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Quantumisation in Fintech !

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The Finance technology has advanced over the few years with developments in various aspects like that in computer processing. There have been a lot of complex problems and challenges dealt by finance industry in bringing out some innovation and one of them is QUANTUM TECHNOLOGY. Quantum computing is a field where computers make use of a quantum-mechanical phenomenon that allows data to be represented as “Qubits”. Now let’s see what exactly is QUANTUM COMPUTING? As mentioned above it is a field which applies theories developed under quantum mechanics to solve problems. It uses Qubits which are not constrained to only binary values 0 and 1 but instead uses a combination of 0 and 1 simultaneously due to their flexible nature. The set of Qubits represents exponentially bigger and more values t...

NASSCOM Fintech Policy Roundtable on MDR and Digital Payment Adoption | 17th January in Mumbai

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Dear Members, Over the last few days, major developments have taken place pertaining to the zero MDR announcement, such as: Businesses with turnover of more than ₹ 50 crore have to mandatorily provide facilities for accepting payments through electronic modes, such as, RuPay debit cards, UPI and UPI QR codes. Section 10A of the Payment, and Settlement Systems Act 2007 when read in conjunction with Section 269SU of the Income-tax Act, 1961, alludes that no bank or system provider shall impose any charge on a payer making payment, or a beneficiary receiving payment, through RuPay debit cards, UPI and UPI QR codes. The MDR reimbursement schemes by MeitY stands closed. We are organizing a roundtable to understand the impact of these policy changes on different stakeholders. Based on the discus...

Policy Brief: RBI permits video-based customer verification to address KYC challenges faced by the fintech industry

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Context On 9 January 2020, in a welcome step, the Reserve Bank of India (RBI) issued a circular to amend the Master Direction on know-your-customer (KYC). The circular enables leveraging of digital channels for Customer Identification Process (CIP) by Regulated Entities (REs). It permits Video based Customer Identification Process (V-CIP) as an alternate method of establishing the customer’s identity, for customer on-boarding. It also highlights the possibility of use of e-KYC facility by fintech companies for verifying customers who voluntarily provide their Aadhaar number. NASSCOM had made several representations to the Department of Revenue, Unique Identification Authority of India (UIDAI), NITI Aayog, Ministry of Electronics & Information Technology (MeitY) and RBI with a request t...

Fintech Update: SEBI’s circular on Aadhaar based e-KYC

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Context On 5 November, the Securities and Exchange Board of India (SEBI) issued a circular on use of e-KYC Authentication facility under section 11A of the Prevention of Money Laundering Act, 2002 by entities in the securities market for resident investors. The circular highlights the process by which SEBI registered intermediaries may also be registered with the Unique Identification Authority of India (UIDAI) as KYC user agency (KUA) or sub-KUAs, in order to use the Aadhaar authentication services. This comes as a major relief for fintech companies regulated by SEBI who were struggling to authenticate their clients using Aadhaar. In February, the Union Cabinet cleared an ordinance to allow use of Aadhaar by banks and telecom companies. This ordinance had no provision for non-banking enti...

Policy roundtable on leveraging regulatory and innovation sandboxes, India Fintech Day , August 29, 2019, Mumbai

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NASSCOM organized  a roundtable on leveraging regulatory and innovation sandboxes at the India Fintech Day, 2019 with an aim to bring representatives from the regulators and industry together to discuss the issues and challenges around leveraging regulatory and innovation sandboxes. The specific takeaways pertaining to sandboxes include, the need for better clarity of sandbox objective, regulatory certainty around the cost undertaken by Fintech companies or start-ups for innovation, clear definition of the goals and metrics for successful testing, address the privacy and security challenges, and the need for speedy approvals and elimination of consent layers so that the innovation can make it to the market quickly after successful testing. Ashish Aggarwal, Senior Director and Head-Public P...

Policy Brief: Highlights of the Steering Committee’s Report on Fintech Related Issues

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Context On 2 September 2019, a Steering Committee headed by Secretary, Department of Economic Affairs (DEA), Ministry of Finance submitted its final report on fintech related issues to the Finance and Corporate Affairs Minister Nirmala Sitharaman. The committee has  recommended setting up of a taskforce on data protection in the financial sector, an inter-ministerial steering committee on fintech applications in government financial processes and applications, ministry-level fintech working group to assess the potential of using GovTech and fintech applications in their ministry/department, setting up virtual banks and reformed KYC processes, among others. The committee was constituted on 5 March, 2018 in pursuance to the announcement made by the then Union Minister of Finance and Corporat...

Fintech Lending – “Unlocking Untapped Potential”

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NASSCOM’s Fintech Lending – “Unlocking Untapped Potential” underlines how Fintech lending market have evolved in recent years. This report focuses entirely on Fintech lending segment under the broader Fintech umbrella. We have traced the evolution of Fintech Lending industry in India while highlighting the key drivers for growth, trends, challenges and opportunities. The report also highlights new business opportunities and key success factors for the Fintech lending industry in India, in addition to identifying bottlenecks faced by the industry, and recommend action steps to unlock the untapped potential of the industry. Key Highlights Fintech Lending Market Overview • Rapidly Growing Fintech Lending Landscape in India • Fundamental Lending Challenges In India Translating To Massive Finte...

Creating a Conducive Ecosystem for the FinTech Sector to Thrive – Part II

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This is the second of a 2-part blog series covering the discussions between BFSI Industry Leaders and Startup Founders under the aegis of NASSCOM’s 10000 Startups initiative. You can view the first part here. The new wave of technologies has encouraged alternate practices driving operational efficiency, reduced manual intervention, heightened automation, etc. In such a scenario, BFSI firms would have to continuously keep rebuilding, reskilling and strategizing just to sustain their business. The BFSI segment has been engaging in Open Innovation programs in a bid to maintain their edge in a more competitive era. Open innovation in BFSI domain: Current status and mandate of engagement with startups Organizations have created necessary connects between startups, ecosystem players (crowdsourci...

Creating a Conducive Ecosystem for the FinTech Sector to Thrive

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Fintech startups form the second largest segment (14% share) in India’s startup space (7,200-7,700 startups). Lending, digital payments and wealth management are the three main focus areas for Fintech startups. Given its growth potential and the deep interest of BFSI players to engage with Fintech startups, NASSCOM through its 10000 Startups initiative, invited BFSI Industry Leaders and Startup Founders for Roundtable discussions led by NASSCOM Industry Partnership Programme (NIPP), to address the disruptions in Fintech and how Open Innovation Practices are driving the future in BFSI segment. These roundtables were held in May 2019 and we present the discussion points in this blog and the next (to be uploaded on Jul 10th). Key reasons for rapid growth in the FinTech sector in India: Entry ...

The Bleeding Edge in Fintech

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Minutes from NTLF 2019 Fintech Round table discussion – Authored by Pari Natarajan, Co-founder and CEO, Zinnov Agenda: FinTech innovations are helping unbanked individuals and small businesses gain access to finance. New applications are enhancing business processes such as clearing and settlement, compliance, risk management and fund administration. Technologies such as blockchain and artificial intelligence are helping financial service firms improve their efficiency and responsiveness to customer needs and much more. What will be the bleeding edge in FinTech over the next 2-3 years and how should we take advantage of this? Discussion Summary:  India’s Fintech ecosystem is in an era of massive scale innovations, creating opportunities for both global and Indian companies to drive i...