REGULATORY ACTION
![Stress in some MFIs does not warrant regulatory action: Senior RBI official](https://img.etimg.com/thumb/msid-112903525,width-100,height-75,resizemode-4/industry/banking/finance/stress-in-some-mfis-does-not-warrant-regulatory-action-senior-rbi-official.jpg)
Stress in some MFIs does not warrant regulatory action: Senior RBI official
The Reserve Bank of India reassures there is no systemic risk in the microfinance sector despite recent stress. Senior officials highlighted that concerns are entity-specific, and no strict regulatory action is planned. Ashima Goyal of the Monetary Policy Committee indicated non-performing assets are manageable and the banking system remains resilient.
![Fintechs can earn trust if they treat the customers fairly: says, RBI deputy guv](https://img.etimg.com/thumb/msid-112903415,width-100,height-75,resizemode-4/industry/banking/finance/fintechs-can-earn-trust-if-they-treat-the-customers-fairly-says-rbi-deputy-guv.jpg)
Fintechs can earn trust if they treat the customers fairly: says, RBI deputy guv
A senior official from the Reserve Bank of India stressed that fintech companies should prioritize social and macroeconomic interests over business gains. Highlighting the role of Self-regulatory Organisations (SROs), Deputy Governor T Rabi Sankar urged fintechs to build customer trust through fair treatment and honest communication, avoiding misleading practices for long-term success.
![Self Regulatory Organisation needs to keep fintech sector in check: RBI Dy Guv T Rabi Sankar](https://img.etimg.com/thumb/msid-112901777,width-100,height-75,resizemode-4/news/economy/policy/self-regulatory-organisation-needs-to-keep-fintech-sector-in-check-rbi-dy-guv-t-rabi-sankar.jpg)
Self Regulatory Organisation needs to keep fintech sector in check: RBI Dy Guv T Rabi Sankar
Reserve Bank of India's Deputy Governor T Rabi Sankar addressed the Global Fintech Festival 2024, discussing the need for Self Regulatory Organisations (SROs) to regulate the fintech sector. He emphasised the importance of trust and integrity in the unregulated industry and highlighted the potential for growth with public-private partnerships and technological innovations.
![DGCA initiates action on 3 airlines, 1 flying training organisation](https://img.etimg.com/thumb/msid-112902788,width-100,height-75,resizemode-4/industry/transportation/airlines-/-aviation/dgca-initiates-action-on-3-airlines-1-flying-training-organisation.jpg)
DGCA initiates action on 3 airlines, 1 flying training organisation
The DGCA has taken action against several airlines for different lapses, including placing SpiceJet under enhanced surveillance due to safety concerns. Additionally, Air India Express was fined Rs 10 lakh, and Akasa Air was issued a show cause notice for regulatory breaches. The flying training organization Alchemist Aviation had its approval suspended after a fatal accident-related audit.
![DGCA issues show-cause notice to Akasa Airlines over regulatory breaches](https://img.etimg.com/thumb/msid-112901659,width-100,height-75,resizemode-4/industry/transportation/airlines-/-aviation/dgca-issues-show-cause-notice-to-akasa-airlines-over-regulatory-breaches.jpg)
DGCA issues show-cause notice to Akasa Airlines over regulatory breaches
The DGCA has issued a show-cause notice to Akasa Airlines for violating several regulatory requirements during a recent audit. The airline must respond within seven days, addressing concerns about inadequate training and lack of approvals. The DGCA continues to stress the importance of adhering to aviation safety standards.
![Final guidelines on project loans likely in 2-3 months: RBI official](https://img.etimg.com/thumb/msid-112897760,width-100,height-75,resizemode-4/industry/banking/finance/banking/final-guidelines-on-project-loans-likely-in-2-3-months-rbi-official.jpg)
Final guidelines on project loans likely in 2-3 months: RBI official
The final guidelines for project loans are expected to be announced in the next two to three months, according to a senior RBI official. The official added that the Expected Credit Loss-based provisioning norms are also in advanced stages of discussion. Up to 60 responses have been received on the draft guidelines, which are currently being reviewed.
