Job uncertainty makes people shy away from loans in India

October 16, 2013

Running_for_moneyNew Delhi, Oct 16: People in India are increasingly shying away from taking bank loans on account of economic slowdown and scepticism arising out of job uncertainty, a survey by industry body Assocham said.

"In the wake of slowdown, while industrial growth and services are getting impacted, job uncertainty among the young spenders is working as a big dampener," the survey said.

Individual borrowers are adopting an extremely conservative approach when it comes to taking loans from banks against fixed deposits or shares and bonds.

According to the banking data, loans against fixed deposits have declined by 1.6 per cent in the current fiscal as against a growth of 20 per cent between August 2012 and August 2013.

Besides, credit card users are also avoiding taking loans as the interest rates charged on outstanding payments are prohibitively high. Those who have already taken loans are now more cautious and resorting to timely payments of their dues to avoid penalties.

"There is a feeling that credit card outstanding payments result in debt traps for the card-holders," the survey said.

A similar trend has been witnessed in individuals or entities seeking bank loans in return for mortgaging shares and bonds.

The amount deployed so far in the current fiscal under this head has shown a decline of 6.6 per cent, as against a growth of 8.8 per cent in the previous year, the survey said.

The reason cited for the cautious approach being adopted by borrowers as well as banks is the prevailing volatility in the share market.

"They (banks) perceive as risk great volatility in share prices, particularly if the share price of the mortgaged security has seen a sharp decline. The issue of Mark-to-Market risks act as hindrance," the survey said.

Besides, high interest rates offered by banks is also one of the main reasons for the trend, since deposit rates have been recently revised upwards in the wake of tight liquidity position.

Moreover, banks are also unwilling to lend to large corporates which are facing the liquidity problems arising from drying up of the corporate deposit (CDs) markets, according to the survey.

"Banks, bitten by a large increase in their NPAs (non-performing assets), are not too willing to lend to big corporates for meeting their working capital needs and want the companies to use the CD market, which, unfortunately, has gone dry," the survey said.

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News Network
March 13,2020

Bengaluru, Mar 13: In the wake of fresh cases of Covid-19 reported in Karnataka, Infosys Foundation chairperson Sudha Murty has urged the Karnataka government to take steps to shut malls and theatres, saying the coronavirus multiplies in air-conditioned areas.

In a letter to the government, she said preventive measures should be taken to control the spread of coronovirus before it gets worse.

Murty, who also leads the State government-constituted Karnataka Tourism Task Force, said she has discussed the current situation with Chairman and Executive Director of Narayana Health, Devi Prasad Shetty.

She suggested closure of all schools and colleges with immediate effect, malls, theatres and “all air-conditioned areas where the virus multiplies”, and allow only essential services like pharmacy, grocery and petrol bunks.

“It is not scientifically proven that the virus dies in high temperature,” she said pointing to spread of the virus -- despite heat -- in peak summer in Australia and Singapore, which have “summer all 12 months”.

“I request you to vacate one government hospital with at least 500 - 700 beds for this purpose (to deal with coronavirus cases), which requires oxygen lines and pipes,” she said.

“Infosys Foundation, the philanthropic and CSR arm of software major Infosys, would do the civil work and Devi Shetty has agreed to share resources like medical equipment,” she added.

“We would like to work with the government proactively so that we can prevent this as early as possible,” Sudha Murty said.

The total number of confirmed coronavirus positive cases in Karnataka is five, including the 76-year old man from Kalaburagi who died on Tuesday night.

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Agencies
January 7,2020

Washington, Jan 7: Facebook will ban deepfake videos ahead of the US elections but the new policy will still allow heavily edited clips so long as they are parody or satire, the social media giant said Tuesday.

Deepfake videos are hyper-realistic doctored clips made using artificial intelligence or programs that have been designed to accurately fake real human movements.

In a blog published following a Washington Post report, Facebook said it would begin removing clips that were edited--beyond for clarity and quality--in ways that "aren't apparent to an average person" and could mislead people.

Clips would be removed if they were "the product of artificial intelligence or machine learning that merges, replaces or superimposes content onto a video, making it appear to be authentic," the statement from Facebook vice-president Monika Bickert said.

However, the statement added: "This policy does not extend to content that is parody or satire, or video that has been edited solely to omit or change the order of words."

US media noted the new guidelines would not cover videos such as the 2019 viral clip -- which was not a deepfake -- of House Speaker Nancy Pelosi that appeared to show her slurring her words.

Facebook also gave no indication on the number of people assigned to identify and take down the offending videos, but said videos failing to meet its usual guidelines would be removed, and those flagged clips would be reviewed by teams of third-party fact-checkers -- among them AFP.

The news agency has been paid by the social media giant to fact-check posts across 30 countries and 10 languages as part of a program starting in December 2016, and including more than 60 organisations.

Content labeled "false" is not always removed from newsfeeds but is downgraded so fewer people see it -- alongside a warning explaining why the post is misleading.

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Agencies
July 3,2020

Mumbai, Jul 3: In yet another move to keep Chinese technologies companies at bay, the Centre has cancelled the 4G upgradation tender for BSNL as it has decided to come up with fresh specifications for the upgrade process, sources said.

The Department of Telecommunications (DoT) is likely to issue a fresh tender in the next two weeks.

People in the know said that the fresh tender may not allow Chinese companies to participate and that the new tenders that will be floated in the next two weeks will emphasise on Make in India.

As the border tussle with China escalated last month and around 20 soldiers lost their lives, the government had last month asked both BSNL and MTNL not to use equipment of Chinese makers in their upgrading process to 4G facilities.

Huawei and ZTE are the major Chinese telecom equipment makers working with Indian telecom companies and they would be the hardest hit by the decision.

The impact may be felt in terms of the much-awaited 5G trials in the country. After much deliberation, the Centre last December decided to allow Huawei to take part in the 5G trials.

The cancellation of tender for BSNL's 4G upgradation comes after the Centre on Monday banned 59 Chinese apps including TikTok, WeChat and UC Browser.

A statement by the Ministry of Electronics and IT said that the decision was taken since "there is credible information that these apps are engaged in activities which are prejudicial to sovereignty and integrity of India, defence of India, security of state and public order".

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