News That Matters

Tag: banking

Fintech’s fast pass to traditional banking is now cut off

Fintech’s fast pass to traditional banking is now cut off

Finance
Getty ImagesTech start-ups trying to become banks will now have to take a slower, more traditional route.Fintech companies had welcomed a special bank charter that cleared a quicker path for them to become a bank. But that was dealt a blow this week as a federal district court in New York decided that the Office of the Comptroller of the Currency, the regulator issuing the charters, didn't have the authority to do so.The ruling highlights the sometimes murky nature of tech companies getting into banking. It also means that finance start-ups will have to go through the same drawn out process as everyone else."It's a step back for fintechs that are looking long term to become banks," said Lindsay Davis, fintech analyst at CB Insights. "A fintech charter helped streamline that regulatory proc...
Simultaneous blackout of online banking with many Indian lenders

Simultaneous blackout of online banking with many Indian lenders

Finance
Even as bank stocks took a knock in Mumbai trading on Tuesday, online banking operations of many domestic lenders came to a standstill. Banks attributed it to technical difficulties, but the simultaneous surfacing of the problem across many banks, including leading names, caused worries among customers. HDFC Bank, whose customers also faced similar difficulties, replied to a Twitter user expressing regret for the inconvenience caused. Similarly, Kotak Mahindra Bank informed one of its customers, facing a similar issue, the glitch was technical in nature and apologised for the trouble. Some users tweeted saying they were facing issues in logging into the net banking apps of lenders such as IDFC First Bank, Kotak Mahindra Bank and YES Bank. ETMarkets.com had a first-hand experience of this w...
RBI brings in Central Fraud Registry, a likely major gamechanger for banking

RBI brings in Central Fraud Registry, a likely major gamechanger for banking

Finance
MUMBAI: The Reserve Bank of India will create a Central Payment Fraud Registry to monitor digital payments related frauds on a real-time basis and provide customers with periodic aggregated data of risks associated with individual payments operators in a bid to improve customer confidence in these channels. “In order to carry forward these efforts and ensure quick and systemic responses, it is proposed to facilitate the creation of a Central Payment Fraud Registry that will track these frauds,” central bank governor Shaktikanta Das said during Monetary Policy press conference. “Payment system participants will be provided access to this registry for near-real time fraud monitoring. The aggregated fraud data will be published to educate customers on emerging risks.” A detail framework on t
RBI allows Bank of China to offer regular banking services in India

RBI allows Bank of China to offer regular banking services in India

Finance
MUMBAI: The Reserve Bank of India (RBI) on Thursday allowed Bank of China to offer regular banking services in the country. All commercial banks, like SBI, HDFC Bank, Punjab National Bank and ICICI Bank, are in the Second Schedule. Banks falling under this schedule have to adhere to the norms of the RBI. "We advise that the 'Bank of China Limited' has been included in the Second Schedule to the Reserve Bank of India Act, 1934...," the central bank said. In another notification, the RBI said 'Jana Small Finance Bank Limited' too has been included in the Second Schedule. Further, the name of 'The Royal Bank of Scotland plc' has been changed to 'NatWest Markets Plc' in the Second Schedule. Meanwhile, 'National Australia Bank' has ceased to be a banking company within the meaning of the Ba...
Banking sector performance improved due to fall in bad loans in 2018-19: Economic Survey

Banking sector performance improved due to fall in bad loans in 2018-19: Economic Survey

Finance
NEW DELHI: The performance of banking sector has improved as bad loans declined in the last fiscal, but financial flows are constrained due to fall in money raised from capital markets and stress in the non-banking financial sector, the Economic Survey 2018-19 said Thursday. The monetary policy witnessed a U-turn over the last year. The benchmark policy rate was first hiked by 50 basis points (bps) and later reduced by 75 bps due to weaker than anticipated inflation, growth slowdown and softer international monetary conditions, the survey, tabled by Finance Minister Nirmala Sitharaman in Parliament, said. "The performance of the banking system has improved as non-performing asset (NPA) ratios declined and credit growth accelerated. However, financial flows to the economy remained constrain...