The payments revolution in India is not anywhere near finished, but the next stage is likely to play out at a steadier, almost cautious, pace under the regulator’s watchful eye.

The author explores the issue of free rider problem, placing the onus on payment aggregators. It concludes by comparing the Indian model with global policies, highlighting how other jurisdictions have introduced differentiated fees for public digital goods, which usually charges large business alongside keeping small retailers free.

The country’s policies for financial liberalization are not based entirely on ideology anymore; they depend on the situation and are carefully planned. How the RBI allows foreign banks to be involved evidences the growth and maturity of the financial system. It is putting in place a filter to invite foreign money if it follows the country’s financial rules, encourages more trust in national politics, and matches what the nation aims to achieve.

As India is witnessing the rapid expansion of digital lending in its financial sector, it becomes increasingly important to redefine its regulatory framework accordingly. While the use of AI models and ML in credit risk assessment helps in improving the overall efficiency and scalability, the challenges like AI-bias, data protection, and lack of transparency call for prompt intervention. 

The Draft Directions mark a welcome evolution from the prohibitive regime of 2023. By introducing proportionality, excluding hybrid instruments and exempts REs from compliance requirements where their exposure to an AIF scheme is limited to 5%, RBI has made significant attempt to balance systemic concerns with market growth.

In light of the emerging complexities and a consequent need for a designated framework to tackle the failure of banks, India must move beyond ad-hoc mechanisms and create a proactive and accountable framework.

It is a need of an hour for India to tailor certain reforms, like easing lending restrictions for IBC-approved assets, permitting controlled use of target collateral, creating special IPO windows, and expanding high-yield debt options, would allow the Indian market to benefit from LBOs, alongside also being cautious. 

This blog analyses the merger process under the new rules while comparing it with the process under older regulations,

The author discusses the Banking Laws (Amendment) Bill 2024 and analyses its impact on the banking operations in the country.

The Banking Laws (Amendment) Bill 2024 is potentially a move towards modernizing India’s banking industry.

RBI’s reclassification framework is a policy statement that India is evolving toward a more balanced approach to foreign investment.

MCA streamlines and simplifies the regulatory framework for transnational mergers.

The RBI has taken steps towards creating a safer OTC market in compliance with most BCBS-IOSCO principles and ISDA practices.

The author evaluates the consequences of the amendments for the P2P sector from both legal and market viewpoints.

The Directions were established to encompass the entire lifecycle of a project, from design through to operation.

Securitization's success hinges on the clear classification of asset transfers as true sales.

For model review, RBI has to ensure that these models are robust and reliable, and they comply with the existing regulatory standards.

This article compares RBI’s direction against PPBL with SEBI’s balanced approach.

[Simran and Nidhi are students at National Law University Jodhpur.] In the recent case of Gstaad Hotels Private Limited v. Union of...

The future of fintech in India depends on finding a careful balance between regulation and innovation.

RBI’s move comes at a time when AIFs are gaining steam in India, with the primary source of capital being sourced from regulated entities.

The draft directions signal a transformative moment for India’s fixed-income landscape, with opportunities like improved risk managemet.

RBI’s new-year gift for regulated entities aims to address the critical issue of the rising evergreening of loans through AIFs.

There is an urgent need on the part of the regulators to assess the nuanced impact of the circular on the AIF industry in general.