RBI Takes Proactive Steps to Support Growth; Real Estate to Benefit from the Financial Measures

The measures announced by the RBI today during the MPC meeting complement the economic stimulus package announced earlier by the Central government and Central Bank to restart the economy through liquidity infusion, fiscal support and reform led investments. There is a strong indication by the Bank to kick-start the economy by fueling demand across sectors including Real estate. Given the current grim economic, the  environment underlined by weak demand and supply conditions, RBI has acted prudently to revive demand by facilitating cheaper credit and supply through enabling higher liquidity infusion across key sectors.

The 40 bps further reduction in the repo rate only gives more elbowroom to banks to reduce mortgage rates in favour of the homebuyers. The repo rate is now at 4.0%, which is lower than the 4.75% rate prevailing during April 2009 - global financial crisis period.  A faster transmission of these benefits to the end consumer in the form of lower home loan rates will aid in improving their effective affordability. Further, the reverse repo rate cut from 3.75% to 3.35% will further disincentivise  banks to park the surplus money with RBI, rather inject back into the productive sectors of the economy in the way of higher credit.

The extension of loan moratorium until August 31 will provide the much-needed respite to the corporate sector including real estate developers whose cash flows have been severely impacted due to the pandemic. Banks are also allowed to extend this benefit to NBFCs, which are strapped with short-term liquidity concerns. The Central Bank has also permitted the conversion of the accumulated interest on working capital facilities during the moratorium period into a term loan, which can be paid until March 31 2021. The lending institutions are being permitted to restore the margins for working capital to the original level by March 31, 2021.

Further, the commercial banks have been allowed to raise their group exposure limit from 25% to 30%, which will enable higher flow of credit to the corporate sector including real estate. These measures are significant to tide the short-term working capital challenges faced by the corporates and will give them a breather to focus on restarting their business operations. However, one-time restructuring of loan is the need of the hour more importantly for the real estate sector which is severely ailing due to the pandemic. It is expected that RBI will take a decision soon once it is clear about the lockdown’s impact on the economy and cash flow.

Akshaya Patra Foundation Receives a ₹3.75 Crore Grant from the Micron Foundation to Continue Food Relief

The Akshaya Patra Foundation received a ₹3.75 crore grant from the Micron Foundation for COVID-19 relief. Funding will go towards preparing and distributing over 15,00,000 meals (including essential food relief kits) to the affected people in Telangana, Andhra Pradesh and Karnataka as per the directions of local administrative bodies.

“The effects of COVID-19 pandemic in India have been far reaching, creating tremendous need,” said Anand Ramamoorthy, managing director of Micron India. “Micron’s grant to Akshaya Patra’s local kitchens and distribution chains aims to address the burdens most often borne by low-income communities and migrant workers.”

Akshaya Patra has served more than four crore meals across the country. In Telangana, the Foundation is working with the Greater Hyderabad Municipal Corporation (GHMC) and local municipalities to serve cooked meals to migrant workers and daily-wage earners who have lost their livelihood and are in great despair in the wake of the COVID-19 outbreak and the subsequent nation-wide lockdown.

Around 2,00,000 freshly cooked meals are served in Telangana by Akshaya Patra and associates every day. In addition, over 55,000 food relief kits with essential groceries have been distributed as of now. Each of these kits contains Sona Masuri rice, tur dal, refined sunflower oil, masala powders, salt, tamarind and vegetables that have a long shelf-life, such as potatoes.

“Micron’s continued support of Akshaya Patra’s COVID-19 efforts has enabled us to stay agile and adaptive, supporting the growing needs of the communities we serve. We thank the entire Micron Technology family for supporting us in this cause,” said Sri Satya Gaura Chandra Dasa, regional president of Akshaya Patra in the states of Telangana and Andhra Pradesh. “We are also grateful to the government, especially the Greater Hyderabad Municipal Corporation (GHMC) and the police force, for the trust and support they have extended towards our mission on a daily basis.”

Akshaya Patra dedicates its resources, platforms, and goodwill to make the biggest impact on people with the greatest need. This moment is an opportunity to illuminate how we are all affected when some of us lack the protections of a safety net. By focusing on the needs of people most impacted, we can better ensure the health and safety of all communities.

