Swiggy Raises Funding In Series K Round, Total Market Value Goes Up To $10.7 Billion

swiggy raises funding

Hardly six months after bagging a whopping $1.25 billion investment in funding, leading online food ordering platform based in India Swiggy raises funding one more time in Series K round of funding. Swiggy has freshly procured $700 million in a Series K financing round as the Indian food tech giant is proactively looking forwards to expanding its business operations. Apart from India, Swiggy has already rolled out its services in South Asian markets. 

An insider having direct knowledge of the matter revealed that Invesco managed the Series K investment round, which increased the market capitalization of Swiggy to $10.7 billion. Previously, during the Initial Public Offering (IPO) in July, the food-tech company was valued at $5.5 billion. 

The market capitalization value of the food tech giant crosses Zomato’s existing market value as Swiggy raises funding in the Series K round. It is important to note here that Zomato, a 13 years old company, is witnessing a slump in its share price, which has brought down Zomato’s market value below $10 billion.

Also Read: New Feature On CoWIN Portal Allows To Add Up To 6 Beneficiaries Per Account, More Features Introduced too

Swiggy’s Round K funding saw participation from Axis Growth Capital, Sixteenth Street Capital, Kotak, Sumeru Ventures, Baron Capital Group, IIFL AMC Late Stake Tech Fund, Segantii Capital, Ghisallo and Smile Group. Existing investors of Swiggy also participated in the funding round, which included Alpha Wave Global, Qatar Investment Authority, ARK Impact and Prosus Ventures.

Swiggy’s quick delivery service, Instamart, is on track to hit a $1 billion annual gross merchandise volume run rate in the coming three quarters, the food-tech firm believes.

Swiggy, India’s leading food ordering platform giving tough competition to Zomato,  had said last year that the firm wanted to spend $700 million to upgrade its services and geographic presence. After Swiggy raises funding, it seems the rivalry in the food delivery industry in India will witness stiff competition in grabbing market share.

Also Read: Oppo Reno 7 Lineup Launching Soon On India’s Biggest ECom Site! See Price, Specifications

‘Invesco Developing Markets Fund, on a long term basis, is looking forward to investing in leading companies across the world that have long term structural development ability. Investment in Swiggy is one such kind of investment.’ Said Justin Leverenz, Chief Investment Officer at Invesco.

Majety’s Words After Swiggy Raises Funding

Sriharsha Majety, Swiggy co-founder and chief executive, said that Instamart had achieved a Gross Merchandise Value (GMV) in only 17 months, while the core food delivery company required 40 months to accomplish the same level of success.

Also Read: Reliance JioFibre Broadband Dominates BSNL And Airtel In Home Broadband Segment, Reliance Gained 2.01 Million Users, VIL Lost 0.1

The ultimate goal of Swiggy is to make 100 million users at least use Swiggy 15 times a month. The completion of this goal will help Swiggy’s ecosystem to have a broader influence and bring revolution in the food and grocery delivery industry. For that, the food tech company will continue to invest in our partners and products.’ Sriharsha Majety added further.

The Indian food services sector will stand at a value of $97 billion by the end of 2026. Organized food service is increasing at a higher rate compared to the other industries, and it is anticipated to have a 55 per cent market share by 2025. By the end of 2025, we predict internet access to hit 20% and the market size to achieve $20 billion, with a compound annual growth rate of 46 per cent (CAGR). Acquisition of new customers as well as expanding into new and emerging areas will comprise the major of the company’s development.

Also Read: Indian Tech Giant Tech Mahindra Acquires Com Tec Co IT Ltd For $310 Million, Bolsters Its Presence In Tech Industry

Vodafone Idea Ltd Share Price Falls By 19 Per Cent

vodafone idea ltd

Badly trapped in a financial crisis, Vodafone Idea Ltd has unanimously decided in a board meeting to convert its total interest amount against the spectrum auction into equity shares.

Vodafone Idea Ltd’s outstanding interest on spectrum auction and AGR have crossed Rs 16,000 crore, which the company cannot procure from its business operations in the country given the constant loss. To facilitate the conversion of interest amounts into equity shares, the telecom operator will have to liquidate the stake of the company’s present shareholders. Currently, the VI telecom network shares are distributed amongst Idea Cellular and Vodafone India.

After the unanimous decision of converting interest amount into equity, The stake ratio of the existing shareholders of Vodafone Idea Ltd will be reshuffled. The central government will have about 35.8 per cent share in the telecom group. At the same time, Vodafone India will have 28.5 per cent and the Aditya Birla Group 17.8 per cent.

