RBI redefines Payment aggregators scope and KYC compliance
The Reserve Bank of India on Tuesday came out with draft guidelines to further strengthen regulations on payment aggregators, a move aimed at boosting the payment ecosystem. The payments ecosystem in India includes online Payment Aggregators (PA-Os) and Physical Payment Aggregators (PA-P) that cover Point of Sales business, which facilitate face-to-face/proximity payment transactions. For ease…
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Economic transformation: Global Economy and Economic Reforms in India.
Global economic integration involves agreements between countries that usually include the elimination of trade barriers and aligning monetary and fiscal policies, leading to a more inter-connected global economy. Globalization provides easy access to foreign resources, including labour markets, to maximize returns and benefit the common good. The capital moved between two or more places, commodities…
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RBI mandates lenders to provide Key Facts Statement (KFS) to borrowers
In a statement on Monday, the RBI said it has been decided to harmonise the instructions on KFS for loans and advances. “This is being done to enhance transparency and reduce information asymmetry on financial products being offered by different regulated entities, thereby empowering borrowers to make an informed financial decision,” the RBI said. Key…
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Economic transformation of financial sector in India
(This post covers reforms in the financial sector of India covering banking, money market, Government securities market, foreign exchange market, capital market, Credit market, and Payment systems since the 1990s) A country’s financial system comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds securities markets, and investment funds, and other smaller…
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Transformation of banking sector in India
The financial sector in India is predominantly a banking sector with commercial banks including the public sector, private sector, cooperatives, and foreign banks accounting for more than 64% of the total assets held by the financial system. The banking regulator further permitted new private banks and entities like payment banks, and small finance banks operating…
Transformation of Money market in India
A money market is a place where banks and other financial institutions trade in short-term debt securities such as commercial paper (CP), certificate of deposits (CDs), treasury bills (TBs), and repo in ready-forward contracts (of dated securities, and Treasury Bills). The money market provides a platform for financial institutions to borrow and lend money for…
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