Edelweiss General Insurance Launches a “Unique, Usage-Based Motor OD Insurance Cover”

Key Highlights:

* App-based Motor OD floater policy
* Driver-based, pay-as-you-use model that allows the customer to pay premium only on the days they use the vehicle
* Covers multiple drivers and multiple vehicles under a single policy

Edelweiss General Insurance (EGI), India’s first cloud native insurer, announced the launch of an innovative, app-based Motor OD floater policy – Edelweiss SWITCH. This driver-based motor insurance policy, launched under IRDAI’s Regulatory Sandbox, allows vehicle owners to SWITCH their motor insurance ON and OFF, based on usage and covers multiple vehicles under a single policy.

What differentiates Edelweiss SWITCH from other Motor OD policies, is that it is driver-based insurance, where the insurance is calculated on the age and experience of the driver. Edelweiss SWITCH uses a pay-as-you-use model that allows the customer to pay the premium only on the days they use the vehicle, offering significant cost savings and convenience.  Customers can use the app to SWITCH their policy cover 'ON' and 'OFF', depending on whether they are driving that day.  Also, while the policy covers accidental damage when it is switched on, vehicles will be covered 24/7/365 against fire and theft, even if the policy is switched off at that time, since these incidents can happen even if the vehicle is not being driven.

Shanai Ghosh, ED & CEO, Edelweiss General Insurance, said, “At Edelweiss General Insurance, our focus has always been to create simple and innovative products that are relevant and provide tangible value to our customers. Edelweiss SWITCH has been developed with the specific needs of today’s customer in mind, where you may not use your vehicle regularly or may choose to alternate between your car and two-wheeler. This Driver Based Insurance will mean lower premiums for policyholders, as they will only pay as per usage. In addition to this, being able to cover multiple vehicles under one policy will add to the savings, especially for those customers who own multiple vehicles.”

IRDAI’s Sandbox platform is a welcome and progressive move, to encourage creation of innovative solutions for customers. Under this, nine GI players were given approval for products under the “Pay as you use” model. Of these, only three players, including Edelweiss General Insurance, have been given an approval for motor floater products.  The “Pay as you use” model is expected to change the erstwhile industry standard of determining premium for Motor OD (by age, make and model of the vehicle), to premiums based on usage and driving experience.

SEEDS and Honeywell Join Hands to Provide “3.7M Meals and 12K Hygiene Kits” Across 5 Indian Cities

SEEDS, a leading humanitarian organization, has partnered with Honeywell India to distribute food and hygiene kits across Bengaluru, Delhi, Gurgaon, Madurai, and Pune. The ongoing drive seeks to provide more than 3.7 million meals to families that have been rendered helpless by the COVID-19 crisis. Additionally, a month’s supply hygiene kits are being distributed to more than 12,300 families.

Dr. Manu Gupta, Co-Founder, SEEDS, said, “Through our continuous efforts to reach out to the bottommost 1% vulnerable communities, SEEDS is committed to providing dry ration, family hygiene and PPE kits, and financial support to those who are most in need to fight against the COVID-19 crisis. It saddens us to see people struggling for sustenance, and we are determined to help them to the best of our capabilities. For us, saving lives is most important.”

Flagging off relief efforts in the national capital, Shri Manish Sisodia, Deputy Chief Minister of Delhi, said, “It is commendable that SEEDS and Honeywell, who have a longstanding engagement with the communities of East Delhi, have come forward during the current crisis with food and hygiene kits. This shows how committed and invested they are with the local communities.”

Each food kit comprises rice, wheat flour, sugar, pulses, cooking oil, and salt that should be sufficient to feed a nuclear family for at least a month. Hygiene kits include bathing and washing soaps, detergents, disinfectants, and sanitary and bath towels.

Shri Amit Khatri, IAS, Deputy Commissioner, Gurugram, said, “SEEDS and Honeywell have put together a comprehensive set of relief materials that includes food supplies and good quality hygiene kits. We are happy to partner with them to distribute these materials to around 2,000 needy families around industrial areas in Gurugram. These organizations have also come forward to supply schools and hospitals with disinfectants, which is critical to contain the spread of COVID-19.”

While mass migration of workers remains a huge worry for the country, distribution of food kits in industrial areas helps sustain displaced workers, thereby encouraging them to stay put.

Smt. Mrs. Manda Sakore, Sarpanch, Fulgaon Village, Pune, said, “With the nationwide lockdown there are many displaced workers who need help. Many companies with operations in Fulgaon are doing their bit to aid these people. We are supporting Honeywell and their NGO partner, SEEDS, in their efforts to reach out to these people with food and hygiene kits.”

The multi-city outreach effort has also been acknowledged by the government. In Madurai, Shri S. Venkatesan, Member of Parliament from the city, lent a helping hand.

