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On Thursday, the <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="100" keywordseo="RBI" source="keywords">RBI</keyword>) sought action against four non-banking financial companies (<keyword id="19938300" type="General" weightage="20" keywordseo="NBFCs" source="keywords">NBFCs</keyword>), barring them from making new loan sanctions and disbursements, effective October 21, 2024. A report by <keyword id="19977638" type="General" weightage="20" keywordseo="Morgan-Stanley" source="keywords" meta.keywordsubtype="org" meta.entityname="Morgan Stanley" meta.hostid="261" meta.entityid="Morgan Stanley">Morgan Stanley</keyword> suggests that more lending companies might face similar scrutiny in the coming days. As named by the RBI in its order yesterday, <keyword id="20146314" type="General" weightage="20" keywordseo="Asirvad-Microfinance" source="keywords" meta.keywordsubtype="org" meta.entityname="Asirvad Microfinance" meta.hostid="261" meta.entityid="Asirvad Microfinance">Asirvad Microfinance</keyword>, Arohan Financial Services, DMI Finance, and Navi Finserv failed to adhere to the <keyword id="21471399" type="General" weightage="20" keywordseo="Fair-Practices-Code" source="keywords">Fair Practices Code</keyword> and did not properly assess borrower's income and repayment capacities before disbursing loans, especially when it came to their microfinance loans. Additionally, these companies also resorted to dubious asset classifications and incomplete interest rate and fee disclosures, which in turn led to alarming practices like loan evergreening and more. RBI also found that the weighted average lending rate (WALR) and the interest spread charged over their cost of funds by these NBFCs were over the stipulated norms. Earlier this month, the apex had already issued a stern warning to the NBFC sector, discouraging them from pursuing aggressive loan book expansion at the cost of regulations and fair practices. Per the bank, it would be ideal if NBFCs self-corrected their ways and refrained from giving incentives and fixed targets to their employees for granting loans. As for these four NBFCs, RBI flagged significant deviations with respect to Income Recognition and Asset Classification (IR&amp;AC) norms in their functioning and gross mismanagement of their gold loan portfolios. As RBI noted, these NBFCs had outsourced several of their core financial services as well. The restrictions on these 4 NBFCs will be effective at the close of business as of October 21, 2024. But this will not affect the existing, active loans of the companies. Also, loan collection and recovery processes will also continue in line with existing guidelines. However, Morgan Stanley, in a recent report, has questioned this move, asking whether lending rates alone were the cause for concern by RBI against specified NBFCs or whether broader issues are at play. "Based on an observation of lending rate data collated and presented by MFIN (the industry body for microfinance lenders), we note that Asirvad Microfinance's lending rates are not very different from other lenders," the report said. The report also observes that more regulatory action might follow in the sector, but the intention here was not to shut down new lending by <keyword id="21739781" type="General" weightage="20" keywordseo="microfinance-institutions" source="keywords">microfinance institutions</keyword> and NBFCs entirely. RBI's restrictions will stay in place until these NBFCs show that they have fully aligned their practices with regulatory guidelines. In response, Navi Finserv Limited has noted that it is committed to conducting its business operations with the highest standards of compliance, customer service, and transparency. "The company is reviewing the directions received from the Hon’ble Reserve Bank of India and will work with them and address all the concerns raised with promptness and completeness," it further added.

Reserve Bank may act against more NBFCs to keep obscure lending practices in check, says Morgan Stanley

In a significant move, the <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="100" keywordseo="rbi" source="keywords">RBI</keyword>) has imposed penalties on <keyword id="19952948" type="General" weightage="20" keywordseo="axis-bank" source="keywords">Axis Bank</keyword> and <keyword id="19895995" type="General" weightage="20" keywordseo="hdfc-bank" source="keywords">HDFC Bank</keyword> for lapses in regulatory and statutory compliance. The fines, which amount to a total of ₹2.91 crore, highlight the central bank's ongoing efforts to ensure that financial institutions adhere to prescribed guidelines. The RBI levied a penalty of ₹1.91 crore on Axis Bank for violations that included contraventions of the <keyword id="19976511" type="General" weightage="20" keywordseo="banking-regulation-act" source="keywords">Banking Regulation Act</keyword> and non-compliance with specific RBI directions related to interest rates on deposits, Know Your Customer (KYC) norms, and collateral-free loans for agriculture. Meanwhile, HDFC Bank faced a ₹1 crore fine for failing to comply with directions concerning interest rates, customer service practices, and the use of recovery agents. <h2>Axis Bank: Key regulatory failures</h2>Axis Bank’s penalty stems from a supervisory evaluation conducted by the RBI based on its financial position as of March 31, 2023. Upon reviewing the bank’s activities, the RBI found several areas of non-compliance. One of the primary issues was the opening of savings deposit accounts in the names of ineligible entities, a direct violation of regulatory norms. Additionally, Axis Bank was found to have issued multiple customer identification codes to certain clients instead of assigning a Unique Customer Identification Code (UCIC), which is mandatory to avoid duplication and ensure proper monitoring of accounts. The bank also violated guidelines concerning agricultural loans. RBI regulations prohibit banks from asking for collateral for agricultural loans up to ₹1.60 lakh, but Axis Bank had obtained such collateral in certain cases. Lastly, a wholly-owned subsidiary of Axis Bank was found to be engaged in providing technology services—an activity that is not permissible for a banking company. This contravention added to the overall penalty levied by the central bank. <h2>HDFC Bank: Regulatory shortcomings</h2> In the case of HDFC Bank, the RBI’s investigation was based on its financial position as of March 31, 2022. The central bank uncovered several violations, including the offering of gifts, specifically covering the first-year premium for complimentary life insurance, which exceeded the permissible limit of ₹250. Moreover, HDFC Bank was found to have opened savings accounts in the names of ineligible entities, a violation similar to that of Axis Bank. Another significant failure was the bank’s inability to ensure that customers were not contacted by bank officials outside the permitted time frame of 7 am to 7 pm. <h2>RBI's Stance on Compliance</h2> While the RBI has been stringent in penalising both banks, it clarified that these penalties are based on lapses in regulatory compliance and are not reflective of the validity of any transactions or agreements between the banks and their customers. The central bank’s message is clear—financial institutions must adhere strictly to guidelines to maintain transparency, protect customers, and uphold the integrity of the banking system. The penalties serve as a reminder to all banks to stay vigilant and maintain high standards of compliance to avoid such financial and reputational damage in the future. Both Axis Bank and HDFC Bank have accepted the fines and are expected to take corrective actions to avoid future infractions. For customers, this action from the RBI is a reassurance that regulatory oversight remains a priority to ensure fair banking practices across the country.

