Latest news with #IFSC
Time of India
5 days ago
- Business
- Time of India
Faster UPI transaction now as NPCI cut UPI Application Programming Interface response time, know how it will impact users
Academy Empower your mind, elevate your skills What did NPCI say about UPI APIs? Serial number UPI API Entities Existing response time Revised response time 1. Request Pay, Response Pay (Debit and Credit) Remitter Bank and Beneficiary Bank 30 seconds 15 seconds 2. Check transaction status Remitter Bank and Beneficiary bank 30 seconds 10 seconds 3. Transaction reversal (debit and credit) Remitter Bank and Beneficiary Bank 30 seconds 10 seconds 4. Validate Address (Pay, Collect) Payer PSP, Payee PSP, Beneficiary Bank (Account+IFSC based transactions) 15 seconds 10 seconds What does this mean? Will a faster response time of UPI APIs result in higher cost? Consumers can now experience faster UPI transactions, especially when making merchant payments. This is because the National Payments Corporation of India (NPCI) has gone for a significant update in the UPI server's software. These changes that are made in the Unified Payment Interface (UPI) server's software have become effective from June 16, 2025, will enable faster response simple terms, merchant's bank account which accepts UPI payments from a customer needs to communicate with the customer's bank account through a server to execute various tasks such as validate the transaction, know its status, reverse any failed transactions, etc. This communication bridge between two banks is done by the UPI APIs for UPI the UPI API (Application Programming Interface) which makes this communication bridge between the merchant's bank terminal and your UPI enabled bank account takes anywhere between 15 to 30 seconds to respond to the request. This is where NPCI has made the current changes. NPCI has cut the response time this API request to anywhere between 10 to 15 seconds i.e. up to 66% reduction in time if we take the maximum reduction from 30 seconds to 10 to this move by the NPCI, consumers making UPI payments can expect a faster transaction time and faster reversal of failed UPI transactions. Read below to know more about which particular consumer UPI transactions will get faster now due to this UPI API level a circular dated April 26, 2025, NPCI said:With the objective of streamlining the performance of UPI, it is hereby informed that the response time for UPI APIs initiated by NPCI is revised as follows:Source: NPCI circularNPCI said in the circular: 'The aforementioned revisions are intended to improve the customer experience. The members are required to ensure that they make the necessary changes in their system so that responses are handled within the revised time. If the members have any dependency/configuration changes at partner/ merchant's end, then the same also has to be taken care accordingly. Further, Members are requested to ensure that the changes to the response time should not adversely impact the technical decline (TD) thresholds.'Rahul Jain - CFO, NTT DATA Payment Services India explains what happens in the scenario where you scan a merchant QR code to pay them.'The cycle works like this for a consumer scanning a merchant QR code and paying: first the remitter bank raises a query to the UPI server through the UPI APIs, then the beneficiary bank answers the query and accepts the payment. If the payment could not be accepted then the money will be returned to the remitter bank and the customer gets a refund. The changes made by the NPCI are in this UPI API response time.'According to Jain, this means now the remitter and beneficiary banks will communicate amongst themselves faster and hence the transaction's status will be updated faster. Jain explains using an example: if earlier it took maximum 30 seconds to process the response for a UPI transaction request now the same transaction will take half of this time i.e. 15 seconds. So in 30 seconds now two transactions can be done instead of only one earlier.'Vishal Maru- Global Processing Head Financial Software and Systems- FSS, says: "In order to process the higher volume of UPI transactions, its' API response time has been reduced as stated in this circular. Accelerated API cycles effectively address this issue. Consumers will now receive faster transaction confirmations, particularly during reversals or collection requests, instances that usually induce stress."Maru highlights how the faster response time of UPI APIs diminishes system-level retry storms, which not only congest the system but can also lead to cascading timeouts. "By narrowing response windows, UPI is evolving into a self-regulating and failure-resistant network. Quicker timeouts also facilitate a more equitable distribution of traffic among PSPs and banks, enhancing consistency even during peak periods and benefiting users of smaller or regional banks not solely those utilizing the largest applications."Maru from FSS, says that the faster response time of UPI APIs may initially increase the cost by a slight margin, but in the long run it can decrease.'What sets this apart is that shorter response times also enhance cache efficiency and lessen unnecessary database interactions, thereby making each transaction less demanding on system resources. Consequently, although initial expenditures may see a slight increase, the cost per transaction is anticipated to decrease over time, benefiting banks, payment providers, and ultimately consumers. This is not merely an enhancement in speed; it represents a profound systemic optimization that aligns with India's goal to scale UPI to 1,000 crore monthly transactions by 2026 without sacrificing trust, cost, or user says this faster response time feature may not add any cost burden for anybody.'This may add some incremental volume to UPI transactions but more so it will help consumers and merchants. For consumers it would mean faster UPI transactions and for merchants it would mean faster payment received. Also I don't think this is going to add any additional costs of running UPI servers for banks and NPCI,' says Jain.
