Page 38 - Banking Finance December 2022

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based on internal rating and stepping up haircut rates Management System, named as Sarthi, to facilitate and
for weaker entities; and also extended the FX-Retail automate the various facets of document processing and
platform by introducing booking and cancelling facility management in a safe and secure manner.
for forward contracts for bank customers besides
operationalising 'Request for Quote' (RFQ) module on 6. Implementation of Next-Generation e-Kuber:
negotiated dealing system (order matching). e-Kuber system is being refreshed to improve the
functionalities by leveraging on technological
3. e-Baat Programmes and Awareness Campaigns
developments and will facilitate enhanced automation
The Reserve Bank has been conducting electronic
of processes, flexibility of integration with external and
banking awareness and training (e-BAAT) programmes
internal systems, ease of change management,
regularly for the benefit of cross-section of customers/
enhanced modularity, reporting with comprehensive
bankers/students/ public.
real time dashboards, front end improvements for
enhancing productivity and robust controls.
4. RegTech Solutions for Effective and Focused
Regulations
Conclusion
The Reserve Bank has joined the Global Financial
Innovation Network (GFIN), a network of over 50 In sum, the Reserve Bank continued its efforts to develop
organisations committed to support financial state-of-the-art payment and settlement systems in the
innovation. country and enhance the digital payment experience of the
consumers, while ensuring adequate security measures.
5. Sarthi - Electronic Document Management System These initiatives have facilitated smooth transition towards
(EDMS) a less cash society with improved transaction efficiency and
The Reserve Bank introduced its Electronic Document a delightful digital experience.

SEBI plans regulations for ‘finfluencers,
The Securities and Exchange Board of India (Sebi) is working on guidelines for financial influencers — popularly known
as ‘finfluencers’ — who give advice to stock investors on various social media platforms like Twitter, Youtube, Instagram
and Facebook.
“We are working on the guidelines for financial influencers,” Sebi Whole-time Member S K Mohanty said on the sidelines
of a CII conference on ‘Corporate Frauds: Governance and Risk Management’. The Sebi move follows a sharp rise in
the number of various ‘unregistered’ investment advisors giving unsolicited social media ‘stock’ tips on various social
media platforms. There were also reports that certain companies used social media platforms to boost their share
prices through such finfluencers. Finfluencers are people with public social media platforms offering advice and sharing
personal experiences about money and investment in stocks. Their videos cover budgeting, investing, property buying,
cryptocurrency advice and financial trend tracking.

Mohanty said frauds are neutral and can take place in any company irrespective of whether it is listed or not, more
so, in the wake of instances of digital data thefts and technological risks. He expressed concern on eroding trust of
retail investors against the backdrop of an increasing capital markets investor base.
He said the rate of corporate frauds is increasing at a high pace. Stating that the Sebi has been constantly upgrading
surveillance and technology, he said diversion of funds/ assets not only leads to erosion of wealth for shareholders,
creates anarchy and financial crisis but also leads to ethical crisis and reputational risk.

Some of these finfluencers have lakhs of followers with their investment advice being closely followed by millions of people
across the country. They post videos in English, Hindi and a mix of English and Hindi. What has raised concern is that
scamsters are using this route to manipulate share prices. “Saw an article by an online portal claiming that finfluencers
get paid Rs 7 to 9 lakh per endorsement to push financial products on social media. All investors, please do your own due
diligence and check the credentials of financial influencers giving the advice,” a fund manager tweeted.

38 | 2022 | DECEMBER | BANKING FINANCE