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40% of UPI transactions which are typically much lower value than say B2B transactions via RTGS etc. Also the per transaction fee is nil or negligible and not c

by flak48 7y ago

40% of UPI transactions which are typically much lower value than say B2B transactions via RTGS etc. Also the per transaction fee is nil or negligible and not comparable to the percentage fee charged for card payments. They are under because of a lot of shady practices like knowingly giving out bad loans, corruption and self dealing that enriched it's founder. He had been ordered by the regulator to step down 2 years ago, but that didn't prove to be enough to save the bank. For example the founder and ex CEO was involved in a scheme where Yes Bank disbursed bad loans to a prominent business (Indiabulls) family, in exchange for which the family's business lent huge sums to Yes Bank's CEO and his children. Beyond this Yes Bank loaned out several billions of dollars to companies that other banks were unwilling to lend. Most of that money never came back.

tialaramex 7y ago
Self-dealing is a huge red flag. The Bank of England used to let employees have mortgages with the bank. Random people couldn't get a mortgage from the Old Lady but their employees could. It's a huge National Bank, giving some middle manager a $0.5M mortgage on a nice house for his family at a slightly nicer rate than commercially available is a cheap perk and no real threat to stability of a trillion dollar GDP economy. But while it's different in quantity and character it sends the wrong message. The newly created First Bank of Elbonia sees this and figures it's fine to lend $500M (a tenth of tiny Elbonia's GDP) to their chairman who is coincidentally also the brother-in-law of their newly elected Grand President. The money is never paid back, Elbonia sinks into a swamp of corruption. Oops. So the Bank of England stopped offering such perks. It's a shame, but it's like when you're looking after young kids. Maybe you'd just run across this road, but with kids watching we should walk to the proper crossing and do it by the book. No self-dealing.
- ksec 7y ago
  The BoE giving better rate on mortgage to employees as perks is perfectly fine because the mortgage has collateral priced at a market rate with market interest. Those so call perks are basically Bank not earning interest on its employees. Lending $500M without collateral seems like a completely different thing.

by flak48 7y ago

tialaramex 7y ago

Self-dealing is a huge red flag. The Bank of England used to let employees have mortgages with the bank. Random people couldn't get a mortgage from the Old Lady but their employees could. It's a huge National Bank, giving some middle manager a $0.5M mortgage on a nice house for his family at a slightly nicer rate than commercially available is a cheap perk and no real threat to stability of a trillion dollar GDP economy. But while it's different in quantity and character it sends the wrong message. The newly created First Bank of Elbonia sees this and figures it's fine to lend $500M (a tenth of tiny Elbonia's GDP) to their chairman who is coincidentally also the brother-in-law of their newly elected Grand President. The money is never paid back, Elbonia sinks into a swamp of corruption. Oops. So the Bank of England stopped offering such perks. It's a shame, but it's like when you're looking after young kids. Maybe you'd just run across this road, but with kids watching we should walk to the proper crossing and do it by the book. No self-dealing.

ksec 7y ago
The BoE giving better rate on mortgage to employees as perks is perfectly fine because the mortgage has collateral priced at a market rate with market interest. Those so call perks are basically Bank not earning interest on its employees. Lending $500M without collateral seems like a completely different thing.