Yahoo
5 days ago
- Business
- Yahoo
Sing Re gets reinsurance branch licence to operate in India
Singapore Reinsurance Corporation (Sing Re) has secured a reinsurance branch licence from the International Financial Services Centres Authority (IFSCA). The regulatory approval enables the company to establish an IFSC Insurance Office (IIO) in Gujarat International Finance Tec-City (GIFT City). The move authorises Sing Re to conduct property & casualty (P&C) reinsurance as a Category – 2 reinsurer within the Order of Preference framework. The new IIO is expected to facilitate Sing Re's access to the Indian reinsurance market. The company provides treaty and facultative reinsurance across various lines including accident, agriculture, casualty, credit, energy, equipment, marine, medical, motor, personal and property business, targeting regions such as Asia-Pacific, Africa and the Middle East. With origins dating back to January 1973, Sing Re has transitioned from a local cooperative to a regional reinsurance entity, focusing on non-life reinsurance treaty and facultative business from Asia, including the Middle East and Indian sub-continent. In 2021, Sing Re underwent corporate changes, becoming a subsidiary of Fairfax Asia, with Fairfax Financial Holdings as the ultimate beneficial owner. Consequently, Sing Re was delisted from the Singapore Exchange on 5 August 2021. The treaty reinsurance covers a wide range of areas including accident and health, agriculture, auto/motor, casualty, marine and energy, marine hull and cargo, medical, professional liability, property and surety and trade credit. The facultative reinsurance services offered by the company encompass casualty, marine and energy, marine hull and property. "Sing Re gets reinsurance branch licence to operate in India " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Mint
6 days ago
- Business
- Mint
GIFT City is changing how—and where—Indians invest
A quiet transformation is under way in Gujarat's GIFT City. The International Financial Services Centre (IFSC), pitched as India's answer to Singapore and Dubai, is steadily attracting high-net-worth individuals (HNIs), non-resident Indians (NRIs), and global asset managers looking for regulatory ease and tax efficiency, without leaving Indian shores. The pitch is simple: seamless capital flows, dollar-denominated investments, and a regulatory architecture that mirrors international standards. For investors seeking global diversification, and for Indian fund houses eyeing inbound capital, GIFT City is emerging as a credible financial gateway. Read this | New funds surge in GIFT City, but old money stays offshore 'GIFT City is a bold vision to position India as a global financial hub," says Vaibhav Shah, Head - Products, Business Strategy & International Business at Mirae Asset Investment Managers (India). 'It offers a seamless, tax-efficient, and regulatorily robust platform for capital flows—both inbound and outbound." What's on offer For NRIs, one of the biggest advantages is simplified compliance—there is no tax or tax deduction at source (TDS), and investments are maintained in US dollar. While the underlying assets may be in Indian rupee, the scale of alternative investment funds (AIFs) enables better negotiation on fees. Resident HNIs, meanwhile, benefit from access to global diversification through Overseas Portfolio Investment (OPI) under the Liberalised Remittance Scheme (LRS). While LRS limits annual remittances to $250,000 (approximately ₹2 crore), there is no mandatory minimum investment size for GIFT City funds—except what each fund may prescribe. Shah adds, 'It's a dynamic ecosystem designed to connect India's financial ambitions with global opportunities, offering a streamlined, world-class platform for investing in India's growth or tapping international markets with Indian expertise." Who can invest—and what's live so far? As of March, there were 229 registered funds managed by 162 Fund Management Entities in GIFT City. Category III AIFs, focused on listed markets and hedge strategies, lead with 135 funds. Category II AIFs, often used for private credit and structured investments, are growing steadily. Category I remains a niche segment, typically used for social impact or early-stage ventures. Typical entry points for investors begin at around $150,000. However, the threshold can be lower for accredited investors, depending on the fund. For retail mutual funds, there is technically no minimum, though in practice it is expected to be around $5,000. As per