The Finance Development Industry Council (FIDC) an association of shadow banks is set to apply to Mint Road to become a selfregulatory organisation (SRO) even as it hunts for a chief executive officer (CEO). Non-banking financial companies' (NBFCs) credit to GDP ratio stood at 12.6 per cent in FY23 (and it grew to 18.7 per cent of banking assets from 13 per cent a decade ago). Despite this surge, is it not surprising that little initiative was taken by these firms to set up an SRO in all these years (and Mint Road's nudge was not material to do so)? Pose this question to senior NBFC officials and they will point to the multiplicity of categories with no coherence in either their activities or regulation. At times, within the same business group, there are NBFCs focused on different avenues with a core investment company thrown in.
"Given the nature of the NBFC business, I cannot predict if there will be more than one SRO. Even in microfinance, which is homogenous, you have more than one SRO," says Umesh Revankar, chairman of FIDC and the executive vice-chairman of Shriram Finance. It's an indirect way of putting it across that if microfinance can have two SROS - MicroFinance Institutions Network (MFIN), and Sa-dhan - why should it be any different for NBFCs? There's already chatter of a SRO for NBFCs playing in the priority-sector space (though such a carve-out is only on the books of banks). Their demand: Bank exposures to them should be deemed as priority-sector loans - and it has reached the doorsteps of the Prime Minister's Office, no less. Early indications are we are going to see a mushrooming of SROs. In fintech, two have lined up: Digital Lenders Association of India and the Fintech Association for Consumer Empowerment (FACE). Even as there are whispers that the Indian Banks' Association and the Payments Council of India are to set up an SRO for digital payments.
The big jostle
Denne historien er fra April 08, 2024-utgaven av Business Standard.
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Denne historien er fra April 08, 2024-utgaven av Business Standard.
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Indians prefer credit over debit card for high-value payments
In June 2024, India saw a significant increase in the number of credit, debit, and prepaid cards, reaching a total of 1.451 billion cards—an 11 per cent jump from the previous year, according to the India Digital Payments report for the first half of 2024 (January to June) by payment technology service provider Worldline.
An Indian anthropologist ahead of her time
Urmilla Deshpande set out to work on a novel about an Indian woman in Germany in the 1920s based on her grandmother Irawati Karve when she stumbled on the opportunity to write her biography.
IAF plane makes inaugural landing at upcoming Navi Mumbai airport
An Airbus C-295 of the Indian Air Force (IAF) touched down at Navi Mumbai International Airport (NMIAL) on Friday, marking the formal inaugural flight landing at the place. A Sukhoi SU-30 fighter jet did a low fly-by at the airport to test the 3.7-km long runway in the presence of Maharashtra Chief Minister Eknath Shinde, his deputy Devendra Fadnavis and Murlidhar Mohol, Minister of State for Civil Aviation and Co-operation.
Less than 33% of youth can search Net, transact online
Less than a third of those in the 15-29 age group can \"search the internet; send or receive an email and perform an online transaction\", show the findings from the latest Comprehensive Annual Modular Survey (CAMS), released by National Statistical Office (NSO) this week.
TCS shares dip as analysts offer mixed outlook
IT sector is expected to grow considerably from Q4 FY25 onwards
NSE retains Nifty 50 for weekly contracts
The National Stock Exchange (NSE) has opted for the Nifty 50 index for issuing weekly option contracts following the Securities Exchange Board of India (Sebi's) one-exchange-one-benchmark mandate.
Compare lenders' costs; higher rates can offset benefits of offers
Footfall, enquiries, and bookings at car dealerships are rising, driven by attractive offers and promotions. These special deals typically start in October and run until the New Year.
Noel's appointment as Tata Trusts' chair signals continuity: Analysts
It will be business as usual for Tata group stocks post Noel Naval Tata's appointment as chair of Tata Trusts, said analysts. They added that the development will signal continuity.
Sebi intervenes in ₹45cr Trafiksol IPO irregularity
To undertake detailed examination into disclosures by the firm
India-focused funds log first weekly redemption in 19 mths
China resurgence, expensive valuation dim India appeal; midcap funds see 14th week of outflows
