Shilpa K. Pahlwani

A few days back for a Rs 1200 drycleaning bill, I offered Rs 1500 to the delivery person, hoping to offload the customary cash I had got when visiting my parents a few days back. Interestingly, he said I have only Rs 20 in cash with me. Now everyone pays by UPI! We don't carry change anymore! It is no surprise. The ‘India Digital Payments Report’ (H2 2023) from Worldline India shows there were 65,771 million UPI transactions during July- Dec'23 implying a year-on-year growth of 56%. However, the average ticket size for UPI transactions has fallen, which shows the more broad based usage of UPI and that it is the preferred instrument of payment for small/ micro transactions.

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RBI Proposes New Framework On Additional Factor Of Authentication For Digital Payments New AFA Methods: Reserve Bank of India (RBI) proposes new AFA options for digital transactions, including PINs, passwords, cards, and biometrics like fingerprints. Draft Framework: It aims to offer more authentication choices beyond SMS-based OTPs for digital payment security. Dynamic Authentication: RBI suggests one authentication factor should be dynamically generated post-transaction initiation, ensuring it’s unique and non-reusable. Exemptions: Exemptions include small-value contactless card payments, mutual fund subscriptions, insurance premiums, credit card bill payments, and offline transactions up to INR 500. Feedback and Compliance: Feedback is sought by September 15, 2024, with compliance required within three months. This comes as digital transactions and fraud rise, with online frauds up 334% YoY in FY24 Read More: https://lnkd.in/gU3BsxGH

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The emergence of digital-only banks, or neo-banks, has highlighted the need for a tailored licensing and regulatory framework in India. Currently, the Reserve Bank of India (RBI) does not provide a specific license for digital-only banks. As a result, neo-banks typically operate through partnerships with regulated entities such as scheduled commercial banks, as outlined in the Banking Regulation Act, 1949. This arrangement allows neo-banks to offer digital banking services while relying on their partner banks' licenses and infrastructure. In 2014, the RBI issued guidelines for differentiated banks, namely Payments Banks and Small Finance Banks, as a step towards promoting financial inclusion. However, these licenses still require maintaining some physical presence and do not fully encompass the digital-only banking model. To address this gap, NITI Aayog, the policy think tank of the Government of India, released a discussion paper titled "Digital Banks: A Proposal for Licensing & Regulatory Regime for India" in November 2021. The paper recommends a phased approach to licensing digital-only banks: - Introducing a restricted digital business bank license with limitations on volume/value of customers. - Enlistment of the licensee in the RBI's regulatory sandbox framework. - Issuance of a full-scale digital bank license, contingent upon satisfactory performance in the sandbox. The proposed licensing framework suggests that digital-only banks be required to maintain a minimum paid-up capital of ₹20 crore during the sandbox testing phase, which may be increased to ₹200 crore when transitioning to a full-scale license, similar to the requirement for Small Finance Banks. The NITI Aayog paper also recommends that licensed digital-only banks should have access to key infrastructure enablers such as Aadhaar e-KYC, UPI, NEFT/RTGS, ATM networks, and the account aggregator framework, at par with traditional banks. From a regulatory perspective, digital-only banks would be subject to the provisions of the Banking Regulation Act, 1949, the RBI Act, 1934, and other relevant guidelines issued by the RBI from time to time. Given the technology-driven nature of these banks, additional regulations focusing on robust governance, risk management, and customer protection would be necessary. The RBI has emphasized the importance of cybersecurity and digital infrastructure in its "Master Direction on Digital Payment Security Controls" issued under the Payment and Settlement Systems Act, 2007. These guidelines would be applicable to digital-only banks as well. Furthermore, the proposed Digital Personal Data Protection Act, 2023 (DPDP Act) is expected to have implications for digital-only banks in terms of data privacy and protection. Compliance with the DPDP Act would be crucial for these banks, given their heavy reliance on digital channels and customer data. #neobanks

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Paytm receives National Payments Corporation Of India (NPCI) approval for user migration to new PSP banks. In a significant development for India's digital payments landscape, One97 Communications Limited (OCL), the parent company of Paytm, received the green light from the National Payment Corporation of India (NPCI) to commence user migration to new Payment System Provider (PSP) bank handles. This approval comes in the wake of NPCI's endorsement on March 14, 2024, to onboard OCL as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model. As a result, Paytm has swiftly moved to integrate with four major banks: Axis Bank, HDFC Bank, State Bank of India (SBI), and YES BANK. With all four banks now operational on the TPAP, Paytm aims to streamline the process of shifting user accounts to these PSP banks. The company has initiated the transition of 'paytm' handle users to these banks, ensuring a seamless experience for UPI payments. Source: https://lnkd.in/gH-tvX2q Sign up for more news updates like this in our daily newsletter: https://lnkd.in/eskQx7Ym #fintech #banks #payments #digitalpayments #onlinepayments #apac #financialtechnology #financialservices #financialsolutions

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NPCI pushing new #UPI players to offer incentives to expand market share Several new third-party payments apps on Unified Payments Interface (UPI) are being nudged by digital payments network manager National Payments Corporation of India (NPCI) to invest and incentivise consumers. This is primarily aimed at getting users to transact through these new platforms, in order to reduce the risk from high concentration of transactions on the PhonePe and Google Pay platforms that control around 85% market share, three companies told ET. Read more at: https://lnkd.in/gGXyYGXH By Digbijay Mishra

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Safeburst 2.0 Updates ✅80% of Frontend work is done ✅Implementing now specific monthly and one time packets ✅Implementation of two way options in on time packets to choose own email lists or "our" Crypto based email lists ✅Implementation of dual payment system A usdt payments in bep20 & erc20 and B SAFO payments in bep20 ✅Implementation of 10% discount on all packets if payments made with SAFO token

