The payments bank will open 31 branches and 3,000 customer points in its first year, the company said in a statement.

A payments bank is an institution that can take deposits and remittances but cannot lend.

Paytm became a household name across India after New Delhi’s shock move to ban high-value currency notes late last year resulted in a cash crunch and boosted the use of its electronic wallet.

Paytm says more than 220 million clients use its e-wallet.

Its success has attracted deep-pocketed investors such as Japan’s SoftBank, which last week invested $1.4 billion in Paytm parent One97 Communications.

The firm’s digital wallets will fold into its payment bank.

The bank will offer an interest of 4 per cent a year on savings accounts and also provide current account facility to merchants.

It will have no minimum balance requirements and all online transactions will be free, the company said.

The bank accounts will initially be available only through an invite.

Chairman Vijay Shekhar Sharma, who owns a majority stake in the banking firm, said Paytm Payments Bank will invest its deposits in government bonds.

“None of our deposits will be converted into risky assets,” Sharma said in the statement.

In 2015, India’s central bank gave preliminary approval to 11 entities including Reliance Industries and the country’s top three telecom operators to set up payments banks.

Bharti Airtel and the Indian government’s postal service have already launched payments banks.

IANS

Picture source: Alamy

Picture used for illustrative purposes alone

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If the idea of chasing credit card rewards as a pastime doesn’t appeal to you, using just one credit card is a reasonable choice. Here are the benefits of carrying only one card, and how to choose it wisely.

THE MINIMALIST APPROACH

There are several good reasons to simplify.

—When you’re shopping: People who carry multiple credit cards have a decision to make every time they reach for their wallet. If you’re carrying only one card, that decision is a lot simpler.

—When you’re paying the bill: Paying bills takes time. Even if a credit card issuer offers automatic payments, it still takes time to set it up, time to make sure you have enough money in your account and time to check in to make sure things are running smoothly. Doing that for just one credit card account instead of several sounds downright restful.

—When you’re trying to manage spending: “If you’re somebody who’s really out of control when you have credit cards, then having many credit cards is almost like an alcoholic in bar,” said Tracy Becker, president of North Shore Advisory in Elmsford, New York, which provides credit-building and monitoring services to individuals and businesses. Using a single card helps some people monitor their spending more easily and avoid trouble, she said.

—When you’re worried about fraud: Thieves who gain access to credit card information often make small purchases at first to see whether a card gets shut down, Becker said. It’s easier to monitor fewer accounts for fraudulent charges, so using only one card makes it easier to catch fraud more quickly.

CHOOSING THE RIGHT CARD

Alas, there is no “best” credit card that is right for everyone. It depends on your spending habits, whether you habitually carry a balance and what kind of rewards you find most useful.

—If you carry a balance: Credit card debt is expensive, so if you don’t always pay things off in full every month, prioritize a low interest rate above every other card feature. When you carry a balance on a rewards card, the interest eats up much, if not all, of the value of your rewards.

—If you travel frequently: Travel credit cards offer good rewards only if you travel often enough to use those rewards. If you don’t, a cash back card is the better option. Still, the extra conveniences that come with some travel cards, like free checked bags, can make these cards worthwhile even to occasional travelers.

—If you spend a lot in one or two budget areas: Some rewards credit cards offer higher returns on things like groceries, gas or restaurants. Look for a card that will reward the way you spend.

—If you just want to keep things simple: The simplest option is a card that pays the same amount — in cash, points or miles — on every purchase, with no limit on the rewards you can earn. These are sometimes called flat-rate credit cards.

—If you’re concerned about fees: An annual fee on a credit card can be worth it, as long as the rewards are high enough to outweigh the fee. Premium travel cards, in particular, have high fees but generous rewards. For a good no-fee card, your best bet is probably a cash back card.

PROTECTING YOUR CREDIT SCORE

Before you get excited and pare your credit cards down to just one, think about your credit score. Closing older accounts reduces the amount of credit you have available, and lowers the average age of your accounts. Both of those things can lower your score. Becker said having more credit cards also demonstrates to lenders that you can handle lots of credit.

“It is possible to have a very high credit score with only one card, but not as likely,” Becker said.

But that’s no reason to carry more cards than you want to. If your older accounts don’t charge annual fees, keep them open, but leave the cards at home. Becker recommends putting just one recurring bill, like a gym membership, on an older account and then setting up an automatic payment so you pay on time. If your unused cards charge annual fees, though, close them. Your credit score will recover.—AP

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The mysterious programs were at the center of the so-called “Flash Crash” in May 2010, when the US stock market plunged more than nine percent in a matter of minutes for no discernible reason.

The swoon, which was reversed within a matter of minutes, was sparked by a computerized order to sell a large quantity of S&P 500 futures in a short period. That, in turn, triggered a chain reaction of other computerized orders by high-frequency traders.

The quickfire crash and recovery underscored the pivotal role of algorithms, which execute automated trades after taking instantaneous readings of inputs that can include news events, economic data and stock price movements.

The era of automated trading began with the 1971 founding of the Nasdaq market, which introduced computers to Wall Street in a significant way.

