Author: Abhishek R. Sharma

Positive Pay – One of the regulatory controls to avoid Payments Fraud.

What is it?
The concept of Positive Pay involves a process of reconfirming key details of large-value cheques. Under this process, the issuer of the cheque submits electronically certain minimum details of that cheque (like date, name of the beneficiary/payee, amount, etc.) to the drawee bank, details of which are cross-checked with the presented cheque by Cheque Truncation System (CTS). Any error is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.

Why Positive Pay?
The Reserve Bank of India (RBI) issued guidelines for banks to implement this system from January 1, 2021, to safeguard against cheque fraud.

How it will work out?
RBI has told banks to enable the facility for all account holders issuing cheques for amounts of ₹50,000 and above. It has also been said that while availing of the facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheque values of ₹5 lakhs and above.

Who developed it?
The Positive Pay System, developed by the National Payments Corporation of India, is a process of reconfirming the key details of large-value cheques. The details are cross-checked while issuing the cheque and any discrepancy is flagged.

Reserve Bank of India introduces the RBI-Digital Payments Index (RBI-DPI).

The Reserve Bank of India (RBI) announced the construction of a composite Reserve Bank of India – Digital Payments Index (RBI-DPI) in March 2018 as a base to capture the extent of digitization of payments across the country.

The index for September 2021 stands at 304.06 against 270.59 for March 2021, indicating appreciable growth.

The RBI-DPI comprises 5 broad parameters that enable measurement of the deepening and penetration of digital payments in the country over different time periods. These parameters are –

(i) Payment Enablers (weight 25%),
(ii) Payment Infrastructure – Demand-side factors (10%),
(iii) Payment Infrastructure – Supply-side factors (15%),
(iv) Payment Performance (45%) and
(v) Consumer Centricity (5%).

Each of these parameters has sub-parameters which, in turn, consist of various measurable indicators. The major sub-parameters under each parameter are attached.

Going forward, RBI-DPI shall be published on RBI’s website on a semi-annual basis from March 2021 onwards with a lag of 4 months.

Do you take investment tips via Telegram Channels? 🤔

– Sebi (the securities regulator of India) crackdown on fake Telegram channels;
– Rs 5.7 crore penalty on 3 entities for ‘pump & dump’ stock tips
– The channel had 49,000 subscribers.

What happened?
– Sebi noted that the Telegram channel administrators bought stocks for themselves,
– then recommended them to followers to ‘buy’ those, and
– then sold the same at higher prices, making enormous illegal profits.

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Your Smiles & Success are paramount.

THE WORD “BALANCE” & “CHIEF COMPLIANCE OFFICER”.

90% responded from the Ethics & Compliance fraternity when asked to opine from #chiefcomplianceofficer ‘s perspective, which of the attribute suggests a progressive approach towards regulations, for #balance.

What does that mean?

– Complying within the realms of law.
– Understanding business and business aspirations
– Suggesting best of #compliance controls with #ethics which help #business to perform on the grounds allowed to do so, as per regulatory framework.

– Compliance is not an ivory tower approach. It is about shoulder responsibility to suckSEED (Succeed) and xSEED (exceed) together for better as per regulatory stipulations. #law

I am again thankful to all the fraternity members as also the lovely community of Ethics Compliance professionals 👍.

Sunday Insights – You’re awesome 🙏.

#compliance #complianceofficer #compliancemanagement #chiefcomplianceofficer #complianceteam #complianceregulations #complianceprofessionals #compliancejobs #compliancerisk
#ethics #ethicsandcompliance #ethicsmatter #ethicsmatters Invest4Edu Pvt. Ltd. Ananta Finance BrainStation India Foundation #india #community #finance

What is regulation review authority?

The Reserve Bank of India has set up a Regulations Review Authority (RRA 2.0) with the objective to reduce the compliance burden on Regulated Entities (REs) – such as Banks, NBCFs, etc.

Initial Recommendations?
RRA had recommended the withdrawal of 150 circulars in the first tranche of recommendations in the year 2021.

Subsequent Recommendations?
– In continuation of the exercise, RRA has now recommended the withdrawal of additional 100 circulars in the second tranche of recommendations.
– Further, on the suggestions of an internal group, the RRA has recommended the elimination of paper-based returns and
– has identified 65 regulatory returns which would either be discontinued/ merged with other returns or would be converted into online returns.
– The RRA has also recommended the creation of a separate web page “Regulatory Reporting” on the RBI website to consolidate information relating to regulatory reporting and return submission by the regulated entities at a single source.

Impact of the RRA and its recommendations?
These recommendations are expected to ease regulatory compliance for regulated entities (such as Banks, NBFCs, etc.) while improving the accuracy, speed, and quality of data submission. #easeofdoingbusiness

What’s ahead?
Regulated entities would be notified of the discontinuation/ merger and online filing of returns, separately. The notification containing the list of specific instructions recommended for withdrawal is also being issued separately by the RBI.

#eodb #easeofdoingbusiness #compliance #regulations #complianceofficer #compliancemanagement #compliancerisk #complianceprofessionals #banks #easeofuse

Is there a way to avoid regulatory penalties? 😲

Regulatory non-compliance with circulars, guidelines, and directions leads to penal action.

– Penal action not only brings the risk of financial impact BUT, BUT,
– The Reputational damage as well…….

Here’s a brief survey that suggests KYC non-compliance by non-banks led to recent penal actions by regulators in India. To a great extent, it’s true.

What can I do to avoid such a situation:

– Strong Compliance Leader who understands the law of the land very very well. #compliance #management
– Strong Compliance culture -Tope at the Top is a must. I call it DNA.
– Strong framework, SOPs, and methods
– & many more such as robust regulatory affairs, supervisory management, managing regulatory communications, inspections, and automated systems. #regulatoryaffairs #financialservices