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Information breach in BHIM App?
An Israeli cyber safety web site, vpnMentor, notified the
Indian authorities of an information leak of roughly 7 million customers
of the BHIM Cost Software (resulting from a web site breach). As per
the report, a web site developed by CSC e-Governance Companies in
partnership with the Indian authorities, was being utilized in a
marketing campaign to enroll customers and enterprise retailers to the BHIM App.
Consequently, a breach on this web site has resulted in breach of
knowledge of greater than 7 million customers of the BHIM app It was additionally
reported that the information that was leaked included private
info similar to Aadhaar card particulars, residence proof and bank
information together with an entire profile of people.
Nonetheless, the Nationwide Cost Company of India
(“NPCI“), in a press launch dated June
01, 2020, clarified and said that there was no knowledge
compromise on the BHIM App. Additional, the NPCI additionally confirmed
by means of this press launch that it follows excessive degree of safety
and an built-in method to guard its infrastructure and
continues to supply a sturdy funds ecosystem and folks ought to
not fall prey to such speculations.
Paytm Cash provides NPS to platform
Paytm Cash introduced the launch of Nationwide Pension Scheme
(“NPS“) on its cellular utility after
it acquired approval from the Pension Fund Regulatory and
Paytm might be providing this NPS to the customers of its app, with a
option to both put money into a tax saver scheme or a zero lock-in
The NPS is a pension scheme launched by the Authorities of
India to assist Indians create a retirement corpus. Beneath this, one
could make systematic contributions that would supply market-linked
returns and an everyday revenue publish retirement.
NPCI’s eSign makes a comeback
NPCI by means of round dated May 26, 2020 clarified that they
have acquired affirmation from the competent authority that
Aadhaar authentication for e-sign providers is permitted beneath the
Aadhaar (Focused Supply of Monetary and Different. Subsidies,
Advantages and Companies) Act, 2016. Accordingly, NPCI determined to
re-launch the eSign E-Mandate beginning June 1, 2020.
eSign digital signature is an initiative for permitting simple
and safe execution of digital paperwork by validating the
individual executing utilizing Aadhaar eKYC providers. With this, any
Aadhaar card holder may digitally signal an digital doc
with out having to acquire a bodily digital signature dongle.
RBI broadcasts creation of Cost Infrastructure Improvement
On June 5, 2020, the RBI has introduced creation of a Funds
Infrastructure Improvement Fund with a purpose to encourage acquirers to
deploy factors of sale (“POS”)
infrastructure in tier-Three to tier-6 centres and north jap
states. The RBI will make an preliminary contribution of INR 250 crores
to the aforesaid fund and remaining contribution might be from the
card issuing banks and card networks working within the nation. The
RBI will contribute additional to the fund, if crucial. The fund
might be ruled by means of an advisory council and managed and
administered by RBI.
RBI permits digital playing cards for overdraft account
RBI by means of notification dated April 23, 2020, has permitted
the banks to challenge digital playing cards to pure individuals who’re
holders of overdraft accounts. RBI has specified that these
playing cards may be allowed for use for home transactions solely and
that the banks will make sure that the utilization of those playing cards are
restricted to on-line and non-cash transaction solely.
The banks have been directed to border a coverage accepted by their
board in relation to issuance of digital playing cards encompassing
applicable threat administration, periodic overview procedures, grievance
redressal mechanism, and so forth.
Contact me not? RBI relaxes requirement of extra
authentication issue for small value transactions
RBI has knowledgeable Visa, Mastercard and NPCI to permit tap- and go
performance for transactions to make it contact free. That is to
guarantee that there’s minimal contact whereas transacting to cut back
threat of Covid-19 an infection.
Faucet-and-go card funds for purchases above INR 2,000 will
require two-factor authentication and prospects might be required to
enter PIN to course of such transactions.
Crypto ban rekindled?
The Supreme Courtroom earlier this 12 months had put aside the RBI’s
curb on bank to supply providers to entities dealing in digital
currencies. The Supreme Courtroom didn’t delve into whether or not digital
currencies ought to be banned or not, however had merely put aside the
RBI’s round on the grounds of proportionality.
A cupboard notice looking for a ban on use of digital forex by means of
a regulation has been moved for inter-ministerial session. The notice
which seeks to ban digital currencies similar to bitcoins, will
subsequently be despatched to the parliament.
A number of gamers working on this house have maintained a stance
that an outright ban will not be one of the simplest ways ahead and the Authorities
ought to attempt to regulate the digital forex than fully
Whether or not the inter-ministerial notice interprets right into a regulation is
one thing which isn’t clear at this stage.
Growing Cost Fraud Alert- RBI
Recognizing that cost frauds may decelerate the expansion of
digital economic system in India, RBI addressed a letter to the administration
of licensed cost system operators and members of cost
programs, highlighting the heightened cost fraud threat. RBI
noticed that every one cost system operators and members
proceed and reinforce their efforts to unfold consciousness about
digital security. RBI suggested the stated operators and members to
run a focused multi-lingual campaigns by means of SMS,
ads in print and visible media to coach the customers of
the dangers concerned.
Funding in Fintech Sector
India has overtaken China in attracting funding within the
Slice, an organization which builds monetary merchandise for kids,
has raised INR 46 crores from the funding and consulting arm of
Gunosy Inc, which is a Japan based mostly know-how providers firm.
Aye Finance Non-public Restricted noticed an infusion from Buyers such
as CapitalG, LGT, Lightsone, Falcon Edge, A91 Companions and MAJ
Lending continued to be a most popular sub-sector as start-ups such
as Lentra AI (lending platform) and Jai Kisan (an agri-lending
begin up) raised funds.
Wealth administration was one other focus space for buyers.
Mounted-income market GoldenPi, which centered on offering mounted
revenue funding possibility similar to bonds and debentures raised INR
3.5 crores from Rainmatter Capital.
Dice Wealth which is a digital wealth administration firm for
busy professionals raised INR 3.7 crores from Beenext and Asuka
Insure-tech additionally noticed some traction. GramCover Insurance coverage Brokers
raised capital (undisclosed sum) in its pre-Collection A from buyers
similar to EMVC, a US based mostly fund and Omidyar Netwok.
Housing-focused monetary know-how agency HomeCapital acquired
an funding from Varanium Capital.
Sure start-ups additionally noticed funding of larger ticket measurement.
Innoviti which operates a cost centered monetary know-how
firm raised Collection C fund (undisclosed quantity) from buyers
similar to Dutch Improvement bank FMO and Bessemer Enterprise
BankBazaar which is backed by Amazon raised INR 45 crores within the
Collection D spherical of funding. WSV, a three way partnership fund of Walden
Worldwide and Korean Firm SKTA got here in as new investor.
Khatabook raised a major sum in a spherical led by B
LendingKart additionally secured a major funding of INR 319
crores in its Collection D spherical of funding.
The Fintech sector additionally noticed an acquisition with Infibeam Avenues
Ltd (guardian of cost gateway firm CCAvenue) acquired a
Bengaluru based mostly bank card issuing firm- Cardpay Applied sciences Pvt
Ltd. The acquisition was closed at an preliminary consideration of INR
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