#rbi regulations

[mifymeenakshi]

As additional individuals go to charge cards for their buys, state run administrations and banks are setting up rules to shield customers and keep the monetary framework stable. These actions remember drawing certain lines for financing costs, ensuring Visa terms are straightforward, and safeguarding individuals from unjustifiable practices like secret charges or deceiving promoting. Accordingly, Visa organizations might change their contributions, holding back nothing and offering instructive assets to assist individuals with dealing with their funds better. These activities intend to establish a more pleasant and safer climate for utilizing charge cards.

[insightfultake]

Supreme Court Decision on Credit Card Interest Rates: Freedom for Banks within Indian Regulations

In a landmark judgment, the Supreme Court of India has reversed a 2008 ruling by the National Consumer Disputes Redressal Commission (NCDRC) that barred banks from charging more than 30% annual interest on overdue credit card payments. This decision allows banks to determine their own rates within existing regulatory frameworks, marking a pivotal moment in the ongoing debate over consumer protection and market freedom.

A bench comprising Justices Bela M. Trivedi and Satish Chandra Sharma set aside the NCDRC’s decision, which had declared high interest rates on overdue credit card payments as an unfair trade practice. The ruling came in response to appeals by several major banks, including Standard Chartered Bank, Citibank, and HSBC, contesting the NCDRC’s cap on interest rates. Justice Trivedi, delivering the verdict, stated, “In view of the foregoing reasons, the judgment of the NCDRC is set aside, and appeals are allowed.” The Supreme Court had already stayed the NCDRC order on February 3, 2009, pending final adjudication. Expand to read more

[indianexpalert]

Centre proposes bill to ban unregulated lending

The government on Thursday proposed a new law which seeks to ban unregulated lending and slap a fine of ₹1 crore on offenders along with imprisonment of 10 years. The move follows action against several digital loan apps for unregulated lending over the past two years and complaints about their unfair lending and predatory recovery practices. A draft bill – Banning of Unregulated Lending…

[directsellingnow]

RBI Warning: इन 13 फॉरेक्स ट्रेडिंग प्लेटफॉर्म्स से रहें सावधान!

RBI Warning: भारतीय रिजर्व बैंक (RBI) ने मंगलवार को अनधिकृत (unauthorised) विदेशी मुद्रा (foreign exchange) ट्रेडिंग प्लेटफॉर्म्स की चेतावनी सूची (alert list) को अपडेट किया है और इसमें 13 नई कंपनियों को जोड़ा है। इन कंपनियों को न तो विदेशी मुद्रा कारोबार (forex trading) करने का अधिकार है और न ही ये इलेक्ट्रॉनिक ट्रेडिंग प्लेटफॉर्म (electronic trading platform – ETP) के तौर पर काम कर सकती हैं। अब…

[angel0news]

RBI to Launch Public Repository for Digital Lending Apps

In a significant move to enhance consumer protection and transparency in digital lending, the Reserve Bank of India (RBI) has announced the creation of a public repository for digital lending apps (DLAs). This initiative aims to help customers verify whether a lending app is associated with regulated entities, such as banks, and avoid potentially illegal apps.

Background and Need

On September 2, 2022, the RBI issued comprehensive guidelines for digital lending, addressing critical issues like customer protection, data privacy, interest rates, recovery practices, and mis-selling. Despite these guidelines, reports have surfaced about unscrupulous digital lenders falsely claiming affiliations with RBI-regulated entities.

A recent RBI Working Group found that about 600 of the 1,100 digital lending apps available on Indian Android devices are illegal. With the proliferation of new lending apps, it’s increasingly challenging for users to determine the legitimacy of these apps.

The Repository’s Role

The RBI’s new repository will be a valuable tool for consumers. It will list digital lending apps deployed by regulated entities, allowing users to check if an app is legitimate or illegal. The data will be submitted directly by regulated entities to the repository and updated regularly. This will ensure that borrowers can easily identify whether a lending app is associated with a recognized, regulated entity.

Guidelines and Compliance

The RBI’s guidelines mandate that regulated entities disclose loan rates upfront and ensure borrowers are well-informed about loan products during the onboarding process. Additionally, these entities are required to assess borrowers' economic profiles before extending loans.

Protecting Consumers

This initiative follows alarming trends where predatory lending practices have led to severe consequences for many individuals, including harassment and extortion. By providing a centralized, publicly accessible list of verified lending apps, the RBI aims to curb these unethical practices and safeguard consumers against fraudulent activities.

