April 2024 - NewNerve

Combat Cybercrime and Financial Frauds: Workshop was conducted by DFS

30Apr

By AnkitNo Comments

Banking, BFSI, Digital Lending, Fintech, Insurtech, Lending, NBFC, Payments, Startups, Wealthtech

Combat Cybercrime and Financial Frauds: Workshop was conducted by DFS

Workshop on Collaboration Between Fintechs, and Law Enforcement Agencies The Department of Financial Services (DFS), Ministry of Finance, and the Indian CyberCrime Coordination Centre (I4C), Ministry of Home Affairs, recently organized a half-day workshop in Vigyan Bhawan, New Delhi to promote collaboration between Law Enforcement Agencies (LEAs), Start-ups, and Fintech ecosystem partners. The workshop aimed to foster innovation, compliance with regulations, and address challenges such as cybersecurity and digital financial frauds. With the participation of key stakeholders, the event emphasized the need for greater collaboration to harness the full potential of the Start-up and Fintech sector in India. Collaborative Efforts for a Thriving Sector: During the workshop, the DFS Secretary,...

NBFC Leaders Advocate Responsible Lending and Equitable Co-Lending with Banks

29Apr

By AnkitNo Comments

Banking, BFSI, Digital Lending, Lending, Microfinance, NBFC

NBFC Leaders Advocate Responsible Lending and Equitable Co-Lending with Banks

Non-banking finance companies (NBFCs) are at the forefront of financial inclusion, bridging gaps in credit access for underserved segments. In recent discussions at the ETBFSI NBFC Connect’24 Summit in Chennai, industry leaders underscored the importance of responsible lending practices and equitable partnerships in co-lending arrangements with banks. Responsible Lending Practices Ashish Mehrotra, MD & CEO of Northern Arc Capital, emphasized the significance of reaching the last mile through partnerships. He stated, “As long as we are able to reach the last mile in partnership/co-lending, we bring more value to the ecosystem.” This approach ensures that credit reaches even the most remote borrowers. NBFCs adopt a calibrated and responsible underwriting process. T...

Decoding the RBI Circular: Opens Doors for SFBs to Become Universal Banks

29Apr

By Ankit1 Comment

Banking, BFSI, Finance, Goverment Notice/Circulars

Decoding the RBI Circular: Opens Doors for SFBs to Become Universal Banks

In a recent circular issued by the Reserve Bank of India (RBI), significant changes have been introduced that pave the way for Small Finance Banks (SFBs) to apply for Universal Bank status. This move aims to enhance financial inclusion and broaden the banking landscape in India. The circular outlines the eligibility criteria and requirements for SFBs aspiring to become Universal Banks. This article provides a summary of the circular and its key provisions. Eligibility Criteria: To be eligible for consideration, SFBs must meet the following requirements: Operational Experience: The SFB should have successfully operated for at least five years, demonstrating their ability to function effectively in the banking sector. Listing on Stock Exchange: The SFB must be listed ...

SFBs and the Road to Universal banking: Challenges, Considerations, and Future Outlook

29Apr

By AnkitNo Comments

BFSI, Banking, Goverment Notice/Circulars

SFBs and the Road to Universal banking: Challenges, Considerations, and Future Outlook

The Reserve Bank of India's (RBI) recent guidelines for small finance banks (SFBs) to convert into universal banks have brought clarity to the process, but the path to universal banking remains challenging for these institutions. While the new rules offer a roadmap, it is unlikely that any SFB will apply for a license in the immediate future. Current Scenario: Eligibility: Only AU Small Finance Bank currently meets all the criteria for conversion. However, its ongoing merger with Fincare SFB will take 9-12 months to complete. Other SFBs: The remaining SFBs face hurdles in meeting the RBI's asset-quality criteria and will need at least a year or two to qualify. Diversification: Diversifying loan portfolios remains a major challenge, particularly for SFBs with high exposure to mi...

28Apr

By Ankit2 Comments

AI, Blog, IndiaAI, Technology

What is Artificial Intelligence (AI)?

Artificial Intelligence (AI), in its broadest sense, refers to intelligence exhibited by machines, particularly computer systems. It is a field of research in computer science that develops and studies methods and software enabling machines to: Perceive their environment. Learn from data and experiences. Take actions that maximize their chances of achieving defined goals. AI technology is widely used across various domains, including: Advanced web search engines (e.g., Google Search). Recommendation systems (used by YouTube, Amazon, and Netflix). Human speech interaction (e.g., Google Assistant, Siri, and Alexa). Autonomous vehicles (e.g., Waymo). Generative and creative tools (e.g., ChatGPT and AI art). Superhuman play and analysis in strategy games (e.g....

