Transparency Is Paramount In Financial Transactions, Especially In Lending
Yashoraj Tyagi
FinTech BizNews Service
Mumbai, February 8, 2024: Shaktikanta Das, Governor, Reserve Bank of India, announced a number of decisions after the MPC meet on Thursday. The fintech industry leaders and digital payment experts have shared their unique insights on these measures.
Anand Kumar Bajaj, Founder, MD and CEO, PayNearby : “We welcome the RBI's initiative to strengthen AePS, emphasizing security and efficiency. The streamlined onboarding process and additional fraud risk management measures will contribute to a more secure and seamless payment experience for citizens across the country.”
Mandar Agashe, Founder & MD, Sarvatra Technologies: “The Reserve Bank of India’s move of streamlining the onboarding process of AePS transactions is a step towards enhancing digital engagement and fostering financial inclusion. AePS has always been prevalent in tier II+ cities and rural regions of the country. With the introduction of the new principle-based framework for Additional Factor of Authentication (AFA) of digital payment transactions, users will be assured of safe and secure transactions using innovative digital authentication methods beyond usual SMS.”
Yashoraj Tyagi, CEO, CASHe: “We welcome the RBI's policy announcement today during its monetary policy meeting to enhance transparency and disclosure in loan transactions. The RBI has mandated all regulated entities (REs) to provide borrowers with a Key Fact Statement (KFS) for all retail and MSME loans. The KFS is a crucial document that empowers borrowers by providing essential information about their loan agreements in a clear and easy-to-understand format, including details such as the total cost of the loan.”
At CASHe, we firmly believe that transparency is paramount in financial transactions, especially in lending. We commend the RBI's initiative to enforce the provision of KFS across all retail and MSME loans, aligning with our commitment to providing our customers with clear and comprehensive loan information. Through the mandate for KFS provision, the RBI empowers borrowers to make informed decisions about their financial obligations, contributing to improving financial literacy and enhancing consumer protection in the lending ecosystem.
Sanjeev Kumar, Co-Founder, Executive Director & CEO of Spice Money: “The proposed government initiative to streamline the onboarding process for AePS touchpoint operators, accompanied by mandatory due diligence, is a crucial step towards enhancing financial inclusion in rural India.
Aligned with this vision, Spice Money acknowledges the significance of AePS as the UPI equivalent for rural areas. The recent measures undertaken by the National Payments Corporation of India (NPCI) in December 2023, mandating Aadhaar-based biometric authentication for business correspondents (BCs) and agents, further underscore the commitment to ensuring the integrity and security of the AePS platform. With approximately 43.31 crore approved transactions recorded in January 2024, AePS continues to serve as a vital conduit for empowering individuals and facilitating access to essential government subsidies and benefits, thereby fostering inclusive economic growth across the nation.”