RBI slaps fine of Rs 2.91 crore on Axis Bank and HDFC Bank: All details

A bill seeking to provide for four nominees by a bank account holder was introduced in the <keyword id="19895394" type="General" weightage="20" keywordseo="Lok-Sabha" source="keywords" meta.keywordsubtype="org" meta.entityname="Lok Sabha" meta.hostid="153" meta.entityid="Lok Sabha">Lok Sabha</keyword> on Friday to ensure better protection of depositors and enhance customer convenience. Introduced by Minister of State for Finance Pankaj Chaudhary in the Lower House, the Banking Laws (Amendment) Bill, 2024, has a provision for simultaneous and successive nominations to bank accounts, lockers, etc. As per the provision of the bill, a bank account holder can nominate up to four persons. The bill also seeks to transfer of unclaimed dividends, shares, and interest or redemption of bonds to the Investor Education and Protection Fund (IEPF), allowing individuals to claim transfers or refunds from the fund, and thus safeguarding investors' interests. As the banking sector has evolved over the years, and with a view to improving bank governance and investor protection, it has become necessary to make certain amendments to five Acts, according to Statement of Objects and Reasons of the Bill. The Bill, which was approved by the <keyword id="19916620" type="General" weightage="20" keywordseo="Union-Cabinet" source="keywords" meta.keywordsubtype="org" meta.entityname="Union Cabinet" meta.hostid="153" meta.entityid="Union Cabinet">Union Cabinet</keyword> last week, proposes to amend the <keyword id="20824389" type="General" weightage="20" keywordseo="Reserve-Bank-of-India-Act" source="keywords">Reserve Bank of India Act</keyword>, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980. The proposed bill seeks to improve governance standards, provide consistency in reporting by banks to the Reserve Bank of India, ensure better protection for depositors and investors, improve audit quality in public sector banks, bring customer convenience in respect of nominations, and to provide for increase in the tenure of the directors in co-operative banks. Another proposed change relates to redefining 'substantial interest' for directorships, which could increase to Rs 2 crore instead of the current limit of Rs 5 lakh, which was fixed almost six decades ago. Congress member Manish Tewari opposed the introduction of the bill, saying the power to legislate with regard to cooperatives vests with state governments. RSP member N K Premachandran opposed amending five legislations through one bill, while TMC member Saugata Roy termed the bill "superfluous", saying the the amendments proposed in the bill could have been done through administrative decisions. Responding to opposition's remarks, <keyword id="19956758" type="General" weightage="20" keywordseo="Finance-Minister" source="keywords">Finance Minister</keyword> Nirmala Sitharaman said the various amendments done in Banking Regulations Act with respect to <keyword id="20814377" type="General" weightage="20" keywordseo="cooperative-banks" source="keywords">cooperative banks</keyword> are not just one or two but several. "Simple understanding is we are not touching any aspect of the cooperatives other than that which claims under the name of banking...the sections which have been brought in for amendments, as also the court verdicts, have repeatedly reinforced the point that Banking Regulation Act and the Cooperative Banks do have this relationship and therefore it has to be taken through this route," she said. Otherwise, there is no attempt to undermine the cooperatives, particularly cooperatives dealing with everything other than banks, she said defending the Bill. The bill proposes to increase the tenure of directors (excluding the chairman and whole-time director) in cooperative banks from 8 years to 10 years, so as to align with the Constitution (Ninety-Seventh Amendment) Act, 2011. Once passed, the bill would allow a director of a Central Cooperative Bank to serve on the board of a State Cooperative Bank. The bill also seeks to give greater freedom to banks in deciding the remuneration to be paid to statutory auditors. It also seeks to redefine the reporting dates for banks for regulatory compliance to the 15th and last day of every month, instead of the second and fourth Fridays. "What's the rationale behind it? The current reporting Friday system has several limitations that impact the accuracy and effectiveness of the reporting of data. "These limitations are incomplete coverage of monthly data, seasonal fluctuations in banking activity which lead to inconsistent reporting, and the need for adjustment every 11th year which introduces complications and inconsistencies. That is why, in order to address the issue, it is proposed to amend the legislation," she said. The announcement about amendments to the Banking Regulation Act was made by the Finance Minister in the 2023-24 Budget speech. "To improve bank governance and enhance <keyword id="22728161" type="General" weightage="20" keywordseo="investors-protection" source="keywords">investors' protection</keyword>, certain amendments to the Banking Regulation Act, the Banking Companies Act and the Reserve Bank of India Act are proposed," she had said.

