"The digital acquisition of customers will be adversely impacted but the reputational impact is surprising since Kotak is considered to be a conservative bank with good processes and systems in place," said Kaitav Shah, banking analyst, Anand Rathi Brokerage.
The Mumbai-based Infina Finance donated electoral bonds worth Rs 60 crore to the Bharatiya Janata Party (BJP). The NBFC firm purchased these bonds in the denomination of Rs 1 crore in 2019, 2020 and 2021, according to the data given by the State Bank of India (SBI) to the Election Commission. The data was made public last month.
Finance Minister Nirmala Sitharaman emphasizes the need for strict compliance to regulations in the fintech sector. She assures that the sector is a key priority and steps have been taken to nurture the ecosystem. Read more.
Union Minister Rajeev Chandrasekhar emphasized the importance of regulatory compliance for fintech firms in light of the Paytm Payments Bank (PPBL) crisis. While addressing the PPBL issue, he noted that the Reserve Bank of India's action has drawn attention to the necessity of complying with regulations in the fintech industry, emphasizing that no company can escape consequences if non-compliant with the law.
India Business News: Union Minister of state for electronics and IT Rajeev Chandrasekhar highlighted the importance of regulatory compliance for fintech firms, stating tha
Paytm expects a hit on its Ebitda after the Reserve Bank of India halted its banking business. Paytm will continue its merchant payment business through third-party banks and its offline merchant payment network offerings.
The Reserve Bank of India's decision to prohibit Paytm's vertical Paytm Payments Bank from offering all forms of banking services within a month has sent shockwaves through the Indian fintech landscape. Numerous industry executives have expressed their concerns, including Ashneer Grover, cofounder of BharatPe, who called for the finance minister and the prime minister of India to intervene.
The complacency of lenders with respect to a potential surge in delinquencies, where households are funding ordinary consumption using retail loans and possibly being used for trading in the financial markets may be bothering the RBI as they pose a systemic risk for financial stability.
The RBI put out a statement in the morning limiting the bank's powers after it found the bank's finances to be weak to carry out normal business transactions. There were long queues of customers wanting to withdraw whatever they could, but crowds had only swollen by the evening. Many customers had brought their fixed deposit bonds to encash, but were in vain.