- Go To Page 1
Trai plans more action to check spam callers
Telecom Regulatory Authority of India (Trai) is exploring differential punitive tariffs for spam callers using personal numbers. Analysis found nearly 14 lakh SIM cards making between 50 to 1000 calls daily in early 2024. Trai has also proposed new message categories to curb the misuse of service and transactional messages.
TRAI leads joint committee of regulators to strengthen measures against spam and telecom fraud
The Telecom Regulatory Authority of India (TRAI) held a meeting of the Joint Committee of Regulators (JCoR) to discuss measures against spam calls and messages. Key suggestions included whitelisting URLs, moving promotional calls to the 140 series, and full disclosure of telemarketers. Collaborative strategies to combat telecom fraud were also explored.
Tech firms must comply with Malaysia's laws, minister says amid backlash over social media licensing plan
The Asia Internet Coalition (AIC) - whose members include Google, Meta and X - had made the call in an open letter to Prime Minister Anwar Ibrahim, citing a lack of clarity over the proposed regulations.
Homebuyers' body seeks Housing Ministry's intervention over RERA conciliation forum
The Forum for People’s Collective Efforts urged the Ministry of Housing & Urban Affairs to address concerns about bias and transparency issues in conciliation forums set up by various state RERAs. Highlighting MahaRERA's alleged pro-developer inclination, FPCE requested guidelines for impartiality and the suspension of these forums' activities until compliance.
Bulldozer action on Nagarjuna's Hyderabad property. Actor responds
Hyderabad authorities have started demolishing actor Nagarjuna’s N Convention Center in Madhapur due to allegations of illegal construction on the Full Tank Level (FTL) area and buffer zone of Thammidi Kunta Lake. The facility, covering a 10-acre plot, is accused of encroaching on 1.12 acres of the lake's FTL area and an additional 2 acres within the buffer zone. The demolition follows long-standing scrutiny over the center's regulatory compliance. Nagarjuna has not yet commented on the situation.
No coercive action against broadcasters for non-publication of RIO, Trai tells Kerala HC
The Kerala High Court was assured by the telecom regulator to not enforce actions on broadcasters non-compliant with the new tariff regulation. Broadcasters claimed the mandate to offer free channels to DPOs unfairly equates DD Free Dish with private operators. TRai's amendment led to legal challenges from broadcasters, with the next hearing set for September 4.
At RBI’s door for reprieve: Bunch of foreign banks want ease of storing data, ask for mandate to be applied prospectively from Jan 2025
Foreign banks operating in India have requested the RBI to extend the compliance deadline for the 2018 data localization guidelines to January 2025. These guidelines require that all payment system data related to Indian customers be stored exclusively within India. The banks have already started complying with the rules for new transactions but face challenges in moving or deleting historical data stored abroad.
Dr Reddy's gets establishment inspection report from USFDA for Visakhapatnam units
Dr Reddy's Laboratories Ltd has obtained an Establishment Inspection Report from the USFDA for its Duvvada units, now classified as Voluntary Action Indicated. The units underwent an inspection from May 8 to May 17, 2024, which led to a Form 483 with observations. Dr Reddy’s planned to resolve the issues within the given time.
RBI issues prompt corrective action framework for UCBs
The RBI introduced a prompt corrective action framework for urban cooperative banks to allow timely supervisory intervention. Effective from April 1, 2025, the framework aims to restore UCBs' financial health by replacing the Supervisory Action Framework. Capital, asset quality, and profitability are key focus areas, with flexibility based on specific risks. Applicable to all but Tier 1 UCBs.
‘Should have done better … now learnt the lesson,’ says Paytm founder
Paytm is like a daughter who met with an accident and is in ICU, Vijay Shekhar Sharma says in the context of developments at the payments bank. "I saw it as a daughter on the way for an important entrance test, but met with an accident, and in a way is in ICU right now. That was the feeling from a personal, emotional (point of view),” Sharma said speaking at an event organised by JITO Innovation and Incubation Foundation in New Delhi.
RBI's special audit over, IIFL Finance appoints team to implement corrective actions
IIFL Finance, under scrutiny by the RBI for irregularities in its gold loan portfolio, has taken corrective actions to address concerns. RBI directed the company to halt new gold loans due to supervisory concerns and deviations in gold assessment. The company raised capital through rights issues and NCDs to mitigate risks and reported a net profit in Q4.
