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Business Standard
3 days ago
- Business
- Business Standard
Sitharaman says India's finance future is 'phygital', driven by UPI
Emphasising the convergence of physical and digital financial experiences, Union Finance Minister Nirmala Sitharaman on Wednesday said India's financial future will be 'phygital'—a blend of physical and digital services. 'It is important to leverage the reach of technology as well as maintain physical presence to serve customers better and build trust over time,' Sitharaman said at the Digital Payments Awards 2025, held in New Delhi. Her address painted a comprehensive picture of India's digital public infrastructure, highlighting citizen adoption, fintech innovation, and banking resilience as the three foundational pillars of its success. She also underscored India's inclusive fintech model as a global template. 'Our fintech revolution is not just Made in India, but also Made for the World. We're exporting solutions, not just software,' she said, referencing UPI-based payments now accepted in seven countries, including France, the UAE, and Singapore. 'It is heartening to note that international merchant payments through UPI are now accepted at select merchant outlets in Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE,' she added. Sitharaman noted that UPI processed 1,867.7 crore transactions in May 2025, totalling over ₹25.14 lakh crore—representing 33.1 per cent year-on-year growth in volume and 23 per cent in value. She attributed this adoption to India's innovation-friendly ecosystem, including the regulatory sandbox model that enables real-time testing for fintech firms. Calling for greater financial literacy and stronger cybersecurity infrastructure, the Minister stressed the need to protect citizens from modern digital threats such as deepfakes and 'Friday-night scams'. She urged deep-tech startups to focus on next-generation challenges, supported by policy and regulatory flexibility. 'The role of the regulator must be acknowledged. Without it, this movement would not have been possible,' Sitharaman said, crediting the RBI's light-touch regulation for fostering innovation without stifling growth. Sitharaman stated that India's fintech model has earned admiration worldwide, with many advanced economies seeking collaboration. 'What we have achieved in six years would have taken 50 years under normal circumstances,' she said. Fintech Industry Meeting Prior to Awards Earlier in the day, Sitharaman held a closed-door meeting with fintech companies to review the ecosystem's status, according to a person with direct knowledge of the discussion. This was the first such meeting in several months and was attended by Minister of State for Finance Pankaj Chaudhary, Financial Services Secretary M Nagaraju, and officials from the Reserve Bank of India, the source added. Key topics included improving the ease of doing business for fintechs and measures to prevent financial fraud. Fintech representatives also shared their perspectives. However, the contentious issue of merchant discount rates (MDR) on UPI transactions was not discussed, the source clarified. The last such meeting between the finance ministry and fintech stakeholders took place on 26 February 2024, in the wake of regulatory action against Paytm Payments Bank. At the time, Sitharaman had suggested that the RBI and other regulators hold regular virtual meetings with startups and fintechs to address concerns in a structured manner.
Mint
5 days ago
- Business
- Mint
Sebi's new fee platform aims to protect investors. But not many have taken to it
Mumbai: The capital market regulator's centralized fee collection mechanism, aimed at ensuring that investors pay only registered investment advisers and research analysts, is seeing slow adoption since its launch nearly nine months ago due to its optional status and limited awareness, according to industry participants. Since it was introduced by the Securities and Exchange Board of India (Sebi), the platform has seen collections worth ₹ 5 crore, according to a statement released by the regulator on 12 June. Managed by BSE Ltd. and MF Utilities India Pvt. Ltd. (MFU), the mechanism went live on 1 October 2024, offering a closed and auditable ecosystem to help investors avoid unregistered operators. India has approximately 1,300 registered investment advisors (RIAs) and 1,371 research analysts (RAs) for the 11.4 crore investors, according to data by the National Stock Exchange (NSE). The usage of the mechanism has been steady, particularly among digitally enabled research advisers and analysts, according to Ganesh Ram, managing director & chief executive officer of MFU. 