CHENNAI: Ujjivan Financial Services, one of the ten entities to get a small finance bank (SFB) from the RBI, said it plans to use biometric-enabled ATMs to serve unbanked and under-banked customers.

Financial Software and Systems (FSS) will provide its end-to-end “payments in a box” solution for Ujjivan. The new ATMs will also be able to read EMV cards and provide biometric authentication for the customer through fingerprint recognition from the Aadhaar database.

“We will also support and assist customers who are first-time users by running financial literacy, LIVE demonstration, and communication n program demystifying ATMs,” said the release.

MUMBAI: Employers worldwide face the acutest talent shortage since the recession, according to a survey by HR consulting firm ManpowerGroup. According to the Talent Shortage Survey, of the over 42,000 employers surveyed globally, 40% are experiencing difficulties filling roles, the highest level since 2007. 48% of Indian employers report difficulties filling job vacancies due to talent shortages.

As skills need to change rapidly, employers are looking inside their organizations for solutions, with 36% of Indian employers choosing to develop and train their people. In the IT sector, businesses have reported the most marked talent shortage in several years. ManpowerGroup says that a lack of soft skills (36%) and the search for more pay than what is offered (34%) are the top reasons employers in India cannot fill the positions. AG Rao, managing director of ManpowerGroup India, said: “The demand index for IT and accounting professionals has been on a continuous rise.

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Focusing on technology upgrades and better financial access will drive the sector’s growth in the coming months. Further, to provide financial services in rural areas as an initiative by the government and Reserve Bank, the demand is projected to grow across core and support functions. While banks struggle to keep up with increasing demand and traditional non-banking finance companies (NBFCs) are still in the process of learning the ways of online business, tech startups are one of the major breakouts today, and this could potentially define the shape of the financial services industry”.

NEW DELHI: Questioning Moody’s Finance Ministry’s methodology on Thursday, the global agency said it had ignored reforms initiated by the government and should not wait “till infinity” for them to take root before upgrading the country’s sovereign rating.

“Our concern was mainly about the methodology of the whole process… Of course, the rating agencies are free to arrive at their conclusion…,” economic affairs secretary Shaktikanta Das said. “I thought the due process has to be followed, and you cannot jump the gun,” he said, alluding to Moody’s making certain public comments a day before meeting the Finance Ministry.

Calling the reform process slow and gradual with muted private investment and bad loans posing a challenge, Moody’s said it could upgrade India’s rating in 1-2 years if it is convinced that reforms are “tangible.”

India’s sovereign rating by Moody’s stands at ‘Baa3’, the lowest investment grade — just a notch above ‘junk’ status.
Das added: “We found the methodology to be deficient. That is something we pointed out. So, we expressed our serious concerns about the methodology that they are following. Then, there were other issues. We explained the reforms, gathering roots and developing sufficient depth.”

During the Finance Ministry meeting on Wednesday, representatives from Moody’s are reported to have said that a rating upgrade could become a reality when the benefits of reforms are felt on the ground, and the country’s banking sector stabilizes.

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Das said: “The depth of the reforms in India cannot be doubted. It has been a unidirectional process for the last several years, especially in the last two years. The pace of reforms and the pace at which the government undertakes reforms due to weight have to be given. “You cannot say that I will give zero weight, and I will wait until infinity to see these reforms take root…I don’t think…it should not be a kind of bottomless pit.”

In April last year, Moody’s had changed India’s rating outlook to ‘positive’ from ‘stable’, citing reform momentum, and said it could consider India for an upgrade in the next 12-18 months.
During the meeting, the ministry also impressed the global rating agency with the government’s resolve to contain the fiscal deficit at 3.5 percent of GDP in the current fiscal year.

Domestic reforms to cushion India from global shocks

Addressing the BRICS investment seminar ahead of the 5-nation Summit beginning in Goa tomorrow, he said the government had put FDI on automatic route in almost 90 percent of the areas eligible for foreign direct capital.

“Over the last two-and-a-half years, most of the sectors have been reviewed, and we now have probably the most open FDI policy in the world, with 90 percent of FDI coming in through the automatic route,” he said.
Stating that the ease of doing business has improved massively since the Modi government came to power, Jaitley said many sectors had been brought into the automatic route. Now, we don’t have any instance of cases pending indefinitely before the Foreign Investment Promotion Board.

“We have learned that even though there is a contraction as far as global growth is concerned, at least by domestic reforms, we can neutralize the impact of the ongoing global slowdown,” he said.
On India’s global competitiveness ranking, which has improved to 39 this year, he said many policy changes have improved the ease of doing business in recent years.

Jaitley said various policy measures and “every significant decision of the government are aimed in one direction — that is to promote economic activities and make India more investment-friendly.” “Our ranking in the ease of doing business and the global competitiveness index has increased significantly in the last few years. And this has been aided by many policy initiatives which the government has taken,” Jaitley said.

