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Saturday,19-June-2021

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DoT to ask Vodafone Idea for payment this week

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Vodafone

With Airtel and Tata Teleservice having submitted their self assessment figures on AGR which though are subject to DoT reconciliation, the government will ask Vodafone Idea this week to apprise them of their numbers and submit the dues simultaneously.

The prospects of any major relief to the telcos before the Next Supreme Court hearing on March 17 is dim and official sources said they have to pay first as per their self assessment, as it’s not an overnight issue and they should have been prepared for it and provisioned.

“Airtel and Tata Teleservice have submitted as per their assessment and we will get back to them on their numbers but Vodafone has now to submit its assessment numbers so that we have time and numbers to consider for any relief even after the next hearing in the Supreme Court. But first pay,” a source said.

On Saturday, Airtel submitted Rs 8000 crore more as AGR dues, including Rs 5,000 crore extra, subject to DoT reconciliation. The telco had earlier paid Rs 10,000 cr as AGR dues. Airtel said Rs 18,000 crore is the full and final figure. However, DoT’s AGR figure stood at Rs 35,500 crore for Airtel. For Tata Tele which paid Rs 2197 crore, the figure stood at a little over Rs 14,000 crore.

Vodafone Idea so far has paid Rs 3500 crore, its figure as per government is Rs 53,000 crore and VIL is currently doing self assessment and is yet to give full and final figure as per its own calculations.

On Friday, Digital Communications Commission (DCC), the inter ministerial panel of Telecom Ministry could not take any decision on possible relief to the financially distressed telecom sector with officials saying more data are required for reconciliation of AGR numbers.

The DCC meeting that lasted two hours will be held again in the coming days. “No decision has been taken on any relief to the telecom companies, sources said, adding, the department needs more data, and that there will be more meetings and reconciliation of AGR figures.

Business

India’s forex reserves rise by over $3 bn

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Reserve-Bank-of-India

India’s foreign exchange reserves rose by $3.074 billion during the week ended June 11.

According to the Reserve Bank of India’s (RBI) weekly statistical supplement, the reserves increased to $608.081 billion from $605.008 billion reported for the week ended June 4.

India’s forex reserves comprise foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs), and the country’s reserve position with the International Monetary Fund (IMF).

On a weekly basis, FCAs, the largest component of the forex reserves, edged higher by $2.567 billion to $563.457 billion.

Similarly, the value of the country’s gold reserves rose by $496 million to $38.101 billion.

However, the SDR value slipped by $1 million at $1.512 billion.

But, the country’s reserve position with the IMF inched higher by $11 million to $5.011 billion.

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Business

BharatPe in talks to raise $250M led by Tiger Capital: Report

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BharatPe

Fintech major BharatPe, that hit a new high with 106 million monthly transactions in UPI in March this year, is reportedly raising nearly $250 million in its next funding round led by Tiger Global.

TechCrunch on Friday reported, citing sources, that the fresh funding will take the company’s valuation to about $2.5 billion.

When reached, the company declined to comment at the moment.

The financial services company last month raised Rs 50 crore in debt from Northern Arc Capital, one of the leading digital debt finance platforms. This was the sixth round of debt financing in 2021.

In January, the company had raised Rs 200 crore from three top debt companies in the country — Alteria Capital, InnoVen Capital and Trifecta Capital, having later raised additional capital from ICICI Bank and Axis Bank.

“We have considerably ramped up our lending business in the last year and have set an ambitious target of facilitating disbursals to the tune of $1 billion to more than 10 lakh merchants by the end of current fiscal (FY22),” Suhail Sameer, Group President, BharatPe, had said.

The fintech company has already facilitated disbursals of over Rs 1,600 crore to more than 2 lakh merchants since the launch of the lending vertical.

As per a recent report by ACI Worldwide and Global Data, India has outpaced the US and China to become the world’s biggest real-time digital payments market, driven by P2P as well as merchant payments.

BharatPe said it is committed to help small merchants and kirana store owners grow their business with a range of fintech products for them.

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Finance Ministry refutes reports of alleged black money held by Indians in Switzerland

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Finance-Ministry

The Union Finance Ministry on Saturday said that increase in deposits of Indians in Swiss Banks could be on account of increase in business of Swiss bank branches located in India and raised Inter-bank transactions, rather than due to an increase in alleged black money held by Indians in Switzerland.

It, however said that Swiss Authorities have been requested to provide the relevant facts along with their view on possible reasons for increase or decrease in deposits so that facts could be presented in correct perspective.

Certain reports suggested that that funds of Indians in Swiss Banks have risen to over Rs 20,700 crore (CHF 2.55 billion) at the end of 2020 from Rs 6,625 crore (CHF 899 million) at the end of 2019, reversing a 2 year declining trend. It has also been stated that this is also the highest figure of deposits in the last 13 years.

“Reports allude to the fact that the figures reported are official figures reported by banks to Swiss National Bank (SNB) and do not indicate the quantum of much debated alleged black money held by Indians in Switzerland. Further, these statistics do not include the money that Indians, NRIs or others might have in Swiss banks in the names of third-country entities,” the Ministry statement said.

The statement added that the customer deposits have actually fallen from the end of 2019 in a Swiss Banks. The funds held through fiduciaries has also more than halved from end of 2019. The biggest increase is in “Other amounts due from customers”. These are in form of bonds, securities and various other financial instruments, the finance min statement said.

The ministry also ascribed various other reasons for increase in deposits and not possibly on account of the increase of deposits in the Swiss banks out of undeclared incomes of Indian residents. It said that that increase in deposits may be on account if increase in deposits owing to the business of Swiss Bank branches located in India or Increase in Inter- bank transactions between Swiss and Indian Banks. Also, it could be due to capital increase for a subsidiary of a Swiss Company in India or increase in the liabilities connected with the outstanding derivative financial instruments.

The government has issued clarifications in wake of widely held position that it has curbed generation of black money in the economy or unaccounted funds of Indians stashed abroad. The fresh tax agreements reached between India and certain perceived tax havens has introduced certain instruments to prevent round tripping of funds and generation of black money.

It is pertinent to point out that India and Switzerland are signatories to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) and both countries have also signed the Multilateral Competent Authority Agreement (MCAA) pursuant to which, the Automatic Exchange of Information (AEOI) is activated between the two countries for sharing of financial account information annually for calendar year 2018 onwards.

Exchanges of Financial Account information in respect of residents of each country have taken place between both countries in 2019 as well as 2020. In view of the existing legal arrangement for exchange of information of financial accounts (which has a significant deterrent effect on tax evasion through undisclosed assets abroad), there does not appear to be any significant possibility of the increase of deposits in the Swiss banks which is out of undeclared incomes of Indian residents, the finance ministry said.

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