Also Read: Tech Firm Paytm Share Price To Plummet By 25 Per Cent, Says Macquarie Report

Vodafone Idea Ltd is laden under debt. The telecom operator has decided to convert interest into shares to reduce the deficit. Since the rollout of Jio in the country, other telecom operators have been battling for existence. At the same time, the company is losing its customers. The collaborative group had 43.5 crore telecom subscribers in the Q1FY19, which is now shaded to 25.3 crores only during the Q2FY22. The road ahead for the telecom operator is bumpy as the company has to pay interest its heavy debt and do CAPEX for the 5G spectrum.

“Vodafone Idea is a heavily indebted company. Only the AGR and spectrum dues have been converted to equity. The competition in the telecom space has heated up, and Vodafone Idea has a heavy chunk of subscribers. It had 43.5 crore subscribers as of Q1FY19, which has reduced to 25.3 crores by Q2FY22. The challenge is uphill for Vodafone as it has to pay interest on its heavy debt and do CAPEX for the latest spectrum. Only the promoter has changed.

Vodafone Idea Ltd promoters have been changed, not the challenges for the company,” said Aditya Kondawar, Chief Operating Officer of Mumbai based services firm JST Investments.

Also Read: Unified Payments Interface AKA UPI Outage Crumbles GPay, PayTm and Phonepe

According to the latest available data, Vodafone Idea Ltd’s total debt amounted to Rs 1.80 trillion as of March 2021. On January 11, the stock of Vodafone Idea plummeted by 14 per cent in the first hour of trading.

According to Vodafone India, “the administration and other privileges of the promoter investors are regulated by the shareholders agreement (SHA) to which the business is a party and are also contained in the Articles of Association of a Company.”

In the context of conversion of interest into equity, the promoters have unanimously agreed to amend the existing SHA to lessen the minimum qualifying threshold from 21 per cent to 13 per cent to strengthen certain governing privileges, like the appointment of directors and the appointment of certain key officials, among other things, the telecom company stated.

Vodafone Idea Ltd shareholders have welcomed the decision to liquidate and transfer their existing share in the company to the central government. The board of directors has approved the execution of share adjustments and suggested changes in the Article of Association to facilitate the smooth transfer of the equity shares. Modifications in AoA will depend on the approval from the shareholders, the telecom company said in a general meeting.

“This was in line with expectations,” said Nitin Soni of Fitch Ratings, who also noted that the company does not anticipate large amounts of money to be invested in it shortly. The rating agency expects that the business will have significant difficulties raising capital from new investors.

Fitch even said Vodafone Idea Ltd would need outside money to enlarge capital expenditures into the firm and that it will require more price increases in the next 12 to 18 months.

Tech Firm Paytm Share Price To Plummet By 25 Per Cent, Says Macquarie Report

tech firm paytm

The global brokerage company Macquarie report stated tech firm PayTm share price could additionally lose 25 per cent from its existing share price. If so happened, the stock would reduce the investor’s wealth by half. Furthermore, the brokerage firm has reduced its target price for PayTm’s share to Rs 900 apiece. Macquarie had previously set the target price at Rs 1200 apiece, which is now reduced by 25 per cent to just Rs 900. However, PayTm was trading at Rs 1,173 per share.

Paytm IPO was one of the much-awaited IPOs but the tech company is showing very poor performance on the Bombay Stock Exchange and National Stock Exchange since its listing on the stock market in November month of the last year. Over time, the stock price has dropped by over 45 per cent in about three months.

Also Read: Unified Payments Interface AKA UPI Outage Crumbles GPay, PayTm and Phonepe

According to analysts at the global brokerage Macquarie, tech firm Paytm had a target price of Rs 1,200 a share at the beginning of this year, but the analysts now expect the stock to fall by a further 25 per cent. A drop in profit estimates for the tech firm Paytm has also been made by the stockbroker. In a statement, Macquarie noted that decreased distribution and commerce/cloud revenues, largely compensated by stronger payment revenues, are pushing the company to “basically drop revenue expectations for FY21-26E on average by 10 per cent per year.” As a result of fewer sales and greater staff and software expenditures, the company’s loss predictions for fiscal year 22 have been raised by 16 to 27 per cent.

Macquarie analysts also forecast reduced revenues for commerce and, especially, distribution business given to less demand. The firm said, “Competition will impede commerce revenue growth, and the distribution business will continue to be dominated by small ticket BNPL loans, thus limiting profit potential in our opinion.”

Bumpy Future For The Tech Firm Paytm Ahead

The near future for the tech firm PayTm is predicted to be bumpy. The major reason is considered to be the latest RBI regulations related to digital payments. Paytm still earns more than 70 per cent of its revenues from the payments business. In case the Reserve Bank of India starts capping charging on the payments made through the app could badly hit PayTm’s business. Furthermore, the insurance regulatory authority IRDA turned down PayTm’s proposal to venture into the insurance business. Macquarie brokerage firm believes IRDA’s rejection could also impact Paytm”s attempt to obtain a bank license.