Bill to provide up to four nominees to a bank account introduced in Lok Sabha

The <keyword id="6354335" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> (RBI) has imposed <keyword id="512003" type="General" weightage="20" keywordseo="penalties" source="Orion">penalties</keyword> to the tune of Rs 40.39 crore on banks, non-banking financial companies (NBFCs) and other entities for breach of norms during 2022-23, Minister of State for Finance Bhagwat Karad said in a written reply to the Lok Sabha on Monday. As many as 176 of these cases involving fines of Rs 14.04 crore pertained to <keyword id="6554737" type="General" weightage="20" keywordseo="cooperative-banks" source="Orion">cooperative banks</keyword>. <keyword id="141219" type="General" weightage="20" keywordseo="private-sector-banks" source="Orion">Private sector banks</keyword> were fined Rs 12.17 crore while public sector banks (PSBs) were levied penalties of Rs 3.65 crore, foreign banks Rs 4.65 crore, and NBFCs ended paying up Rs 4.39 crore. "RBI has informed that it is mandated to take enforcement action as per Enforcement Policy and Framework approved by the Board for Financial Supervision of RBI, in the form of imposition of monetary penalty on regulated entities for contraventions of different statutes and directions," the Minister stated. The RBI issued guidelines on fair practices code to be adopted by banks, NBFCs, and HFCs and these covered various aspects of lending, he added.

RBI penalties on banks, NBFCs add up to Rs 40.39 crore for 2022-23

Mumbai, RBI Governor <keyword id="6359111" type="General" weightage="20" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> on Monday said the central bank is "not comfortable" with the gross non-performing assets ratio of 8.7 per cent in urban cooperative banks (UCBs) and asked them to work towards improving the same. Addressing directors of UCBs in the financial capital at an RBI-organised conference, Das urged that such lenders should improve the governance standards, avoid related-party transactions and focus on credit risks, among others. It can be noted that the UCB sector has been fraught with multiple challenges and also witnessed difficult times in the recent past, like the implosion of the city-headquartered Punjab and Maharashtra Bank. Das reminded the directors of the UCBs that banks run on depositors and added that protection of the hard-earned money pooled in from the middle class, poor and retirees is far more sacred than going to a temple or a gurdwara. While the overall picture at an aggregate level looks nice, the situation on GNPAs and capital adequacy is "not at all satisfactory", Das said. He said the overall GNPAs have improved to 8.7 per cent, which is "not a good number. It is not a comfortable number even at an aggregate level". Scheduled commercial banks' GNPAs stood at a decadal best level of 3.9 per cent in March 2023 and are widely estimated to improve further. To manage the scourge of <keyword id="127693" type="General" weightage="20" keywordseo="npas" source="Orion">NPAs</keyword> better, Das suggested that there should be a focus on credit risk management with better underwriting. He said the RBI has come across instances of conflicts of interest or related party transactions, which need to be avoided. Similarly, there have been instances of many of the top defaulters being individuals or businesses having the ability to pay, Das said. The top 20 defaulters account for over 60 per cent of the loan overdue, and focusing on this segment can help improve the overall NPAs, he added. On the capital adequacy front, he noted that there has been an improvement in the ratios to 16.6 per cent at the end of FY23 from 15.5 per cent a year ago. Making it clear that he wants to share the RBI's concerns with the lenders, Das exhorted the UCBs to focus on the quality of governance by paying attention to compliance, risk management and internal audit. He said the RBI has come across instances where there is only "paper compliance" and no compliance is observed when an on-field inspection takes place, Das said, adding that the internal audit function also requires focus. The governor asked bank management to present a risk analysis report to the board on a quarterly basis, rather than making it into an annual effort. It is also necessary for the directors - who are elected and not appointed based on their skill sets, unlike the SCBs - to understand the financial sector, credit risk, banking, information technology and risk management, Das said. The <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> has prescribed a board of management to help the elected board members with professional help in running a bank, and the same should not be seen as an impediment, he added. Stressing that the board discussions should be free and fair, Das said it is important to have any dominance of one or two persons in the decision-making. "There should be free, frank and democratic discussions. Board members should be encouraged to ask whatever questions they have on their mind," he said. Das also expressed the RBI's discomfort with board committees like those handling important functions, such as audit and risk not meeting regularly, stating that it has come across instances where such meetings are not held for months or even multiple years. He also asked UCBs to monitor asset-liability mismatches, follow transparent accounting practices and recruit people based on requirements and ability to spend. On the technology front, he said the RBI has found that the quality of the core banking solution is not at all satisfactory in some banks, and the treasury operations are not getting reflected in the CBS. Going ahead, the UCB segment will be facing competition from tech-savvy entities like digital lenders, fintechs, non-bank lenders and micro-lenders, and hence, need to focus more on technology, Das said. The governor said the UCB sector - built to serve as the neighbourhood bank - is "doing well" from an overall perspective, and also made it clear that the RBI is fine with some of the entities in the sector growing big.

Not comfortable with NPAs in urban co-op banks says RBI, asks lenders to focus on governance

New Delhi, The government has permitted <keyword id="19951327" type="General" weightage="20" keywordseo="gst" source="keywords">GST</keyword> Network to share data about GST-registered businesses, based on their consent, with the <keyword id="19922074" type="General" weightage="20" keywordseo="reserve-bank" source="keywords">Reserve Bank</keyword>'s 'Public Tech Platform for Frictionless Credit'. The move will help entities get loans faster on the basis of shared Goods and Services Tax (GST)-related information. The platform, created by the Reserve Bank of India (<keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>) subsidiary Reserve Bank Innovation Hub, is intended to enable seamless flow of necessary information to lenders to help in disbursing credit. In a notification, the Central Board of Indirect Taxes and Customs (CBIC) has said "the Central Government, on the recommendation of the Council, notifies 'Public Tech Platform for Frictionless Credit' as the system with which information may be shared by the common portal based on consent...". The platform has been developed for the operation of a large ecosystem of credit, to ensure access of information from various data sources digitally. The financial service providers and multiple data service providers can converge on the platform using standard and protocol driven architecture, the notification said. Moore Singhi Executive Director <keyword id="19994271" type="General" weightage="20" keywordseo="rajat-mohan" source="keywords">Rajat Mohan</keyword> said with appropriate consent from the supplier/recipient, GSTN is empowered to disclose specific details submitted in the GST registration application, along with data from outward tax returns, monthly and annual tax returns, and invoice preparations. "This arrangement ensures that borrowers cannot withhold any transactional information provided to lenders or the government portal. It enhances credit efficiency by minimising costs and the time required for processing. "Moreover, lenders gain access to authenticated monthly sales and purchase data directly from government-sanctioned sources, allowing for a more accurate and timely assessment of credit risk," <keyword id="19973713" type="General" weightage="20" keywordseo="mohan" source="keywords">Mohan</keyword> said. GST filings will become a crucial factor for businesses seeking to obtain credit and leverage government-sponsored credit programmes in future, Mohan added.