Securities and Exchange Board of India (Sebi), individuals qualify as accredited investors if they earn at least ₹2 crore annually, or have a net worth of ₹7.5 crore with at least ₹3.75 crore in financial assets. A third route applies to those with an annual income of ₹1 crore and a net worth of ₹5 crore, of which at least ₹2.5 crore must be in financial assets. For retail mutual funds, there is technically no minimum investment, although in practice, most require at least $5,000 to participate. Read this | Low-ticket Gift City funds are almost here. But what holds them back? Inbound capital currently makes up over 85% of flows, underscoring GIFT City's appeal to foreign investors. But outbound interest is rising as Indian investors seek international diversification. Investor participation and average investment sizes vary widely across categories. Category I and II AIFs have raised $10.22 billion from 1,025 investors, averaging nearly $10 million per investor. Category III AIFs have mobilized $5.32 billion from 1,508 investors, with an average ticket size of $3.5 million. Venture Capital (VC) schemes have seen smaller inflows, raising $201 million from 469 investors—an average of about $430,000 each. Overall, funds based in GIFT IFSC had invested $8.08 billion by March 2025. This includes $4.52 billion from Category I and II AIFs, $3.52 billion from Category III AIFs, and $42.77 million from VC schemes. Commitments raised have surged from $8.41 billion in March 2024 to $15.74 billion a year later—an impressive 87% year-on-year jump, per IFSCA data. 'We launched our GIFT City fund only this February. Our PMS offering there has doubled in AUM over the last one year," said Pramod Gubbi, Co-Founder at Marcellus Investment Managers. GIFT City is fast becoming a compelling jurisdiction for both inbound investments from foreign and NRI investors, and outbound allocations by Indian residents—driven by regulatory clarity and tax incentives for asset and wealth managers, Gubbi added. Easier onboarding, flexible distribution Know Your Customer (KYC) norms have been aligned with global practices, Shah highlighted. For outbound funds, Indian asset managers can use existing KYC registries like CVL KYC. For inbound investors, documents such as a passport and address proof are sufficient. In-person verification can be completed by overseas professionals like lawyers or bankers. Distributors can register with the International Financial Services Centres Authority (IFSCA), although even those who aren't formally registered may still earn referral fees. Unlike in India's domestic mutual fund market, there's no cap on commissions. Retail funds face regulatory hurdles Retail offerings from Indian asset managers are still limited. 'Retail funds in GIFT City are still taking shape and require the need for greater investor awareness," says Shah. However, he remains optimistic, pointing to ongoing efforts by both regulators and asset managers to widen access and participation. One key bottleneck for the launch of retail mutual funds is regulatory clearance in other jurisdictions. For example, if Indian fund houses want to tap into the NRI retail investor base in the US, they may need to register with the Securities and Exchange Commission, or equivalent bodies in other countries. This cross-border compliance can be complex and time-consuming Currency management and infrastructure gaps To reduce transaction costs, many fund houses have partnered with IFSC-based banks for competitive forex services. However, features like Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs) are still under development. While investors can open dollar-denominated accounts within the zone, automated investment tools are not yet functional. Read this | Gift City sovereign green bonds face currency hurdle 'Currently, SIPs and STPs are not operational in GIFT City accounts or wallets," Shah says. A platform still evolving Despite these gaps, fund houses remain bullish on the city's prospects. With a growing number of registered funds, rising foreign interest, and supportive regulation, GIFT City is positioning itself as a credible alternative to traditional global financial centres. 'Operating under global standards, GIFT City empowers Indian businesses and investors to compete internationally, attract foreign capital, and foster innovation," Shah says. But how quickly this potential translates into meaningful retail participation will depend on how soon the infrastructure, distribution, and regulatory bridges are fully in place.