He said, “I am happy to be a part of distribution drive organized by Honeywell to provide food and hygiene kits to those most in need, well-coordinated by SEEDS. While we distributed these items in Indira Colony and Karatipatty, we hope to cover more areas of the city in the coming days.”

Dr. Akshay Bellare, President, Honeywell India, said, “As a responsible corporate citizen, Honeywell has been contributing to COVID-19 relief efforts in country. We have donated Honeywell air purifiers to the government, and our 180 safe water stations continue to provide water to communities while ensuring social distancing. Through our partnership with SEEDS we hope to reach out to the most vulnerable with food and hygiene kits that are now essential for their survival.”

Since the beginning of the COVID-19 outbreak and countrywide lockdown, SEEDS’ local response teams have been deployed to carry out relief assistance to the most vulnerable and invisible communities across India. Team members are addressing the local and contextual needs of adversely affected communities in collaboration with local authorities.

A robust triangulation, distribution, and monitoring mechanism has been established to reach out to those in distress. Financial and essential services are being provided to support daily wage earners, and hygiene kits and dry rations are being distributed to marginalized families, daily wage earners, old age homes, and orphanages.

To strengthen the fight against COVID-19, SEEDS is also supporting public health systems by providing PPE kits, organizing safety training programs, and arranging temporary isolation centres.

Hershey India Partners with Swiggy and Dunzo to Launch the Online ‘Hershey Happiness Store’

Hershey India, a part of The Hershey Company, one of the world’s leading snacking giants, has partnered with delivery apps, Swiggy and Dunzo. Hershey has launched their online brand store Hershey Happiness Store on these two online delivery apps. Shoppers can now choose from a wide range of Hershey products such as HERSHEY’S Kisses, HERSHEY’s Bar, BROOKSIDE chocolates, HERSHEY’S Syrup, HERSHEY’S Milkshake, HERSHEY’S Cocoa Powder, HERSHEY’S Spreads, SOFIT Soy Milk, SOFIT Almond Milk, SOFIT Protein Cookies and SMART COOK Tomato Puree just by clicking a button. Swiggy and Dunzo will deliver Hershey’s much-loved brands and products to the shopper’s doorstep in select cities.

The partnership with Swiggy is operational in New Delhi NCR, Bengaluru, Mumbai and Hyderabad, while the partnership with Dunzo is live in Bangalore and Hyderabad. Hershey is looking to scale up these associations to more locations over the next few months.

Speaking on these partnerships, Mr. Herjit Bhalla, Managing Director, Hershey India said, “We are in unprecedented times and it is imperative that we find innovative ways to bring our loved brands to our consumers. We are happy to have partnered with both Swiggy and Dunzo to bring the goodness of the Hershey range of products to our consumer’s doorstep, in a safe and convenient way.”

The Hershey Happiness Store addresses the challenges faced by shoppers due to the current lockdown. Families are increasingly cooking delightful snacks at home with Hershey’s products and the online store is an additional avenue for consumers to access Hershey’s loved products, in addition to existing retail stores and e-commerce platforms.

About The Hershey Company

The Hershey Company, headquartered in Hershey, Pa., is an industry-leading snacks company known for bringing goodness to the world through its iconic brands, remarkable people and enduring commitment to help children succeed. Hershey has approximately 16,000 employees around the world who work every day to deliver delicious, quality products. The company has more than 80 brands around the world that drive $8 billion in annual revenues, including such iconic brand names as Hershey’s, Reese’s, Kit Kat, Jolly Rancher, Ice Breakers and SkinnyPop.

For more than 125 years, Hershey has been committed to operating fairly, ethically and sustainably. Hershey founder, Milton Hershey, created the Milton Hershey School in 1909 and since then the company has focused on helping children succeed.

Emirates Airline Sets Industry-Leading Safety Standard for Customers Travelling as it Resumes Operations

Emirates has launched a series of new initiatives for employee and customer care throughout the travel journey, stepping up safety and hygiene standards on board and on the ground.

The new measures come into effect today, May 21, with the resumption of regularly scheduled passenger flights to nine destinations.

“Emirates is implementing a comprehensive set of measures at every step of the traveller’s journey, to enhance the sanitisation of all touchpoints, and ensure the health and safety of our customers and employees. The risk of catching an infection on an aircraft is already very low, but we have spared no effort in reviewing and redesigning every step, from check-in to disembarkation,” said Adel Al Redha, Emirates’ chief operating officer.