GSTN to share data with RBI's frictionless credit platform

From a cash-reliant nation to a digital-first economy, India's payment landscape has undergone a massive transformation thanks to QR and digital payments pioneer <keyword id="6357120" type="General" weightage="100" keywordseo="paytm" source="Orion">Paytm</keyword>'s range of innovative products tailored to meet the needs of Indian consumers and merchants. The results of Paytm's pioneering work speak for themselves. In fact, OCL’s associate Paytm Payments Bank is a leader in <keyword id="6358921" type="General" weightage="20" keywordseo="upi" source="Orion">UPI</keyword> P2M payments, as the largest acquiring and beneficiary bank. Its revolutionary solutions have transformed India's payments and commerce landscape, making <keyword id="2970472" type="General" weightage="20" keywordseo="digital-transactions" source="Orion">digital transactions</keyword> accessible across the length and breadth of the country. Paytm Wallet, launched in 2014, was widely adopted by those making digital and mobile payments for the first time. The Vijay Shekhar Sharma-led company’s trailblazing spirit continued with the launch of its QR payment system in 2015. This solution was a massive win for merchants, especially small shopkeepers, who could accept digital payments at zero upfront costs, without requiring an internet connection or a POS machine. Paytm recognized the need for a payment solution that would be affordable, easy to use, and safe for both retailers and consumers. As a pioneer in the digital payments space, Paytm developed the QR code-based payment method for brick-and-mortar stores, becoming the first company to introduce this groundbreaking technology to in-store merchants throughout India. Paytm's product readiness and scalable platform helped accelerate the adoption of QR codes among merchants when the Indian government announced demonetisation in 2016. The company’s QR code solution was enhanced in January 2020 with the All-in-One QR, which became the sole source QR code for merchants to accept payments from Paytm Payment Instruments, third-party sources, and all UPI instruments. <div type="image" title="1200x900-a" msid="98124799" hostid="261" sizebytes="17044" caption="&amp;lt;p&amp;gt;UPI ecosystem&amp;lt;/p&amp;gt;"></div> In recent years, Paytm UPI has driven India's transition to non-cash payments for both P2P fund transfers and merchant payments. Paytm UPI has been driving the country's digital transaction volumes in recent years, and the company’s rapid deployment of low-cost QR codes has brought underpenetrated merchant segments that once preferred cash-based payments into the digital payments fold. During the Q3 FY 2023 earnings call, Paytm Founder and CEO Vijay Shekhar Sharma said that the company's focus on merchant payments has created a scalable UPI revenue model in subscription. “I feel highly positive and inspired by the adoption of our device business, especially Soundbox which has led to significant scale in UPI acquiring,” he said. The company has built a merchant network of over 30 million businesses spread across 450 cities and towns, and it plans to expand this to about 1,000 towns over the next two to three years. Today, more merchants use Paytm's QR codes compared to any other payments company in India. But Paytm's innovation didn't stop there. In 2020, the company launched its Soundbox, a state-of-the-art payment acceptance device that uses IoT technology to provide real-time audio confirmation for payment completion, ensuring a seamless payment experience for customers and merchants alike. Today, Paytm Soundbox is seen in every merchant’s shop and has become an industry standard where every other fintech company is hopping on the Soundbox bandwagon. The fintech giant continues to strengthen its market leadership in offline devices, with the number of merchants paying subscriptions for payment devices like Paytm Soundbox and POS reaching 6.1 million at the end of January 2023, an increase of 0.3 million in the month. Paytm's success in revolutionizing digital payments in India has made it one of the most innovative and impactful companies in the fintech industry. With its wide range of payment options and payment devices, Paytm has made it easy for millions of Indian consumers and merchants to transition to a cashless economy. Building on this success, Paytm is now also leading the charge in digital lending, offering convenient loans to people and businesses across the country. Disclaimer: This article is generated and published by the Insider Studios team. You can get in touch with them on insiderstudios@businessinsider.in

How fintech leader Paytm revolutionised QR and took UPI to every nook & corner of India