Also Read: Work Underway To Set Up EV Charging Stations At Petrol Pumps

The global brokerage firm also raises concern over the reducing number of senior management staff at the tech firm Paytm. Macquarie firm claims PayTm senior executives are resigning from their posts, which might shadow the company’ operations if the staff continues to leave the tech firm. Also, PayTm’s permitted loan facility is as low as Rs 5,000 and will ensue lower costs than expected.

On the other hand, the optimistic viewpoints on the tech firm Paytm shares from Jp Morgan and Morgan Stanley have attempted to justify the current prices of PayTm share, while the analysts at Macquarie have labelled them as “excessively costly.” As the letter said, “the stock trades at 17 times FY23E revenues, which we feel is exorbitant.” A 25 per cent decline in Paytm’s current market price and a 58 per cent decline in the company’s initial public offering (IPO) price are suggested by the lower target price of Rs 900 a share.

Also Read: RBL Bank Crisis: Vishwavir Ahuja Steps Down From CEO Post, AIBEA Cautions Something Wrong At RBL Bank

RBL Bank Crisis: Vishwavir Ahuja Steps Down From CEO Post, AIBEA Cautions Something Wrong At RBL Bank

RBL Bank crisis

While the rest of the world was busy celebrating Christmas eve, there seemed to be some massive events happening in the RBL that indicates RBL Bank Crisis like situation . The 78 years old bank lost its existing MD and CEO. Additionally, the Reserve Bank of India appointed Yogesh Dayal as an additional director on the bank’s board.

Before the RBL Bank crisis, Yogesh K Dayal was serving as chief general manager in the communication department. The central bank also announced indefinite leave for the existing CEO and MD of RBL Vishwavir Ahuja, who hosted the CEO and MD post for the past ten years. Therefore, Rajeev Ahuja was selected as an interim CEO and MD, which is still subject to approval from the authorities.

The cause that invoked RBL Bank crisis is still uncertain, and speculations were doing the internet rounds. The association of bank employees AIBEA had also written a letter to the finance minister of India, Nirmala Sitharaman, to bring to her notice that something was not going well inside the RBL Bank. The association also expressed its fear that the RBL Bank seemed to follow the Yes Bank and Lakshmi Vilas Bank’s footsteps.

Also Read: L&T Finance Holdings Ltd To Transfer Its Business To HSBC AMC, Deal Finalized At $425 Million

Reason Behind RBL Bank Crisis

The exact reason why these two actions took place leading to RBL Bank crisis remains clouded. As yet, neither the bank nor the regulator has furnished any justification.

Although, at the moment, the solid backdrop of the major events leading to RBL Bank crisis is still sparse. But the actions the Reserve Bank of India took in the case of RBL and a few other banks in the past clearly shows that India’s top bank wanted to monitor the finance and governance of the RBL bank closely. Often the Reserve Bank of India places its people into the management bodies of the private banks to carry out in-depth scrutiny.

At the moment, nothing clarifies the exact cause of the RBL Bank Crisis. However, the banking industry experts speculate either the RBI found discrepancies in the regulations at the RBL Bank, or the central bank of India doubted the RBL Bank’s integrity as a result of constant malpractices in the transactions.

Also Read: Omicron Variant 3 Times More Infectious Than Delta, Govt Declarers Threshold To Impose Restrictions

The RBL Bank, in the last five years, has reported its overall advances been doubled. The bank has exceeded the mark of Rs 58,000 crores from Rs 29,000 crore back in 2017.

On the other hand, the non-performing assets and bad loans of the RBL Bank have also shown a tremendous swell. The bank’s NPA has risen to Rs 2,600 crores from Rs 357 crores in 2017.

Some reports reveal that the RBL Bank promoted retail credit, credit cards, and micro-financing. The bank is believed to have made a blunder by overlooking its financial situation.

The association of bank employees AIBEA said that it is imperative to take necessary actions to prevent the RBL’s customers from suffering as the customers of Yes Bank and Lakshmi Vilas Bank did when both the bank went into financial troubles. The AIBEA association also suggested merging RBL Bank with any public sector bank as a solution for RBL Bank crisis.

The Reserve Bank of India (RBI) had earlier this year approved RBL’s request to extend Ahuja’s resignation as CEO for a third three-year term. However, RBL Bank has been granted a one-year extension by the Reserve Bank of India, commencing on June 30, 2021.

Also Read: Indian Origin Leena Nair Becomes The New CEO Of Chanel; Know More About Her

From 2001 through 2009, Vishwavir Ahuja served as the managing director and chief executive officer of Bank of America in India. To see this is to see that the RBI has been careful.

