Category: News

Welcome to our News category, your trustworthy hub for all the latest updates and happenings at Signzy, a leading light in the fintech arena. With our continuous strides in product innovation, technological advancements, forging strategic partnerships, and earning industry accolades, there’s always a buzz of activity at our end. This category is dedicated to bringing you all the noteworthy news and developments related to our organization.

Designed with the intent to keep you well-informed about our journey, our milestones, and our forward-looking vision, our News category is an embodiment of our commitment to transparency. We believe in fostering an open dialogue with our customers, partners, and followers, and this dedicated news section serves as a testament to that pledge.

In this space, you’ll come across updates about our latest collaborations and strategic alliances that enable us to widen our horizons and deliver superior solutions. You’ll gain insights into the accolades we’ve been bestowed with for our pioneering work in the fintech sector. Above all, you’ll get a sneak peek into the trail we’re blazing within the fintech ecosystem.

We cordially invite you to stay connected with us through our News category. Be a part of our journey as we persistently push the boundaries of what’s possible in fintech, revolutionizing the operational modalities of businesses. Whether you’re a client, a partner, or a follower, this space will keep you abreast of our strides and successes. Join us as we navigate the thrilling landscape of fintech, one news update at a time.

What’s All The Fuss About The Digital Personal Data Protection Bill 2022?

Posted on | by Signzian

The Ministry of Electronics and IT(MeitY) has released the Digital Personal Data Protection Bill 2022, and the government is currently seeking public feedback and consultations. The measure is intended to lay out the procedures and guidelines for data collecting for businesses and the rights and obligations of “digital nagriks,” or citizens.

The measure also establishes severe penalties for breaking any law’s rules, and the Data Protection Board of India—which the new law has set up—will make these determinations. However, board orders may be contested in a High Court.

 

The Data Protection Bill Focuses On Seven Fundamental Principles

The Bill’s explanatory note states that it is founded on seven principles. The first is that organizations must use personal data in a way that is legitimate, fair to the individuals involved, and transparent to individuals.  The second principle states that personal data must only be used for the purposes for which it was collected. The third principle discusses data minimization, while the fourth principle emphasizes data accuracy when it comes to collection.

The fifth principle states that personal information cannot be stored perpetually by default and should only be kept for a specific time. According to the sixth principle, there should be enough protections to guarantee that no unauthorized collection or use of personal data occurs.

Seventh principle: The person who determines the nature, scope, and means of personal processing data shall be liable for such processing.

 

Defining Definitions- What Data Principal And Data Fiduciary Implies

The person whose data is being gathered is referred to throughout the Bill as the “Data Principal.”

The purpose and means of processing an individual’s data are determined by the “Data Fiduciary,” which may be a person, business, government agency, or other entity.

The law also acknowledges that parents or legal guardians will be regarded as children’s Data Principals in cases where they are children, defined as all users under 18.

According to the law, all data by or in connection to which an individual can be identified is considered personal data. Processing is the full range of processes that may be applied to personal data. According to the Bill, data processing would include data collection and storage.

The measure also guarantees that people should have access to essential information in the languages included in the Indian Constitution’s eighth schedule. Furthermore, the Bill stipulates that consent must be obtained from the subject before their data is processed and that each individual should be aware of the specific personal data that a Data Fiduciary wishes to collect and the purposes for such collection and further processing.

Additionally, the notification of data collection must be written in language that is both explicit and understandable. Additionally, people can revoke their consent from a data fiduciary.

 

Two Rights Of Action- The Rights To Erase Data And To Nominate

Data principals can request the deletion and updating of data that the data fiduciary has acquired. If the data principal passes away or becomes incapable, they can also designate a person to act on their behalf.

The measure also grants customers the ability to protest to the Data Protection Board about a Data Fiduciary if they do not receive a sufficient response from the business.

 

What Are The Relevant Data Fiduciaries In Data Protection?