Lauding the states for their competitive spirit in becoming business-friendly, he said, ” The other silver lining is that the states have also become extremely competitive and more investment-friendly.”

On the need for more cooperation between the BRICS nations (Brazil, Russia, India, China, and South Africa), he noted that even though it has improved in the past, there is still room for more periodic meetings to expand its areas within the five-nation bloc.

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“We now have a BRICS institution in the form of the New Development Bank, and in a short period, it has initiated its projects, which it is funding. A contingency reserves arrangement is in place now, and there will be increased cooperation in customs and taxation,” Jaitley said.

He also said the grouping has many more proposals on its agenda, such as a rating agency and a research institution. The BRICS nations also face many challenges, adding that they represent over 40 percent of the global population, a large portion of global GDP, and a significant part of FDI flows from each other.

Ask Harsh Roongta anything on Personal Finance.

I was an Indian resident till 15th May of this year. Till the last year, I was filing my income tax returns in India. I have been working in the UAE since 16 May 2016 in a construction company, earning a salary. My wife and mother are in India, and I transfer the money for their living expenses through my NRE a/c or through the savings a/c of my wife and mother. My query is, am I liable to pay any tax in India for my salary in the UAE or for the money I transfer to my wife and mother? Also, can I file income tax returns in India from the fiscal year 2017 onwards? Kindly note that I do not earn another income in India.

– Ryan Shetty

Assuming that you will spend less than 182 days in India during the financial year ending March 31, 2017, you will be treated as a non-resident for 2016-17. Your salary earned overseas will not be taxable in India. Just ensure you receive the employer’s salary in the UAE, either in cash or in a bank account. You can then remit it to your own NRE account in India or your wife’s or your mother’s accounts in India. It would help if you never asked your employer to remit the money directly to your NRE account in India, as that may render the salary taxable in India because it is “received in India.” You will not need to file tax returns in India for the financial year ending March 31, 2017, unless India’s income (including the revenue earned from April 1, 2016, until May 15, 2016) exceeds Rs 2.50 lakh.

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A council of finance ministers from India’s union and state governments failed to finalize the main rate of the goods and services tax on Wednesday. It will again meet next month, raising concerns that the new sales tax might miss April’s deadline. Union and state finance officials met for two days in New Delhi to resolve their differences over the rates and tax administration. They will again meet on Nov. 3-4.

While the meetings could not break the deadlock, the contours of the discussions suggested India might end up with a tax structure with multiple rates. Experts say that the best taxes have to be low, flat rates, and few exemptions and warn that India’s proposed GST may deter compliance in a country where many businesses are skilled at minimizing their taxes due to its relative complexity.

“Having more rates will complicate the situation,” said M.S. Mani, senior director at Deloitte Haskins & Sells LLP; adding uniform rates in states would simplify the current tax structure. The new tax is a signature reform of Prime Minister Narendra Modi to make India an investor-friendly destination. The measure would harmonize a slew of federal and state levies. Supporters say the rollout of the new tax would boost the country’s economic growth by as much as 70 basis points. But a compromise-ridden tax threatens to rob any potential gains.

At the meeting, Kerala Finance Minister Thomas Issac told reporters that some states sought to impose a surcharge on luxury products such as sparkling water and tobacco products to lower interest rates on essential food items.
However, a senior Finance Ministry official told reporters after the meeting that the union government did not support the proposal, saying it would have a cascading impact. The ministry has proposed four tax rates, with the highest at 26 percent for about 20-25 percent of taxable items. Other slabs included 12 percent for food and fast-moving consumer goods (FMCG) and 4 percent for precious metals like gold.

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Finance Minister Arun Jaitley, however, remained optimistic that the November meeting would resolve the differences, paving the way for the tax’s implementation from April 1. To hit that timeline, union and state lawmakers must pass key bills this calendar year. Even then, there will be a race against time to set up IT systems and ensure millions of businesses are ready to file returns online.

US Trade Representative Michael Froman believes India needs to do more on foreign direct investment. Froman, who is in India for the Trade Policy Forum (TPF), also stressed the importance of addressing intellectual property rights (IPR) issues. In an interview with BusinessLine, Froman shared his thoughts on the bilaterals between the two countries and whether the potential has been realized. Excerpts:

What is the US agenda for the 10th round of TPF?

The Trade Policy Forum allows one to discuss core areas within the relationship, including agriculture, services, manufacturing, and intellectual property rights (IPR). We have made important progress in these areas, but there is still more to be done, which is a good opportunity to focus on.
In which areas do you think full potential has not been realized?