PSB Strike Ended Today, Organizations Signal To Continue The Protest If Govt Doesn’t Agree

psb strike

PSB strike hampered the banking services across the nation on second day of their country-wide strike. Staffers of the numerous public sector banks, including Punjab National Bank, Bank of Baroda, UCO Bank, Canara Bank, and State Bank of India, had proactively participated in the strike against the privatization of public sector banks.

Before going on the PSB strike, the State Bank of India had notified its customers of service disruption longing over two days. It also suggested to the customers that ATM services would remain close or affected due to the strike. ‘We suggest that our functioning might be affected by the protest even though we have made sure the operations are carried out at our branches on strike days.’ State Bank of India said in a statement. Approximately 8,590 bank and ATM outlets across the country had their doors closed for two days, as per the UFBU (United Forum of Bank Union), an apex body of Nine banking organizations.

The state government of West Bengal also reported disruption in banking services on the massive level on day two as the PSB strike followed consecutively and thousands of bank officials and staffer resumed their protest. On the other hand, the DMK government in Tamil Nadu has also declared its support for the two-day nationwide strike. DMK’s general secretary and minister Durai Murugan prayed for the success of the public sector bank strike. They announced the party’s support to more than nine lakh bank staffers and officials participating in the strike.

Also Read: Zoomcar raises $92 million led by NYC-based SternAegis Ventures

Reason For 2-Day PSB Strike

The finance minister of India, Nirmala Sitharaman, in the union budget 2021, presented the law amendment before assembly to privatize the public sector banks to fulfill the central government’s divestment plan of 1.75 lakh crore. According to the proposed bank amendment law, the government’s compulsory stake in the public sectors will be reduced to 25 percent from 51 percent decided per the banking companies act accepted in 1970.

The speculations suggest that the proposed PSB banking amendment bill will not be discussed in the currently happening winter session of parliament.

“Public sector banks hold approximately 70 percent of India’s total deposits, and giving over these institutions to the privately held organization would put people’s money held in public sector banks at risk,” All India Bank Officers Confederation’s general secretary Sanjay Das said.

Sanjay Das further explained that the central government’s plan to privatize public sector banks, according to him, would have a negative influence on India’s economy, priority sector lending, and credit flow to self-help organizations and rural enterprises.

Also Read: Neobank Fi raises $50 mn led by Facebook Co-founder’s B Capital

Public Sector Banks play a seminal role in dispensing the central government’s social welfare schemes such as Jan Dhan Yojana and Mudra Loan Scheme to the far-fetched regions. Privatization of public sector banks will result in the shutting down of rural bank outlets, which will reduce the dispersion of social welfare schemes.

The United Forum of Bank Unions (UFBU) had appealed for a 2-day PSB strike on 16 and 17 December 2021 to protest against the new banking law. The apex organization of nine banking associations including the All India Bank Employees Association, Bank Employees Federation of India, All India Bank Officers’ Confederation, All India Bank Officers’ Association, Indian National Bank Officers Congress, National Organization of Bank Workers, National Organization of Bank Officers, National Confederation of Bank Employees and Indian National Bank Employees Federation.

Sanjay Das, All India Bank Officers Confederation’s general secretary, says that the PSB strike received an enormous response from more than 9 lakh bank staffers and officials who participated in the strike. We will continue our PSB strike in the future if the central government insists on implementing the newly proposed banking amendment bill.

Also Read: 3 Days MedPlus Health IPO: See Share Price, Lot Size, Schedule And Reviews

3 Days MedPlus Health IPO Open For Subscribing Today, See Share Price, Lot Size, Schedule And Reviews

medplus health ipo

Medplus Health IPO (Initial Public Offering) opened up today in the primary market and will end three days after on Wednesday, December 13 2021. Medplus Health, India’s second-biggest online pharmacy after NedMeds, is eying to raise Rs 1,398.29 crore through the issue.

Medplus, an omnichannel platform launched in the year 2006, has priced its shares between Rs 780 to Rs 796 a piece. MedPlus Health IPO will consist of freshly released shares worth Rs 600 crore and existing shares worth Rs 798.29 crore offloaded by the current shareholders of the online pharma company.

MedPlus Health IPO Lot Size

One lot of MedPlus Health IPO consists of 18 shares. Interested investors are required to purchase a minimum of one lot. Given that, the minimum amount to be invested in the MedPlus shares is Rs 14,328.

Also Read: Neobank Fi raises $50 mn led by Facebook Co-founder’s B Capital

MedPlus Health IPO Reserved Quota

HedPlus Health IPO will see a reservation quota for its employees, retail buyers, and Qualified Institutional Buyers. MedPlus will offer shares worth Rs 5 crore to its employees at a discount of Rs 78 per share on the final issue price. On the other hand, 50 per cent of the issued shares will be reserved for the qualified institutional buyers, 35 per cent will be kept for retail buyers, and the remaining 15 per cent shares will be allotted to the HNI investors.

