Fintech

Investing in the fintech sector in India- A regulatory overview

Despite the sobering effects of this no longer novel Coronavirus, investor appetite in India’s thriving fin-tech companies is booming.  Investments (and acquisitions) in this space give rise to risks that are particular to this sector and a thorough assessment of such risks prior to making an investment might well be appropriate. Below is a brief …

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A critique of the payment gateways and payment aggregators guidelines

The Reserve Bank of India (“RBI”) on March 17, 2020 issued guidelines[1] (“Guidelines”) to regulate previously unregulated payments aggregators and payment gateways. The Guidelines came into effect from April 1, 2020. While the Guidelines are a progressive step to regulate the activities of payment aggregators, given their role in effecting a payment transaction, it has …

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Cash Withdrawals Via Upi: Operational Framework And Development

I. Introduction The National Payments Corporation of India (“NPCI”) owned digital payments railroad United Payments Interface (“UPI”) undoubtedly has become one of the most acceptable payment modes for digital money transfer in India. Its pace of growth can be estimated easily from the jump in the number of monthly transactions from 482.36 million in October …

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Account Aggregators As A Solution To The Consent V. Convenience Debate

Introduction Given the importance of data to the emerging fin-tech ecosystem, the RBI has introduced a new regulated entity, the “account aggregator”. An account aggregator provides, retrieves or collects financial information of a customer from financial information providers (“FIP”) and consolidates, organises and presents the information to such customer or any other RBI- approved financial …

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Kerala High Court On Liability Of Banks Vis-à-vis Customers For Fraudulent Transactions

I. Introduction The Hon’ble High Court of Kerala (“Court”) recently ruled that customers of banks who are victims of unauthorised transactions cannot be made liable to such banks if transactions have an element of fraud in them. It impressed the burden on banks to enforce their claims on the borrowers in such cases observing that …

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Overview Of The Amendments To KYC Master Directions, 2016

The Reserve Bank of India, on 29th May 2019, introduced certain amendments to the Know Your Customer (KYC) – Master Direction 2016[1] in furtherance of an Ordinance amending the Aadhaar (Targeted Delivery of Financial and Other Subsidies Benefits and Services) Act 2016 (“Aadhaar Act”), Prevention of Money Laundering Act 2005 and the Indian Telegraph Act …

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Bharat Bill Payment System

I. Introduction In September 2019, the Reserve Bank of India (“RBI”) announced that it will bring all repetitive bill payments, except prepaid recharges under the ambit of the Bharat Bill Payment System (“BBPS”) and issued a notification to this effect (“Notification”). Prior to this, the system catered to only five services – DTH, water, electricity, …

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