RBI - NewNerve

NCMC Technology: A Step Towards Cashless Travel or a Complicated Mess?

30Aug

By AnkitNo Comments

Payments

NCMC Technology: A Step Towards Cashless Travel or a Complicated Mess?

The National Common Mobility Card (NCMC) is a transformative initiative launched by the Government of India in 2019 to streamline transit payments and promote cashless transactions across the country. Designed to be a "One Nation, One Card" solution, the NCMC aims to provide seamless access to metros, buses, trains, and even retail outlets using a single contactless card. Key Features of NCMC Interoperability: NCMCs are designed to be used across various transit systems in different cities, unlike city-specific metro cards that are limited to their respective networks. Contactless Transactions: Equipped with Near Field Communication (NFC) technology, NCMCs allow users to make payments by simply tapping the card on a compatible reader, enhancing convenience and security. Offline...

RBI Governor Announces Unified Lending Interface (ULI) to Streamline Credit

27Aug

By Ankit1 Comment

Digital Lending

RBI Governor Announces Unified Lending Interface (ULI) to Streamline Credit

The Reserve Bank of India (RBI) has recently announced the launch of the Unified Lending Interface (ULI), a significant technological advancement aimed at revolutionizing the lending landscape in India. This initiative is designed to facilitate frictionless credit access, particularly for small and medium-sized enterprises (SMEs) and rural borrowers. In this article, we will explore the key features of ULI, its potential challenges, and how it plans to handle misinformation and ensure data accuracy. Key Features of the Unified Lending Interface (ULI) Seamless Data Flow: ULI enables a consent-based flow of digital information from various data service providers, including government databases and credit information companies, to lenders. This integration aims to streamline the credit ...

RBI’s Action: One Bank License Cancelled, Another Fined

25Jul

By AnkitNo Comments

Banking

RBI’s Action: One Bank License Cancelled, Another Fined

The Reserve Bank of India (RBI) has taken strict action against two banks, highlighting its commitment to maintaining financial stability. Uravakonda Co-operative Town Bank License Cancelled The RBI has cancelled the license of the Uravakonda Co-operative Town Bank Limited located in Uravakonda, Andhra Pradesh. This means the bank is no longer permitted to conduct banking business, including accepting or returning deposits. The decision was made due to the bank's inadequate capital and earning prospects, leading to non-compliance with provisions of the Banking Regulation Act. The RBI concluded that allowing the bank to continue would be detrimental to depositors' interests. Depositors' Rights Depositors of the Uravakonda Co-operative Town Bank Limited are...

RBI’s “Finquiry”: A Dedicated Platform for Fintech Collaboration

26Jun

By AnkitNo Comments

BFSI, Fintech, Goverment Notice/Circulars

RBI’s “Finquiry”: A Dedicated Platform for Fintech Collaboration

The Reserve Bank of India (RBI) has taken a significant step towards fostering a more collaborative and transparent relationship with the burgeoning fintech sector by launching "Finquiry." This dedicated two-hour window, held on the last working Wednesday of every month from 3 PM to 5 PM at the RBI's FinTech Department in Mumbai, provides a platform for direct interaction between fintech companies and RBI officials. Finquiry: Key Details Commencement Date: June 26, 2024 Schedule: Last working Wednesday of every month Timing: 3 PM to 5 PM Venue: FinTech Department, RBI Central Office, Mumbai Purpose: To facilitate direct interaction between fintechs and RBI officials Finquiry: A Bridge Between Innovation and Regulation Finquiry's primary objective is to facilitate open...

RBI’s Directions To Improve Cyber Resilience across Digital Payments Ecosystem

4Jun

By Ankit3 Comments

BFSI, Cyber Crime, Goverment Notice/Circulars, Regtech

RBI’s Directions To Improve Cyber Resilience across Digital Payments Ecosystem

The Reserve Bank of India (RBI) has taken a significant step towards bolstering the security of India's digital payments ecosystem with the release of its Draft Master Directions on Cyber Resilience and Digital Payment Security Controls for Payment System Operators (PSOs) on June 2, 2023. These Directions aim to improve overall information security preparedness, with a strong focus on cyber resilience, and are a testament to the RBI's commitment to safeguarding the integrity and reliability of digital transactions in India. A Multi-Layered Approach to Security: The Directions adopt a comprehensive approach to security, encompassing multiple layers of protection: Governance and Accountability: PSOs are mandated to establish a Board-approved Information Security (IS) policy, outli...