Furthermore, the Bill refers to Significant Data Fiduciaries, who handle a sizable amount of personal data. The Central government will decide who falls under this group based on various considerations, including the amount of personal data collected, the risk of harm, and the potential impact on India’s sovereignty and integrity.

The Bill’s explanatory note states that this category must fulfill additional duties to permit wider scrutiny of its actions.

Such organizations will be required to designate a “Data protection officer” to act on their behalf. They will serve as the focal point for grievance redress. They must also choose an impartial data auditor to assess their compliance with the statute.

 

Financial Punishments And Penalties

The draught also suggests that businesses that experience data breaches or fail to notify customers when breaches occur face harsh penalties. Entities that do not implement “reasonable security safeguards” to prevent personal data violations could face fines of Rs 250 crore.

 

Data Protection For Data Transfer Across International Borders

The measure also permits storing and transferring data across international borders to certain notified countries and territories. 

The memo further states that the Central Government would consider essential criteria before such notification.

Bottomline

The government may also exempt specific enterprises from complying with the Bill’s provisions based on the number of users and the volume of personal data collected by the firm. When doing this, the national startups that complained that the prior version of the Bill was compliance intensive have been taken into account.

 

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

 

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

 

 

 

 

 

Crypto’s Coming Crash: here’s what you need to know

Posted on | by Signzian

FTX, the price of bitcoin (BTC) has tumbled again. It is now about $16,500 – a far cry from the all-time high of $66,000 just a year ago. Why such a significant drop in value? It’s because of the highly toxic combination of exchange (an electronic platform for buying and selling) called Binance.

Binance is a stablecoin (a crypto whose price is pegged 1:1 to the US dollar or another “fiat” currency) called tether – The skilled professional traders running high-frequency algorithms. Unlike stocks, bitcoin can be traded on many different exchanges. But Binance has more than 50% of the entire crypto market, and as a result, it sets the price of bitcoin and other cryptocurrencies

To buy cryptocurrencies, traders must convert fiat money into a stablecoin-like tether. Bitcoin-tether has by far the most significant volume of all products on Binance. Since one dollar usually equals one tether, trading on bitcoin-tether sets the dollar price of bitcoin. But when bitcoin crashes, the entire crypto ecosystem does. 

How did the FTX Crash Happen?

The FTX crash has its roots in the manipulation of tether (USDT), the most commonly used stablecoin. USDT is supposed to be backed by one dollar for each USDT coin, but these claims have not been verified. The primary technique used to manipulate the price of USDT is called “wash trading”. What is wash trading you ask? Easy explanation – you buy and sell USDT simultaneously from different accounts you control.

When you do this, USDT prices go up and down, creating the false impression that there is a massive demand for USDT. For example, a trader buys 100 USD T for $100, then sells 100 USD T for $120. The trader has made a profit of $20, but the price of USDT has risen from $1 to $1.20. This creates a misleading impression that the market needs a lot more USDT, which it may not.

Why Does the Crypto Market and FTX Crash?

In most normal markets, a large number of buyers and sellers set the price of a product. If a product is overpriced, more sellers will offer their product. But in the crypto world, only a few significant exchanges set the price.  No one buys or sells unless they want to make a profit! When a considerable stock exchange like Binance has a high percentage of the market, it can control the price of bitcoin and other cryptocurrencies.

A high-frequency trader can buy bitcoin on Binance, then sell it on Binance again to someone who has just bought bitcoin on Binance. In addition, Binance does not require a trader to buy or sell an entire bitcoin. Instead, the trader can buy or sell 0.00000001 bitcoin, or $0.0001.

What Should Happen Next?

As in any crash, the best thing to do is stay calm and not panic sell. The FTX crash will probably have a similar outcome to the dot-com crash. The time when the internet was still in its infancy, but the companies were still around – just later in their life cycles.

The FTX crash will, however, cost investors a lot of money. But it will be good for the market’s long-term future, as the weak hands will be weeded out. There are no signs of a healthy correction in the crypto market, but these events always take longer than expected. In 2000, the dot-com crash began in March, but the Nasdaq didn’t bottom out until October 2002, more than two years later.

