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Our Partner (Counsel - when this article was submitted) Ankita Hariramani writes for Elets Banking and Finance "While the regulator’s move has created an industry-wide discord, with most fintechs left spellbound at the drastic measure adopted by the RBI, we thought, as legal and regulatory advisers it is pertinent to sift through the noise and closely evaluate the non-compliances that triggered a critical intervention of this sort." #spiceroutelegal #rbi #paytm #fintech #fintechinnovation #fintechtrends #regulatorycompliance

Exciting times ahead for cross-border payments! U.S. banks may soon connect with India's UPI system, enhancing the speed and efficiency of international transactions. As noted by U.S. Fed Governor Christopher Waller at Global Fintech Fest in Mumbai, that the US does not currently have enough banks connected to create a full-service fast payments system due to risk management and compliance requirements in order to prevent frauds or money laundering. However, he said that linking with the UPI could be a potential solution. #globalfintechfest #upigoingglobal

The tightening of compliance regulations by the RBI is reshaping bank-fintech collaborations, particularly in the domain of co-branded card partnerships. Banks are now treading cautiously, prioritizing partnerships with larger, more established fintech companies. This shift emphasizes the heightened importance of regulatory adherence and risk mitigation in the financial sector. With the onus squarely on banks to ensure compliance, the allure of partnering with fintech firms boasting impeccable track records has never been greater. However, I believe this trend may inadvertently marginalize smaller fintech players, limiting their opportunities for collaboration. As the regulatory environment continues to evolve, establishing a balance between compliance and innovation becomes utmost important for developing a resilient and inclusive financial ecosystem. https://lnkd.in/dW555cvs #compliance #regulatorycompliance #bankingregulations #rbi #fintech #banks #CoBranded #riskmitigation #financialsector #RegulatoryAdherence #Partnerships #partnerships #financialinclusion

Banks don't like changes. Even if the instructions come from RBI. The regulator's direction to move away from OTP as the 2FA requires banks to spend a lot of money and time to do it. And it is not happening anytime soon. Banks have been using OTPs for a decade and a half. While there are other alternatives, changes bring legal and compliance complications. When RBI introduced 2FA, banks were given the option to choose their preferred method. OTPs were the easiest and cheapest solution then. However, the technology has advanced much but banks are striking with what worked well for them. Please read my story on this https://lnkd.in/db_VzAYQ

The ongoing saga between PPBL and the RBI underscores the complexities of fintech regulation and the imperative for robust compliance frameworks. As stakeholders navigate this turbulent terrain, the repercussions of PPBL's regulatory challenges reverberate th…

NPCI arm, banks and fintechs in talks for net banking synergies https://lnkd.in/dxZaSiu9 Download Economic Times App to stay updated with Business News - https://lnkd.in/eK4XZsX #npci #banks #bankingdomain #bankingsector #fintechs

Landscape of digital banking in India, the #ReserveBank of India (#RBI ) has imposed a ban on #PaytmPaymentsBank , effective February 29. Read more here: https://lnkd.in/dnEyAhiA

#banking | #fintech | #payments | #regulations : Uneven Regulations in Payments. Financial Institutions/banks (FIs) and Non-Banking Financial Institutions (NBFIs) engage in domestic and cross-border payments to conduct business, and must stay in compliance with regulations to prevent money laundering, fraud, and other financial crimes. However, there are discrepancies across these two sectors that increase risk, including enabling bad actors to exploit those differences. What is Uneven Regulation? Non-Banking Financial Institutions (NBFIs – a financial institution that does not have a full banking license, often including money service bureaus, fintechs, non-bank payment originators, and alternative payment providers). NBFIs provide payment services from consumer to consumer (C2C), consumer to business (C2B), and business to business (B2B). However, NBFI compliance requirements are not always consistent with the often more stringent regulations that apply to banks. Specifically, these disparities include but are not limited to customer due diligence, regulatory oversight, and cross-border activity eligibility. Who is impacted by Uneven Regulation? Uneven Regulation impacts banks and NBFIs providing the same service, along with customers, regulators, and other stakeholders. Without consistent regulation, bad actors may seek out weaker entry points, scheme participants may suffer undue losses, and all participants will struggle with interpretation and implementation. In addition, without consistency, risk shifts to certain participants (often correspondent banks) that serve as the last line of defense, also creating a higher compliance burden to account for weaker parts of the system. 

https://lnkd.in/g-iitgxJ "if fintech firms want to engage in banking activities, then they need to be regulated like bank" Indeed. If local banks in the Philippines can lack stringent oversight and control, how much more for fintech firms sprouting and introducing their platforms in a money laundering country.