RBI Launches Survey on Computer Software and ITES Exports: A Look at India’s Tech Powerhouse, 2023-24

3Jun

By AnkitNo Comments

BFSI, Goverment Notice/Circulars

RBI Launches Survey on Computer Software and ITES Exports: A Look at India’s Tech Powerhouse, 2023-24

The Reserve Bank of India (RBI) has taken a significant step towards understanding the current state and future prospects of India's booming IT sector by launching a comprehensive survey on Computer Software and Information Technology Enabled Services (ITES) exports for the financial year 2023-24. This move underscores the central bank's recognition of the sector's crucial role in the Indian economy and its desire to gain valuable insights for policymaking. Understanding the Survey: The survey, conducted by the RBI, aims to gather data from various stakeholders in the IT sector, including software and ITES companies, export promotion councils, and industry associations. It will delve into various aspects of the sector, including: Revenue and employment: The survey will assess the ov...

Pravaah Portal and Retail Direct: RBI’s Digital Revolution, 2024

29May

By Ankit1 Comment

BFSI, Blog, Review

Pravaah Portal and Retail Direct: RBI’s Digital Revolution, 2024

The Reserve Bank of India (RBI) has taken significant strides in enhancing regulatory processes, facilitating retail investment, and providing comprehensive data on the fintech sector. Let’s delve into the details of these groundbreaking initiatives: 1. Pravaah Portal The Pravaah portal is a centralised, secure web-based platform that enables individuals and entities to apply online for regulatory approvals, licenses, and authorizations from the RBI. Here are the key features of the Pravaah portal: Application Process: The portal covers 60 application forms across different regulatory and supervisory departments of the RBI. Applicants can submit their applications directly through the portal. Status Tracking: Applicants can track the status of their applications and receive timel...

Financial Viability of UPI Services: Seeking Regulatory Solutions

21May

By AnkitNo Comments

Blog, Payments, Review

Financial Viability of UPI Services: Seeking Regulatory Solutions

The impact of charging for UPI transactions in India is a topic of significant interest. Let’s explore this based on recent articles and reports: Unified Payment Interface (UPI) Revolution: The Unified Payment Interface (UPI), launched by the National Payments Corporation of India (NPCI) in 2016, has revolutionized digital payments in India. UPI enables citizens to transfer money from one bank account to another instantly. India leads globally in terms of real-time payment transactions, with 48.6 billion transactions processed in 2021. Since its inception in April 2016, UPI has saved the Indian economy approximately $67 billion. Notably, UPI transactions have seen tremendous growth, with 9.41 billion transactions, worth INR 14.89 lakh crore ($181 billion), processed in May 2023 alon...

The RBI’s Regulatory Sandbox: Fostering Innovation in India’s FinTech Landscape, 2024

15May

By AnkitNo Comments

BFSI, Fintech, Goverment Notice/Circulars, Regtech

The RBI’s Regulatory Sandbox: Fostering Innovation in India’s FinTech Landscape, 2024

The Reserve Bank of India (RBI) has established itself as a leader in fostering innovation in the country's rapidly evolving FinTech landscape. In August 2019, the RBI launched its Regulatory Sandbox (RS), becoming one of the few countries with such an ecosystem. This initiative provides a controlled environment for eligible entities to live test their innovative products and services, enabling regulated and orderly growth of the FinTech sector in India. The RS operates through thematic cohorts, focusing on specific areas of innovation. Past cohorts have addressed themes such as retail payments, cross-border payments, MSME lending, and prevention of financial fraud. To ensure continuous innovation, the RS also accepts "On Tap" applications for closed themes, currently open for the first...

RBI’s New rule for Custodian Bank: T+1 Settlement Regime

14May

By AnkitNo Comments

Banking, BFSI, Goverment Notice/Circulars

RBI’s New rule for Custodian Bank: T+1 Settlement Regime

The Reserve Bank of India (RBI) has revised its guidelines for custodian banks in response to the implementation of the T+1 settlement regime for stocks. These revised guidelines aim to enhance risk management practices within the custodian banking sector amidst the transition to a faster settlement cycle. Key Highlights: Maximum Intraday Risk: Custodian banks issuing Irrevocable Payment Commitments (IPCs) will face a maximum intraday risk equivalent to 30% of the settlement amount, classified as capital market exposure (CME). Risk Mitigation Measures: Cash margins reduce exposure by the amount paid. Margins paid in permitted securities to mutual funds and foreign portfolio investors (FPIs) reduce exposure, subject to the Exchange's prescribed haircut on ac...