The Bottom Line

The FTX crash is a healthy correction for the crypto market. But given the lack of proper regulation, the extreme volatility, and the high percentage of inexperienced traders who entered the market, the crash could last for a long time.

Nevertheless, the crypto market will likely go through a healthy correction and come out on the other side of a more robust and mature marketplace. The FTX crash was entirely predictable, and it was only a matter of time before it happened.

 

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

 

Cross-Country Payments With RBI’s UPI- A Detailed Look At The Central Bank’s Future For International Remittance

Posted on | by Signzian

India was the top recipient of remittances in the world in 2021, receiving over USD 87 billion. This represented a 4.6% increase above its remittance inflows from prior years. This is because remittances only represented 3.1% of the nation’s GDP in 2020.

Cross-country remittances are growing, and the Reserve Bank Of India(RBI) acknowledges this as they are deciding to act on it. Their initial plan is to add newer options to the 6-year-old Universal Payments Interface(UPI) that includes international payments. Prima facie is undoubtedly a step in the right direction. Yet we must look closely to see how it will impact the sector.

What Is RBI’s Initiative?

The Reserve Bank of India (RBI) stated in its annual report for FY21 that it is working on using UPI for cross-country transfers among jurisdictions.

RBI has looked into the idea of connecting UPI with comparable systems in other jurisdictions, particularly in the G20 countries, to improve cross-country and international payment arrangements. In addition, the apex bank claims to participate in the discussions over the fundamentals and roadmap of UPI and cross-country remittance with the Committee on Payments & Market Infrastructures (CPMI) and Financial Stability Board (FSB).

What Are Cross-Country Remittances?

For the uninitiated, cross-country remittances are transactions between individuals, companies, or banks in at least two countries. At the moment, cross-country and international payments are settled through a bank with branches in both nations. The bank converts money to local currency and charges users a commission of up to 10%. As a result, the procedure is time- and money-consuming.

What Is The Future Of Cross-Country Remittances In India?

The cornerstone of the cross-country payments ecosystem in India is likely to be laid by a similar agreement between PayNow, based in Singapore, and UPI’s governing organization, the National Payments Corporation of India (NPCI). The integration of UPI with PayNow has been formally announced, even though the efforts with different nations are at varying levels. According to the RBI, it should start operating in the second half of 2022.

The interlinking lowers the cost of cross-country remittances and will further anchor commerce, travel, and remittance flows between the two nations. It might also be used as an illustration of how different fast payment systems can be linked to sending money quickly and cheaply.

Essentially,

  • NPCI, an RBI initiative, has collaborated with several foreign organizations to share the UPI infrastructure but prevents cross-country payments.
  • The cross-country payments ecosystem in India is likely to be built around PayNow, a Singapore-based company, which is the sole partner of UPI.
  • According to the RBI, efforts are in various phases with different countries, but cross-country remittance via PayNow will start after July 2022.

UPI For Cross-Country Remittances

One of India’s payment settlement infrastructures with the quickest growth is UPI. The interface enables peer-to-peer payments across banks and platforms with a single pin. UPI recorded transactions of INR 10.4 Lakh Cr. in May 2022 alone because of its scalability and simplicity of usage.

As a result, numerous nations took note of the stack and made plans to implement the UPI functioning model in their countries. For this, NPCI’s international division, NIPL, has agreements with several banks in nations like the UAE, the US, Nepal, China, Japan, and several regions of Africa. However, so far, these partnerships have been signed to share the infrastructure and not enable cross-country payments.

For instance, in August 2021, NIPL announced its partnership with UAE-based Mashreq Bank to benefit 2 Mn+ Indians who travel to UAE for business or leisure every year.

In July 2021, NPCI partnered with the Royal Monetary Authority (RMA) of Bhutan to initiate UPI-based payments in Bhutan and benefit an estimated 200,000 tourists from India who travel to the mountain nation annually.