<ul><li><keyword id="501707" type="ORGANIZATION" weightage="20" keywordseo="PV-Sindhu">PV Sindhu</keyword> and her agency Baseline Ventures is taking over 20 brands to court for using her image and name for moment-marketing, without her consent or proper permissions.</li><li>The agency is seeking damages of Rs 5 crore from each of the brands.</li><li>In wake of the incident, we speak to experts to understand how brands can be careful and avoid such legal complications when using <keyword id="6813822" type="UNKNOWN" weightage="20" keywordseo="Moment-Marketing">moment marketing</keyword> as a strategy.</li></ul>Last week, ace shuttler made the country proud by becoming the first Indian woman to win two Olympic medals. The country came together to congratulate her on her historic achievement and brands joined in, as much to congratulate her as to ride on the trend that Sindhu had created with her win. However, Sindhu is now said to be exploring legal options to take a lot of these brands to court, for using her name and image for their marketing purposes without proper authorization. In the past few years, we have seen many brands build their social presence with the help of moment marketing. We have seen brands jump in on topical conversations with their own take on something that is trending. In doing so, they have many-a-times, used individuals and their names to make the most of the trending moment. The benefits are obvious, while coming up with content that many relate with, they are also able to become a part of the conversation, making it easier for them to grab eyeballs and become a part of the conversation. However, with Sindhu taking an objection to the way her name has been used by brand, there is a chance that brands will become more careful about how they use a public personality's image or name in their content. Sindhu, who is managed by sports marketing agency Baseline Ventures, is reportedly seeking damages worth Rs 5 crore from brands that have used her name and images without her consent. Speaking on what is wrong with the way these brands have handled things, Yashwanth Biyyala, Director - Talent and Partnerships, Baseline Ventures said, “The fact that these brands used PV Sindhu’s images and name on their posts is a clear infringement on the player’s privacy. Moreover, they are also clearly flouting the norms of the International Olympic Committee (IOC), that has put together clear guidelines around advertising during the tournament. In fact there was a blackout period between July 13 (when the Olympic Village opens) and August 10 (two days after the Closing Ceremony) when even brands that sponsor the player are not allowed to post about them. Only IOC and the Indian Olympic Association (IOA) partners are allowed to post about the players.” In total, Baseline Ventures is taking close to 20 brands to court for flouting the rules, out of which legal notices have already been sent to 15. The brands that have already been sent notices include Happydent (Perfetti Van Melle), Pan Bahar, Eureka Forbes, ICICI Bank, HDFC Bank, Vodafone Idea, MG Motor, UCO Bank, Punjab National Bank, <keyword id="6354731" type="UNKNOWN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword>, Kotak Mahindra Bank, Fino Payments Bank, Bank of Maharashtra, Indian Bank and <keyword id="5998660" type="UNKNOWN" weightage="20" keywordseo="Wipro-Lighting">Wipro Lighting</keyword>. Over the years, we have seen many brands build a huge social media following on the back of moment marketing. In fact, Amul is one brand that has garnered immense love for their take on almost everything topical. Amongst new-age brands, we have seen the likes of Dunzo and Zomato churn out relatable, topical content time and again. So following this incident, will agencies need to be doubly careful about how they go about communicating on topical issues, when using the names and images of individuals? Sharing his view on the development, <keyword id="244384" type="PERSON" weightage="20" keywordseo="Lloyd-Mathias">Lloyd Mathias</keyword>, Business Strategist and former Marketing Head of HP Asia, Motorola and PepsiCo India said, “Moment marketing is fantastic in itself and brands that have their own take on topical issues do get consumers attention. However, when a brand uses a specific individual and his/her achievements to gain commercial mileage without prior permission or getting into a contract with that individual, then it is unfair. Brands should display more maturity and seek permission from athletes or their agents before using them overtly or covertly.Most Indian sportspersons outside cricket could benefit from a brand association that may provide them support – that could be monetary, or in terms of exposure or facilities.” To ensure brands do not infringe upon the privacy of celebrities, the <keyword id="120108" type="ORGANIZATION" weightage="20" keywordseo="Advertising-Standards-Council-of-India">Advertising Standards Council of India</keyword> (ASCI) already has a code in place. The code says "Advertisements shall not, without permission from the person, firm or institution under reference, contain any reference to such person, which confers and unjustified advantage on the product advertised or tends to bring the person, firm or institute into ridicule or disrepute. If and when required to do so by ASCI, the advertiser and the advertising agency shall produce explicit permission from the person, firm or institution to which reference is made in the advertisement," and ads that do not comply with this requirement may be in violation of the ASCI Code. On how brands need to tread in situations like the current one, Manisha Kapoor, Secretary-General, ASCI said, “Brands need to be careful and calibrated about everything that goes into an ad, right from the visuals, the words, and the implication of their messaging. Advertisements are made with high involvement of strategic and creative resources, and it goes without saying that they must pay keen attention to aspects that can be challenged.” Moment marketing is all about coming up with relatable posts when something is making news and reaping the benefits of joining the trend. Agencies usually have very less time in which to churn out content that is relatable and shareable, which is possibly why a few miss out on checking on the legal aspects of putting up such posts. However, in the wake of this incident, agencies will need to be doubly careful, said <keyword id="11806503" type="UNKNOWN" weightage="20" keywordseo="Rajni-Daswani">Rajni Daswani</keyword>, Director – Brand Experience, So Cheers. On how agencies can avoid getting into trouble, Daswani said, “Agencies should definitely educated themselves on what they are and aren’t allowed to do because if they are providing that service to their clients, it is their responsibility to cross checking at their end. Secondly, brands can simply be creative without using individual names, image .You want to be a part of the moment, but you also don't want to get stuck into the legal implications. There are a lot of creative, indirect ways to do it and the internet is full of people who understand such indirect references.” Sharing a similar thought, Manesh Swamy, Sr VP - Creative, Social, PR, Marcom, <keyword id="3900173" type="PERSON" weightage="20" keywordseo="Logicserve-Digital">Logicserve Digital</keyword> said, “The IPLs and the World Cups have stricter copyright laws and hence you don't see pictures of cricketers but victory silhouette poses in branded posts. The Golds and Silvers are still rare for us, so people and brands go a little overboard genuinely to celebrate the Olympic feat. If the brand is just celebrating these small moments of joy without selling anything, I guess it shouldn't be harmful. To ace moment marketing considering the current situation, the best move would be to do surrogate advertising and play with the essence of the moment.” On what could be a simpler way of getting around issues like this while also being a part of the moment, Sushant Vithaldas - Head of Business, Schbang Bengaluru said, "For the larger audience of viewers and consumers, it’s very difficult to distinguish between a direct association and a congratulatory post or show of support by a brand. Significant progress is being made in the way influencers endorse a product with callouts for “#PaidPartnerships” or #Ad. A simple fix like this that carries the words “#MomentMarketing” on such posts is a far more easier way to address the issue and let brands and marketeers celebrate the moment in its true spirit." So can this incident lead to the way moment marketing is done in the future? Sanjay Mehta, Joint CEO of Mirum India said, “For the time being, since ASCI has come down heavily on brands that used these stars without permission, other brands will be sensitive to this idea, and won't use any names if they don't have the rights. Just like brands have got tuned to not abuse the IPL property and the cricketers' rights and privileges. Considering that these non-cricket sports and the sportspeople do not get much visibility ordinarily, these controls will unfortunately, make them even less visible, and brands will not err to the side of caution. They may not even mention a wrestling hero or a woman golfer, for not knowing if they have any other brand engagements and could create conflicts! Moment marketing around events of this kind, will get constrained and may be limited to acknowledging the sport and not the star. These are challenging new areas to tread on, in the digital age, and reforms to these rules, so that guidelines have a reasonable balance, will emerge, ultimately.”

