Regulatory Aspects
In India, pre-paid payment instruments (PPIs) issued by banks and non-bank entities are regulated by the Reserve Bank of India (RBI) under Payment and Settlement Systems Act, 2007.
1. Eligibility, Capital Requirements and Limits
Banks who comply with the eligibility criteria prescribed by RBI would be permitted to issue all categories of PPIs but only those banks which have been permitted to provide Mobile Banking Transactions by RBI can launch mobile based PPIs (mobile wallets & mobile accounts). Non-Banking Financial Companies (NBFCs) and other persons would be permitted to issue only closed and semi-closed system payment instruments, including mobile phone based PPIs. Only companies incorporated in India will be eligible to apply for authorization.
Banks and NBFCs which comply with the Capital Adequacy requirements prescribed by RBI shall be permitted to issue PPIs. Persons seeking authorization must have a minimum paid-up capital of Rs. 5 Crore and minimum positive net worth of Rs. 1 Crore at all times. Applicant companies having FDI/FII should meet the minimum capital requirement as per Consolidated FDI policy guidelines of Government of India.
In general, the maximum value of any PPIs shall not exceed Rs. 50,000. Transaction limits and monthly caps are also applicable on funds transfers permitted in PPIs under Domestic Money Transfer (DMT) Guidelines.
2. Deployment of Money Collected
In the case of schemes operated by banks, the outstanding balance is classified as part of the ‘net demand and time liabilities’ in order to maintain reserve requirements. Other non-bank persons issuing payment instruments are required to maintain their outstanding balance in an escrow account with any scheduled commercial ...
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... a digital wallet, money is taken out from that escrow account and paid on behalf of the users. However, this model increases the contagion risk as it closely ties the mobile service providers to the banking system and could lead to further instability in the banking-finance system.
Unlike currency notes, mobile based PPIs are not fungible. Complete convertibility among different instruments is complicated and difficult to achieve.
Most mobile based PPIs don’t offer interest rates. This is contrary to the principle of financial inclusion. Moreover, financial inclusion involves much more than mere money transfer. Financial inclusion means access to a complete set of financial services which includes banking, investment, insurance, pension, etc. This is very difficult to achieve through PPI alone as the issuers cannot assume credit risk under the current regulations.
India is considered to be the large market that doesn’t have a strong monetary policy framework. This is one of the main reasons why India mostly faces rise in inflation after the financial crisis.
Suranovic, S. 2012. Finance: Chapter 30-1: Introduction to Purchasing Power Parity (PPP). [online] Available at: http://internationalecon.com/Finance/Fch30/F30-1.php [Accessed: 20 Mar 2014].
Set up by the National Payments Corporation of India (NPCI) in March 2012, RuPay offers various types of cards for banks to provide to their
A big hand amongst them was of Madhavapura Mercantile Co-operative Bank(MMCB). Madhavpura Mercantile Co-operative Bank (MMCB) issued him credit regularly against his overpriced ICE (Information, Communication and Entertainment) stocks. MMCB violated Reserve Bank of India (RBI) regulations by providing Ketan Parekh's companies about Rs.840 crores. Banks such as Global Trust Bank(GTB) and Standard Chartered had also given Ketan Parekh an over-draft facility which he used to recycle funds into the market. SEBI's investigations reveal that, Ketan Parekh had access to near about Rs.2,000 crores of funds, primarily from banks by the end of march 2001. "Ketan Parekh misused the banking system to channelise banking funds into the stock market," the SEBI reports said. MMCB crossed its capital market exposure limits by issuing funds to Ketan Parekh without proper collateral security. MMCB's loans to stock markets were around Rs 10 billion out of which amount lent to Ketan Parekh and his firms were over Rs 8
This paper would analyze the different types of bank guarantee, i.e., conditional and unconditional bank guarantee and would also highlight the differences between general guarantee as defined under Section 126 of the Indian Contract Act, 1872 and a bank guarantee. It would also delve into the discussion about the conditions under which the courts would grant injunctions restraining a bank from enforcing a bank guarantee. Alongside, this paper would also bring to light the significant difference between the Indian law and the common law in relation to the way they deal with injunction of bank guarantee.
To avail the flexi deposit facility one needs to have a savings bank account and a fixed deposit with a bank. The fixed deposit will be linked to the savings bank account. In case there is insufficient fund to clear a cheque from the saving bank account the deficit amount will automatically get transferred from your fixed deposit to the savings bank account.
The branch has filed PL application and its related securities separately, PL application along with related securities to be filed in one file.
Control targets and necessities of PCI DSS . This is a standard security alliance, strategies, development schemas that show diagram, as opposed to the partition of programming, align and different measures to get the cover together .
The nationalization of banks, priority sector lending necessities for banks, cooperative banks, lead bank scheme, establishment of Regional rural banks (RRBs), self-help group-bank etc.The Reserve Bank of India (RBI) take the step to increase access to the poor segments of society. The Reserve Bank of India has ensure accessible financial services and to increase the speed of financial inclusion to set up a high stage committee on October, 2012. The RBI Deputy Governor to be headed by Financial Inclusion Advisory Committee
The growth of technology communication has useful for the human life activities. The technologists have been trying to access this technology for fulfilling the human life requirement so that users can be able to deal without costly, take time and limited spaces. Among of these growths of technology communications, mobile banking is one of the newest innovations for supporting the user with their financial services requirement via mobile and tablet. The mobile users are simultaneously increasing by cell phone diffusion. Nowadays, some mobile users are more than the PC users, so mobile banking has become useful and popular among consumers and the bankers. In this way, it leads to set up the stronger relationship between the
26. Which state government has officially launched Parivartan scheme ? Cleanliness & Pollution Free Drive?
lakhs rupees but does not exceed two crores rupees in case of services concern. A medium
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