Page 47 - Banking Finance JANUARY 2017

ARTICLE

Account Tax Compliance Act) and IFRS (International Conclusion:
Financial and Reporting Standards) are adopted with great
With the Advent of technology, financial markets are diver-
care.
sifying day by day hence proactive action and sturdy legis-
No official valid data is available but as per media reports lation from the regulator to protect investor interest and
around twenty P2P lending platforms are in operation in ensuring hassle-free credit to consumers is prerequisite for
India presently which cater the various need of customers smooth operation of P2P lending platforms.
along with added features like KYC compliance of custom-
Risk management policies and procedures need to be ad-
ers, due diligence of borrowers, loan recovery facility at
hered and risk tolerance limit of individual P2P platform
nominal cost to customers who seek fast credit facility at
needs to be fixed. Minimum capital requirement should be
low cost within limited time span and investors or lenders
well documented and reviewed annually. Their audited
who seek higher yield on their parked funds.
result should be published in public space and regulator
needs to frame annual financial inspection in order to curb
One Gurgaon based P2P platform, Faircent offers credit
facility for business funding, wedding, home improvements any manipulation at later date.
etc. while invites bids from the lenders at very handsome
Since P2P lending platform would be regulated by RBI in
rate than what market offers.
India, protecting the interest of NBFC and Banks which is
already reeling under various challenges as high capital
They help eliminate the high margins which banks and fi-
requirement under Basel regime, high stressed assets, de-
nancial institutions make on customers transactions. Their creasing level of experienced personnel base etc. and if
format allows them to keep institutional charges at a bare
customer base start shifting towards other market place,
minimum and simply pass on this benefit to customers!
high stress on banks' NIM (Net Interest Margin) could be
observed and leads to negative organic growth.
Here, customers can interact directly with fellow borrow-
ers/lenders, negotiate terms and conditions about interest Reference:
rates, tenure of loans, etc, and strike a deal on their own, i. https://rbidocs.rbi.org.in/rdocs/content/pdfs/
without any intervention/imposition from firms' end. Cus- CPERR280416
tomers pay them a simple Listing fee. They do not earn ii. www.p2p-banking.com
out of customers' interests and hence they claim for not iii. www.statista.com
earning out of every EMI in customers' transactions. iv. http://www.faircent.com

Otis develops Green elevator for affordable housing

Otis India, the subsidiary of Otis Elevator Company, the world's leading manufacturer of elevators, escalators and walk-
ways, has entered the high-volume elevators market for affordable housing by introducing
energy-efficient elevators in the Indian market.
Called Gen2 Core, these elevators can attain a speed of 0.7 metres per second and pro-
vides options of machine room or machine-less room arrangements. They are designed for
low-rise residential buildings with a height of seven floors.Affordable homes make up al-
most 90 per cent of the demand for homes in India and this has become one of the focus
areas of Otis, a top official said.

Otis already has been deploying Gen2 technology in elevators for high-rise buildings since 2010 and the Gen2 Core
elevators are built on this technology platform.

"The Gen2 Core uses Otis' patented, flexible polyurethane-coated steel belts, the ReGen regenerative drive, which
captures energy that is normally wasted during braking and feeds it back into the building's electric grid, compact
gearless machine and pulse monitoring system," said SEBI Joseph, President, Otis India.

BANKING FINANCE | JANUARY | 2017 | 47

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