As PV Sindhu takes 20 brands to court for using her name and image without permission, here's how agencies and brands can be careful with moment-marketing in the future

<ul><li><keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword> governor <keyword id="6359111" type="General" weightage="20" keywordseo="shaktikanta-das" source="Orion">Shaktikanta Das</keyword> has been one of the most vocal opposers of <keyword id="2721952" type="General" weightage="20" keywordseo="crypto" source="Orion">crypto</keyword> in <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword>.</li><li>Das said that the central bank has major concerns about cryptocurrencies and how it might affect the country’s financial stability.</li><li>80% of India’s crypto accounts are worth ₹1000 to ₹2000, according to him.</li></ul>The governor of India’s central bank, the Reserve Bank of India (RBI), Shaktikanta Das, isn’t a fan of cryptocurrencies. And, he’s making no secret of it. He once again recommended caution amid voicing his concerns about the proliferation of crypto in India. “I would only like to say that when the RBI as the central bank of the country, which is entrusted with the responsibility of maintaining financial stability, after due internal deliberation says that there are serious concerns on macro-economic and financial stability, there are deeper issues. I’m yet to see serious, well-informed discussion in the public space on these issues,” he said while <a href="https://indianexpress.com/article/business/banking-and-finance/crypto-currency-rbi-chief-shaktikanta-das-asserts-caution-not-enough-debate-7626458/">speaking</a> at an online event by the State Bank of India (<keyword id="13222" type="General" weightage="20" keywordseo="sbi" source="Orion">SBI</keyword>). Das’ comments came less than a week after Prime Minister Narendra Modi chaired a meeting on cryptocurrency regulation in India, which was followed by another Parliamentary Committee meeting with crypto exchanges and stakeholders. However, this isn’t the first time the central bank chief has voiced his concerns about cryptocurrencies. <cmsannotation type="cmsannotation" annotationid="wazirx" comment="wazirx" text="wazirx">wazirx</cmsannotation> <cmsannotation type="cmsannotation" annotationid="India’s central bank isn’t on board with the cryptocurrency hype" comment="subhead" text="India’s central bank isn’t on board with the cryptocurrency hype">India’s central bank isn’t on board with the cryptocurrency hype</cmsannotation> Last week, Das said that cryptocurrencies are a “serious concern” for India’s central bank. “The government is actively looking at the issue and will decide on it. But as the central banker, we have serious concerns about it, and we have flagged it many times,” he said, while speaking at a conference organised by Business Standard. At the SBI conference, Das said that 80% of crypto accounts in India are small accounts, worth ₹1,000 and ₹2,000, which puts into perspective the burgeoning numbers of crypto users in the country, shared by some reports. Nishcal Shetty, founder of WazirX had earlier <a href="https://twitter.com/NischalShetty/status/1452988229528047619?s=20">said</a> that the country has about two crore crypto users. Das’ commentary on cryptocurrencies has been in stark contrast to the general growth of both crypto and the decentralized finance (DeFi) space in India. The country has generated two unicorns — Coinswitch and CoinDCX — in the short span of less than six months, while the native token of WazirX, called WRX, had hit a billion dollar valuation back in March this year. “Cryptocurrencies are a serious concern to RBI from a macroeconomic and financial stability standpoint. The government is actively looking at the issue and will decide on it. But as the central banker, we have serious concerns about it and we have flagged it many times," Das <a href="https://www.livemint.com/politics/policy/parliamentary-panel-explores-cryptofinancing-opportunities-11637002316400.html">said</a> at an event on November 9. Das isn’t the only voice against the industry either. “The question is, how do you legalize 8,000-9,000 headless chickens running around the internet? Legalising cryptocurrencies would be like legalising trolls on social media," a person from the Parliamentary Committee, which met with crypto stakeholders earlier this week, told Mint. The Indian government has been working on regulations on cryptocurrency for over two years now. The RBI had imposed a blanket ban on cryptocurrencies in India back in 2018, which was struck down by the country’s Supreme Court last year. Since then, India has amassed crores of new users. A crypto bill is expected to be tabled during the Winter session of the Parliament, though stakeholders have said that it’s unclear whether the government will take more time. <a href="https://forum.businessinsider.in/">For a more in-depth discussion, come on over to Business Insider Cryptosphere</a> — a forum where users can deep dive into all things crypto, engage in interesting discussions and stay ahead of the curve. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/metaverse-etfs-are-booming-in-south-korea-amid-retail-trader-demand/articleshow/87765323.cms">Metaverse ETFs are booming in South Korea amid retail trader demand</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/bitcoins-failed-breakout-means-it-could-fall-an-additional-12-if-it-drops-below-key-58000-support-level-technical-analyst-says/articleshow/87768189.cms">Bitcoin's failed breakout means it could fall an additional 12% if it drops below key $58,000 support level, technical analyst says</a>

