Transfin.

Loans To Get Cheaper As SBI Cuts Lending Rate, Govt Might Slash Employee EPFO to Boost Take-Home Salary

Govt might slash employee EPFO to boost take-home salary and consumer spending. Home, car and retail loans to get cheaper as SBI cuts lending rate. Airtel seeks govt approval for FDI infusion worth INR4,900cr. SoftBank's Vision Fund 2 could be 30% smaller than the first.

 

 

EPFO

Govt might slash employee EPFO to boost take-home salary and consumer spending.

New Rules: The Centre is reportedly planning to reduce employee PF contribution to the Employee Provident Fund Organisation (EPFO) through the Social Security Code Bill to be placed in the current session of Parliament. This is being done with the aim to increase take-home salaries so as to boost consumer spending.

 

The new rules, if passed, could require employees in select organised sectors to pay less than the 12% statutory contribution. The employers' contribution, meanwhile, will remain 12%. The Week

Plan to link NPS and EPF junked.

Old Rules: The government has discarded a plan first mooted in 2015 to make the National Pension System (NPS) an alternative to the Employees' Provident Fund (EPF).

 

“There is a growing realisation that EPF, the mandatory mass social security scheme, is far better than NPS in terms of employee benefits, tax treatment, statutory requirement, and overall reach," an official said. Livemint

 

PERSONAL FINANCE 

Home, car and retail loans to get cheaper as SBI cuts lending rate.

And It's A Cut: The State Bank of India (SBI) today announced a cut in one-year marginal cost of funds-based lending (MCLR) rate by 10 bps, effective from December 10th, bringing the MCLR rate down to 7.90% per annum from 8.00% per annum. The news comes even as the RBI decided to hold the repo rate in its MPC meeting last week. 

 

What Does This Mean: With this cut, home, car and other retail loans of SBI linked to MCLR are likely to get cheaper.

 

FYI: This is the eighth consecutive cut in MCLR by SBI this fiscal. Hindu BusinessLine

 

Home, car and retail loans to get cheaper as SBI cuts lending rate.

 

Extra Crunch: Credit cards can come handy in case of a financial emergency. However, there is another kind of card that can outdo your average credit card in terms of spending limit and rewards - a charge card. Here's all you need to know about charge cards, in case you are planning to get one.

 

AIRTEL

Airtel seeks govt approval for FDI infusion worth INR4,900cr.

Waiting Eagerly: Telecom major in India, Bharti Airtel is awaiting government approval on a FDI infusion worth INR4,900cr, from Singapore-based Singtel and other foreign entities, a move that would make the country’s oldest private telecom operator a foreign entity. The infusion, if it goes through, will make the country’s oldest private telecom operator a foreign entity.

 

At present, Bharti Telecom holds around 41% stake in Bharti Airtel while foreign promoter entities hold 21.46%. Public shareholders have around 37% stake in the company. India Today

Security flaw in Airtel app exposes customer data.

Meanwhile: An independent cyber security researcher found technical flaws in Airtel App that exposed "sensitive user information". The operator claims to have fixed the flaws now.

 

"It revealed information like first and last name, gender, email, date of birth, address, subscription information, device capability information for 4G, 3G & GPRS, network information, activation date, user type (prepaid or postpaid) And current IMEI number," noted the cyber security researcher, Ehraz Ahmed. ET Internet

 

POLICY

Large urban cooperative banks could come under Banking Regulation Act.

Under My Umbrella: Large urban cooperative banks (UCBs) may come to be solely under the provisions of the Banking Regulation Act, tackling the issue of dual control of UCBs. Smaller cooperative banks may remain with the Registrar of Cooperative Societies. More details here.

 

Cabinet expected to amend IBC to protect new owners of insolvent companies from persecution.

And Now, This: The Union Cabinet is reportedly expected to approve significant changes to the Insolvency and Bankruptcy Code in order to protect new owners of bankrupt companies from criminal accountability related to the time when the concerned company was controlled by the erstwhile promoters. This could safeguard companies taking over broke businesses from prosecution for financial crimes by outgoing promoters. Business Today

 

COMPANIES

SoftBank's Vision Fund 2 could be 30% smaller than the first.

The Second Coming: SoftBank's second Vision Fund is expected to fall significantly short of the originally planned $108bn.

 

How Short?: Vision Fund 2 could be 30% smaller than its first iteration, which had closed at $100bn.

 

This follows the company's faltering bets in several start-ups like Uber and the disastrous IPO attempt of coworking space firm WeWork. Inc42 

T-Mobile and Sprint begin battle to win court approval for their merger.

Today We Plan for Tomorrow: Today, T-Mobile and Sprint will begin defending their proposed merger before a Manhattan court against attorneys general from several US states who argue that the merger could limit competition and increase prices for consumers.

 

The merger deal between the two US telecom giants - which are among the top four players in that sector - was already green-lighted by the Department of Justice and the Federal Communications Commission. But state representatives posit that the regulatory bodies were wrong in their decision and that, if allowed to proceed, it could lead to a further squeeze in an already consolidated industry. CNBC

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