'However, since the facility is optional as per Sebi, adoption has been gradual,' said Ram. 'We are yet to do major promotions or marketing as we wanted to first ensure the system's stability.' Ram noted that larger firms are increasingly using the platform. 'It's a fully web-based portal and full stack API, that supports all payment modes—e-mandates, ad-hoc payments, and recurring mandates including UPI. Advisors can track payments from all investors in one place,' he said. 'Since MFU also facilitates mutual fund transactions, it becomes an added advantage for users.' The platform charges an annual subscription fee of around ₹ 7499, Ram said, which covers related charges and platform features, maintenance, etc. While the central fee collection mechanism (CeFCoM) offers clear advantages for compliance and traceability, some experts caution against any move to make it mandatory. CeFCoM is 'undoubtedly a valuable enabler for individual registered investment advisers (RIAs),' especially solo practitioners who typically lack access to traditional payment gateways, according to Harsh Roongta, member of Sebi's Alternative Investment Policy Advisory Committee (AIPAC) and founder of Fee Only Investment Advisers LLP . However, 'making CeFCoM mandatory would be counterproductive for several reasons', he said. 'As Sebi-registered intermediaries, RIAs are also required to register with platforms like ValidPay, which support UPI-based fee collection—an option that is more cost-effective, real-time, and client-friendly,' he said. 'Mandating CeFCoM would restrict access to such alternatives and raise unnecessary questions from clients.' He also pointed to structural issues. 'CeFCoM was originally conceived as a surveillance mechanism to monitor that fees remain within Sebi's prescribed limits…and requires each client to be registered with BASL (BSE Administration and Supervision Ltd). This process is still largely manual and often delayed, making CeFCoM unsuitable for digital-first or time-sensitive advisory models.' Roongta cautioned about financial implications as well. 'It comes at a cost— ₹ 11,800 annually, with an added delay of one working day in crediting fees. If made mandatory, the associated costs are likely to rise further, imposing a financial burden on already resource-constrained RIAs.' Several advisers who have adopted CeFCoM praised its utility, but acknowledged challenges. 'We adopted CeFCoM as soon as it was activated. It took a month or two to onboard most of our clients, but now a large part of our collections go through the system,' said Vivek Rege, founder and CEO of V R Wealth Advisors Pvt. Ltd. 'CeFCoM is ultimately about investor protection… It gives clients confidence that they're dealing with a registered adviser.' Renu Maheshwari, vice chairperson of Association of Registered Investment Advisers (ARIA) and CEO of Finscholarz Wealth Managers LLP, said her firm has transitioned from MFU's earlier e-collect system to CeFCoM seamlessly. 'It's working smoothly now, though NRI payments are still a grey area,' Maheshwari. 'Anything that becomes mandatory should not be disruptive. At this stage, keeping CeFCoM optional gives RIAs the freedom to adopt at their own pace.' Other advisers say the bigger challenge lies in the system's low visibility. 'Ask any investor—do they even know what CeFCoM is? Or that it exists as a safer alternative? Sebi hasn't publicized it,' said Kavitha Menon, founder of Probitus Wealth and an ARIA board member. She argued that 'India doesn't know about registered investment advisers, let alone CeFCoM.' Menon also flagged the cumbersome onboarding and associated costs. 'The registration process is still cumbersome—for both adviser and client… ₹ 11,800 a year may not sound like much, but for many individual advisers with modest earnings, it's a burden.' In response to Mint's queries, Sebi said it had floated a discussion paper in August 2023 to assess whether CeFCoM should be mandatory. 'Based on the responses received, it was decided to make it optional. Change can be considered inter alia, based on the industry demand for it,' a spokesperson said. While the regulator maintained that CeFCoM was not primarily intended as a surveillance tool, it emphasized that the mechanism helps investors distinguish between registered and unregistered entities. 'Clients being able to move towards registered entities in this regulated bubble is the aim of the CeFCoM,' the spokesperson added. Sebi acknowledged limited awareness as a challenge, but pointed to growing traction. 'Despite being optional, more than ₹ 5 crore of fees has been collected through this mechanism; [that] demonstrates some traction,' it said.
