The world s biggest taxi aggregator has come out in favour of the Indian Government s move to demonetize existing Rs 500 and Rs 1,000 currency notes. Lauding the move as a brave one aimed at pushing the country a step closer towards becoming a digital-first economy, Uber India president Amit Jain also stated that he believes the move will have long-term benefits for the economy, ushering in transparency and a faster adoption of digital payments.
To help facilitate Prime Minister Narendra Modi s vision of a Digital India, the Reserve Bank of India (RBI) has announced that startups can now raise up to $3 million in a financial year via external commercial borrowings (ECBs). Startups in India will be permitted to raise the overseas funds in rupees or any other convertible foreign currency, or a combination of both. The move, hailed by entrepreneurs, will boost innovation and promote job creation.
Ahead of the commercial launch of payments banks, credit information companies (CICs) have urged RBI to ensure the payments banks in the banking space become their members and share data on the transactions. "Payments banks will not be into lending, but the transactions which they undertake will help understand borrowers. Therefore, we have requested the RBI to make them our members," Experian Credit Information Company managing director, Mohan Jayaraman, said. He added that RBI has been receptive to the idea and has shown its willingness for the demand, but the changes cannot happen overnight as it will require amendments to the Credit Information Companies (Regulation) Act.
In the wake of increased instances of cyber attacks, RBI Governor Raghuram Rajan has said Reserve Bank is improving its capabilities and also urged the lenders to strengthen their systems. "There have been cyber incidents in the recent past. I think it would be overly complacent for anyone of us to say we are well prepared to meet all cyber threats," he said at the annual Fibac event. "Too many access points are left unmonitored, too many people share passwords or have easily penetrated passwords, and too little surveillance is maintained of vendors and the software they create," he added.
Fino Paytech, which has bagged Rs 250-crore investment from BPCL, is now looking for at least another round of fund infusion through stake sale before it launches the bank in about 6 months. Fino Paytech is the first oil marketer that has entered the Payments Bank market. In an interview to PTI, Fino's Managing Director and CEO Rishi Gupta said, "we will have at least one more stake sale, after which we will proceed ahead to launching the bank."
RBI Governor Raghuram Rajan today said that it will become easier in coming weeks for people to transfer funds between bank accounts through their smartphones. Speaking at the IDRBT Banking Technology Excellence Awards function, Raghuram Rajan also made a case for tax benefits to merchants for promoting digital transactions. Leveraging the high mobile density, mobile banking services are being encouraged through inter-operable USSD channel like *99# and the Unified Payments Interface (UPI).
At a time when some business houses are surrendering their payments bank licences, India's largest lender the State bank of India (SBI) and the top private company Reliance Industries on Friday said they were moving ahead with their plans in this area. The two signed their 30:70 shareholders' agreement and said they have agreed to partner and explore the opportunity of fulfilling the needs of the unbanked and the under-banked segments by providing relevant financial services and products.
In view of recent increase in online attacks on financial institutions' information systems, India's central bank on Thursday advised commercial banks to immediately put in place a cyber security policy in order to counter threats arising from the internet.
IT firm Tech Mahindra today said it will not pursue its plans to set up payments bank operations in the country, becoming the third player to pull out from the race. "With reference to the earlier communication dated August 20, 2015, about the in-principle approval granted by RBI for setting up a payments bank, Board of Directors of the company have decided that the company will not pursue this opportunity," it said in a filing to the BSE.
RBI deputy governor SS Mundra today expressed displeasure over two in-principle licensees cancelling their plan to set up payments bank. "We would certainly feel little aggrieved because lot of efforts from the part of RBI goes in processing these applications," Mundra told reporters.
The apex bank, Reserve Bank of India, on Monday granted payments bank license to telecom service provider Bharti Airtel, for which it had applied in partnership with Kotak Mahindra Bank, a company statement said. We are pleased to inform you that Airtel M Commerce Services Limited (AMSL), a subsidiary of Bharti Airtel Limited, has been granted payments bank license from Reserve Bank of India on April 11, 2016, the statement said.
Industry lobby Nasscom sees a "massive opportunity" for the domestic tech companies in payments banks and small finance banks, but warned the industry that they need to find out innovative solutions to help these lenders ensure cost-effective delivery of services.
The Reserve Bank of India's (RBI) decision to give "in principle" approval to 11 applicants for payments banks is arbitrary and Governor Raghuram Rajan must be prosecuted, said BJP leader Subramanian Swamy.
Infosys on Wednesday launched two new financial products for the Indian market that will help it tap the multi-million dollar opportunity in the newly announced payments banks segment.
Indian Finance Minister Arun Jaitley on Friday said the proposed payments banks will change banking habits in the country and act as a "game changer" for the economy.
Insurers and fund houses see payments banks (PBs) as a boon for the sector as opportunities of cross-sell would help deepen their reach in rural areas.
State-owned Union Bank of India yesterday said it is open to form a partnership to set up a payments bank and has approached nine of the 11 entities, which have received 'in-principle' approval for the differentiated banks from the regulator.
Ratings agency Crisil said the upcoming payments bank (PBs) will largely focus on the underbanked areas like the East, Northeast and Central regions, and the existing lenders should not worry about them.
RIL said the payments bank licence will "leverage" its telecom business Reliance Jio's pan-India network and retail arm's model, even as its tie-up with SBI will help create the most extensive distribution network in India.