For more information, the repository will be accessible on the RBI’s official website, offering a crucial resource for both current and prospective borrowers.

[expo-newz]

RBI's Recent Changes in Investment Norms: What You Need to Know

The Reserve Bank of India (RBI) recently made some noteworthy adjustments to the norms governing investments in Alternative Investment Funds (AIFs) by banks, non-banking financial companies (NBFCs), and other lenders. These changes, announced on Wednesday, come as a modification to directives issued by the RBI in December last year.

Previously, the RBI had instructed banks, NBFCs, and other lenders to refrain from investing in any scheme of AIFs that included downstream investments in a debtor company. Downstream investments refer to the utilization of funds raised from AIF investors by the AIF to make direct investments in a company.

In a recent release, the RBI clarified that downstream investments should exclude investments in equity shares of the debtor company of the regulated entity (RE). However, all other investments, including those in hybrid instruments, would still be considered as downstream investments.

Furthermore, the RBI had earlier stipulated that if an AIF scheme, in which a regulated entity is already an investor, makes a downstream investment in a debtor company, the regulated entity must liquidate its investment in the scheme within 30 days from the date of such downstream investment. Failure to do so would result in a 100 percent provision requirement on such investments.

However, the recent amendments by the RBI specify that the 100 percent provision requirement will only be applicable to the extent of investment made by the regulated entity in the AIF scheme, which is further invested by the AIF in the debtor company. It won't be imposed on the entire investment of the regulated entity in the AIF scheme.

It's important to note that investments made by regulated entities in AIFs through intermediaries such as fund of funds or mutual funds are not covered under these revised norms on investment in AIFs.

These alterations aim to streamline the implementation process and ensure consistency among regulated entities. As the regulatory landscape evolves, staying informed about such changes is crucial for all stakeholders involved in investment activities.

[mnscredit]

RBI guidelines emphasize that the Fair Practice Code (FPC) must be transparent, non-coercive, and non-threatening. Communication with borrowers should be conducted in a respectful and non-abusive manner

[newzquest]

What Does Vijay Shekhar Sharma's Resignation Mean for Paytm Payments Bank?

Vijay Shekhar Sharma has stepped down as part-time non-executive Chairman of Paytm Payments Bank Limited (PPBL), and the board of the bank has been reconstituted.

As one of India’s most prominent entrepreneurs, Vijay Shekhar Sharma has been at the helm of Paytm Payments Bank since its inception. However, with his recent resignation announcement, many are left wondering what this shift in leadership means for the future of this fintech giant. In this blog post, we delve into the implications of Sharma’s departure and explore how it may impact the trajectory…

[ishaniblogs]

RBI Directs Visa and Mastercard to Halt Card-Based Commercial Payments: What You Need to Know

In a recent development, the Reserve Bank of India (RBI) has directed card networks Visa and Mastercard to suspend card-based commercial payments through payment service providers and companies. While the central bank has not officially disclosed the reasons behind the directive, reports suggest concerns regarding unauthorized transactions at outlets not sanctioned to accept such payments.

The regulatory action comes in the wake of heightened scrutiny in the fintech sector, following recent regulatory measures against leading payment platform Paytm. The RBI’s move underscores its commitment to maintaining the integrity and security of digital transactions while ensuring adherence to regulatory standards.

Fintech companies operating in the segment have reportedly facilitated transactions, such as tuition fees and rentals, through card-based payments, despite lacking authorization to accept such payments. This potential violation of the Payment and Settlement Systems Act, 2007, raises concerns regarding compliance and consumer protection.

Visa, in communication with fintechs, emphasized the directive from the regulator to suspend Business Payment Service Provider (BPSP) transactions until further notice. Failure to comply with these instructions could result in regulatory sanctions and non-compliance assessments under Visa rules, highlighting the gravity of the situation.

While specific details regarding the RBI’s directive remain undisclosed, industry insiders suggest that the central bank aims to ensure fintech players and service providers operate within the regulatory framework. Addressing potential KYC (Know Your Customer) issues, the RBI seeks to mitigate the risk of fraudulent or unauthorized transactions in the digital ecosystem.

The regulatory intervention reflects the RBI’s proactive approach towards safeguarding the interests of consumers and promoting financial stability in the digital era. The recent directive serves as a reminder of the evolving regulatory landscape in the fintech sector and the imperative for industry stakeholders to uphold compliance standards.

The RBI’s decision follows its action against Paytm, wherein the company was barred from offering core services, including accounts and wallets, citing multiple KYC and operational concerns. These measures underscore the regulator’s commitment to maintaining robust oversight and ensuring the integrity of India’s digital payment ecosystem.