India is trying to regulate cryptocurrencies — but not everyone is on board, including the RBI governor

Issues related to crypto assets require immediate attention and the response of the G20 has to ensure that they do not lose any potential benefits while protecting economies from harm, Union Finance Minister <keyword id="129243" type="General" weightage="50" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> has said. <keyword id="679937" type="General" weightage="100" keywordseo="sitharaman" source="Orion">Sitharaman</keyword> was part of a brainstorming session on "Macrofinancial Implications of Crypto Assets" with G20 finance ministers and central bank governors at the IMF's headquarters here on Friday. India currently holds the rotating annual presidency of G20 countries. Issues related to crypto have emerged as a major point of discussion among G20 countries and there is unanimity among member nations about the urgency to regulate this sector. The brainstorming session was attended by global experts on this issue. In her remarks, Sitharaman said the G20 acknowledges the work of the International Monetary Fund (IMF) and the <keyword id="112428" type="General" weightage="80" keywordseo="financial-stability-board" source="Orion">Financial Stability Board</keyword> (FSB) in bringing out key elements of policy and regulatory framework. She also said a synthesis paper, which would integrate macroeconomic and regulatory perspectives of crypto assets, is required. The minister noted that there was consensus among G20 members to have a globally coordinated policy response on crypto assets that takes into consideration the full range of risks, including those specific to emerging markets and developing economies. Earlier this week, Sitharaman had said that India's G20 Presidency aims to develop a common framework for all countries to deal with risks associated with cryptocurrencies in the wake of the recent shocks witnessed in the crypto market. The last year episode of FTX's bankruptcy, and its spat with Binance triggered a huge sell-off in the market and reduced liquidity. This event made the world realise the vulnerability of this asset class as they do not have any underlying value. "Cryptocurrencies are a very important part of the discussion under the #G20India presidency, given so many collapses and shocks in cryptocurrencies. We seek to develop a common framework for all countries to deal with this matter," she had said at a discussion at Peterson Institute for International Economics here. According to the chair's summary released at the end of the two-day meeting of the first Finance Ministers and Central Bank Governors (FMCBG) held in February, the grouping will be looking forward to the IMF-FSB Synthesis Paper on crypto assets. "I am glad to say one thing: there is almost a clear understanding that anything outside the central bank is not a currency. And this is a position that India has been taking for a very long time and we are glad that such a position of India is now also getting acknowledgement from so many different members. People recognise that the technology is very useful for fintech," she had said after the conclusion of FMCBG. Further, in July, the FSB's paper on crypto assets regulation will be tabled so that it could be discussed at the next meeting of the finance ministers and central bank governors. The International Monetary Fund-Financial Stability Board (IMF-FSB) synthesis paper will be submitted in September, she added. Despite the rapid evolution of the crypto universe, there is no comprehensive global policy framework for crypto assets. Given the concerns over greater interconnectedness between crypto assets and the traditional financial sector as well as the complexity and volatility around crypto assets, policymakers are calling for tighter regulation. The global standard-setting bodies, such as the Financial Action Task Force (FATF), Financial Stability Board (FSB), Committee on Payments and Market Infrastructures (CPMI), International Organization of Securities Commissions (IOSCO) and Basel Committee on Banking Supervision (BCBS), have been coordinating the regulatory agenda while working within their respective institutional mandates. India hopes to broaden the G20 discussion on crypto assets beyond financial integrity concerns and capture the macroeconomic implications and widespread crypto adoption in the economy. This will require a data-based and informed approach to the global challenges and opportunities of crypto assets, allowing G20 members to shape a coordinated and comprehensive policy response. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/ather-finally-focuses-on-affordable-electric-scooters-after-losing-its-lead-to-ola-electric-and-tvs-motor/articleshow/99456189.cms">Ather finally focuses on affordable electric scooters after losing its lead to Ola Electric and TVS Motor</a> <a href="https://www.businessinsider.in/tech/news/17-of-people-store-financial-information-on-their-smartphones/articleshow/99426637.cms">Despite a rise in financial frauds, 17% of people store financial information on their smartphones</a> <a href="https://www.businessinsider.in/tech/news/most-common-passwords-can-be-easily-cracked-by-ai-in-under-a-minute/articleshow/99379900.cms">AI chatbots are cracking the code: How PassGAN can break into 51% of common passwords in under a minute</a>