Paytm Bank slows down in Fastag lane; q-comm in soup over food safety
Happy Friday! Banks are gaining ground in the toll payments space as Paytm Payments Bank’s market share continues to plummet. This and more in today’s Morning Dispatch.
Tech-based NBFCs try a balancing act after RBI action on unsecured loans
NBFCs like DMI Finance, Vivriti Capital and InCred Capital expanded unsecured retail and small business lending, leveraging strong fintech partnerships over to grow their business coming out of Covid. Some of these companies took the acquisition route to scale up this business quickly.
Tackling plastic pollution: A call to action for India
Plastic pollution has reached alarming levels, causing devastating consequences for the environment. From clogging waterways to threatening marine life, the pervasive presence of plastic waste demands immediate action.
Paytm Q4 losses tripled; Oyo IPO withdrawn
Troubled fintech Paytm reported its first quarterly earnings after the RBI banned its payments bank in January. This and more in today’s ETtech Top 5.
Paytm expects near-term impact on revenue, profitability due to regulatory action: Vijay Shekhar Sharma
Paytm’s parent, One 97 Communications Ltd, is taking steps to “strengthen the governance framework across our group entities (especially regulated entities)” by appointing subject matter experts as advisors of independent directors, says founder Sharma in letter to shareholders. Going forward in the ongoing fiscal, Paytm also anticipates reduction in employee costs.
Meghalaya State Council address the need for framework to protect catchment areas from further degradation
Meghalaya State Council on Climate Change & Sustainable Development discussed amendments to the Meghalaya Protection of Catchment Areas Act, 1990 to protect critical areas from degradation. The meeting under Chief Minister Conrad K. Sangma focused on leveraging community institutions for climate action, highlighting the development of a GIS-based technology platform for village-level interventions.
Fraud concerns raise red flags for India's booming tiny IPOs
Earlier this year, regulators clamped down on equity markets financing to cool pre-IPO sale frenzy. Still, the nation’s market for first-time share sales remains vibrant, with 102 deals priced since the start of 2024.
What to do with Yes Bank, Canara Bank and 4 other stocks? Aamar Deo Singh of Angel One decodes
Market volatility rises with India VIX surging 43% in May. Caution advised by Aamar Deo Singh to focus on quality stocks with longer-term perspective and in SIP mode amid uncertain market conditions. Singh says: "Market participants ideally should be cautious in building fresh positions and it would be prudent to adopt a wait and watch policy."
FIIs withdraw Rs 46,000 crore from financial stocks in 2024. Is RBI the deal-breaker?
After selling financials worth over Rs 30,000 crore in January and nearly Rs 10,000 crore in February, Foreign Institutional Investors (FIIs) turned into net buyers in the sector in March. However, they resumed selling in April, with last month's selling amounting to around Rs 9,300 crore.
Paytm stock slides after COO exit; India’s first microcontroller chip
Shares of Paytm parent One 97 Communications fell 5% on Monday after its president and chief operating officer Bhavesh Gupta resigned. More on this in today’s ETtech Top 5.
Aggrieved home buyer: Should you file a case in RERA or civil court, which works better for you?
RERA or civil court: Agrrieved real estate buyers can file a case in RERA, consumer courts, etc. However RERA is a specialised forum which has expertise in real estate laws and rules. According to an Anarock report RERA has resolved more than 1 lakh cases till November 2023.
RBI action on Kotak Mahindra Bank may restrain credit growth, profitability: S&P
S&P Global Ratings warned that RBI's recent regulatory action on Kotak Mahindra Bank could limit the bank's credit growth and profitability. The RBI prohibited Kotak Mahindra Bank from issuing new credit cards and onboarding customers online, impacting a key growth segment. S&P noted the bank may need to rely more on physical branch expansion, increasing operating costs. However, the impact on the bank's credit rating is expected to be minimal, as credit cards constitute a small portion of its total loans. S&P anticipates that Kotak Mahindra Bank may need around a year to address the RBI's concerns related to system stability and disaster recovery.
Load More