Other successful international partnerships in this space include Discover Financial Services (DFS) USA, Japan Credit Bureau (JCB) Japan, Union Pay International (UPI) China, PPRO Financial, UK, and Network for Electronic Transfers (NETS), Singapore, and Liquid Group, Singapore.

Bottomline

Once RBI implements this aspect of UPI, transactions will boom, and fintech enterprises need to be ready. A simple digital adaptation to accommodate the transforming technology won’t cut it. All processes will have to qualify for international standards, and better security measures must be implemented. All this needs to be done without compromising the experience of the customer.

If you seek to improve your processes and be ready for the looming change, we at Signzy might be able to help out. Our No-code AI-driven resources that are fully customizable are built for your needs. Check it out here.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

RRA Refocus On Circulars- What The RRA’s recommendation To RBI Was And What It Means For The Fintech Industry

Posted on | by Signzian

The Reserve Bank of India(RBI) stated the Regulations Review Authority(RRA 2.0) had recommended withdrawing an additional 225 redundant circulars on the RBI website. The Reserve Bank had set up the RRA 2.0(Regulations Review Authority) to reduce the burden of compliance on REs(regulated entities).

“RRA 2.0(Regulations Review Authority 2.0) has recommended withdrawal of an additional 225 circulars in the third tranche of recommendations,” the Reserve Bank Of India said in a statement last week.

The RBI is separately issuing the notifications, including the list of specific instructions recommended for withdrawal.

Once the Reserve Bank Of India does remove these redundant circulars, it will be a welcoming step for optimizing the regulatory compliance associated with the sector. Moreover, it will significantly help the banking and fintech industries as financial technology is constantly impeded by regulatory bureaucracy.

In the second tranche, the Regulations Review Authority 2.0 had also recommended merger/ discontinuation/ conversion to online submission of 65 returns. In addition, they also emphasized creating a new ‘Regulatory Reporting’ link on the central bank’s official website to consolidate all the information relating to any regulatory reporting.

History of RRA 2.0

The Reserve Bank of India established the Regulations Review Authority 2.0 to review all the regulatory instructions, reduce the burden of compliance on Regulated Entities (REs), and remove redundant and duplicate instructions.

Regulations Review Authority 2.0 focuses on properly streamlining regulatory instructions, reducing requirements for reporting wherever possible, and reducing the burden of compliance of the regulated entities(REs) by simplifying procedures and processes.

The Reserve Bank of India had established an RRA initially for only a year from April 1, 1999, for mostly reviewing the regulations, reporting systems, and circulars based on the genuine feedback from the banks, the public, and other financial institutions(FIs).

The recommendations of the Regulations Review Authority enabled streamlining and incrementing the effectiveness of various procedures and simplified regulatory prescriptions. It paved the way for issuing master circulars and reduced reporting burden on regulated entities; the RBI had said in April last year while announcing the setting up of RRA 2.0.

What this means for financial technology

The talk needs to be walked from the RBI website to the financial companies and regulated entities in the form of new rules. Once the redundant circulars are effectively withdrawn, it will be a comforting move for regulatory compliance in all sectors. This is particularly true in fintech. As the fintech industry is closely knit with advancing technology, outdated regulations constantly impede the excellent implementation of solutions.

Although RBI and other regulating entities are striving to walk the fine line of easing the processes for regulated entities while affirming the safety and security of the customers, it remains difficult to follow the proper regulatory compliance. This is especially true in cases of compliance involving digitization and automation. 

If you are concerned about how to handle this, you need not seek further. Signzy provides the-state-of-the-art API resources that are No-Code AI-driven and offer customizable options for all your needs. Check out our products here.

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. It gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru, and it has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

Know Everything About The RBI’s New Rules Revamp For Credit And Debit Cards

Posted on | by Signzian

With over 5,90,000 ATM transactions and close to 211 million POS(point-of-sale) credit card transactions, December 2021 was an intriguing month for the financial industry. These numbers keep on increasing, and the government is taking measures to ensure that card issuers do right by the customers.

