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Banking and Finance

Digital Infrastructure for Financial Inclusion in Rural India

Financial inclusion has never been more crucial to policymakers as it is right now. Geographical constraints, a lack of banking infrastructure, widespread financial illiteracy, and our country’s high population density make it extremely difficult for rural Indian business owners to obtain official financial services and products.

In order to enable small business owners, particularly in rural India, to have access to low-cost formal financial products and services, effective programs like the Pradhan Mantri Jan Dhan Yojna and Pradhan Mantri Mudra Yojna collaborate with digital financial infrastructures like the Aadhaar-enabled Payment System (AePS) and UPI.

The problem of accessibility and affordability

India’s small rural businesses lack safe access to formal banking facilities for lending and savings. Those that do so, lose time associated with travelling to unsuitable locations for banks. Furthermore, when formal banking solutions are available, the strict lending criteria become obstacles to their ability to accept loans, showing that accessibility does not always mean obtainability.

How can UPI be used to increase financial inclusion for rural MSMEs?

Mobile phones are the answer to the issue facing India’s millions of rural traders. First, UPI may be utilised to offer MSMEs digital payment solutions that would allow them to securely and conveniently accept payments from clients.

Are digital financial infrastructures truly inclusive?

When digital financial services are mentioned, the debate regarding access to reliable internet connections keeps coming up. UPI 123 Pay, a recently launched immediate payment system, was introduced by the Reserve Bank of India as a straightforward yet effective response to this pressing issue. It would enable users to conduct UPI transactions without a network connection.

Kirana stores as micro ATMs – Changing the landscape of rural banking

In rural India, micro ATMs are quickly becoming an extensively used financial infrastructure. The Indian entrepreneurial spirit is represented through the kirana ecosystem. They simplify the lives of local residents by providing basic banking and financial services.

In conclusion, emerging nations like India, where mobile phones are more common than bank accounts, digital payments are a crucial tool for increasing financial access. Financial inclusion may become a reality with consistent and fair implementation, which can change how rural business owners run their operations to make better decisions and save a lot of money and resources.


Beyond PMLA – The Future of Cryptocurrency in a Regulated World

Crypto currency transactions have been gaining popularity worldwide, as they provide a decentralized platform for financial transactions. However, with the increase in use of crypto currency, there is also an increase in the risk of it being used for illegal activities such as money laundering. In order to combat this, the Indian government has included crypto currency under the Prevention of Money Laundering Act (PMLA) 2002.

The PMLA is a law that aims to prevent illegal activities such as money laundering and terrorism financing. It requires financial institutions to keep records of all transactions and report any suspicious transactions to the authorities. With crypto currency now being included under this act, users of crypto currency must follow the same rules and regulations as traditional financial transactions.

Users of crypto currency must register with the authorities to be able to buy or sell crypto currency, verify their identity through a Know Your Customer (KYC) process, maintain accurate records of their transactions, and report any suspicious transactions to the authorities. Financial institutions that deal with crypto currency must implement KYC procedures and monitor transactions for suspicious activity.

Following the rules and regulations under the PMLA can help to keep the crypto currency industry safe and secure for everyone. By implementing KYC procedures and monitoring transactions, financial institutions can detect any suspicious activity and report it to the authorities. This helps to prevent illegal activities such as money laundering and terrorism financing.

In conclusion, the inclusion of crypto currency under the PMLA is a positive step towards ensuring the safety and security of financial transactions. Users of crypto currency must follow the rules and regulations under the PMLA to prevent illegal activities, and financial institutions must implement measures to monitor transactions for suspicious activity. By working together, we can help to keep the crypto currency industry safe and secure for everyone.


RBI Retail Digital Rupee Roll Out | #QuickUpdates | LawWiser

The RBI has recently rolled out retail digital rupee project. This project has been most talked about, as it aims to meet the need of public for digital currencies.

Watch LawWiser’s latest video on RBI’s Retail Digital Rupee Roll-out, where our host takes us through the details of this project.

Watch now to understand:

– What is the pilot project about?

– The purpose of the project

– How will this project work?


RBI Directions for Microfinance Loans, 2022

The Reserve Bank of India has instructed all the regular entities lending to the microfinance sector to ensure that the loans are collateral-free and not protected by a lien on the borrower’s deposit account. 

Tune into the #LawWiser premium video on “RBI Directions for Microfinance Loans, 2022” featuring Prabhjot Singh briefly explaining the directions given by RBI.

In the video, Prabhjot tells us that the Reserve Bank of India has eliminated the margin caps that were previously solely applicable to non-banking finance businesses. 

The collateral loans offered to low-income households, i.e., households with an annual income up to $3 lakh, will now be termed “microfinance loans”. 

He shares that there must be a RE board-approved policy that brings flexibility to the payback period.

Interest rates on all three levels, i.e., minimum, maximum, and average on the microfinance loans must be informed in all RE offices.

RE or its agent will not utilize punitive recovery measures. 

To learn more about these RBI directions, watch the full video.

#rbi #rbipolicy #collateral #loans #microfinance #borrowers #nbfc #business #finance #recovery #payback #interestrates  #msme #startups #compliance #msmeindia  


All about NFTs & Art | Universal Legal | LawWiser

Know all the Jazz about NFT and Art in #LawWiser‘s fireside chat. Watch the full feature on All about NFTs and Art with with renowned artist and sculptor @Arzan Khambatta and @Anuradha Chowdhary, Tech Lawyer, @Universal Legal.

