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UPI Payment Services Launched in Sri Lanka and Mauritius, Strengthening Digital Ties

In a significant development, India's Unified Payment Interface (UPI) services were launched in Sri Lanka and Mauritius, marking a milestone in the digital connectivity between the countries. The launch was attended by Prime Minister Narendra Modi, his Mauritian counterpart Pravind Jugnauth, and Sri Lankan President Ranil Wickremesinghe. Historic Ties Meet Modern Digital Technology Prime Minister Modi hailed the launch of UPI services as a means to strengthen historic ties with modern digital technology. He expressed hope that the fintech services would benefit both nations by implementing new responsibilities of uniting partners with India. The Prime Minister emphasized that this day marked a special occasion for the three friendly countries of the Indian Ocean Region. Advancing Financial Inclusion and Connectivity The introduction of UPI services in Sri Lanka and Mauritius will have far-reaching implications for financial transactions and connectivity. Indian nationals traveling to these countries will now have access to UPI settlement services, allowing them to make seamless payments through their mobile phones. Similarly, Mauritian nationals traveling to India will also be able to utilize UPI services, facilitating convenient and secure transactions. Benefits of UPI and RuPay Card Services Developed by the National Payments Corporation of India (NPCI), UPI is an instant real-time payment system that enables inter-bank transactions through mobile phones. The launch of UPI services in Sri Lanka and Mauritius aims to provide a user-friendly and efficient payment infrastructure, enhancing financial inclusion and promoting cashless transactions. In addition to UPI services, India's RuPay card services were also introduced in Mauritius. RuPay is a globally accepted card payment network from India, which offers wide acceptance at shops, ATMs, and online platforms. This move will further simplify and streamline financial transactions for individuals and businesses in Mauritius. Strengthening Bilateral Economic Ties The launch of UPI services in Sri Lanka and Mauritius comes at a time when India is actively fostering bilateral economic relations with these countries. By facilitating secure and convenient cross-border transactions, UPI services will contribute to the growth of trade and commerce between India, Sri Lanka, and Mauritius. Prime Minister Modi's Neighbourhood First Policy During the virtual ceremony, Prime Minister Modi reiterated India's "neighbourhood first policy," emphasizing the country's commitment to supporting its neighboring nations. He highlighted India's role as a first responder, be it in times of natural disasters, health crises, economic challenges, or international cooperation. The launch of UPI services in Sri Lanka and Mauritius reflects India's dedication to promoting regional connectivity and cooperation. Looking Ahead The introduction of UPI services in Sri Lanka and Mauritius represents a significant step forward in strengthening digital ties between India and its neighboring countries. With UPI and RuPay card services, individuals and businesses will experience enhanced financial connectivity, convenience, and security. The launch of these services reinforces India's commitment to promoting financial inclusion, digital transformation, and regional cooperation.

15 Feb 2024
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The new RBI draft norms is set to bring greater autonomy and progress to Fintech Self-Regulatory Organisations

The Reserve Bank of India (RBI) has released draft norms suggesting that Fintech Self-Regulatory Organisations (SROs) should operate independently and be development-oriented. These proposed guidelines aim to bring more credibility, responsibility, and progress to the fintech sector. Objective and Credible SROs According to the draft norms, the SROs for the fintech sector should be independent entities, free from any influence, and act as legitimate arbiters of disputes. They should also operate objectively, with credibility and responsibility under the supervision of the regulator. By maintaining objectivity and credibility, these SROs can effectively represent the fintech sector and encourage adherence to regulatory priorities. Encouraging Membership and Regulatory Compliance The draft norms further emphasize that SROs should be true representatives of the fintech sector. They should encourage all entities, regardless of size, stage, or activities, to become members and actively participate in regulatory compliance. By fostering membership across the sector, SROs can ensure a comprehensive representation of fintech companies and promote a unified approach towards regulatory priorities. Establishing Eligibility and Infrastructure To ensure the effectiveness of SROs, the draft norms state that applicants should meet certain eligibility criteria. They should be set up as not-for-profit companies and have sufficient net worth. Additionally, the applicant should demonstrate the capability to establish the necessary infrastructure to fulfill the responsibilities of the Fintech Self Regulatory Organisation (SRO-FT) effectively and consistently. Managing User Harm Instances The proposed norms also highlight the importance of managing instances of "user harm" that come to the SRO-FT's notice or are referred to them by the Reserve Bank or other stakeholders. The SRO-FT should establish appropriate systems for grievance redressal and dispute resolution. Furthermore, the draft norms explicitly state that SRO-FTs should not establish entities or offices overseas without prior approval from the Reserve Bank. Public Feedback and Stakeholder Involvement The RBI has invited comments and feedback on the draft framework from stakeholders and the public. This inclusive approach ensures that the norms reflect the needs and concerns of all relevant parties. The feedback received will help refine the final guidelines, making them more comprehensive and effective. Towards Progressive Fintech Regulation The push for the establishment of self-regulatory organizations in the fintech sector began in September 2023 when RBI Governor Shaktikanta Das urged fintech companies to establish SROs. The RBI's intention is to create a phased approach, emphasizing the importance of self-regulation before considering formal fintech regulations. The introduction of independent and development-oriented SROs aligns with this approach, promoting responsible growth and innovation in the fintech industry. The RBI's draft norms for Fintech SROs emphasize the need for independence, development orientation, and regulatory compliance. By establishing SROs that operate objectively and represent the sector effectively, the RBI aims to foster a transparent and responsible fintech ecosystem. The proposed guidelines provide a framework for SROs to become credible entities, ensuring the protection of user interests and promoting regulatory priorities. With public feedback and stakeholder involvement, these norms can evolve into robust regulations that support the growth and development of the fintech industry in India.

16 Jan 2024
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