Page 45 - Banking Finance May 2024

ARTICLE

reliability and security is quite difficult. It requires substantial As the fintechs are evolving with the customer needs,
investment and technical expertise to build the matching companies will continue to embrace new technologies and
infrastructure. Ensuring inclusive access to these services innovative ways to provide personalized services which
remains a challenge. enhance the customer experience within the ambit of
regulatory framework.
Factors like digital literacy, access to technology, and
regulatory barriers can limit the reach of fintech solutions. With increased awareness and adoption rate among
Encouraging adoption of fintech solutions among users who consumers companies will strive to scale up their operations
may be accustomed to traditional banking methods requires to reach the masses which would generate adequate
effective education and awareness campaigns. Many revenue for them for building infrastructure and thereby
potential users may be hesitant due to a lack of providing more choices at reduced costs rapidly and
understanding or trust in these new technologies. securely.

(Note: Views expressed in the article are of the author and
not of the bank)

References:
www.businesstoday.in
www.plaid.com
www.lotus-qa.com

www.financialit.net
www.globalscientificjournal.com
Image source: www.masterinvestor.co.uk www.medium.com

SC upholds NCLAT order against errant auditor
In a boost to the National Financial Reporting Authority (NFRA), the regulator for auditors and audit firms dealing
with large and listed companies, the Supreme Court has upheld an order by the National Company Law Appellate
Tribunal (NCLAT) related to disciplinary action against errant auditors. Last month, the apex court dismissed an ap-
peal filed by chartered accountant Sam Varghese, partner at K Varghese & Co.

Varghese was one of the four auditors against whom NFRA had acted, and in this case imposed a penalty of Rs 1 lakh
and barred the CA from practising for a year following lapses seen in the branch audit of DHFL. In what was perhaps
the first set of cases involving auditors, NCLAT had dismissed the appeal, which was challenged by Varghese in SC.
"We find no reason to interfere with the order of the National Company Law Appellate Tribunal dated 1 Dec 2023,"
an SC bench of CJI D Y Chandrachud and justices J B Pardiwala and Manoj Misra ruled. The verdict is seen to be
crucial as some of the disciplinary actions by NFRA have been challenged by the other auditors in High Courts, which
are hearing the cases. Armed with the SC order, NFRA is going to make a more powerful argument now.

1.85 lakh new companies incorporated in FY24, the highest even

A record-breaking number of companies were incorporated in India during the financial year 2023-24, with more than
1.85 lakh new companies and 58,990 Limited Liability Partnerships (LLPs) established by 31 March. According to a state-
ment from the corporate affairs ministry posted on X, this figure surpasses the incorporation rates of any previous financial
year. In comparison, the preceding fiscal year saw the establishment of 1,59,339 companies and 36,249 LLPs. This signifi-
cant increase in business formations highlights the growing entrepreneurial spirit and economic activity in the country.

40 | 2024 | MAY | BANKING FINANCE