RBI - NewNerve

Reserve Bank of India’s (RBI) Payments Vision 2025 document: Key Points

9May

By Ankit1 Comment

BFSI, Blog, Goverment Notice/Circulars, Review

Reserve Bank of India’s (RBI) Payments Vision 2025 document: Key Points

The Payments Vision 2025, published by the Reserve Bank of India (RBI), outlines the strategic direction for India's payment systems until December 2025. It aims to enhance payment systems, address challenges in cross-border payments, and promote cost, speed, access, and transparency. The document emphasizes the importance of safe, secure, reliable, accessible, affordable, and efficient payment systems for economic development and financial inclusion. Key Highlights of Payments Vision 2025: Importance of Payment Systems: The document recognizes the crucial role of payment systems in economic development and financial inclusion. It highlights the need for safe, secure, and efficient payment options to support India's growth. Advancements in Digital Payments: The document acknowledg...

RBI’s Gold Rush: Stacks Up 18.5 tonnes of gold in Jan-Mar

8May

By AnkitNo Comments

BFSI, Economics, Goverment Notice/Circulars

RBI’s Gold Rush: Stacks Up 18.5 tonnes of gold in Jan-Mar

Global central banks continued to bolster their gold reserves in March, with significant purchases led by emerging market banks, according to data from the World Gold Council (WGC). Central banks collectively added 16 tonnes of gold to their reserves during the month, matching the additions seen in February. The Reserve Bank of India (RBI) notably contributed to this trend, purchasing 18.5 tonnes of gold in the first quarter of 2024, propelling its reserves to a record high. By the end of March, India’s gold reserves stood at 822.1 tonnes, comprising 9% of its total reserves and ranking it as the 10th-largest holder of official gold globally. The RBI’s gold acquisitions in the first quarter already exceeded its total purchases of 16.2 tonnes throughout 2023. So far this year, only Tu...

Small Finance Banks to Universal Banking : Redefining Roles

6May

By AnkitNo Comments

Banking, BFSI

Small Finance Banks to Universal Banking : Redefining Roles

In a recent move by the Reserve Bank of India (RBI), guidelines have been issued to enable Small Finance Banks (SFBs) to transition into universal banks. This development is set to open new avenues for SFBs, allowing them to expand their operations and cater to a broader spectrum of banking services and products. Key Points: Eligibility Criteria: To qualify for this transition, SFBs must meet specific eligibility criteria set by the RBI, including: Maintaining a minimum net worth of Rs 1,000 crore. Demonstrating a satisfactory track record of at least five years. Ensuring profitability over the last two financial years. These stringent requirements aim to ensure the stability and viability of SFBs in their new role as universal banks. Expanded Services: ...

Regulators and Associations in the Indian Fintech Landscape, 2024

4May

By Ankit4 Comments

BFSI, Blog, Regtech

Regulators and Associations in the Indian Fintech Landscape, 2024

The Indian Fintech sector operates within a complex regulatory framework involving multiple entities. Let's delve into the key regulators and associations that play a crucial role in shaping and guiding this dynamic ecosystem: 1. Regulators: Reserve Bank of India (RBI): The central bank of India, RBI, is responsible for regulating various aspects of the financial system, including payments, banking, and lending. It has played a significant role in fostering innovation within the Fintech space through initiatives like regulatory sandboxes and the launch of UPI. Securities and Exchange Board of India (SEBI): SEBI regulates the securities market in India, overseeing activities related to stock exchanges, mutual funds, and investment advisors. Fintech companies involved ...

RBI Announces Withdrawal of ₹2000 Denomination Banknotes

3May

By Ankit1 Comment

Banking, Economics, Finance, Goverment Notice/Circulars

RBI Announces Withdrawal of ₹2000 Denomination Banknotes

The Reserve Bank of India (RBI) has recently released a press release announcing the withdrawal of ₹2000 denomination banknotes from circulation. This significant move aims to streamline the currency system and ensure the smooth functioning of the Indian economy. The RBI's decision comes into effect based on the guidelines provided in Press Release 2023-2024/257, dated May 19, 2023. Let's delve into the details of this crucial development. Withdrawal Status and Process: According to the press release, the ₹2000 banknotes' withdrawal status is regularly updated by the RBI. The most recent update was published on April 01, 2024. As part of the withdrawal process, individuals and entities were initially given the opportunity to deposit or exchange their ₹2000 banknotes at any bank branch un...

Worldline ePayments India Receives RBI Authorization as Online Payment Aggregator

1May

By AnkitNo Comments

BFSI, Fintech, Goverment Notice/Circulars, Payments

Worldline ePayments India Receives RBI Authorization as Online Payment Aggregator

Global payment services leader Worldline ePayments India has achieved a significant milestone by securing authorization from the Reserve Bank of India (RBI) to operate as an Online Payment Aggregator (PA) under the Payment and Settlement Systems Act, 2007. This development underscores the company’s commitment to the Indian market and its focus on compliance within the well-regulated payments landscape. Also Read: Decoding RBI’s Draft Guidelines for Payment Aggregators The Authorization Journey for Worldline In-Principle Approval: Worldline ePayments India received in-principle authorization from the RBI to act as a PA in 2022. This initial approval paved the way for the company to play a crucial role in facilitating digital payments across various sectors. Payment Aggregator Role...

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...

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...

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...