Fintech - NewNerve

Coordinating Financial Inclusion: The Lead Bank Scheme and Its Objectives, 2024

2Apr

By Ankit1 Comment

Fintech

Coordinating Financial Inclusion: The Lead Bank Scheme and Its Objectives, 2024

Lead Bank Scheme (LBS): The Lead Bank Scheme (LBS) was established in December 1969 by the Reserve Bank of India (RBI) to address the lack of banking services and credit facilities in rural areas. The scheme aimed to coordinate the activities of banks and other developmental agencies to promote financial inclusion and rural development. It assigned a specific bank in each district as the "Lead Bank" responsible for spearheading the development efforts in that area. Historical Background: The LBS was introduced based on the recommendations of the Gadgil Study Group and the Nariman Committee. The Gadgil Study Group, headed by Prof. D. R. Gadgil, emphasized the need for commercial banks to increase their presence in rural areas and develop a rural orientation. The Nariman...

1Apr

By Ankit2 Comments

Fintech, Global BFSI, Insurtech, Lending, Payments, Regtech, Wealthtech

Global Fintech Newsletter, March 2024, by NewNerve

Here’s a summary of some notable Fintech news from March 2024: Visa and Mastercard Settlement: US merchants reached a landmark settlement with Visa and Mastercard to lower swipe fees. The credit interchange rates will be capped for the next five years, resulting in an estimated $29.79 billion in savings for US merchants. Robinhood’s Leadership Change: Baiju Bhatt, co-founder and chief creative officer of Robinhood, stepped down after ten years at the company to “pursue other entrepreneurial interests.” Vlad Tenev, CEO and fellow co-founder, praised Bhatt’s pivotal role in opening access to markets for millions of new investors. Co-operative Bank Job Cuts: The UK’s Co-operative Bank is set to cut around 400 jobs (12% of its workforce) as part of a cost reduction progra...

Understanding RBI’s New Credit Card Rules: Refunds and Bill Adjustments

31Mar

By AnkitNo Comments

Banking, Fintech, Payments

Understanding RBI’s New Credit Card Rules: Refunds and Bill Adjustments

The Reserve Bank of India (RBI) recently introduced changes to credit card regulations, impacting how refunds and failed transactions are handled. As a credit card user, it’s essential to grasp these modifications. Let’s break it down in simple terms. 1. Credit Card Refunds Explained What Is a Credit Card Refund? After making a purchase with your credit card, you might find yourself dissatisfied with the product or service. In such cases, you can cancel the transaction and request a refund. The merchant from whom you made the purchase will refund the money to you. How Does a Refund Work? Merchant Refund: Typically, the merchant credits the refund back to your original mode of payment. If you paid using your credit card, the refund will be credited to that card. Impact on...

Credit Line on UPI: 5 Opportunities Shaping the Future of Finance

30Mar

By AnkitNo Comments

BFSI, NBFC, Payments

Credit Line on UPI: 5 Opportunities Shaping the Future of Finance

The emergence of Credit Line on UPI represents a significant leap forward in the financial landscape. This pioneering financial offering promises to reshape the lending landscape, providing individuals and businesses with seamless access to pre-sanctioned credit lines from banks, coupled with the convenience of UPI. Since its introduction in September last year, fintechs have been quick to capitalize on this breakthrough. As this transformative wave continues to gain momentum, we anticipate the following disruptions taking shape, bringing in a new era of financial accessibility and innovation. 1. UPI In-store EMI: Redefining Consumption Finance In the realm of financial innovation with Credit Line on UPI, UPI In-store EMI stands out as a groundbreaking B2B2C strategy. By first targeting ...

350,000 Daily Smishing Attacks: The Silent Threat via SMS

30Mar

By AnkitNo Comments

BFSI, Banking, Payments

350,000 Daily Smishing Attacks: The Silent Threat via SMS

Did you know that SMS click-through rates are a staggering 20%, compared to email’s 3-5%? This disparity has made SMS a prime target for smishing attacks, with an average of 350,000 incidents occurring daily1. But what exactly is smishing, and why are these attacks so prevalent? What Is Smishing? Smishing refers to phishing attacks that utilize SMS as their medium. In these attacks, cybercriminals pose as legitimate organizations and trick people into giving away confidential and sensitive information. The term “smishing” combines “SMS” (short message service) and “phishing.” How Do Smishing Attacks Work? Impersonation: Attackers send fraudulent SMS messages that appear to come from organizations individuals are already associated with, such as their bank, uni...