Today, algorithms are the 900-pound gorilla in markets, playing a role in the vast majority of securities transactions.

“I would say it is 90 percent algorithmic, but there is not a great way to quantify that,” said Valerie Bogard, an equity analyst at Tabb Group, a research and consulting firm.

“Even though (people) may send an order through a sales desk, it is possible it is going through an algo.”

Algorithmic trades vary in complexity and can be carried out with minimal human involvement once they are set up.

For example, the branding and technology company T3 has created a robotic, or “bot,” system that reads President Donald Trump’s Twitter feed and implements stock trades if it determines based on a quickfire reading that there will likely be a negative impact on a company’s shares.

Other firms, such as QuantCube Technology, use algorithms to make trades following analysis of so-called “Big Data.”

But the most controversial type of algorithms are those that do high-frequency trading, which execute buy and sell orders that individually result in minuscule gains but can add up to great amounts at large volumes.

High-frequency trades make up a rising share of overall market transactions and are often criticized due to their opacity.

Traders in this area have at times engaged in “spoofing” — placing thousands of computer-generated rapid-fire fake trades that are quickly cancelled.

The objective is to coax other traders into making bets at artificially high or low prices.

“That is just a violation of some of the rules of trading,” said Eric Noll, chief executive of Convergex Group, a New York brokerage firm.

The Securities and Exchange Commission in 2014 levied its first fine for such bogus trades. Since then, US regulators have pumped more resources into enforcing the rules on electronic trading.

The SEC now requires firms to identify those who design and operate algorithms and can subpoena documents from firms employing the technology.

There has also been a preference among some investors to rein in the machines. The New York Stock Exchange has announced plans to slow down transactions in one of its platforms, following the introduction of a similar mechanism by IEX Group, which delays transactions by microseconds.

These moves were taken in response to criticism that high-frequency traders were stiffing investors by driving up transaction costs.

But market insiders say there is no evidence of a clear trend as far as whether high-frequency trading makes the market more prone to crises than with conventional trading. After all, markets were also prone to violent gyrations prior to when the machines took over.

“When the crash in 1987 happened, it was before algos,” said Noll. “It is a somewhat harsh reality but true.”—AFP

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Set to be operational in the first quarter of 2017, the FinTech Hive at DIFC will introduce cutting-edge financial services technologies to the MEASA markets while providing a platform that brings financial and technology firms together. Its goal is to increase access to this space and improve customer experience, thus driving operational efficiency in the financial services sector.

Globally, the fintech sector has attracted more than US$50 billion in investments since 2010, but currently the Middle East and North Africa only attract around 1 percent of that investment.

The DIFC accelerator aims to bridge the gap by creating a platform that drives innovation and showcases success. It will identify leading technology entrepreneurs and companies through a competitive process and offer them the opportunity to develop, test and modify their innovations in collaboration with top executives from DIFC and regional financial institutions.

Emirates NBD and Mashreq will be the first local financial institutions to join the accelerator programme while HSBC and VISA are the first international financial services providers.

Commenting on the launch of FinTech Hive at DIFC, Essa Kazim, Governor of DIFC and Chairman of the DIFC Authority Board of Directors, said, “We are proud to be launching FinTech Hive at DIFC following the recent announcement of the world’s first government accelerator programmes by Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum. The UAE National Innovation Strategy and Dubai Plan 2021 steer us to be among the smartest cities in the world. With our founding membership at the Global Blockchain Council and today’s launch announcement, DIFC is pioneering innovative developments in the MEASA region’s financial services sector while taking our economies to new horizons.”

Sushil Saluja, Accenture’s Senior Managing Director for Financial Services in Europe, Africa, the Middle East and Latin America region, said, “DIFC is uniquely positioned to become the regional hub for fintech. By putting together local banks and fintech firms to ideate, collaborate and partner, DIFC is helping both sectors to be at the forefront of the financial services industry. The accelerator programme will identify the best entrepreneurs within the financial services industry and grant them invaluable access to and feedback from potential customers and funders.”

Accenture has been chosen to set up and operate the accelerator because of its experience and expertise in building and running the FinTech Innovation Labs in London, New York and Hong Kong.

The accelerator further demonstrates DIFC’s commitment to providing an internationally oriented fintech ecosystem that meets the specific requirements of the Middle East, Africa and South Asia, in line with Dubai Plan 2021 and the DIFC 2024 Strategy.

“In 2004, DIFC led the development of global financial services by linking the top financial centres around the world to the region. The FinTech Hive at DIFC is a continuation of our vision to link, develop and adapt top financial technologies to the region,” said Arif Amiri, Chief Executive Officer of DIFC Authority.

“The digital era will define the region’s future in terms of liquidity and growth. The fintech market, with a global investment of US$22.3 billion in 2015, has already begun revolutionising the banking industry by offering new ways of unlocking resources and capital while driving efficiency and creating new partnerships. With 99 percent of consumers in the UAE using a mobile or a smartphone, fintech has the potential to make a real difference,” said Omar Boulos, Regional Managing Director of Accenture in the Middle East and North Africa.

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