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
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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
A dissection of why credit card payments through UPI may not be as convenient, accepted, and trusted. RBI has proposed linking credit cards (CC) to UPI. It’ll, to start with, allow Rupay credit card payments through UPI rails. And in the due course, allow other CC issuers to come on board. Credit on UPI has beenRead more
An analysis of RBI’s card directions that restrict fintech’s access to card transaction data and their interplay with RBI’s outsourcing guidelines. In April 2022, RBI notified the directions on Credit and Debit Cards. In these directions, it asked co-branding partners to keep their hands off card transaction data. The RBI has, this time, gone straight for the fintechRead more
A Bandersnatch-inspired story that follows a fintech entrepreneur as she tries to monetize a payments business in India. In the film Bandersnatch, viewers make decisions for the main character – the young game programmer Stefan Butler. It is an interactive ‘choose your own adventure’ film. You, the viewer, make choices for Stefan. Your choices determine Stefan’s fate.Read more
A deep dive on how payments infrastructure has been weaponized in the Russia-Ukraine conflict. “I need ammunition, not a ride.”– Ukrainian president, Volodymyr Zelensky Ammunition, turns out, comes in many shapes and sizes. There’s missiles, tanks, Molotov cocktails and threats from Ukrainian grandmothers. And then there’s payments infrastructure. Governments and corporates across the world are fightingRead more
The best stories of 2022 from our monthly fintech newsletter, FinTales. February 2022: The Hassleocracy of Crypto-taxes “Cryptos have no underlying assets, not even a tulip.” –Shaktikanta Das Ouch. That’s the RBI Governor, not mincing his words. Like everyone else, we’ve pored over the Budget announcements on crypto-assets. The euphoria in the crypto-verse was short-lived.Read 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 post analyses RBI’s framework for offline digital payments. It also traces the history of offline digital payments in India and highlights their benefits for users. ‘Offline digital payment’ sounds like an oxymoron. But with RBI’s framework for facilitating small value offline digital payments, it may become a mainstream payment option. Offline digital payments can beRead more