MedPlus Health IPO Schedule

The final allotment of the MedPlus shares will be conducted by December 20. Shares of the pharma company will get deposited into the Demat accounts of confirmed shareholders by December 22. Later, MedPlus will list on the Bombay Stock Exchange and National Stock Exchange on December 23.

About MedPlus Health Services

Located in Hyderabad, MedPlus Health Services was founded by Madhukar Gangadi in 2006. Running 48 pharmacies in Hyderabad to expand its business to 2000 pharma stores spread across seven states, the pharma company has shown surging growth since its inception.

Medplus was the only retailer in 2015 to offer its services through omnichannel, which means the pharma company provided its services both online through its website, mobiles apps and offline through its outlets.

MedPlus deals in a vast range of products comprising wellness and skincare products, pharmaceutical products, and Fast Moving Consumer Goods.

Also Read: India Is One Step Closer To adopting Cryptocurrency

MedPlus Health IPO Reviews

The MedPLus IPO has awarded a subscribe rating from brokerage company Prabhudas Lilladher, which predicts that Medplus will scale up in terms of growth and profitability due to a fast pace of store growth; the advantages of economies of scale, and a quicker break-even point.

“We anticipate Medplus will trade at a higher multiple due to the fact that it is a pure-play omnichannel enterprise with a scarcity premium and robust growth rates,” the Prabhudas Liladher report suggested. 

As per ICIC Securities’ report that shed light on the risks involved in the business, “Medplus’ operations are exposed to high working capital requirements, and any changes in product mix can exert a negative impact on margins.”

While issuing a “subscribe” rating to the MedPlus Health IPO, it also highlighted that Medplus, with its retail clustering presence, is ideally suited to benefit on an omnichannel platform with a hyperlocal service platform and is offered at a competitive rate, among other things.

MedPlus Health Services posted a profit of Rs 63.11 crore for fiscal year 21 compared to a loss of Rs 1.79 crore in fiscal year 20. Revenue grew to Rs 3,069.26 crore during the period, up from Rs 2,870.6 crore before.

Also Read: Zoomcar raises $92 million led by NYC-based SternAegis Ventures

The pharma company recorded total sales of Rs 1,890.9 crore for the quarter that ended on September 30, 2021, and a net profit of Rs 66.36 crore for the same period.

HDFC Trustee, Aditya Birla Sun Life, SBI Mutual Fund, Nippon Life, Kotak Mutual Fund, Motilal Oswal Mutual Fund, and HDFC Life Insurance, among others domestic investors, made investments in the company. Other domestic investors include ICICI Prudential Life Insurance, SBI Life Insurance, and Edelweiss.

India Is One Step Closer To adopting Cryptocurrency

Linking cryptocurrency’s potential to facilitate hiding and enable terror funding whereas additionally being responsive to the certainty of cryptocurrencies in the long term, the govt of India is geared up to manage cryptocurrency. The matter was mentioned at the very best level on November thirteen and chances are high that that a Cryptocurrency Bill is going to be introduced in Parliament’s Winter Session.

A meeting chaired by Prime Minister Narendra Modi mentioned cryptocurrency and it emerged that the govt is seriously involved that anti-Indian measures manipulating youth with “over-promising” and “misleading advertisements”. This should be stopped, the meeting terminated. The review meeting followed months of elaborate consultation involving the Ministry of Finance, the Ministry of Home, and cryptocurrency consultants from India and abroad.

Meanwhile, a parliamentary panel for the primary time mentioned the fate of cryptocurrencies in India on Monday wherever the accord emerged that cryptocurrencies can’t be stopped so that they ought to be regulated. The commission on Finance, chaired by former government minister Jayant Sinha, had invited a good spectrum of crypto business stakeholders together with exchanges and business bodies. Before the meeting, Sinha told the media, “We have known as stakeholders from across the business together with operators of major exchanges, members of CII also as teachers from the Indian Institute of Management (IIM) Ahmedabad, Who have done a really thorough study on the crypto finance.”

While a accord looked as if it would have emerged that a restrictive framework ought to be provided for the graceful and bonafide functioning of the crypto business within the country, there was no agreement on Who the regulator ought to be.

There is a accord that unregulated cryptocurrency shouldn’t lean a free run to launder cash and fund terror. The govt is nervous and apprehensive of the “evolving technology.” Hence, the choice to stay a “close watch” and therefore they got to take some “proactive steps”!

The developments came as a poll within the uk, control simply before the twenty sixth international organisation global climate change Conference in Glasgow, Scotland, discovered that the group in the uk needed a ban on cryptocurrency.

Unlike the united kingdom, however, there are not any indications that Indians desire a “ban” on cryptocurrency. The Modi Government said it’s a “forward-looking progressive” approach and can not solely interact with stakeholders in India however additionally connect with international partners.