Unlocking Co-Branded Card Potential: Regulatory Insights and Best Practices

29Mar

By Ankit1 Comment

BFSI, Fintech, Payments

Unlocking Co-Branded Card Potential: Regulatory Insights and Best Practices

The Co-Branding Ecosystem Co-branded credit cards thrive on strategic partnerships between financial institutions and well-established brands. These collaborations create a symbiotic ecosystem where both parties benefit: Brand Exposure: Partnering with a recognizable brand provides financial institutions with increased visibility. The brand’s existing customer base becomes aware of the co-branded card, leading to potential new cardholders. Enhanced Customer Loyalty: Co-branded cards foster stronger customer loyalty. Cardholders feel a connection to the brand, leading to repeat transactions and increased card usage. Customized Rewards and Benefits Co-branded credit cards offer tailored rewards and benefits aligned with the partner brand’s offerings. Here are some common f...

Co-Branded Cards: Balancing Risk, Rewards, and Regulatory Compliance, 2024

29Mar

By Ankit1 Comment

Payments, BFSI

Co-Branded Cards: Balancing Risk, Rewards, and Regulatory Compliance, 2024

Introduction Co-branded credit cards have emerged as a significant trend in the financial landscape, with banks increasingly partnering with well-known brands to offer exciting rewards, exclusive features, and enticing cashbacks. These cards extend beyond traditional segments like fuel and travel, now encompassing areas such as food, movies, fashion, and more. As the popularity of co-branded credit cards soars, banks face critical questions: How profitable is this business? What should they do amidst regulatory scrutiny? And most importantly, how can they ensure compliance while choosing the right partners? What Are Co-Branded Credit Cards? A co-branded credit card is a hybrid card issued through a collaboration between a credit card company and a specific brand. These cards rewar...

PhonePe’s UPI Takes Flight in UAE: Now at NEOPAY Terminals, 2024

29Mar

By Ankit1 Comment

Payments

PhonePe’s UPI Takes Flight in UAE: Now at NEOPAY Terminals, 2024

From Rupees to Dirhams In a significant stride towards enhancing cross-border digital payments, PhonePe, the popular Indian digital wallet and payments platform, has announced a groundbreaking collaboration with Mashreq Bank in the United Arab Emirates (UAE). As of March 28, 2024, PhonePe users traveling to the UAE can now make seamless UPI payments using Mashreq’s NEOPAY terminals. This strategic alliance aims to revolutionize the payment experience for Indian tourists and the diaspora residing in the UAE. Seamless Transactions and Convenience Await PhonePe Users at NEOPAY Terminals 1. The UPI Advantage in the UAE PhonePe’s integration with NEOPAY terminals brings the Unified Payments Interface (UPI) to the heart of the UAE. Here’s how it benefits users: Familiarity: Indi...

$30 Billion Relief for Merchants?Understanding the Significance of the Settlement in addressing merchant fee concerns

28Mar

By Ankit2 Comments

Banking, Global BFSI, Payments

$30 Billion Relief for Merchants?Understanding the Significance of the Settlement in addressing merchant fee concerns

In a groundbreaking development, global payment giants Visa and Mastercard have agreed to a historic $30 billion settlement that is set to have a significant impact on merchant fees. The settlement, announced recently, aims to address long-standing concerns raised by merchants regarding the high transaction costs imposed by these payment networks. This article explores the key provisions of the settlement and examines how businesses can harness this newfound power to foster a more competitive landscape and deliver better value to consumers. Swipe Fee Reduction for Merchants: One of the significant changes resulting from the settlement is the reduction in swipe fees. Visa and Mastercard have agreed to lower the fees by four basis points, providing immediate relief to businesses. This redu...

Visa and Mastercard Agree on Landmark Settlement with U.S. Merchants Lowering Fees – Here’s What You Need to Know

28Mar

By AnkitNo Comments

Global BFSI, BFSI, Payments

Visa and Mastercard Agree on Landmark Settlement with U.S. Merchants Lowering Fees – Here’s What You Need to Know

Introduction In a groundbreaking development, Visa and Mastercard have recently reached a landmark settlement with U.S. merchants, fundamentally altering the landscape of credit card transactions. After nearly two decades of legal wrangling, this agreement promises significant benefits for businesses, particularly small enterprises. Let’s delve into the details of this historic settlement and understand its implications. The Long-Awaited Resolution For years, merchants across the United States have grappled with interchange fees – the charges imposed by credit card companies for processing transactions. These fees, often perceived as exorbitant, have been a point of contention between merchants and credit card giants. Finally, the settlement aims to address these conce...