Shriram IDFC Merger – 7 Gains to Digital Transactions

-

          The core belief of Shriram Group revolves around this Mahatma Gandhi Saying: “Create a company that creates wealth for society and employment, and run it like a trustee—you are just in charge to create the wealth, not own it”.

          Mandatory Reading Material to understand Shriram Group Philosophy - The Socialist Moneylender

          Shriram Transport holds a leadership position in commercial vehicle financing, while Shriram City Union offers small loans to a large base of customers across micro, small and medium enterprises in rural and semi-rural areas. 


These are new sunrise areas for Safe Digital Transactions in our country. The following gains will be visible once the system integration kicks-off.



Gain No 01) All Shriram Group customers will be encouraged to open Bank accounts with the new entity.  Straight through Internal Direct Debit transactions will be the norm instead of Collections through Cheques/ECS(Debit)/NACH(Dr)

Gain No 02) Truck loan borrowers will be encouraged to explore digital transaction channels rather than cash based. Truck owners have their sphere of influence and will be a key component in spreading the Joy of Safe eTransactions for the new entity. Ziggit Wallet offered by IDFC Bank can be flagship product for spreading the Joy of Safe eTransactions.

Gain No 03) Borrowers will be provided with innovative digital payment options viz; a) Bonus points for on time payment b) Instant roll over facility of working capital loans c) Quick top-up  of existing loans d)

Gain No 04) All customer facing borrower outlets will be nudged to provide digital collections tools at their outlets i.e POS Machines/Wallets etc. Bharat QR Code can be the chief collection digital tool for its Current Account/Overdraft Account/Term Loan retial outlets.

Gain No 05) The collection for Chit Fund instalments is still done through physical cheques as the instalment varies from month to month. An innovative product to digitise Chit Fund collections will be a wonderful morale-booster to the initial supporters of Shriram Group.

Gain No 06) Loan disbursements can be instantly credited to the borrowers accounts with the new entity instead of being routed to accounts held at other banks. This will enable the borrowers to quickly access the loan amounts with NIL Charges.

Gain No 07) All interest and maturity payouts of Shriram Group Debentures/Fixed Deposits can be instantly credited to the customers accounts held with the new entity. This will reduce the TAT and improve the confidence levels of prospective customers.
         
Additional Reading Material to get a feel of Shriram Group beliefs

A)   R. THYAGARAJAN | CREATE A FIRM THAT CREATES WEALTH FOR SOCIETY

B)   Ramamurthy Thyagarajan - Founder at The Shriram Group Pvt Co.

C)   We must support manufacturing even if it hurts profits in the short term

D)   Interview with Ajay Piramal, Chairman, Piramal group, and R Thyagarajan, Founder of Shriram group

E)   Associated with Vysya Bank

F)   I AM NOT AN ENTREPRENEUR” THE R.THYAGARAJAN STORY

G)   Letter from Mr. R.Thyagrajan

H)   Merger with IDFC not an attempt to enter banking through backdoor: Shriram Capital’s Ajay Piramal





Comments

Post a Comment

Popular posts from this blog

CERTIFICATE EXAMINATION IN INTERNATIONAL TRADE FINANCE

-
Image
          This certification is essential for all members of a Bank Trade Finance Department.   The syllabus covers key aspects required by team members to effectively discharge their duties. Trade Finance is one of the traditional forms of bank finance in India. In view of reforms and liberalisation, this has gained a new significance.   Many of the practices in trade finance have evolved over a period of time and some are guided by Ministry of Commerce and Reserve Bank of India, besides WTO and International Chamber of Commerce through UCPDC 600. With the increase in the volume of trade both domestically and internationally, there is a need for trade finance professionals from banks as well as corporates. The Objectives of this IIBF Examination is as under:   (i) To provide candidates with competencies required to function as trade finance practitioners. (ii) To enable candidates to possess the needed skill and knowledge to understand clients' needs
Read more

IIBF-Certificate Examination in Foreign Exchange Facilities for Individuals

-
          The primary objective this IIBF course is to make the branch officials familiar with the FEMA provisions that impact their day to day functioning at the branch level.     This exam is being introduced pursuant to the recommendation of a committee of RBI.           Normally foreign exchange transactions pertaining to individuals are handled at branches only and are not referred to specialised forex cells.           The course covers ‘Foreign Exchange Facilities for individuals under FEMA1999’ RBIs FAQs’ on Forex Facilities for Residents (Individuals) (updated up to November 21, 2014) For full details refer to Reserve Bank of India website: Introduction : The legal framework for administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, 1999. Under the Foreign Exchange Management Act, 1999 (FEMA), which came into force with effect from June 1, 2000, all transactions involving forei
Read more

IIBF introduces Self-Paced E-learning courses (SPeL) for its two certificates

-
Image
          Indian Institute of Banking Finance (IIBF) has taken a quantum leap in disseminating knowledge to its members and non-members.           IIBF in April 2019, introduced the Self-Paced E-learning courses (SPeL) concept for banking enthusiasts to be familiar with banking concepts.           In the first stage, IIBF has launched   two certificate courses i.e 1. Digital Banking and 2. Ethics in Banking.           The objective of this self-paced e-learning mode are as follows: • Participants can make the best use of his or her time, in order to meet his or her learning objectives. • Participants can access the course   anywhere/anytime with an internet connection. • Participants need not travel to give their examinations. It saves time and money of the participants. • Opportunity to individuals to obtain new certifications; improve their knowledge in the subject. • With self-paced learning, subjects can be thought in different learning styles. Part
Read more