The run has systematically warned against cryptocurrencies, urging that they were a significant threat to India’s economy and to its economic system. The Indian financial organization isn’t convinced of the over-ambitious crypto-claims and its supposed value. The run is against permitting cryptocurrencies – regulated or unregulated – space within the country’s money corridors. An indoor panel report of the run on the topic are going to be in the month of December.

Be that because it might, the govt won’t take an all-or-nothing call. It’s probably that “strong restrictive steps” measures on the anvil. The words “progressive and forward-looking” indicated the government’s thinking on the topic. The actual fact that cryptocurrencies span geographical boundaries can not be neglected. The whole globe could be a neutral and best world practices can have a say.

Indications are that the govt needs to draw a digital currency policy which will stand to take a look at your time. The primary restrictive steps would address “over promising” and therefore the opacity that surrounds cryptocurrency advertising. The restrictive steps may be outright legal. The crypto future in India are going to be certain by a powerful legal framework.

RBI Governor Shaktikanta Das Advocates Crypto Ban In India On The Grounds Of Financial Stability And Security

crypto ban

The Governor of the Reserve Bank of India, Shaktikanta Das, seems not to go gentle with the flourishing crypto market in the country. He is constantly demanding crypto ban in India. As the legislation for the most significant financial sector innovation of the century enters its final phase, Shaktikanta Das has set a distinguishable line between the use of technology to enhance businesses and investments in unmoderated cryptos, which poses a devastating threat to the financial system of India.

A few days earlier, Shaktikanta Das has made severe remarks against cryptocurrencies, questioning their legitimacy. His comments ensued some quick movements from the parliamentary members. Additionally, Prime Minister Narendra Modi held a meeting with parliamentary members and some crypto industry experts to discuss the future of cryptocurrencies and their risks.

The Governor of the central bank of India, Shaktikanta Das, and Government do not agree with each other. Shaktikanta Das is openly advocating the crypto ban. On the other hand, the meeting held under the leadership of Prime Minister Narendra Modi concluded on the note that cryptocurrencies have become unstoppable. So, considering crypto ban is not an option now. The need of the hour is the formulation and implementation of precise strategies to keep a tab on these digital currencies.

Also Read: PM Modi Held A Meeting On The Future For Cryptocurrency In India, Investors See A Gleam Of Hope amidst RBI demands crypto ban.

The central government believes that the blockchain is an evolving technology and should be given some time to grapple with the opportunities that lie in the future. So, the central government agreed to proactively devise strategies to regulate cryptocurrency and create a safe environment for crypto trading.

“The blockchain technology has been around for more than a decade; it did not appear overnight. While addressing at a conference organized by the State Bank of India, Governor Shaktikanta Das very confidently said that “technology will flourish and can thrive without cryptos.

Why Is RBI Governor Firm On Crypto Ban In India?

Being a regulatory central bank, The Reserve Bank of India is worried about the exodus of investors from stock, mutual funds, fixed deposits to crypto investments that go to the tune of millions of dollars. This change in people’s interests and assets will eventually result in the declination of the supply and value of the Indian rupee. Additionally, the Reserve Bank of India doubts the usage of cryptocurrencies for unlawful operations and money laundering.

The Reserve Bank of India has said, after extensive internal debate, that there are significant concerns about the country’s macroeconomic and financial stability. There are more fundamental concerns that need a lot more in-depth discussion.”

Furthermore, Shaktikanta Das admonished lending banks against going overboard in their connections with large technology companies. He demanded that they include “adequate precautions” in their commercial contracts with such companies.

The Reserve Bank of India announced crypto ban in 2018 that made banks no longer able to transact in digital currencies, which blocked the growth of the cryptocurrency business in India. The RBI circular prohibiting cryptocurrencies, on the other hand, was verdict invalid by the Supreme Court in early March 2020, and thus crypto ban was uplifted.

It is also important to add adequate precautions in agreements with financial and technology companies, according to Shaktikanta Das. In the end, the risks are on the books of the banks and NBFCs; thus, the partnership must be well-strategized, the statement mentioned.

Also Read: No High Court relief for Tatas on use of their trademark as crypto coin Tata Coin or $Tata

Shaktikanta Das went on to say that although banks were allowed to adopt a collaborative business strategy with fintech businesses based on their commercial considerations, they were required to ensure that the model met all applicable regulations.

Speaking on the economic resurgence, Das said that festival euphoria, pent-up demand, and a slew of high-frequency indicators all pointed to the beginnings of a sustained period of economic growth and expansion. The data from many data indicators, according to Shaktikanta Das, indicated that consumer demand was on the rebound.

