Page 34 - Banking Finance December 2022

ARTICLE

RegTech WealthTech
As the name suggests, it deals with the Regulation Wealth management is also one of the sectors that have
technology companies that use technology to help contributed to the growth of the fintechs that are helping
regulatory and compliance aspects that are to be high net-worth individuals and institutions to invest prudently
mandatorily adhered to depending on the place and type
by providing extremely personalized suggestions based on
of business to ensure smooth and streamlined continuity. The
customer goals and risk appetite. They offer expert
type of services includes identity verification, tax/ AML/ KYC
investment advisory in wealth management, mutual fund
compliance, risk management and fraud detection tools that
investment, other alternate investment platforms to suit the
are automated to comply with the extant regulatory
needs of the individual customer.
requirements.
Examples are Zerodha, INDWealth, Upstox, etc.
Examples are ClearTax, Enforcd, Elliptic, etc.
PayTech Conclusion
Short for Payment Technologies, this segment covers the The fintech ecosystem in India is largely led by the payment
products and services such as prepaid instruments, QR code technology companies that made transacting through
payments, payment aggregator services, point of sale, smartphones a layman's technology. The traditional financial
unified payments interface, etc. These services are offered
service enablers like banks are also staking a claim in this
in collaboration with the card associations, payment
technological journey either by direct involvement or
gateways and through API-enabled services.
through collaborations with the established fintechs deriving
The list of these fintechs is substantial and includes firms such mutual benefit in terms of revenue and customer
as Cashfree, CCAvenue, Instamojo, PayU, etc. satisfaction.

Payment system operators to report fraud on RBI's

DAKSH from Jan 1

In order to streamline reporting, enhance efficiency and automate the payments fraud management process, the
RBI said the fraud reporting module will be migrated to DAKSH --- the Reserve Bank's advanced supervisory monitoring
system -- from January 1. The RBI operationalised the Central Payments Fraud Information Registry (CPFIR) in March
2020 with reporting of payment frauds by scheduled commercial banks and non-bank Prepaid Payment Instrument
(PPI) issuers.

"...entities shall commence reporting of payment frauds in DAKSH from this date (January 01, 2023)," the central
bank said in a circular.

In addition to the existing bulk upload facility to report payment frauds, DAKSH provides additional functionalities,
like a maker-checker facility, online screenbased reporting, an option for requesting additional information, the facility
to issue alerts/ advisories, generation of dashboards and reports.
All RBI-authorised Payment System Operators (PSOs) / providers and payment system participants operating in India
are required to report all payment frauds, including attempted incidents, irrespective of value, either reported by
their customers or detected by the entities themselves, it added.
This reporting was earlier facilitated through Electronic Data Submission Portal (EDSP) and is being migrated to DAKSH.
After going live, payment fraud reporting in DAKSH effective January 01, 2023, entities shall not be able to report any
payment frauds in EDSP, the central bank said.
The responsibility to submit the reported payment fraud transactions shall be of the issuer bank/PPI issuer/credit card
issuing NBFCs, whose issued payment instrument has been used in the fraud," the RBI said.

34 | 2023 | JANUARY | BANKING FINANCE