Blog

This article explains how robo advisors work, how they’re regulated, and why we need specific laws that cater to robo advisory.   In our wealth-tech series, we analyse different wealth-tech products and their legal status. You can read all the posts here.   There’s always an opportunity with crisis, they say. The 2008 financial crisis wasn’t any different. It didn’tRead more

This article explores model portfolios, their benefits, and the regulatory uncertainty surrounding them. In our wealth-tech series, we analyze different wealth-tech products and their legal status. You can read all the posts here.  The COVID-19 pandemic was a turning point in the history of Indian capital markets. Many Indians stuck at home were drawn to the stock-market as itRead more

In this article, we take a road-trip to understand the RBI digital lending guidelines’ requirements relating to fund flow and pass-through accounts. And explore two key issues: where can money go to and where can money go through?  Pass-through accounts are common in digital lending arrangements. Buy-now-pay-later (BNPL) products typically involve five parties: (1) aRead more

This article analyzes the Delhi High Court’s judgement upholding the RBI’s Guidelines for Payment Aggregators. And contrasts it with previous judgements like the crypto banking ban case where courts have disagreed with the RBI. The Delhi High Court has upheld the constitutionality of the RBI’s Guidelines for Payment Aggregators (PA Guidelines) in a judgement released last month (PA RegulationRead more

This article discusses the impact of and alternatives to the zero MDR policy in the context of the RBI discussion paper on payment charges. In August 2022, the RBI released a discussion paper on payment charges. For fintech players, the paper’s observations about UPI are particularly relevant. The RBI has sought public comments on whether charges shouldRead more

This article walks-through the impact of the RBI’s digital lending guidelines on users and fintech businesses. The RBI issued the digital lending guidelines (Guidelines) in September 2022. The recurring theme in the Guidelines – reducing the influence of unregulated fintech players in the lender-borrower relationship. The Guidelines prohibit pass-through accounts, impose stricter data protection norms, and mandateRead more

This article explores how telematics insurance can make motor vehicle insurance more efficient and suggests risk-based data privacy protections. While taking an insurance policy in 1933, Dunn knew that her husband (who was going to use her car) was a dangerous driver. Yet, she hid this fact from her insurance company. A few years later,Read more

This article explains SEBI’s proposal to regulate online bond trading platforms and the concerns it raises. Retail investor interest in the Indian equity markets is at an all-time high. During the pandemic, as Nifty and Sensex rallied to reach new peaks, retail investors poured money into everything from blue-chip to penny stocks. But another segment of theRead more

The RBI wants digital lenders to follow ethical AI standards. But what does this mean in practice? In this article, we explore how digital lenders can adopt ethical AI standards before hardline regulation causes business disruption. “In our early days at Upstart, we couldn’t know for certain whether our model would be biased. It wasn’tRead more

This post discusses RBI’s scale based regulatory framework for NBFCs. It explains the reasons behind RBI’s new approach and its impact on the fintech ecosystem. In October 2021, RBI notified scale-based regulations for NBFCs (which will kick-in on 1 October 2022). With these regulations, RBI aims to increase transparency (in NBFC operations) through greater disclosuresRead more