Anuradha very succinctly explains what NFT means and Arzan takes us through how he took the chance to explore minting his artwork in NFT. They also touch upon the other significant trend about Metaverse. Together they explore:

⚡ rights and aspects that artists should be mindful of while going for NFTs

⚡ top 3 things an artist looking to venture into the digital world should consider?

⚡ what is Metaverse

⚡ How would NFTs work in the Metaverse?

Know about all the above and much more on #LawWiser

#NFT #Nonfungibletokens #nftart #nftartist #nftmarketplace #nftartwork #digitalart #cryptoart #nftcollector #nonfungibletokens #metaverse


Proposed tokenisation of cards by the RBI

Watch now #LawWiser premium video on “Proposed Tokenisation of Cards by the RBI” featuring Gaurav Bhalla, Partner at Ahlawat and Associates sharing useful insights on RBI card tokenisation.

Gaurav explains the background, how tokenisation works, types of tokenisation, applicability, effects and much more in this video. He shares that tokenisation of debit and credit cards allows the generation of a ‘token’ number or an ‘alternate code’ to replace the 16-digit card number entered by the customer. Each token will be unique to the requestor, the user’s card, and the device with which the card is registered. The token request is made by the merchant of the online platform (on behalf of the card-holder or card owner) to a card network (eg – Visa; Mastercard and others) which will then issue a token.

There are different types of tokenisation available like 

(i) Format preserving tokens – These tokens replace the 16-digit numbers on a card with an altogether different set of 16-digit numbers.

(ii) Non-format preserving tokens – This system does not follow the 16-digit number format; and. replaces the original 16-digit card number with alphanumeric characters. Entities such as Razorpay uses non-format preserving tokens.

The system of tokenisation has been introduced by the RBI and is only applicable to domestic transactions. Tokenisation is used only for online transactions and is specific to a merchant.

The Reserve Bank of India issued a notification dated January 8, 2019, titled ‘Tokenisation –

Card transactions wherein it was announced that card networks for tokenisation in card transactions for a specific use case. This announcement extended to all uses cases/channels [e.g., Near Field Communication (NFC) / Magnetic Secure Transmission (MST) based contactless transactions, in-app payments, QR code-based payments, etc.] or token storage mechanisms (cloud, secure element, trusted execution environment, etc.). However, at that point, this facility is offered only through mobile phones/tablets.

Don’t forget to watch the full video to learn all about the Tokenisation of cards by RBI on LawWiser. 

#tokenisation #rbi #transmission #tokens #merchants #merchant #mastercard #source #virtualassets #msmeindia #msme #msmesector #msmes #rbipolicy #bankingindustry #banks #compliancesolutions #startup #startupindia 


Interface between Insolvency & Bankruptcy Code and Admiralty Act

Watch now LawWiser’s Explainer with Zoeb Cuttlerywala, Associate Partner, Phoenix Legal, on “Interface between Insolvency & Bankruptcy Code and Admiralty Act”. The interplay between IBC and Admiralty Act has caught everybody’s attention with a very recent ruling of the Bombay High Court in the commercial admiralty suit between Angre Port Private Ltd. v/s Vessel TAG 15. Watch Zoeb explaining in detail the facts of the case along with the issues involved and the findings by the Bombay High Court. He also states that this matter has brought clarity to important issues governing Admiralty law and insolvency law. #Commercial #Banking #IBC #Bombay #Highcourt #Admiralty #Insolvency #Explainer #Suit #Legalupdate #Legalvideo #Video


Successful Bidder Cannot Wriggle out of a Bid in Liquidation | #InAMinute 

Watch Now LawWiser’s latest In a Minute video on ‘Successful Bidder cannot wriggle out of a bid in liquidation’ featuring Neha Naik, Associate Partner, Phoenix Legal.

There is a growing trend of successful bidders in insolvency as well as liquidation proceedings wanting to retract their offers citing various reasons.

In this video, Neha explains that the Bidder cannot wriggle out of the contractual obligations arising out of acceptance of his Bid for sale as a going concern in liquidation. She quickly takes us through 2 important decisions one by the Supreme Court of India and the other by the National Company Appellate Tribunal (NCLAT).

The decisions are related to the fact that after accepting the bid, the bidder will not be entitled to the withdrawal if they fail to comply with the terms of the contract and consequently the bidder cannot wriggle out of the contractual obligations.

#inaminute #ibc #insolvency #bidding #contract #liquidation #supermecourtofindia #nclat #contractualobligation #corporatedebtor


Sebi’s Attractive Combo For Dealmakers | #QuickUpdates

Tune into the latest video where LawWiser takes you through the update on “Sebi’s Attractive Combo For Dealmakers”.

Watch Prabhjot Singh sharing the update on Securities and Exchange Board guidelines that comprises of clearing hurdles for acquirers keen to take listed companies private.

With this amendment, the SEBI has put to rest the two contradictory SEBI regulations that come into play for acquirers who intend to delist the company.


Credit Suisse Winding-up Plea & Withdrawal of Insolvency Proceedings

Watch Prabhjot Singh quickly taking through the decision of the Madras High Court allowing Credit Suisse AG’s winding petition against SpiceJet.

The second update is on the national company tribunal allowing the withdrawal of insolvency proceedings against MGF Developments, following a settlement agreed between the company and homebuyers.

Stay tuned with LawWiser for more videos!