Crypto issue requires immediate attention, says FM Sitharaman

Andhra Bank, Punjab and <keyword id="149809" type="COMPANY" weightage="20" keywordseo="Sind-Bank">Sind Bank</keyword> and <keyword id="6361176" type="CITY" weightage="20" keywordseo="State-Bank">State Bank</keyword> of No matter whether the banks got a logo makeover or looks chic inside, not a single public service bank has secured a position in Top 10 chart of service standards, as shown by the <keyword id="414760" type="ORGANIZATION" weightage="20" keywordseo="Banking-Codes-and-Standards-Board-of-India">Banking Codes and Standards Board of India</keyword> (BCSBI). And the ones coming in the top 5 are RBL Bank, Standard Chartered Bank, Yes Bank, Citibank and HSBC. Punjab National Bank, State Bank of Bikaner and Jaipur, Andhra Bank, Punjab and Sind Bank and <keyword id="4376212" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Patiala">State Bank of Patiala</keyword> have hit the lowest position. The BCSBI - a body set up by the Reserve Bank of India (RBI) - is a society of banks that prescribes minimum service standards for lenders. By promising adherence to the codes, banks spell out the minimum service standards customers can expect. According to <keyword id="6474066" type="COMPANY" weightage="20" keywordseo="economic-times">Economic Times</keyword> report, the survey was conducted using five parameters - information dissemination, transparency, grievance redressal, customer centricity and customer feedback. Banks have been ranked in each of the parameters and an overall rank has been provided. When compared to the last such survey in 2015, both public sector and private sector banks have seen their score drop across all parameters, except grievance redressal. Foreign banks have improved their performance on transparency, customer feedback and customer centricity. Andhra Bank, Punjab and Sind Bank and State Bank of No matter whether the banks got a logo makeover or looks chic inside, not a single public service bank has secured a position in Top 10 chart of service standards, as shown by the Banking Codes and Standards Board of India (BCSBI). And the ones coming in the top 5 are RBL Bank, Standard Chartered Bank, Yes Bank, Citibank and HSBC. Punjab National Bank, State Bank of Bikaner and Jaipur, Andhra Bank, Punjab and Sind Bank and State Bank of Patiala have hit the lowest position. The BCSBI - a body set up by the Reserve Bank of India (RBI) - is a society of banks that prescribes minimum service standards for lenders. By promising adherence to the codes, banks spell out the minimum service standards customers can expect. According to Economic Times report, the survey was conducted using five parameters - information dissemination, transparency, grievance redressal, customer centricity and customer feedback. Banks have been ranked in each of the parameters and an overall rank has been provided. When compared to the last such survey in 2015, both public sector and private sector banks have seen their score drop across all parameters, except grievance redressal. Foreign banks have improved their performance on transparency, customer feedback and customer centricity.

These government banks have the worst service record, according to RBI approved body

Scheduled commercial banks have written off loans amounting to Rs 10,09,511 crore in the last five financial years and the process of recovery of dues from the borrowers continues, <keyword id="309842" type="General" weightage="50" keywordseo="union-finance" source="Orion">Union Finance</keyword> Minister <keyword id="129243" type="General" weightage="50" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> informed the <keyword id="6355187" type="General" weightage="50" keywordseo="lok-sabha" source="Orion">Lok Sabha</keyword> on Monday. <keyword id="679937" type="General" weightage="100" keywordseo="sitharaman" source="Orion">Sitharaman</keyword> said recovery in NPA (non-performing asset) accounts, including written-off loans, was an ongoing process. According to <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword> (<keyword id="30067" type="General" weightage="80" keywordseo="rbi" source="Orion">RBI</keyword>) data, public sector banks have recovered Rs 4,80,111 crore, including Rs 1,03,045 crore from written-off loans, during the last five financial years, she said. "As per inputs received from the RBI, scheduled commercial banks have written off an amount of Rs 10,09,511 crore during the last five financial years," Sitharaman said during Question Hour. The borrowers of written-off loans continue to be liable for repayment and the process of recovery of dues from the borrower in written-off loan accounts continues, she added. Banks continue to pursue recovery actions initiated in written-off accounts through various recovery mechanisms available, Sitharaman added. The actions include filing a suit in civil courts or in Debts Recovery Tribunals, action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, filing of cases in the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, through negotiated settlement and compromise and sale of NPAs. "Therefore, write-off does not benefit the borrowers," she said. The minister said according to RBI guidelines and policy approved by banks' boards, NPAs, including those in respect of which full provisioning had been made on completion of four years, were removed from the balance sheet of the bank concerned by way of the write-off. Banks evaluate and consider the impact of write-offs as part of their regular exercise to clean up their balance sheet, avail of tax benefits and optimise capital, in accordance with RBI guidelines and policies approved by their boards, she said. Replying to a question, Sitharaman said the process of retrieving money of small depositors and investors from loan defaulters was very complicated as the legal process was lengthy and there were multiple claimants to the seized assets that included banks and other financial institutions. The minister said she was aware of the depositors undergoing extreme difficulties and there was a need to look into the issue and how to simplify the process. Earlier, Minister of State for Finance Bhagwat <keyword id="12139871" type="General" weightage="50" keywordseo="kishanrao-karad" source="Orion">Kishanrao Karad</keyword> said the names of loan defaulters were not disclosed due to RBI guidelines but their names could be disclosed once their assets were put up for auction. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/ipos-pick-up-steam-in-last-three-months-of-2022-strong-pipeline-likely-to-propel-listings-in-2023/articleshow/96325621.cms">IPOs pick up steam in last three months of 2022 – Strong pipeline likely to propel listings in 2023</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/idfc-first-bank-announces-zero-free-banking-on-savings-accounts/articleshow/96334786.cms">IDFC First Bank announces zero-free banking on savings accounts</a>

You Searched For "Banking Codes and Standards Board of India" and got 12 results

Reserve Bank may act against more NBFCs to keep obscure lending practices in check, says Morgan Stanley

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RBI slaps fine of Rs 2.91 crore on Axis Bank and HDFC Bank: All details

BI India Bureau

Bill to provide up to four nominees to a bank account introduced in Lok Sabha

PTI

RBI penalties on banks, NBFCs add up to Rs 40.39 crore for 2022-23

IANS

Not comfortable with NPAs in urban co-op banks says RBI, asks lenders to focus on governance

PTI

GSTN to share data with RBI's frictionless credit platform

PTI

How fintech leader Paytm revolutionised QR and took UPI to every nook & corner of India

Insider Studios

As PV Sindhu takes 20 brands to court for using her name and image without permission, here's how agencies and brands can be careful with moment-marketing in the future

Samarpita Banerjee

India is trying to regulate cryptocurrencies — but not everyone is on board, including the RBI governor

BI India Bureau

Crypto issue requires immediate attention, says FM Sitharaman

PTI

These government banks have the worst service record, according to RBI approved body

BI India Bureau

Loans worth ₹10,09,511 crores written off in last five financial years: Sitharaman

PTI

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