It seems that the consumer demand prompted by the holiday season is making a massive recovery; according to the Governor of RBI, “This would stimulate businesses to increase capacity, therefore increasing employment and investment in an environment of favorable financial circumstances.” The recent reduction in excise duty on fuel and diesel by the Central Government, as well as reductions in value-added tax (VAT) by various state governments, would increase people’s buying power, hence creating room for extra expenditure.”

Also Read: Does Cryptocurrency Mining Pose A Dreadful Threat To The Environment? Its Adverse Effects And Solutions

Das went on to say that, with the economy on the mend and corporations enjoying improved balance sheets, they are in an excellent position to make fresh investments in developing markets.

‘As demand begins to recover, I am optimistic about the business sector’s ability to play a significant part in reversing the investment cycle, which will enable the absorption of excess cash for productive investment,’ he added.

Also Read: Bitcoin Receives The Taproot Update After A Gap Of 4 Years, Will Enhance Privacy And Security

PM Modi Held A Meeting On The Future For Cryptocurrency In India, Investors See A Gleam Of Hope

future for cryptocurrency

On Saturday, Prime Minister Narendra Modi held a discussion on the future for cryptocurrency, which is enormously booming in India. As more Indians gravitate toward cryptocurrency investments, it was essential to have an official meeting to discuss these cryptocurrencies’ risks. The pivot of the discussion revolved around initiating progressive and forward-looking measures to ensure that rampant exposure to the cryptocurrency does not lead to terror funding and money laundering.

Until now, the central government had not taken a firm stand about the legitimacy and future for cryptocurrency in India. The finance minister Nirmala Sitharaman, during an interview to a leading news portal, had asserted that the central government was looking positively towards adopting modern blockchain technology. The central government was willing to allow a specific time frame for cryptocurrency investors to test its viability in the country.

Nirmala Sitharaman’s statement provided some relief to the native cryptocurrency enthusiasts. However, the future for cryptocurrency was still under the blanket. Prime Minister Narendra Modi’s meeting resulted from RBI Governor Shaktikant Das’ alarming statements about the cryptocurrency and threats related to them. Shaktikant Das, who was recently reappointed as the Governor Of the Reserve Bank of India, raised questions about the legitimacy of cryptocurrency. Furthermore, he alleged that cryptocurrencies are vicious allures used to catch the public interest and eventually amass billions of dollars from investments. He cited the finding of a research group that says a minimum of 7.9 percent of Indians have invested $10 billion in digital currencies, despite the fact that the figures were wildly overblown.

Why Is The Reserve Bank of India Not In The Favor Of Cryptocurrency?

The Reserve Bank of India, since the beginning, has always taken a bitter stance against the thriving cryptocurrency in India. Cryptocurrencies operate on the blockchain that uses peer-to-peer computer network spread worldwide. Being completely virtual, the Reserve Bank of India can not bring these cryptocurrencies under its control, which means there will be no authority scrutinizing the crypto transactions. This loophole can facilitate undeniable opportunities to fund unlawful activities, money laundering, and tax evasion.

Also Read: Bitcoin Receives The Taproot Update After A Gap Of 4 Years, Will Enhance Privacy And Security

The Reserve Bank of India might have considered cryptocurrency a severe threat with no immediate solution. Thus, the top bank of India decided to impose a ban on crypto trading within the realm of India back in 2018. However, the Supreme Court of India reinstated the restrictions imposed on cryptocurrency in March 2020.

There have been proposals in India to adopt stronger laws for virtual coin transactions, arguing that an uncontrolled environment might drive more domestic savings into the asset class, putting family savings at risk.

The Reserve Bank of India is still skeptical about the future for cryptocurrency. Nevertheless, reports suggested that the reserve bank might develop its digital currency. If so, the new offering from the bank may quench the large population fascinated with virtual currencies.

Undertakings Of PM Modi Led Meeting On The Future For Cryptocurrency

According to several reports on PM Modi’s meeting on Saturday, the central government would closely scrutinize cryptocurrencies because it is developing technology and will take necessary actions.

As cryptocurrencies are gaining momentum in the country, the Centre Government is bound to draft rules and regulations to regulate the virtual currency sector. It is said that a parliamentary finance committee is looking forward to conducting a discussion with prominent crypto sector players on Monday about the viability and future for cryptocurrency.

Also Read: Amitabh Bachchan’s NFT Collectibles Sold FOr $1 Million, Thankful To His Supporters

The purported meeting will comprise participants from leading crypto exchanges, members of the Blockchain and Crypto Assets Council (BACC), and others who are expected to attend the conference, which is scheduled to take place behind closed doors.

This urgency in dealing with the cryptocurrency issue stems from the fact that Indians are making unprecedented investments into the virtual currency market. According to statistics, Indians had approximately $6.6 billion infused in cryptocurrencies as of May this year, compared to $923 million in April 2020.