Economic Times
6 days ago
- Business
- Economic Times
Zerodha's Nithin Kamath warns of rising broker frauds as SEBI rolls out UPI safeguards
In a bid to stem the rising tide of frauds targeting retail investors, Zerodha co-founder and CEO Nithin Kamath on Monday endorsed the Securities and Exchange Board of India's (Sebi) latest Unified Payments Interface (UPI) security feature aimed at eliminating payment scams involving impersonator brokers. ADVERTISEMENT "The number of fraud cases involving scammers impersonating brokers and asking for money to be transferred to random accounts has skyrocketed," Kamath wrote on the microblogging site X (formerly Twitter) on June 16. "To protect investors, SEBI has introduced a new UPI security feature. All legitimate fund transfers will now only go to verified UPI handles like: brokername@validbank (as shown in the image). We'll (@zerodhaonline) implement this soon, and this should help reduce fraud incidents significantly." blockquote class="twitter-tweet"p lang="en" dir="ltr"The number of fraud cases involving scammers impersonating brokers and asking for money to be transferred to random accounts has protect investors, SEBI has introduced a new UPI security feature. All legitimate fund transfers will now only go to verified UPI… a href=" Nithin Kamath (@Nithin0dha) a href=" 16, 2025/a/blockquote script async src=" charset="utf-8"/script The market regulator has mandated a validated UPI structure for all Sebi-registered intermediaries, including stockbrokers, mutual funds, and portfolio managers, effective October 1, 2025. As per a Sebi notification dated June 11, the move is aimed at addressing growing concerns over payment fraud on online investment platforms. ADVERTISEMENT Each registered entity will be assigned a standardised UPI ID consisting of two parts, a username and a unique handle. The username will include the entity name along with a suffix that identifies the intermediary category (e.g., brk for broker, mf for mutual fund). The handle will be "@valid" appended by the bank instance, a broker named abc operating via HDFC Bank would have the UPI ID Sebi clarified. ADVERTISEMENT To make payment verification foolproof, all valid UPI handles will be marked with a distinctive 'thumbs-up inside a green triangle' symbol. This logo will also appear on QR codes generated by intermediaries for investor this will be Sebi Check, a tool currently under development that will allow investors to verify UPI IDs either by manually entering the ID or scanning a QR code. The platform will display associated bank account details and the IFSC code of the verified intermediary. ADVERTISEMENT Sebi chairman Tuhin Kanta Pandey, speaking to reporters, said the new UPI verification structure is 'set to significantly improve the safety and accessibility of financial transactions within the securities market by providing a verified and secure payment channel.'The new handles are mandatory only for registered intermediaries, while investors may continue using their existing UPI IDs. The Rs 5 lakh per day transaction cap for capital market payments via UPI will remain unchanged. ADVERTISEMENT The regulator expects approximately 8,000 intermediaries to transition to the new UPI framework by the implementation deadline. Also read | UltraTech Cement must divest 7% stake in India Cements to meet SEBI norms (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
6 days ago
- Business
- Time of India
Zerodha's Nithin Kamath warns of rising broker frauds as SEBI rolls out UPI safeguards
The number of fraud cases involving scammers impersonating brokers and asking for money to be transferred to random accounts has skyrocketed. To protect investors, SEBI has introduced a new UPI security feature. All legitimate fund transfers will now only go to verified UPI… — Nithin Kamath (@Nithin0dha) June 16, 2025 New UPI security structure goes live in October Live Events Visual verification, QR codes and Sebi check (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel In a bid to stem the rising tide of frauds targeting retail investors, Zerodha co-founder and CEO Nithin Kamath on Monday endorsed the Securities and Exchange Board of India's (Sebi) latest Unified Payments Interface (UPI) security feature aimed at eliminating payment scams involving impersonator brokers."The number of fraud cases involving scammers impersonating brokers and asking for money to be transferred to random accounts has skyrocketed," Kamath wrote on the microblogging site X (formerly Twitter) on June 16."To protect investors, SEBI has introduced a new UPI security feature. All legitimate fund transfers will now only go to verified UPI handles like: brokername@validbank (as shown in the image). We'll (@zerodhaonline) implement this soon, and this should help reduce fraud incidents significantly."The market regulator has mandated a validated UPI structure for all Sebi-registered intermediaries, including stockbrokers, mutual funds, and portfolio managers, effective October 1, 2025. As per a Sebi notification dated June 11, the move is aimed at addressing growing concerns over payment fraud on online investment registered entity will be assigned a standardised UPI ID consisting of two parts, a username and a unique handle. The username will include the entity name along with a suffix that identifies the intermediary category (e.g., brk for broker, mf for mutual fund). The handle will be "@valid" appended by the bank instance, a broker named abc operating via HDFC Bank would have the UPI ID Sebi make payment verification foolproof, all valid UPI handles will be marked with a distinctive 'thumbs-up inside a green triangle' symbol. This logo will also appear on QR codes generated by intermediaries for investor this will be Sebi Check, a tool currently under development that will allow investors to verify UPI IDs either by manually entering the ID or scanning a QR code. The platform will display associated bank account details and the IFSC code of the verified chairman Tuhin Kanta Pandey, speaking to reporters, said the new UPI verification structure is 'set to significantly improve the safety and accessibility of financial transactions within the securities market by providing a verified and secure payment channel.'The new handles are mandatory only for registered intermediaries, while investors may continue using their existing UPI IDs. The Rs 5 lakh per day transaction cap for capital market payments via UPI will remain regulator expects approximately 8,000 intermediaries to transition to the new UPI framework by the implementation deadline.
