Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the ePanel discussions:
- Mr. Brahma Mahesh Khaderbad, Co-Founder & CEO at FinMomenta Pvt Ltd
- Mr. Shreejith Menon, Senior Director at IDFC FIRST Bank
- Mr. Neeraj Chandra, Head of Operations and Technology, Abu Dhabi Commercial Bank
- Mr. Ramasubramanian S, Application, Transformation, Management and Operations Head, DXC Technology
- Mr. Riaz Maniyar, Founder & CEO at easy2lend.com
- Mr. Anshul Srivastav, CIO & Digital Officer, Union Insurance
- Mr. Mohit Nanda, Assistant Vice President at HDFC Bank
- Mr. Balaji Vishwanath, Head-Global Digital Acquisition, Standard Chartered Global Business Services
- Mr. Varadarajan CK, former Vice President, Compliance, Equitas Small Finance Bank
- Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
- Many CEO/CXO Bankers & Fintech professionals and Founders on FIAKS Forum who participated in the discussions had requested to remain anonymous
‘RBI bans use of agents to chase loans.’ So this headline poses a major question that is what’s going to be the impact on banks & P2P lending companies with such a ban? Also, will this regulation apply to Wallets KYC as well? The answer to this question is negative the communication of the said regulation has gone only to banks rather Indian Banks Association. Let’s check out the analysis of the aforesaid regulation and clear out the posed queries.
First of all, clarifying the actual interpretation of the regulation:
- RBI has not banned DSAs (Direct Selling Agents) for assets. It has only reiterated the existing rule that KYC verification should be done by bank staff and not outsourced.
- This isn’t a new regulation. The silence of RBI so far was utilized by banks to source loan accounts and credit cards with verification of KYC documents done by DSAs and further due diligence was done by bank officials. RBI has reiterated that this practice is incorrect and DSA cannot be treated like Business correspondence. Even for business correspondence, RBI clarified that verification of physical KYC documents should be done by banks. Business correspondence can only undertake eKYC.
Here are some criticisms of the regulation:
- At one side government is talking about 3 trillion economy out of which 1 trillion is for digital payments and on the other side to controversy, doing everything that is not going to allow this to come true right from governing the MDR to all the regulations that are hampering the growth.
- Rather than hitting the market mercilessly why don’t they just clean the banks system internally and have systems to identify frauds and corruption inside the banking system, this would not only allow the right funds to right business but also add a big growth to the economy, it’s high time government stops covering and finding reasons to justify the sluggish overall economy and the poor getting poorer day by day.
- Frauds are happening everywhere. Even in banks, officials do fraud. How agent fraud is going to be different from an official doing a fraud? It doesn’t really seem that they are having any vision for growth. Register & Read the complete discussions