The Reserve Bank of India(RBI) provided new rules for the Issue of credit and debit cards and apt directions to issuing agencies. The new rules will be implemented from July 1, 2022. 

These directions encompass the conduct regulations relating to credit, debit, and co-branded cards and their payments. They apply to every bank in India.

The official RBI website prescribes the new rules as master directions. These are meant to provide just treatment for debit and credit services customers. The RBI website also hints at further reforms in the coming months.

General guidelines for card issuance

  • If a card is blocked at the customer’s request, a replacement card can only be issued with the customer’s explicit consent. Further, the card issuer must obtain the explicit consent of the cardholder before the renewal of an existing card.
  • The T&C for issuing and usage of a card will be mentioned in simple language with clarity. This will preferably be in Hindi, English, and regional languages.
  • If any convenience fee is charged on specific transactions, it shall be transparently indicated to the cardholder before the transaction.
  • The terms shall specify the time for a reversal of failed transactions and the compensation payable for failure to meet the specified timeline.
  • The card issuer may alter terms, but they must provide a 30 days notice of the change to the cardholder to enable the customer to withdraw if they choose. 

Guidelines for debit cards

  • Debit cards shall only be issued to savings bank or current accounts customers.
  • Banks will not force a customer to avail of a debit card facility and shall not link issuance of a card to opt for any additional facility from the bank.

Guidelines for credit cards

  • Unsolicited upgrading or the Issue of unsolicited cards is strictly prohibited. Suppose an unsolicited card is issued, or an existing card is upgraded and activated without the customer’s explicit consent (a bill is generated). In that case, the card-issuer shall reverse charges and pay the penalty amounting twice the value of reversed charges.
  • The card-issuer is wholly held responsible if there is a misuse of such unsolicited cards (before reaching those whose names it was issued).
  • Consent must be explicit for the Issue of cards- i.e., written consent is required before a credit card issuance. If written permission is difficult to obtain, digital means can be used but must be communicated to the RBI.
  • Card issuers and third-party agents have been told not to resort to intimidation or harassment during the recovery of dues.

Guidelines for loss of cards

  • Card-issuer will block a lost card immediately after being informed.
  • Card issuers shall provide detailed information on reporting loss, theft, or unauthorized use of a card or even the PIN. This must include channels such as a dedicated number for SMS, a dedicated helpline, a dedicated e-mail-id, a visible hyperlink on the website, internet banking and mobile app, etc.
  • Card issuers shall immediately send a confirmation after blocking the card.

Grievances and Complaints

  • Card issuers shall implement mechanisms and provide publicity. They should mention the name, email-id, contact number, and the designated officer’s postal address on the account statements and credit card bills.
  • The designated officer ensures that the grievances of cardholders are redressed promptly without delay.
  • Card issuers must ensure call center staff is trained to manage and escalate complaints. There should be an effective system of acknowledging customers’ complaints about apt follow-ups, including complaint numbers, even if complaints are received over the phone.
  • Card issuers will be liable to compensate the complainant for loss of time, expenses, financial loss, and the harassment suffered for the mistakes of the card issuer if they did not redress the grievance in time. If a complainant receives no satisfactory response from the card issuer within a span of one month from the date of the lodged complaint, they can approach the RBI to redress grievances.

Confidential customer information

  • Card issuers will not reveal information regarding the customers without obtaining their consent. They must tell customers the purpose of the information and the organizations they will share the information with.
  • Information sought from customers cannot violate law provisions relating to maintaining secrecy in transactions. The card issuers will be responsible for the accuracy or otherwise of the data provided.

Conclusion

This master direction for credit and debit cards is an excellent effort from the government’s side to provide customer convenience and ensure just treatment. This will boost credit and debit card usage in the coming years. Notwithstanding this, it is a burden on many financial institutions. The entire onboarding structure will need scrutiny and revamp. They require reliable, safe, and user-friendly fintech services. With a no-code AI-driven platform and multiple customizable API resources, Signzy can undoubtedly provide you with the solutions you seek.

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. It gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru, and it has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

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