“We are working with all the stakeholders in Dubai – including the airport, immigration, health and aviation authorities to implement such measures, and we will continue to review and consult expert advice for any development and changes. We are all aware that we have to adapt to different practices during this pandemic in our day to day activities.

“All these measures, in combination with the proactive pandemic management strategies that the UAE has taken, show the seriousness with which we are taking the health and safety of our local and global communities and will give confidence to the public.”

Check-in

Emirates has introduced complimentary hygiene kits – comprising of masks, gloves, antibacterial wipes and hand sanitiser – to be given to all passengers upon check in at Dubai International Airport and on flights to Dubai.

Gloves and masks are mandatory for all customers and employees at the airport in Dubai, while only masks are mandated on Emirates flights. On arrival at the airport, thermal scanners at various areas monitor the temperatures of passengers and employees.

Physical distancing indicators placed on the ground and at waiting areas help travellers maintain necessary distance at check-in, immigration, boarding and transfer areas.

The airport team has also installed protective barriers at each check-in desk and immigration counter to provide additional safety reassurance to passengers and employees.

Transit passengers

Customers travelling through Dubai International Airport and transferring onto another flight, will go through thermal screening upon disembarkation. Transfer desks have also been installed with protective barriers as a precautionary measure. Airport staff, dressed in personal protective equipment (PPE), will direct customers from a safe distance for extra assistance. Customers will be given an additional hygiene kit at the gate before boarding their connecting flight.

Boarding

The boarding sequence has been distributed, passengers now boarding by row, from the last to the first, in small counts.

The waiting area has also been altered to adhere to social distancing norms.

Emirates boarding agents, dressed in personal protective equipment (PPE), facilitate boarding while gates are deep cleaned and disinfected after the boarding of every flight.

On board

All cabin crew on board are expected to don PPEs while Emirates has added a cabin service assistant (CSA) to the crew to complement on flights over 1.5 hours. The assistants will ensure that lavatories are cleaned at intervals of 45 minutes.

Each lavatory has been equipped with sanitising soap and hand washing instructions.

Magazines and print reading material will not be available during this time. In premium classes, single use menus and wine lists will be provided to passengers. Comfort items such as mattresses, pillows, blankets, headphones and toys will be hygienically sealed.

Emirates will resume its service with hot meals, using high quality cutlery and crockery, sterilised before each use.

Cabin baggage have to be checked-in, and customers can only bring essential items such as a laptop, handbag, briefcase or baby items on board.

Customers are reminded to bring pens to fill out health declaration forms required for some destinations.

Emirates’ modern aircraft cabins have been fitted with advanced HEPA air filters which remove 99.97 per cent of viruses and eliminate dust, allergens and germs from cabin air for a healthier and safer on-board environment.

After its journey and on landing in Dubai, each aircraft undergoes enhanced cleaning and disinfection processes.

Emirates crew

Emirates’ flight and cabin crew are provided with cars for pick up and drop off at their home at the beginning and end of their duty.

Layovers in destination cities have been reduced where possible and on long-haul flights, where layovers are necessary, crew are put up in individual rooms in hotels.

On return to Dubai, Covid-19 tests are done on all crew members, subjecting them to a mandatory 14-day quarantine in their homes after every flight, unless they are on duty.

Shopify Announces Major Product Launches and Updates at Virtual Event Reunite

Today, Shopify Inc., a leading global commerce company, announced new and updated products at Reunite, the company’s first virtual event that brought together more than 100,000  participants from Shopify’s global community to hear how it’s helping merchants future-proof their businesses amid COVID-19. The virtual event, which was also open to Shopify partners and the public, covered the latest product news in areas like finance, retail, and shipping.

"These are unprecedented times. This is going to be one of the most challenging chapters in all of our lives. But entrepreneurs are the kind of people who make the most out of what they’ve got. They’re the people who can see opportunity when everyone else sees despair," said Tobi Lütke, CEO of Shopify. "Right now, we’re dedicating ourselves to helping as many small businesses as possible survive this. We’ve looked far and wide into our roadmaps for everything that might be helpful right now, and have tried to pull as many things forward as we could, shipping them and getting them out the door for our merchants."

From helping merchants manage their store’s money, to offering effortless local delivery options, to creating new ways of generating revenue at checkout, the products and updates announced at Reunite will help merchants navigate an ever-evolving retail landscape and plan for the future.

To facilitate growth these are the innovations that will be available to Indian merchants right away are gift cards, mechant tipping, a new theme called ‘Express’ that makes store set-up faster, local delivery and local pick-up.