AU Small Finance Bank for Universal Bank License? : RBI Circular Sparks Discussions

28Apr

By Ankit2 Comments

Banking, BFSI, Goverment Notice/Circulars, NBFC, Payments

AU Small Finance Bank for Universal Bank License? : RBI Circular Sparks Discussions

In a recent development, the Reserve Bank of India (RBI) issued a circular that has set the stage for AU Small Finance Bank (AU SFB) to deliberate on its potential eligibility and feasibility for a universal bank license. This move has generated significant interest and speculation within the banking industry. The circular has caught the attention of stakeholders, investors, and market participants, as it holds the potential to reshape the landscape of banking in India. In this article, we will explore the implications of the RBI circular and its potential impact on AU SFB. Let’s understand AU Small Finance Bank AU Small Finance Bank, a Jaipur-based financial institution, began operations as an NBFC-MFI (Non-Banking Financial Company - Microfinance Institution) in 1996. Over ...

Talkcharge Ordered to Cease PPI Operations and Refund Balances: RBI’s Strict Directive

28Apr

By Ankit1 Comment

BFSI, Cyber Crime, Fintech, Goverment Notice/Circulars, Payments, Startups

Talkcharge Ordered to Cease PPI Operations and Refund Balances: RBI’s Strict Directive

The Reserve Bank of India (RBI) has recently taken decisive action against fintech firm Talkcharge Technologies. In an order dated April 2, 2024, the central bank directed Talkcharge to halt the issuance and operation of its Prepaid Payment Instruments (PPIs), commonly known as wallets. The reason behind this stern directive? Talkcharge was found to be issuing wallets without proper authorization. Regulatory Intervention The RBI’s move came after it observed that Talkcharg was flouting regulatory guidelines by offering wallets to customers without obtaining the necessary permissions. As a result, the central bank has instructed the Gurugram-based firm to refund the balances held in these wallets to customers by May 17, 2024. This deadline serves as a clear mandate for Talkcha...

27Apr

By AnkitNo Comments

BFSI, Banking, Blog, Digital Lending, Lending

How BNPL Companies make Money?

BNPL companies (Buy Now Pay Later) employ various strategies to generate revenue. Let’s explore how BNPL Companies make money: Merchant Fees: BNPL providers charge e-commerce platforms and retailers a fee for integrating their BNPL services. This fee ensures that the BNPL option is available during checkout on these platforms. Interest and Fees on Late Payments: If consumers fail to repay within the stipulated period, BNPL companies charge interest or late fees. These penalties contribute to their revenue. Credit Risk Management: BNPL firms assess credit risk and set credit limits for users. They earn by managing this risk effectively and ensuring timely repayments. Partnerships with Financial Institutions: Some BNPL providers collaborate with banks or financial institution...

Buy Now Pay Later (BNPL) in India: A Growing Trend, 2024

27Apr

By AnkitNo Comments

Lending, BFSI, Blog, Digital Lending

Buy Now Pay Later (BNPL) in India: A Growing Trend, 2024

The pandemic has accelerated the adoption of digital payments in India. Online payment transactions more than doubled in 2021 compared to 2020, crossing a billion in number. Buy Now Pay later (BNPL), which allows consumers to purchase items upfront and pay for them later within a stipulated period, has become increasingly popular. Let’s delve into the details: What is BNPL (Buy Now Pay later)? BNPLs (Buy now Pay Later) are small-ticket loans that empower consumers to buy products online and offline without immediate payment. They can either pay in a lump sum or opt for the no-cost EMI route. The underlying principle is to enhance consumer spending power through readily available credit. How Does BNPL Work? Purchase and Selection: After making a purchase, customers choose BNPL as th...

Buy Now Pay Later (BNPL): A Historical Perspective

27Apr

By Ankit2 Comments

BFSI, Digital Lending, Goverment Notice/Circulars, Lending

Buy Now Pay Later (BNPL): A Historical Perspective

The concept of BNPL, which we commonly associate with modern financial arrangements, has surprisingly deep historical roots. Dr. Sathyan David, former Chief General Manager of the Reserve Bank of India (RBI), drew parallels between ancient lending practices and today’s BNPL arrangements during the ETBFSI NBFC Connect’24 Summit in Chennai. Let’s explore this intriguing connection. Ancient Lending Practices Guptas and Mauryas: Dr. David highlighted that BNPL-type practices have existed since the period of the Guptas and Mauryas. During those ancient times, lending to small borrowers at high interest rates was already a common practice. The Guptas and Mauryas engaged in such lending activities, demonstrating that financial transactions involving deferred payments were not new...