Response to IRDAI’s Exposure Draft on Insurance Product Regulations, 2023
The Insurance Regulatory and Development Authority of India (Insurance Products) Regulations, 2023, hereafter “Draft Regulations”, was released by the Insurance Regulatory and Development Authority of India (IRDAI) in December 2023.
Differentiation in banking models is a must to drive competition
Several studies have found that the Indian banking sector, while having a large number of players, has monopolistic competition.
The factors making customers check out from the Account Aggregator journey
This post presents design elements that providers can use to make the consent artefacts more effective for constrained users. These design recommendations emerge from the insights from an immersive behavioural field study we conducted with 60 constrained customers through a gamified simulation of an AA transaction.
Designing effective consent artefacts under the Account Aggregator framework
Dvara Research and Final Mile are collaborating on a behavioural science informed primary study to unpack the barriers that customers currently face in engaging with and understanding consent artefacts.
A Social Stock Exchange For India
Social enterprises will have to conform to much higher standards of reporting than they are conventionally used to.
Read more at: https://www.bqprime.com/opinion/a-social-stock-exchange-for-india
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Note on RBI’s Prompt Corrective Action Framework for Non-Banking Financial Companies
In this note, we discuss how the current approach of the PCA framework is inconsistent with the objectives it seeks to achieve.
RBI must accommodate fintech innovations, not ban them
An RBI Working Group has suggested that lending service providers be disallowed from providing credit enhancements such as FLDG (first-loss-default-guarantee). However, a risk-proportionate regulation of FLDG could address its risks, while allowing the ecosystem to benefit from innovation.
Comments on RBI’s Draft Master Direction on Minimum Capital Requirements for Operational Risk
In our response, we commend and highlight the more risk sensitive methodology and the corresponding disclosures outlined in the draft guidelines. However, we also point out that not including conduct risk under operational risk is a major lacuna.
Response to Niti Aayog’s Discussion Paper on “Digital Banks – A Proposal for Licensing and Regulatory Regime in India”
In our response, we question the assumptions put forth by the discussion paper for the creation of DBs and the concomitant licensing and regulatory regime.
A Brief Comparison of the Bad Bank Experience across Jurisdictions
Bad Banks are typically Government sponsored Asset Reconstruction Companies (ARCs) setup with the primary objective of cleaning up bank balance sheets. Unlike private ARCs, the Bad Banks are setup as a one-time measure with the primary objective of reducing the build-up of Non-Performing Assets (NPAs) post a financial or economic crisis.