Time of India
5 days ago
- Business
- Time of India
India's gateway to Europe: PM Modi pitches India's growth story in Cyprus; says economy will be world's 3rd largest soon
Prime Minister Narendra Modi on his historic visit to Cyprus advocated for India's growth story, asserting that the nation is well-positioned to become the world's third-largest economy within the next few years. Tired of too many ads? go ad free now Speaking at a business roundtable in Limassol on Sunday, PM Modi in presence of Cypriot President Nikos Christodoulides and an assembly of leading CEO's outlined India's remarkable economic transformation while highlighting extensive opportunities for partnership with Cypriot businesses . He attributed India's significant economic changes over the past eleven years to substantial reforms, stable policies, and advancements in the Ease of Doing Business. "India will soon become the third-largest economy in the world. We have implemented tax reforms, rationalised corporate tax, decriminalised laws, and are focusing on the 'trust of doing business' along with ease of doing business,' he stated. Citing the success of India's digital revolution, he noted, 'Around 50 per cent of the world's digital transactions take place in India, thanks to UPI. We are in talks with Cyprus to extend this system here, which I welcome.' The Prime Minister also spoke on the evolving India-Cyprus relationship, calling Cyprus a 'reliable partner' and welcoming its growing role as a key economic gateway to Europe. He added that Indian companies see Cyprus as a hub for IT services, tourism, and financial management. Both leaders expressed their support for the signing of the MoU between the NSE International Exchange at GIFT City, Gujarat, and the Cyprus Stock Exchange. Tired of too many ads? go ad free now This agreement is anticipated to strengthen financial cooperation between the two nations. A partnership between NIPL (NPCI International Payments Limited) and Eurobank Cyprus was established to enable UPI-based cross-border payments. This initiative is expected to facilitate more seamless transactions for tourists and businesses alike. Additionally, PM Modi praised the launch of the India–Greece–Cyprus (IGC) Business and Investment Council, a trilateral platform designed to promote collaboration in sectors such as shipping, logistics, renewable energy, civil aviation, and digital services. As Cyprus prepares to take over the Presidency of the EU Council next year, both nations reaffirmed their commitment to deepening the India-EU Strategic Partnership. They expressed optimism about concluding the long-pending India-EU Free Trade Agreement by the end of the year—a move expected to boost trade volumes and economic cooperation across sectors.
Time of India
11-06-2025
- Business
- Time of India
SEBI Unveils ‘Valid' UPI System to Protect Investors from Fraud in Capital Markets Starting Oct 1
SEBI has launched a revolutionary payment system named 'Valid' to make UPI-based fund transfers safer and fraud-free in the Indian capital markets. Starting October 1, 2025, all SEBI-registered intermediaries—brokers, mutual funds, investment advisers, and analysts—will collect client payments using a verified UPI ID ending with @valid. This mechanism ensures that investors pay only to authentic, regulated entities, cutting out the risk of fraudulent transfers. A green thumbs-up icon and a new verification tool called 'SEBI Check' will help users confirm the legitimacy of UPI IDs before payment. Developed in consultation with NPCI and banks, the system sets a daily UPI payment cap of ₹5 lakh for capital market transactions. SEBI's move marks another major step in digital transformation, following its 2019 UPI integration. Is this the future of secure investing? Watch now to know how it works and why it matters.#sebi #upi #sebivalid #sebiupi #investorprotection #sebinews #capitalmarketindia #validupi #sebisystem #sebicheck #npciupdates #indianstockmarket #toi #toibharat #bharat #breakingnews #indianews
Time of India
06-06-2025
- Business
- Time of India
PhonePe expands UPI payments to feature phone users
Digital payments platform PhonePe has announced its acquisition of the GSPay technology stack from conversational engagement platform Gupshup, aiming to bring UPI-based payments to feature phone users across India. The move aligns with PhonePe's financial inclusion strategy , targeting millions of consumers who remain outside the digital payments ecosystem. GSPay, built on NPCI's UPI 123PAY framework, enables seamless UPI transactions on feature phones. PhonePe plans to customize and extend the technology, launching a dedicated UPI payment app for new feature phones in the coming months. Key Features and interoperability The upcoming PhonePe app will support: Peer-to-peer (P2P) transfers Offline QR code payments Receiving funds via mobile number or self-QR codes These features will allow feature phone users to transact effortlessly with smartphone users, ensuring full interoperability in the digital payments ecosystem. PhonePe CEO Sameer Nigam highlighted the significance of the expansion: "This segment has been historically underserved. By enabling UPI payments on feature phones, we hope to empower crores of users and bring them into India's digital economy." AI Masterclass for Students. Upskill Young Ones Today!– Join Now
