IDBI Intech and Yotta had partnered to offer i-Reconciliation and i-Anti-Money Laundering apps under ‘Compliance as-a-Service’ umbrella. The services on Yotta’s Cloud would check regulatory compliance mandated by RBI keeping it cost-effective for the banks, insurance and NBFCs firms. i- AML would identify and combat various money laundering risks and i-Recon would address the challenges of scalability, transaction volume, speed, and accuracy.
Tag: RBI (page 1 of 1)
The RBI will start using supervisory technology and RegTech — a fintech subset that uses tech to scale up supervision — to match the pace with entities it regulates. The central bank will soon come out with broad guidelines for the use and adoption of new tools. Bodies regulated by the RBI use new tech tools like AI, ML, big data analysis for KYC and asset-liability management purposes, regulatory reporting and management information system, etc.
Cryptocurrency exchange startup Unocoin is close to finalising its Series A funding round, targeted at $5M. The round, thus far, saw participation from Tim Draper’s Draper Associates, XBTO Ventures and 2020 Ventures, raising Unocoin’s valuation to $20M. Following the lifting of the RBI’s ban on digital asset trading, Unocoin’s latest fundraise will bolster its continued growth in India. Unocoin has previously raised over $3M from a range of reputable investors.
In 2019, RBI reported that losses due to banking frauds have grown by 73.8%. AI-backed robo advisory services have a lot of potential in fraud detection and prevention. Many banks in India have already launched fraud detection robo advisory services for investments. RBI also recently proposed the Positive Pay System for cheque truncation system to prevent frauds in high value cheques. AI is faster, accurate and reduces dependence on humans.
The RBI came out with a 5-pillared strategic approach ‘GUARD’ to deal with cybersecurity threats faced by UCBs. GUARD comprises Governance Oversight, Utile Technology Investment, Appropriate Regulation and Supervision, Robust Collaboration and Developing necessary IT and cybersecurity skills set. RBI plans to develop a forum for UCBs to share, discuss best practices, practical issues and challenges, creating a framework for providing awareness/training.
An RBI official said on Monday that the bank is setting up an innovation hub, focussing on future tech in the financial service space. They expect tech firms, financial entities, academic entities etc to interact on this hub and start the entire process from ideation to creation of projects. RBI has also released a framework for setting up umbrella entities for operating pan-India retail payments systems.
The GOI is mulling a law that’d ban cryptocurrencies’ usage in India. Reportedly, the finance ministry has already initiated inter-ministerial consultations. Cryptocurrency usage in India, during the lockdown, rose 10X for local exchangers whereas 545% for global ones; new users rose a humongous 4100%. In 2018, RBI prohibited financial institutions from providing cryptocurrency-related services as it lacked govt stamp. It was changed in March this year.
Bank-based loans are replaced by apps. Structured paperwork, restricted loan accessibility for small consumers, marginalised sections resulted in its unpopularity. Fintech enables hassle-free loans to almost everyone. Supported by RBI, fintech is expected to grow $100 B by 2023. Documentation, verification details etc are maintained by AI. Amid excessive use of digital payments, app-based money lending, digital literacy campaigns are essential.