Page 49 - Banking Finance May 2024

ARTICLE

the world of digital currencies is provided by the Central not merely transformed but revolutionized the financial
Bank Digital Currency (CBDC) pilot programs. Lenders are landscape, propelling it into a new era of efficiency and
empowered by RBI's creation of a Public Tech Platform for inclusivity. Collaboration and competition between
Frictionless Credit, which allows vital digital data to flow traditional financial institutions and FinTech disruptors are
seamlessly between various sources. the driving forces behind continual innovation, yielding
benefits for customers and stakeholders alike.
The three pillars of responsible innovation are self-
regulation, governance, and customer centricity. The Regulatory frameworks and self-regulation serve as the
foundation of responsible innovation is customer-centricity, compasses guiding innovation while safeguarding financial
which emphasizes the value of comprehending client wants, stability. Responsible innovation, in synergy with regulatory
putting safety measures in place, and building trust. In oversight, ensures that FinTech continues to be a harbinger
addition to focusing on technology growth, responsible of positive change in financial services. As the financial world
innovation also aims to protect consumers' interests and hurtles toward the future, it is imperative to strike a
gain their trust. FinTech companies must have a strong harmonious balance between innovation and regulation,
governance framework that includes stakeholder facilitating a vibrant and resilient financial ecosystem that
involvement, accountability systems, transparency, and a champions inclusivity and progress for all.
clear definition of roles and duties. Ethical behavior, efficient
oversight, and risk management are all guaranteed by good References:
governance. The best people to set common guidelines, Keynote Address by Shri Shakti Kanta Das, Governor, RBI
ensure adherence, and resolve conflicts are those involved - September 6, 2023 - at the Global Fintech Festival,
in the industry. Mumbai
Keynote address delivered by Shri T. Rabi Sankar, RBI
Conclusion: Deputy Governor, 5 September 2023- at the Global Fintech

A Vision for the Future In conclusion, FinTech innovation has Festival. Mumbai

Mutual funds collection through NFOs up 6.5% at Rs 66,364 crore

in FY24
Asset management companies (AMCs) floated 185 new fund offerings mobilising Rs 66,364 crore in 2023-24, mark-
ing a 6.5 per cent increase from the previous year, amidst growing interest of retail investors and significant uptrend
in broader markets. This was higher than Rs 62,342 crore garnered by AMCs through 253 New Fund Offerings (NFOs)
in 2022-23.
"The financialisation of savings in India is currently underway, signifying a growing recognition among investors that
investing in financial assets is integral to building wealth. With income and expenditure levels rising constantly, there
is a heightened need to channel monthly savings into avenues offering higher returns. The substantial inflow of in-
vestments into equities underscores a notable shift in investor attitudes and risk appetites," FYERS Research said in
its report.
As India's growth narrative gains momentum and investment opportunities expand, many unlisted companies seek
capital market support. This trend bodes well for investors seeking growth opportunities and aspiring to participate
in the long-term journeys of these companies, it added.
As per the FYERS report, the January-March period of 2024 saw the highest number of NFOs at 63 with the fund
mobilisation totalling Rs 22,683 crore. This was followed by the October-December period of 2023, when AMCs
introduced 49 NFOs and mobilised Rs 16,093 crore.
Usually, NFOs come during a surging market when investor sentiments are high and optimistic. The NFOs were floated
to capitalise on the mood of investors and attract their investment as they were willing to invest at that time.

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