The US and India are two large economies, trading just over $100 billion, which speaks to the fact that more can be done. The relationship may benefit from more regulatory reforms, transparent rules and regulations, and addressing impediments to investment. India has a lot of innovation in manufacturing and services. We are interested in discussing further steps to implement strong intellectual property rights laws to support that environment.

India has recently opened up several sectors by easing foreign investment rules. Where do you see the impediments?

There have been some important steps in opening up certain sectors, but there continue to be impediments in certain retail, financial, and professional services sectors, among others.

On the WTO solar panels dispute concerning domestic content requirements (DCR), India has said it will implement the ruling in the next phase, not immediately. Does that concern you?

We strongly support efforts by India and other countries to develop renewable energy and deploy solar panels and other sources of renewable energy. This case was important because it underscored that local content rules lead to more expensive and less efficient solar panels, which are not interested in expanding renewable energy supply. We will continue to work with India, an important partner in the Paris climate change negotiations and broader areas of energy cooperation, to help expand our cooperation in renewable energies.

While the US filed a case against India on DCR in its solar programs, several US States were found doing the same. Isn’t that a double standard?

We are confident that our programs are WTO-consistent. There are ways of promoting renewable energy that are WTO-consistent, and we think it is important to uphold our international obligations.

In the poultry dispute, India said it had made the required changes in import rules as per WTO ruling. Why is the US still not satisfied?

The US and India’s technical teams are discussing whether India’s actions will bring it into compliance with the WTO ruling. We have expressed concern with the measures implemented in July. We are now focused on reviewing an amendment that the Indian government recently issued to determine how it affects its compliance with its WTO obligations.

During the recently concluded India-US Strategic and Commercial Dialogue (S&CD), it seemed the Bilateral Investment Treaty (BIT) talks had been put on hold. What is your reaction?

Prime Minister Modi has clarified that he would like to improve India’s business environment for investment. We think that negotiating a high-standard Bilateral Investment Treaty could be consistent with his efforts to promote Make in India and attract investment. The US and India have their model BIT, and we have had a good, ongoing dialogue about the differences within our models and whether they may be bridgeable.

In the Nairobi Ministerial, the US and India differed on whether the Doha Round should be continued. What new issues are you planning to introduce?

India has been an active participant in helping to rejuvenate the WTO, both in understanding the need to take new approaches to outstanding issues and exploring new issues. Over the last year, there have been several good discussions in Geneva about what new issues might make sense to pursue. Whether it’s around e-commerce, small—and medium-sized enterprises, or others, WTO Member representatives in Geneva will continue to discuss these issues these issues to determine the best way forward.

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India’s IPR regime has been a major contention between both countries. The Indian government has also rolled out a National IPR Policy, yet why is the US still concerned?

We are now focused on how the policy will be implemented and will continue the dialogue with India on IPR issues, both under the National Policy and more broadly. There’s a lot to be done to address these IPR issues. However, the sign of a good, strong, mature trade and investment relationship is one in which we can engage frankly with each other over our differences, even as we cooperate in common interest.

India’s PNB Housing Finance Ltd and Varun Beverages want to raise as much as $630 million combined from initial public offerings (IPOs) next week, underpinning a surge in first-time share sales in Asia’s third-largest economy.

Indian companies have raised $2.9 billion through IPOs in the first nine months of this year, a 171 percent jump from a year earlier and the best run since 2010.

PNB Housing Finance Ltd, the fifth-largest mortgage lender by India’s assets, sells new shares to rise to 30 billion rupees ($450.5 million) in the second-largest IPO this year. According to an announcement on Tuesday, the sale will open on Oct. 25 and close on Oct. 27.

The lender has set a price range of 750 to 775 rupees a share. Indian state-run Punjab National Bank, which owns 51 percent of the lender, will see its holding diluted to about 38 percent, while Carlyle Group’s holding will drop to about 37 percent from 49 percent. Neither Punjab National Bank nor Carlyle will be selling shares in the IPO.

PNB’s share sale will be the second-largest this year after private-sector life insurer ICICI Prudential Life Insurance Co Ltd raised 60.57 billion rupees last month in the biggest local IPO in six years.

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Varun Beverages, one of the largest bottlers for PepsiCo Inc, is looking to open an IPO to raise 11.5 billion rupees to 12 billion rupees on Oct. 26, two banking sources with direct knowledge said. Varun filed for the IPO in June. Kotak Investment Banking, Bank of America Merrill Lynch, JM Financial, JPMorgan, and Morgan Stanley managed the PNB Housing IPO. Kotak, Axis Capital, Citic CLSA, and Yes Securities are managing the IPO for Varun Beverages.

Are you looking to hire temporary or seasonal workers during your company’s busy season? If so, you must find committed, passionate, and reliable temporary staff that will keep your business going. During summertime or peak work seasons, hiring temporary and seasonal employees often becomes necessary to keep up with the increased workload. Hiring smart temporary employees or contract workers to fill vacancies instead of full-time workers can be a wise option for many companies. However, finding temporary employees can be challenging because temp workers don’t always have the same vested interest in the company, nor do they know your specific business as most long-term employees do.

