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
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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
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 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
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
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