Mint Explainer: Uncovering the Risks of Unauthorized Forex Trading Platforms Introduction: The RBI Governor Shaktikanta Das recently expressed concerns about unauthorized forex trading platforms used by corporates and traders to mitigate foreign currency risks. These platforms, resembling casino games, make enticing promises of high returns. As a result, the RBI has urged banks to remain vigilant and identify the 75 unauthorized entities involved in forex transactions. In this Mint explainer, we delve into the reasons […]

RBI Mandates Regulatory Approval for PoS Providers: Ensuring Compliance and Streamlined Operations Introduction The Reserve Bank of India (RBI) has recently proposed new regulations for non-banks offering physical Point of Sale (PoS) services. These regulations aim to bring harmony between offline and online payment aggregators and ensure standardized practices throughout the industry. The RBI has set specific timelines and requirements for these service providers to seek authorization to continue their operations, promoting transparency and accountability […]

NBFC Lenders Face Increasing Borrowing Costs Non-bank lenders are experiencing a surge in borrowing costs as banks have become more cautious in lending to them, following a regulatory warning. In response, these companies are diversifying their sources of funding to mitigate the impact. Key Features: Non-bank lenders, such as Bajaj Finance and Shriram Finance, have raised their fixed deposit rates to attract funds and compensate for lower bank borrowings. The Reserve Bank of India (RBI) […]

10-year Plan: Can the Indian Rupee Go Global Without 100% Convertibility? Subtitle: Exploring the Potential of a Globalized Indian Rupee and the Challenges Ahead Introduction Prime Minister Narendra Modi’s directive to the Reserve Bank of India (RBI) for a 10-year strategy to elevate the Indian rupee to a globally “accessible and acceptable” currency. The significance of this initiative given India’s projected economic growth and the advantages of having a globalized currency. Advantages of a Globalized […]

Can Regulation Technology Solve Bank Compliance Challenges Introduction Compliance is a critical function in banks, vital for organizational resilience and stability. However, inadequate compliance can have serious consequences for banks and the financial sector as a whole. This article explores the role of regulatory technology (reg-tech) in addressing banks’ compliance woes. The Importance and Complexity of Compliance Regulatory expectations for banks have increased significantly since the 2008 Global Financial Crisis. These expectations cover a wide […]