RBI makes interoperability mandatory for all wallet, PPI issuers

The Reserve Bank of India (RBI) announced its decision to make interoperability mandatory for all full-KYC prepaid payment instruments (PPIs) and other payment infrastructure. The regulator simultaneously announced an increase in the permitted outstanding balance in PPIs to Rs 2 lakh from Rs 1 lakh and allowed cash withdrawals from full-KYC non-bank wallets. The regulations effectively bring wallets at par with bank accounts in terms of service offerings.

Expert View

The changes by RBI empower Prepaid Instrument Licence holders to serve the Indian consumers to promote financial inclusion. This serves as regulatory validation of the innovative developments non-Bank entities like PPIs are building in partnership with NPCI. Now equipped with Rupay, UPI, Fastag, IMPS, RTGS, NEFT, ATM access - PPIs can function akin to a Bank for most consumer offerings in a market efficient manner; promoting healthy competition. Unregulated entities like fintechs can also benefit via these changes by partnering with regulated PPIs like Transcorp which offer a co-branded licensing + platform bundle to select partners for a quick & compliant go to market."

- Mr. Ayan Agarwal, Vice President, Transcorp International Limited


fintech newsletter march 2021

NFT’s the new favourites for Fintech and Cryptospace

NFTs may be central to the future of decentralised finance (DeFi). These are fintech projects that use cryptocurrency or the blockchain to disrupt existing financial intermediaries. For fintech companies that want to invest in the crypto space or launch DeFi services of their own, NFTs may provide an alternative to other crypto fundraising techniques, like coin IPOs. Other new NFT-related DeFi projects show how fintech may evolve as the crypto space continues to grow and attract new investors.


fintech newsletter highlights Mar 2021

NCR Corp launches first interoperable cardless cash withdrawal-enabled ATMs

With the UPI-based, dynamic QR code-based, interoperable cardless cash withdrawal facility, one can take out money from any ATM of any bank if they are upgraded.


Fintech Newsletter March 2021 fintech highlights of the month 03

Why India is on the Cusp of a New Fintech Revolution

India has emerged as one of the fastest-growing fintech hubs in recent years. Concepts like paperless lending, mobile-first banking, secure payment gateways, mobile wallets, etc. are no longer a distant dream, it’s already happening.


Fintech Newsletter March 2021 fintech highlights of the month 4

How fintech boosts the progress of the MSME sector

There are a lot of advantages that fintech provides to MSMEs to achieve financial parity and assistance. Fintech has been at the forefront of revolutionising financial transactions through the extensive usage of technology.


Report of the month

Indian FinTech: A USD 100 Billion Opportunity

India's dynamic FinTech industry has 2100+ FinTechs of which 67% have been set up over the last 5 years alone. The total valuation of the industry is estimated at $50-$60 billion. The industry's growth has been undeterred by the pandemic, as it has seen the emergence of 3 new Unicorns and 5 new Soonicorns (USD 500Mn+ valuation) since January 2020.

The Fintech industry's strong growth is due to India's deep-rooted customer demand, diverse capital flows, strong tech talent, and enabling policy framework. Over the next 5 years, India's FinTech industry is expected to continue its strong upward trajectory.

The success of India’s well-functioning FinTech landscape is due to its strength on multiple dimensions. Based on the report, four key factors stand out—

  1. Large addressable demand: India’s significant financial services value-pools, coupled with its fast-growing digital adoption has been a key determinant to FinTech success.
  2. Big-shift initiatives: India’s world-leading digital infrastructure (Aadhar, UPI, GST, etc.) and enabling regulatory environment has helped power India’s FinTech innovations.
  3. Investment ecosystem: India’s vibrant venture capital and angel-investment scene, backed by market depth in growth-stage capital has ensured funding to viable FinTechs.
  4. Technology talent pool: India’s strong STEM (Science, Technology, Engineering and Mathematics) orientation, world-class education institutes, and a competitive human resources cost-structure have helped create a strong tech talent pool that FinTechs can rely on.

 

BCG FICCI Report India Fintech