After RBI criticises Axis Bank for missing UPI bus, MD & CEO reacts | Tech News

After RBI criticises Axis Bank for missing UPI bus, MD & CEO reacts

After being chided by RBI brass for missing the UPI bus by not investing early, a top executive of Axis Bank on Thursday said banks do not have money to burn.

| Updated on: Dec 10 2022, 16:37 IST
Safe online payment tricks: Know 5 easy ways to keep your money safe on UPI, Net banking
Axis Bank
1/6 Do you use Unified Payment Interface (UPI) linked payment-making applications like Google Pay (GPay), Paytm, PhonePe, among others? The process of making online payment via these apps is simple, however, sometimes even a simple mistake like wrong click, number, among others can cause you huge monetary loss. Here are some of the safety tips which you should consider while making UPI payments. (Bloomberg)
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2/6 Screen lock: Keeping a strong screen lock, password or PIN not only for your phone but also for all payment or financial transaction apps is very important. It not only saves your phone from landing in the wrong hands but also helps in avoiding leaking of personal and crucial details. However, you should avoid keeping simple passwords like your name, date of birth, mobile number, etc. (Pixabay)
Axis Bank
3/6 Do not share your PIN: You should never share your PIN with anyone. Sharing your PIN makes you vulnerable for frauds as anyone can access your phone and transfer the amount. In case you feel that your PIN has been exposed, you should change it immediately. (Saumya Khandelwal/HT PHOTO)
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4/6 Do not click on unverified links or attend fake calls: Lots of fake messages containing links of some unverified keeps on popping in your inbox. You should avoid clicking on such links as it can cause you huge financial losses. You should also avoid picking up fake calls. The caller pretends to be calling from your bank or some other organisation and can ask you for your details like PIN, OTP, etc. Hackers usually share links or make calls and ask users to download a third-party app for verification. It can be noted that banks never ask for PIN, OTP or any other personal details. (Reuters)
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5/6 Keep updating UPI App regularly: Every application requires an update and each update brings better features and benefits. You should always keep updating the UPI payment app to the latest version. (Unsplash)
Axis Bank
6/6 Avoid using multiple payment applications: You should avoid keeping multiple payment applications in your phone and should install only the trusted and verified payment applications from the PlayStore or App Store. (Bloomberg)
Axis Bank
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Axis Bank managing director and chief executive officer Amitabh Chaudhry cited lack of funds as the reason behind not building a UPI product. (Bloomberg)

After being chided by RBI brass for missing the UPI bus by not investing early, a top executive of Axis Bank on Thursday said banks do not have money to burn for building such businesses.

"We didn't have 3,000 crore of money to make a loss on," was the quick response of Amitabh Chaudhry, the managing director and chief executive of the third largest private sector lender, when asked to comment on RBI Deputy Governor T Rabi Sankar's weekend statement.

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Speaking at an event organised by brokerage Motilal Oswal, Chaudhry further said businesses like Unified Payments Interface (UPI) are loss-making and also lack cash flows, and wondered how their valuations keep going up.

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Entities like Google Pay and the Walmart-backed PhonePe are pumping money into such products because they have some other business to do. The way ahead for such businesses is to either act as a distributor and collect fees, or compete with banks by getting into similar businesses, he said.

The RBI has made it clear that it will regulate these players if they want to get into the lending game by becoming non-bank finance companies, Chaudhry said, adding that such firms will not do that.

"Today, the problem with tech is that there are companies who are being funded through capital who can then spend the money to acquire the customers, make huge losses and get more value in the process. Banks or other institutions that have been around forever cannot afford to play that game," he said.

"My view is that at the end of the day, they (UPI apps) have gained market share, banks have been slightly behind, but if they want to make money... cash flows need to show up ultimately," Chaudhry summarised.

He also exuded confidence about the retail asset quality holding well for the large lenders in the system who have invested in technology, but warned that NBFCs and some state-run lenders may be on a risky path with this.

We are in a long period of a sustained high-credit growth cycle, and it is only global factors that are worrying, he noted.

Speaking at the same event, HDFC's Keki Mistry said its growth will only accelerate once the mortgage major merges with HDFC Bank because of their distribution strengths.

He said only 2 per cent of the over 7 crore HDFC Bank customers are HDFC customers, while only 2,000 of the 7,000 branches sell its home loans at present.

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First Published Date: 10 Dec, 16:32 IST