Part-time work and temporary positions are becoming popular among fresh graduates seeking experience. For companies looking to hire the best temp workers, temporary staffing agencies are a great resource for recruitment. Staffing agencies work with industries of all types and sizes, which can help companies find the right fit for their organization. To ensure that you hire the best talent and that part-time employees take their jobs seriously, here are some tips you can use to find the right fit for your business.

• Create Specific Job Descriptions

Using the same old job descriptions will negatively impact your recruitment process. Make sure to create a specific job description using up-to-date terminology to give an accurate summary of what the role entails. There must not be any confusion about what skills and qualifications are necessary to perform the job. It is essential to list out everything you need in a temporary worker. Mentioning the skills required for the job is crucial because you need to be sure that the worker you hire will be competent. Your job description will also help the recruitment agency to send you the best candidates for the job.

• Perform a Background Check

Rushing through the screening and onboarding process may land you in trouble. Even though the temp employee will be working with your company temporarily, checking the background and all the necessary documents is imperative. Hiring workers without verifying their citizenship or work authorization documents from the Department of Immigration can lead to state and federal investigations, hefty fines, and possibly losing your business license. In addition to checking all the required documents, criminal background checks should be conducted before hiring candidates.

• Find a Reputed Staffing Agency

Finding the best talent depends largely on the recruitment firm you choose. Always team up with a staffing agency with an extensive network of contacts and experience with industries of all types and sizes. Your job posting will reach the right candidates by choosing an experienced and reputed temp staffing agency. Their expert team of HR will also help you in the selection process, which often includes pre-screening candidates, administering tests, and conducting initial interviews.

• Carefully Plan the Selection Process

To hire the best temp worker, your selection process should include pre-screening candidates and a two-step interview. With the help of pre-screening, you can ensure that only the right candidate comes for the interview. It enables the interviewer to look over candidates’ credentials and applications to determine whether they should be called in for an interview.

The next step to enhance your interview process is using a two-step interview to screen potential job candidates more thoroughly. For this, you may first interview potential candidates over the phone or via video conferencing. Next, call the shortlisted candidates for a second in-office interview. At this point, you need to formulate targeted questions to ensure you find the perfect fit for your company.

Living in your own home would be one of your biggest dreams. It marks your independence and gives you the feeling of success. Your home is probably the biggest investment you will make in your life.

You have found the perfect home and checked your eligibility for a loan. The only hurdle delaying the purchase is the down payment. Lenders provide loans for up to 90% of the property price. The balance must be paid through your resources, known as the down payment.

Experts advise you to start planning even before you decide to buy a home. The habit of saving smaller amounts will also help to meet your down payment. Here are five ways to save money to pay the same.

1. Plan and budget

If you plan to buy a home in the next couple of years, it is important to start setting a budget now. You should also check your home loan eligibility to determine the exact amount you will need as a down payment. Eliminating avoidable expenses can help you accumulate funds for a down payment.

2. Liquidate smaller savings

If you have saved in precious metals like gold or hold bonds, you may liquidate these. This money may be beneficial in meeting the down payment needed once your home loan is approved. However, you must retain some savings to meet any emergencies.

3. Ladder your savings

Investing your extra money in corporate deposits (CDs) is a good way to earn decent returns. These are relatively low-risk investments and are easily accessible. One way to maximize your returns is to spread your savings in different CDs with varying maturity dates. This is known as laddering and provides the flexibility that adjusts your savings based on the interest rates. It helps you invest when the returns are higher and ensures you do not have to invest for longer periods at lower interest rates. These funds may be used to pay down your property before the lender disburses the home loan amount.

4. Borrow against savings and life insurance

Insurance companies offer loans against life insurance policies at a lower interest rate. Furthermore, you receive flexibility because of several repayment options. The loan against life insurance is repayable during the policy term and ensures you do not face any financial constraints. Using an online home loan calculator, you may compare the interest payout on a loan against a life insurance and housing loan. This will enable you to make an informed decision. You may also take out loans against your savings to make the down payment. If you liquidate these, you do not have to pay pre-withdrawal penalties.

5. Pay off the credit card outstanding

Ensuring you pay the entire credit card bill monthly ensures you do not pay the huge finance costs. This will enable you to save more money, which may be saved over a longer duration to meet the down payment towards your home.

You may seek help from your relatives or friends or procure a soft loan from your employer to fund the down payment. Consider taking up another job to earn more income.

While arranging for the down payment is important, you should check the property’s title before deciding. Ensuring no legal issues before your home loan application is important to avoid inconvenience and delays.