As the fintech industry continues to evolve, regulatory compliance and consumer protection remain paramount. Industry participants are urged to remain vigilant and proactive in adhering to regulatory requirements to foster trust and confidence in digital financial services.

[techminsolutions]

Is Paytm Payments Bank in Trouble? Unraveling the RBI's Actions and Impact on Paytm's Future

Adapting to Change: Paytm’s Response and Future Strategies In response to the RBI’s intervention, Paytm is mobilizing efforts to navigate these challenging times. The company, known for its resilience, assures users that withdrawals are unaffected, offering a semblance of relief. Paytm, traditionally not heavily invested in direct lending, suggests it can manage the potential panic-driven…

[bizbracket]

Will Paytm stop working?

Will Paytm stop working from now on? What will happen to people's money now? What impact will the Reserve Bank's decision have on the future of the company? These are some of the questions that are on everyone's mind today. When the decision of the country's largest bank came on the banking services of Paytm, it seemed as if there was chaos everywhere. https://bizbracket.in/decoding-paytm-future-after-reserve-bank-india-move-implications-on-digital-payment-platform-and-users-experience

[the-cash-cow]

The Revealed Roadmap to Safe Borrowing in the Digital Age

Are you in need of quick funds but overwhelmed by the plethora of digital loan options out there? Fret not! In this blog, I will take you on a joyride through the ins and outs of secure digital borrowing.

Understanding the Digital Loan Landscape in India

India's digital lending space has been experiencing a meteoric rise in recent years. With the advent of innovative fintech platforms, getting access to loans has become faster and easier than ever before. However, this convenience comes with its share of challenges and risks, making it essential for borrowers to tread cautiously.

Digital Loan Guru's Safe Borrowing Roadmap

1. Know Your Financial Terrain

Before embarking on the borrowing journey, it is vital to assess your financial terrain. Evaluate your income, expenses, and existing debts to determine the amount you can afford to borrow comfortably. The Digital Loan Guru advises borrowers to avoid overburdening themselves with loans that could lead to a debt trap.

Also Read: Why Opt for Professional Loans Instead of Regular Personal Loans

2. Master the Art of Comparison

In a market flooded with digital lending options, the key to safe borrowing lies in comparing the various loan products available. Pay attention to interest rates, processing fees, tenure, and hidden charges. The Digital Loan Guru's tip: Always opt for the loan that suits your needs and financial capabilities the best.

3. Watch Out for Digital Loan Scams

The dark side of the digital world includes scams and fraudulent loan providers. Abhay Bhutada, Poonawalla Fincorp's MD, advises that when starting financial transactions and communicating with financial institutions across various digital financial platforms, it is crucial to use caution and implement responsible practices.

4. Embrace the Power of Reviews

Don't navigate the digital loan universe blindly! The experiences of other borrowers can offer invaluable insights. Check online reviews and testimonials to gauge the reputation and reliability of the lending platforms you're considering. The Digital Loan Guru believes in the wisdom of the crowd. 

5. Digital Lending Regulations

The world of digital lending in India is under the vigilant eye of regulatory bodies, ensuring borrowers' safety and interests. The Reserve Bank of India (RBI) and other financial authorities have laid down guidelines for digital lenders to follow.

Harshvardhan Lunia, CEO & Founder of Lendingkart, stresses that these regulations enhance customer experiences and safeguard their data in the hands of ethical digital lending entities.

Also Read: The Rise of Decentralized Finance (DeFi): Exploring the Opportunities and Risks of a Borderless Financial Ecosystem

Conclusion

Remember to know your financial limits, compare wisely, and be cautious of scams. By staying informed about digital lending regulations, you can confidently make borrowing decisions that pave the way to financial success.

[indianexpalert]

Govt proposes new law to restrict unregulated lending; violators to face 10 years of jail

The central government has proposed a new bill to curb unregulated lending and provide for imprisonment of up to 10 years for violators, besides monetary penalties. With a view to curb unregulated lending activities and protect the interest of consumers, the RBI’s Working Group on Digital Lending submitted its report in November 2021. The working group had suggested a set of measures, including…

[legalstudiesin1]

Banking Laws in India: Regulations, Roles, and Case Studies

Table of Contents Introduction:Banking law in India refers to the set of laws, regulations, and guidelines that govern the functioning and operations of banks and financial institutions in the country. These laws are primarily aimed at ensuring the stability, integrity, and transparency of the banking sector, protecting the rights and interests of customers, and promoting financial…