RBI Stops Kotak Bank From Onboarding Customers Online; Credit For Women Entrepreneurs Hard To Access

Kotak Mahindra Bank Told To Stop Onboarding Customers Via Online, Mobile

The Reserve Bank of India (RBI) has asked private-sector Kotak Mahindra Bank to stop onboarding new customers through its online and mobile banking channels and barred it from issuing fresh credit cards, the Business Standard reported. A similar stricture had been introduced against HDFC Bank in December 2020, but has since been lifted.

The regulator said the action was necessary as the bank failed to plug gaps in its information technology systems. The bank can continue to provide services to existing customers, including credit card customers, the RBI added. In a statement, Kotak Mahindra Bank reassured existing customers of uninterrupted services, including credit card and mobile and net banking. More here

Elon Musk Hints At New Plants, Possible Only In 2025 Or Later

Tesla’s plan to manufacture its “affordable” US$ 25,000 electric car in India and Mexico could materialise sometime in 2025 or thereafter, the Business Standard reported. The report surmises this from Elon Musk saying that these models would be produced at their existing factories to utilise their full capacity before investing in new manufacturing lines.

The company operates factories in Texas and Fremont in the US, Berlin in Germany, and Shanghai in China. Musk pointed out in Tuesday’s earnings call that the company expects a 50 per cent increase in production over 2023. This implies that by the end of 2024, most of its capacity will be utilised with some spillover into 2025. More here

SIAM Data Shows Big SUVs Vrooming Ahead Of Compact SUVs 

Larger utility vehicles, SUVs and MPVs, sold 27 per cent faster in financial year 2023-24 than compact SUVs did at 25 per cent, the Economic Times reported quoting data from the Society of Indian Automobile Manufacturers (SIAM). 

Compact SUV models are driving the surge in the overall passenger vehicle market on account of their larger share in absolute terms, but bigger UVs are fast catching up, the report said. The shift has benefited Mahindra & Mahindra and Toyota Kirloskar the most. Mahindra's market share in the large UV segment (classified as UV2 by Siam) rose to 45 per cent in FY24. More here 

Women Entrepreneurs In Tier-2 Towns Unaware Of Govt Schemes

Almost 50 per cent women in India still face challenges in getting credit, the Business Standard reported, quoting a report put out by Tide, a United Kingdom-based financial platform.

Tide India surveyed over 1,200 new and existing business owners in the 18-55 age group from Tier-II towns for its first Bharat Women Aspiration Index. The report claimed 95 per cent women said they are unaware of existing government financial schemes to leverage for their business. It said 80 per cent women recognise digital literacy as an important enabler, but some 51 per cent, or one in two, business owners faced hurdles in accessing digital tools for business. More here

TRAI Recommends Sharing Spectrum, Leasing Of Spectrum For Better Use

TRAI has recommended inter-band spectrum sharing and that spectrum leasing should be allowed to better utilise spectrum resources in the country, the Business Standard reported.

It also called for the sharing of active and passive telecom infrastructure by telecom service providers. At present, only spectrum trading and intra-band spectrum sharing are permitted in the country. For a more efficient utilisation of the scarce spectrum, the telecom regulator has recommended that spectrum leasing and inter-band spectrum sharing should also be permitted. Implementing these recommendations will enable telecom service providers to improve service quality, TRAI said. Read more

US Makes Automatic Cash Refunds Mandatory For Cancelled Flights

The United States issued new rules that require airlines to provide automatic cash refunds to passengers when flights are cancelled, the Economic Times reported. US President Joe Biden said airlines should refund passengers what they are owed and protect them from surprise fees. He noted usually airlines drag their feet on refunds or rip folks off with junk fees.

Transportation Secretary Pete Buttigieg said this will save people more than half-a-billion dollars, avoiding unwanted, unnecessary surprise airline fees. The new rules require airlines to automatically issue refunds, without passengers having to explicitly request them or jump through hoops. Airlines and ticket agents must promptly issue refunds within seven business days of their becoming due for credit card purchases and 20 calendar days for other payment methods. More here