDL) revealed that foreign portfolio investors (FPIs) divested equities worth Rs 3,071.85 crore, or $455.4 million, in the week ended on June 15.

Sectorally, the top gainers were the pharma, IT, energy and PSU bank indices and the top losers were metal, infrastructure and realty indices, Jasani told IANS.

The top weekly Sensex gainers were Dr Reddy’s Lab (up 13.97 per cent at Rs 2,351.10); Sun Pharma (up 8.11 per cent at Rs 571.05); Tata Consultancy Services (up 5.33 per cent at Rs 1,841.45); IndusInd Bank (up 4.01 per cent at Rs 1,965.85); and Reliance Industries (up 3.10 per cent at Rs 1,013.85 per share).

The major losers were Tata Steel (down 5.60 per cent at Rs 565.95); ONGC (down 4.64 per cent at Rs 165.45); Coal India (down 3.74 per cent at Rs 279.05); NTPC (down 3.40 per cent at Rs 156.05); and Tata Motors (DVR) (down 3.30 per cent at Rs 180.05 per share).

IANS

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