In terms of cryptocurrency adoption, India is ranked second on the Global Crypto Adoption Index. According to reports, the entire investment was expected to surpass $10 billion in the first week of November.

The participants of the PM Modi-led meeting also unanimously agreed that attempts to deceive the country’s younger generation by over-promising and non-transparent advertising should be controlled. They also decided that uncontrolled crypto markets should not be permitted to become conduits for money laundering and terror financing.

The meeting also discussed the best practices to mold the unregulated cryptocurrency into a controlled and safe environment. The central government may submit a crypto law to the cabinet for consideration.

Also Read: Does Cryptocurrency Mining Pose A Dreadful Threat To The Environment? Its Adverse Effects And Solutions

Bitcoin Receives The Taproot Update After A Gap Of 4 Years, Will Enhance Privacy And Security

taproot update

Bitcoin received a significant update called taproot update in the last four years on 14 November. The taproot update was much awaited since the news started circulating on the internet a few months ago. The update was successfully implemented on the blockchain at 10.45 am, according to the Indian time. It was a moment of joy and aspiration for bitcoin holders as the latest update will enhance Bitcoin infrastructure in many ways.

What features the Taproot update will bring for Bitcoin investors

Taproot update focuses on greater privacy and efficiency of transactions, and most importantly, it will unleash the potential of smart contracts, which will dislodge transaction middlemen.

Alyse Killeen, entrepreneur and founder of a venture capital firm called Stillmark, says the taproot update was necessary as it creates a plethora of prospects for cryptocurrency enthusiasts who want to maximize the utility of Bitcoin.

The last Bitcoin update called ‘last civil war’ was controversial as it had many glitches. Unlike the 2017 update, taproot received a warm welcome from global bitcoin investors and enthusiasts. The primary reason for this international consensus is the enhanced and sturdy script in terms of privacy and security.

What Changes The Taproot Update Will Bring In Bitcoin

The taproot update will revamp the functioning of digital signatures – a person’s fingerprint that he leaves while buying or selling bitcoins.

The existing functioning of cryptocurrency utilizes an algorithm called ‘Elliptic Curve Digital Signature Algorithm’ to produce signatures from the private key that manages the bitcoin wallet while ensuring that only the actual holder can do Bitcoin transactions.

The Taproot update will layer the existing technology with Schnorr signatures that makes multi-signature transactions unreadable. This will not elevate the anonymity of your bitcoin address on the public blockchain. However, the added layer of Schnorr Signatures will make simple transactions unidentifiable from complicated and multi-signature transactions.

Practically, Schnorr Signatures will improve privacy, as your private keys will not be displayed on the blockchain. So, it enables us to cover up our identity effectively, said Brandon Arvanaghi. He is a Bitcoin mining engineer and the founder of Meow – a firm that facilitates corporate treasury participation in the global cryptocurrency markets.

Also Read: Zerodha Co-founder Nithin Kamath Reveals Why He Doesn’t Invest In Cryptocurrency

Smart Contracts

Souped-up signatures have significantly transformed smart contracts – self-executing agreements that stay on the blockchain.
Smart contracts enable you to virtually make any kind of transaction, from paying house rent every month to paying recurring subscriptions. Taproot has made smart contracts inexpensive and tiny in terms of the space they occupy on the blockchain. As of now, smart contracts can be created on Bitcoin’s base protocol layer or the Lightning Network, a Bitcoin-based payment platform, which enables instant transactions.

“Lightning transactions can be a portion of a dime… whereas a bitcoin transaction at the base protocol level can be much more expensive than that,” Killeen explained. The developers had already begun relying on Lightning, expecting the rollout of the taproot update.

“Smart contracts are the highlight of taproot update. It’s already steering the innovation on the ethereum network. Smart contracts enable to develop applications and businesses on the blockchain network,” said Fred Thiel, CEO of Marathon Digital Holdings.

As more developers are building smart contracts on the bitcoin blockchain, bitcoin can rapidly turn into a prominent player in the world of Defi, or decentralized finance, a term used to describe financial applications designed to dislodge middlemen.

Also Read: Does Cryptocurrency Mining Pose A Dreadful Threat To The Environment? Its Adverse Effects And Solutions

Why It Took 4 Years For The Taproot To Roll Out

The bitcoin investors and enthusiasts consensus agreed to the update in June. However, the taproot update took November to rollout. The delayed time frame of a few months granted sufficient time for testing and circumvented any possibility of something going wrong during the update.

“The updates give a slight scope to bug to enter the system while updating, which can shake the entire cryptocurrency system, probably devastating everything. So, the updating procedure is tested again and again. The last update to Bitcoin implemented in 2013 unexpectedly went wrong, which split the bitcoin in half.

Also Read: Paytm Willing To Offer Cryptocurrency Trading, Waiting For The Clear Stand Of Govt.