Shopify Balance, the business account built for independent businesses and entrepreneurs

●        Most of today’s banking products are built from a traditional financial institution’s point of view and designed for large, established businesses. They aren’t designed for the needs of independent business owners, and aren’t as flexible as they need to be. In our research:

○        We found that two in five merchants are currently using their personal bank accounts and cards for business, meaning they’re combining their personal and business finances, making it difficult to measure the financial health of the business.

●        Shopify Balance will help close this gap by giving merchants access to critical financial products to start, run, and grow their businesses. Shopify Balance will include:

○        Shopify Balance Account: A one-stop-shop within the Shopify admin where merchants can get a clear view of cash flow, pay bills, track expenses, and make decisions about the future of their business.

○        Shopify Balance Card: Physical and virtual cards that merchants can use to access their money faster when spending in-store, with mobile or online, as well as withdrawing from ATMs.

○        Rewards: We plan to offer merchants cashback and discounts on everyday business spending like shipping and marketing.

●        With Shopify Balance there will be no monthly fees or minimum balances.

●        Shopify Balance will launch in early access later this year in the U.S.

Enabling ‘Buy Now, Pay Later’ at checkout

●        Shop Pay Installments, Shopify’s new “Buy Now, Pay Later” option, will let merchants offer more payment choice and flexibility at checkout, giving consumers the option to split purchases into four equal payments over time, interest-free and with no additional fees to consumers.

●        Flexible payments can help increase a merchant’s average order size by making purchases more palatable to consumers—particularly in the current economic climate.

●        Working with a partner, Shopify will launch Shop Pay Installments later this year. It will be available to U.S. merchants eligible for Shopify Payments.

A new way for merchants to deliver locally

●        COVID-19 has underscored the importance of shopping locally. More than ever, merchants need efficient ways to connect with their local customers today and in the future.

○        Average daily local orders on Shopify for the six weeks ending April 24 grew 176%, compared to the prior six weeks, coinciding with the introduction of physical distancing measures; and, as of April 24, 26% of brick-and-mortar merchants in Shopify’s English-speaking geographies were using some form of local pickup and delivery solution, compared to just 2% at the end of February.

●        Shopify has begun rolling out a new Local Delivery product for merchants globally to offer an improved and simplified local delivery experience. Merchants can:

○        Define a local delivery area using distance radius or zip/postal codes

○        Set local delivery fees and minimum order price

○        Fulfill local orders through Shopify, Shopify POS, and Shopify Mobile

○        Use the new Shopify Local Delivery app to create optimized delivery routes, and send customer notifications when deliveries are on the way

Expanding Shopify Fulfillment Network

●        Shopify Fulfillment Network, which launched in 2019, has graduated from its early access stage, and is actively accepting merchant applications.

●        Shopify Fulfillment Network continues to take away the complexities of fulfillment by investing in technology and a collaborative robotics workforce, allowing merchants to join, scale and evolve their fulfillment strategies through its growing partner network.

●        Shopify opened its first research and development hub in Ottawa to trial new robotics and fulfillment technologies, iterate and improve on warehouse operations, and fulfill Canadian-based orders.

Improving the online store for all entrepreneurs

●        As COVID-19 has forced many businesses to move online, Shopify is releasing more online store features that will help entrepreneurs from a range of verticals adapt.

●        Merchants now have the option to collect tips at checkout. We’ve also released a new one-page theme called Express that enables merchants to get online quickly. These features were built with our local restaurants and coffee shops in mind, but can also be used by merchants in any vertical looking to connect with their customers online.

●        As of March 20, selling gift cards has been available to all merchants, and Shopify has seen more merchants utilizing this feature than ever before. For businesses that can’t deliver products during COVID-19, this feature has provided a much-needed supplement to cash flow.

Giving merchants more choice with more channels

●        Recently, Shopify announced Shop, a first-of-its-kind direct-to-consumer app and personal shopping assistant to make purchasing and order tracking frictionless.

●        Coming soon, Shopify’s new Shop Channel will let merchants control how their brand appears on Shop.

○        Merchants will be able to customize their profile, and how and where they appear on the app.

○        Shop Channel will first be available to merchants in Canada and the U.S.

●        On May 19, Facebook introduced Facebook Shops, which allows merchants to build branded versions of their online store within Instagram and Facebook.

●        Shopify is partnering with Facebook to help businesses create branded storefronts to help merchants deliver unique shopping experiences, and enable consumers to browse and purchase without ever leaving the apps.