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WalletPay Solutions: Simplifying Financial Services for All WalletPay is a comprehensive remittance portal that empowers even non-bank account holders to transfer money effortlessly. As a hub for various financial services, WalletPay also leverages the AEPS (Aadhaar Enabled Payment System) to ensure secure and efficient transactions. About Us WalletPay Solutions is a forward-thinking Fintech company dedicated to empowering the migrant population and underserved sections of the Indian economy. We offer a diverse range of services, including: Money Transfer: Seamlessly send and receive money, even without a bank account. Aadhaar Enabled Payment System (AEPS): Enhance security and efficiency in transactions. Bill Payments: Conveniently pay your utility bills. Recharge Services: Easily recharge your mobile and other accounts. Travel Bookings: Book travel tickets effortlessly. Insurance Services: Access various insurance products to safeguard your future. Our Approach At WalletPay Solutions, we believe in delivering services exactly "where our consumers need it, when they need it, and in the manner they need it." Through our extensive network of agents and merchants, we ensure a hassle-free platform for financial services, speaking the language of our consumers and maintaining a strong presence in their neighborhoods. Our Vision Our vision is to empower every underserved segment of the Indian population, enabling them to live a hassle-free life. We understand our consumers' needs and tailor our services to fit their lifestyles. WalletPay Solutions is committed to building an unparalleled platform that brings financial services right to our consumers' doorsteps or into their hands, regardless of their location. Why Choose WalletPay Solutions? Accessibility: Financial services for everyone, including those without bank accounts. Efficiency: AEPS integration for secure and swift transactions. Diverse Services: From money transfers to travel bookings, all in one place. Consumer-Centric: Services designed to meet the unique needs of our consumers. Extensive Network: Reach across various geographical segments through our merchants. Join us at WalletPay Solutions as we revolutionize the financial landscape for the underserved and empower them with the tools they need for a better financial future. Contact us today to learn more about our services and how we can help you.

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#RBL Launches PRAVAAH, RBI Retail Direct Mobile Application and FinTech Repository 👇 Shri Shaktikanta Das, Governor, Reserve Bank of India today launched three major initiatives of the Reserve Bank of India, namely the PRAVAAH portal, the Retail Direct Mobile App and a FinTech Repository in the presence of other delegates. RBI has introduced these 3 innovative tools to streamline regulatory processes, make investments easier, and better understand the FinTech sector. 1️⃣ PRAVAAH Portal: The #PRAVAAH portal (Platform for Regulatory Application, VAlidation, and AutHorisation) allows individuals and businesses to apply online for various regulatory approvals. Key features include: - Online application submission - Status tracking and monitoring - Responding to RBI queries - Receiving decisions promptly Currently, 60 application forms are available, with more to be added as needed. Access the portal at - 🔗 https://pravaah.rbi.org.in 2️⃣ Retail Direct Mobile App: Launched in November 2021, the #RetailDirect portal helps retail investors buy and sell government securities (G-Secs). Now, with the new mobile app, investors can easily transact in G-Secs on their smartphones. Download the app from the Play Store for Android or the App Store for iOS. 3️⃣ FinTech Repository: The FinTech Repository gathers essential information about the Indian FinTech sector, aiding in policy development and industry understanding. It also includes the EmTech Repository for banks and NBFCs to track emerging technologies like AI, ML, and blockchain. Visit below links to explore these resources. 🔗 https://lnkd.in/dHseTpBT 🔗 https://lnkd.in/dY89jY-m These initiatives by RBI aim to enhance efficiency, provide ease of access, and foster innovation in the financial sector. Reserve Bank Innovation Hub (RBIH) National Payments Corporation Of India (NPCI) Reserve Bank of India (RBI) #pareshmashete Follow Paresh

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Operating an Ajo/ Esusu/Adashe lending business? It’s time to take it digital. Create a digital footprint and track transactions, identify larger lenders and stop misappropriation of funds. Lendsqr makes it easy! Read more: https://lnkd.in/dZTfmN9P #lendsqr #credit #ajo

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Digital payments app Bharat Interface for Money (BHIM) will soon be available on the government-backed Open Network For Digital Commerce (ONDC) in a bid to increase its shares in the Unified Payment Interface (UPI) transactions 👇 The app will foray into the ecommerce space on ONDC via a separate division. With this, the users of the payments app would be able to shop for food and beverages, groceries, fashion, and apparel on the platform. The users of the app would be able to shop for food and beverages, groceries, and fashion on the platform, which is expected to boost BHIM’s UPI transactions. Launched in 2016 by the National Payments Corporation Of India (NPCI), BHIM is far behind in terms of UPI transactions compared to rivals like Google Pay, PhonePe and Paytm. To read more in detail, click here: https://lnkd.in/gZCitHtz #NCPI #BHIM #digitalpayments

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We take care of your virtual assets !! Onboard now . #payments #digitalassets #globalliquidity #financialinnovation #openbanking #realtimepayments #digitalpayments #fintech #globalpayments #wholesale #bsales #tech #trading #investing #binarytrades #crossborderpayments #virtualaccounts

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#TheLatium Would customers choose a fintech, if banks offered the same service? with Samuel Rhee and Laksh Gangwani #FintechVsBanks #FintechChoice #BankingVsFintech #CustomerSwitch #FintechAdvantages #BanksAndFintech #BankingInnovation #FintechCompetition #CustomerLoyalty #TechInBanking #CustomerOwnershipMyth #BankingRealityCheck #CustomerAlternatives #FintechDisruption #BankCustomerShift #WealthManagementSpecialization #FintechWealth

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