📖 Weekly adda #1
Women and bullying, the GST hack, and digital lending personas!
Hey there! On the days when I'm not scouting Bangalore for the perfect idly, I love diving into reports and articles on Indian consumer behaviour. And what better way to share my findings than with a weekly newsletter?
Introducing the Weekly Adda Edition, where I curate 1 insight, 1 visualisation and 2 reading pieces on India. So come on in, grab a cup of chai, and let's dive into the world of Indian consumers together!
What to expect?
[Insight 💡] Why do few businesses delay paying GST despite the fines?
[Visualisation 📊] Events with a significant financial impact on household finances
Insight 💡
Why do few businesses delay paying GST despite the fines?
A few years ago, a CA told me that small businesses deliberately delayed their GST payments because it was cheaper than taking out a collateral-free loan from an NBFC. GST payments are due monthly and must be made online by the 20th of the month.
If a business delays its GST payment, they are charged an interest rate of 1.5% per month (or 18% per year). In addition to the interest, there was a late fee of INR 50 per day, but this was waived for a long time, making the effective interest rate 18%. The interest rate on collateral-free loans from NBFCs was 2% per month (or 24% per year), so delaying GST payments allowed businesses to free up cash at a lower interest rate.
The Indian business owner hustle is real!
(PS: I’m not sure if this practice still exists. I learnt that government takes stricter action on non-payment of GST beyond just interest rates.)
Article 🗞️
Regional internet, women and online bullying!
Social media can be a double-edged sword, with some comments bringing joy and others causing immense pain. For Sathana, her social media comments drove her to attempt suicide. Unfortunately, women like Sathana who create content on short video apps, are often targeted by bullies who claim they do not uphold traditional family values. The harsh reality is that these women face a disproportionate amount of bullying and backlash online, making their journey as content creators all the more difficult. For me, it’s not the technology but the mirror it holds on to society that creeps me out.
Read this brilliant piece by Nilesh Christopher and Varsha Bansal
(PS: Though the apps mentioned in this article are banned, the behaviour still exists in the incumbent)
Report 📖
Digital lending personas:
If you're interested in digital lending, you won't want to miss the "Credit Disrupted" report by BCG and Omidyar Network. It explores the emerging business models in the digital lending space and the potential opportunities they present. But the real standout for me was the digital lending personas illustrated in the report – they really brought the concept to life. Trust me; this is a must-read for anyone in the digital lending space.
Visualisation 📊
Events with a significant financial impact on household finances
It just takes one major crisis to push low-income households back into poverty. It’s constant fear, given that most households don’t have appropriate insurance. RBI household finance report, 2017, lists the events that significantly impact household finances.
Best of TIN (The India Notes):
Did you like this format? I plan to send a round-up every 15 days; let me know your thoughts.