Tweaking Indian Retail Payment System: Why RBI need to be careful?


RBI recently released a draft policy paper on Indian payment system. The highlight, off-course, is the retail payment segment. NPCI plays a very leading role here, processing nearly 48% of the retail electronic payment transactions (excluding paper) in volume and 15% by value. It manages multiple payment systems, which includes…

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RBI “No” To Yes! End of Road for Rana Kapoor?


RBI yesterday notified Yes Bank its disapproval for the current CEO, Mr. Rana Kapoor, to continue for another 3 years. Instead it has curtailed his continuity to this position to 31st Jan 2019, a little more than 4 months from now. Keep in mind that the Board of Governors for…

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Dirty Banking; The Naked Dance of Indian Banks Asuras


Yesterday, 8th April 2018, PNB Chief tried to assuage investor fears by saying that it will be out of the Nirav Modi fraud in 6 months. My immediate question is “so who’s next?” Earlier we had argued why Nirav Modi in Indian banking is synonymous with ‘John Doe’, just a…

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Bitcoin & Cryptocurrency in India: The Rich Orphan


In our last article we highlighted evolving challenges of cryptocurrency in India and the lack of regulatory clarification on the same. Ironically while warnings from RBI and GoI had only limited impact, another step of GoI (demonetization) caused a huge spur in bitcoin investments. Mohit Kalra, cofounder of Coinsecure, noted…

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India: Bank Bail-In or Bail-Out! Does it really matter?


Draft FRDI (Financial Resolution & Deposit Insurance) Bill 2017 is expected to provide a comprehensive framework to deal with bankruptcy situations in financial sector entities e.g. banks, NBFCs etc. The bill was approved by cabinet for introduction in the Parliament in June 2017. The bill is creating a lot of…

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Peer to Peer (P2P) Lending; Salient points from RBI Final Guidelines


RBI released the final set of guidelines for P2P players. This is extremely welcome move and will bring in credibility to this sector. That augurs well for all the participants, including the NBFCs and the borrowers/ lenders accessing these platforms. We had highlighted earlier in our article (India Fintech P2P…

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Privacy & Data Protection: How Safe Are We In Age of Digital?


India is by far the only country which has taken biometric registration of its entire population to near completion. As of 15th August 2017, nearly 1.2 billion Aadhar enrollments have happened which translates into somewhere 87-90% saturation/ population coverage. The uniqueness of Aadhar is that it not only captures basic/…

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