An explainer on the interchange fees for UPI payments through prepaid payment instruments. NPCI recently recommended interchange fees of up to 1.1% on UPI transactions through prepaid payment instruments (PPIs). The fees are applicable on transactions above INR 2000 from 1 April 2023. PPIs include e-wallets and pre-loaded cards. Some examples of e-wallets that must be interoperableRead more
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A set of questions about the purpose and form of the National Financial Information Registry. In this year’s budget speech, the Finance Minister announced plans to create the National Financial Information Registry (Registry). The Registry, according to the minister, would be a ‘credit public infrastructure’ meant to promote financial inclusion and stability. It’s unclear how, though. TheRead more
A post-mortem on MeitY’s mass blocking of digital lending apps. On 5 February, a tweet from a public broadcaster announcing the blocking of 94 digital lending apps raised a furore within the fintech industry. In the following week, lending apps were banned and unbanned – both without much clarity. A quick backstory: In September 2022, the RBIRead more
An analysis of key fintech regulations which govern data, the patterns they reveal, and the best practices that fintechs can adopt to ensure compliance. For the last 5 years, data lawyers have been like the boy who cried wolf. The data bill is always being tabled “in the next session of Parliament”. We’ve seen explainers,Read more
A list of what fintech players want from regulators in 2023 including clarity on FLDG, transparency in NBFC licensing, neobanking licenses, tax relief, priority sector classification, UPI incentives share, and new KYC solutions. 2022 was a tumultuous year for fintech. One dotted by regulatory rebukes and restrictions coupled with a funding winter. Here’s what theRead more
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“Be careful or be roadkill.” – Calvin (Calvin & Hobbes) There are two kinds of fintech: the conscientious and the reckless. The former treads with caution. They know that being cavalier isn’t an option if you deal with public money. Then there’s the reckless. The sort that calls your grandmom if you default on aRead more
An analysis of whether India really needs a central bank digital currency. The United States wants to ‘get it right than to be first’. That’s what Jerome Powell, US Federal Reserve’s chairman said about the digital Dollar two years ago. The United States still doesn’t have a central bank-backed digital currency (CBDC). Meanwhile in India, RBI just piloted the digital RupeeRead more
A sneak peek at a fintech founder’s diary as she navigates business opportunities and regulatory curveballs. A Tale of Two Cities begins with the now immortal lines: it was the best of times, it was the worst of times. If Charles Dickens wrote about the Indian fintech ecosystem today, we think it would be eerily similar,Read more
A letter from a disgruntled Rs.100 note reminding UPI that cash is still king. “This is an outstanding accomplishment. It indicates the collective resolve of the people of India to embrace new technologies and make the economy cleaner.” – PM Modi That’s PM Modi lauding UPI crossing 6 billion transactions in July. Like any icon,Read more