Paytm Mall Detects Cashback Fraud Worth c. INR10cr, RBI Appoints R Gandhi on Yes Bank's Board, Facebook to Impose Restrictions on Live-Streaming et al.

Flipkart is in talks with international original equipment manufacturers (OEMs) to create new product models in high-selling categories. Paytm Mall detects cashback fraud worth c. INR10cr. IndiGo to introduce low cost business class, one-stop flights to Europe. Facebook to impose restrictions on live-streaming. 

 

Moving on to the top Business news of the day.

 

 ECOMMERCE 
 
Flipkart is in talks with international original equipment manufacturers (OEMs) to create new product models in high-selling categories. Paytm Mall detects cashback fraud worth c. INR10cr.

Big Plans: Flipkart is in talks with international original equipment manufacturers (OEMs) to create new product models in high-selling categories like electronics.

Flipkart is in discussions with major brands to co-develop stock keeping units (SKUs) in a special partnership where the retail giant will build, stock, sell and service the new items.

Negotiations have been ongoing for six-eight months with consumer electronics-makers Sansui, Nokia and Motorola, among others. 

Flipkart will produce and market the products end to end and pay a cut per item on actual sales.

Fraud: Following an audit conducted by E&Y, Paytm Mall has reportedly unearthed a cashback fraud of INR10cr. Subsequently, it has fired 10 employees and delisted 100 vendors.

 

 

 AVIATION 


IndiGo to introduce low cost business class, one-stop flights to Europe. Jet Airways lenders and Etihad offer Hinduja Group stake in the grounded airline. FAA didn't review crucial safety assessments of Boeing 737 Max system, as per reports.
 
 
Laying the Net: Budget airlines, Indigo is planning to introduce a low-cost business class to lure more travelers, especially for the
Europe- Asia market.
 
 
One-Stop Shop: IndiGo which now flies to Istanbul in its longest route, is aiming to start one-stop destinations to Europe within six Months.
 
 
IndiGo currently flies to 53 domestic and 18 international destinations and plans to deploy about half of its new capacity on international routes. It wants to operate one-stop flights to cities like London from New Delhi, while flying non-stop to countries like China, Vietnam, Myanmar and Russia.
 
 
A Share of the Pie: Lenders to Jet Airways and its second-largest shareholder Etihad Airways have approached the Hinduja Group offering a stake in the grounded airline.
 
 
The Hinduja Group which runs businesses in sectors ranging across automotive, oil & specialty chemicals, media, IT, power, healthcare and real estate is non-committal on Jet, but will keep its options open.
 
 
Deferred Attention: As per an internal Federal Aviation Administration review, senior agency officials of the regulator didn’t participate in or monitor crucial safety assessments of a flight-control system for Boeing’s 737 MAX jet later implicated in two fatal crashes 
 
 
During the FAA certification, Boeing did not flag to the regulators that a failure of the MCAS could lead to a catastrophic event, a classification that would have triggered more regulatory scrutiny.
 
 
The FAA approved the 737 Max in early 2017 and the plane entered into service in May 2017.
 
 
Guilty As Charged: In both the Lion Air crash in Indonesia in October and the Ethiopian Airlines crash in March, the MCAS pointed the plane sharply downward based on a faulty sensor reading, hindering pilot control after takeoff, according to preliminary crash investigations.

 

 

 COMPANIES 
 

RBI appoints R Gandhi on Yes Bank’s Board. 

 
Night Lamp On: The Central Bank has appointed R Gandhi as Yes Bank’s Additional Director with immediate effect for two years till May 13, 2021 or till further orders.
 
 
A Rare Occurring: It is quite rare for RBI to make a special board appointment. However, it is empowered under the Banking Regulations Act to appoint one or more additional directors on a private lender’s board in the interest of the bank or its depositors. 
 
 
The banking regulator had previously asked promoter Rana Kapoor to step down as Managing Director and Chief Executive Officer by Jan. 31. It was, then, widely believed that divergence in bad loan reporting for two consecutive years and a weak compliance culture at the bank were reasons behind RBI’s decision not to extend Kapoor’s term. 
 
 
Speed Breaker: Tata Steel has termed the European Commission’s decision on the proposed deal with ThyssenKrupp as a “speed breaker”, and therefore shall not give up on its plans of merging its business in Europe.
 
 
Zooming Out: Tata Steel and ThyssenKrupp had signed definitive agreements in June 2018 to combine their steel businesses in Europe to create a 50-50 pan European joint venture company which could have formed the continent’s second-largest steel company after Lakshmi Mittal’s ArcelorMittal.
 
 
 
 FACEBOOK 
 
Facebook to impose restrictions on live-streaming. WhatsApp encourages users to update the app after discovering spyware vulnerability.
 
 
Strike Out: Facebook is set to impose a “one-strike” rule that will block people who have violated certain rules, including its restrictions on posting terrorist content without context, from using the social media giant’s live-video streaming feature to broadcast to anyone else on Facebook for a limited time, for instance 30 days.
 
 
The development comes two months after the mass shooting at a mosque in New Zealand was live-streamed by the accused gunman on Facebook
 
 
The announcement comes ahead of a push by New Zealand and France to encourage tech companies and countries to work together to do more to limit the spread of extremist content online. The non-binding agreement, called the Christchurch Call, is expected to be announced on Wednesday at a meeting of digital leaders for the Group of Seven nations.
 
 
Swallowing Words: For long, Vijay Shekhar Sharma, the founder and CEO of the country’s largest digital wallet Paytm, had expressed his displeasure with WhatsApp Pay—the payment feature of the Facebook-owned instant messaging service. The criticism didn’t stop with the jibe. Sharma even called Facebook, “the most evil company in the world,” in an interview to the Business Standard newspaper in September 2018.
 
 
But now, he seems to be swallowing his own words.
 
 
“I have learned something amazing about the market, that it needs more players because India’s digital market is not growing at the pace we would have wished for. So more players are welcome,
 
 
What caused this change in heart. More on this here
 
 
Udpated: WhatsApp is encouraging users to update to the latest version of the app after discovering a vulnerability that allowed spyware to be injected into a user’s phone through the app’s phone call function. 
The spyware was developed by the Israeli cyber intelligence company NSO Group.
What’s the Matter: Attackers could transmit the malicious code to a target’s device by calling the user and infecting the call whether or not the recipient answered the call. Logs of the incoming calls were often erased. 
 
 
 US 

China's industrial output slows to 5.4% in April. Donald Trump and Xi Jinping could meet in Japan next month to resolve the escalating trade war.

 
Slow Down: Growth in China's industrial output slowed more than expected to 5.4% in April. 

 
Private-sector fixed-asset investment, which accounts for about 60% of overall investment in China, rose 5.5% in the same period, compared with an increase of 6.4% in the first three months of the year.

 
Retail sales rose 7.2% in April on-year, the slowest pace since May 2003, sharply down from March's 8.7% and missing a forecast rise of 8.6%.

 
The slump suggests that perhaps Beijing will have to roll out more stimulus measures as a trade war with the US intensifies.

 
President Donald Trump and Chinese President Xi Jinping could meet in Japan next month to resolve the escalating trade war between the world's two largest economies. 
 
 
Here's a rundown of what each side wants, and what could happen if they don’t get it.
 
 
 
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