Page 24 - Banking Finance May 2020

ARTICLE

to suppliers looking for purchasers and vice versa. them on banker's approach will help them to understand
Investing in online infrastructure while also encouraging that their situation is being addressed by Banks and if/when
small businesses to source locally could help improve they should revise the way they think about risk.
manufacturing while also cutting on our import costs.
The way forward:
2. Delay MSME loan repayments or extend the
In a time of global uncertainty, it's easy to lose sight of the
period: big picture. This is particularly true when memories of the
As the RBI pumps in more cash into the banking sector, last recession are still relatively fresh. But it's worth
deferring or relieving the MSMEs of loan repayments acknowledging just how different the current situation is
could come as a welcome move. Most businesses are from where we were a decade ago, Today's financial system
looking for financial support from the government and is far more resilient. Many of the structural reforms put in
doing this can help them cope with cash flow problems. place have led to increased oversight and reserves post
Relaxing bad loan norms could also be a saving move amalgamation. These are designed to strengthen Indian
for this sector. banks ability to withstand systemic shocks and, by all
accounts, they seem to be working although it may take
3. Transparency in Communication: months together to accelerate the desired growth in Indian
It is a key part of effective crisis management. For economy as a whole.
banks, this takes on heightened importance because
trust and reputation are integral to what they offer to References:
clients. Unlike a cyber breach or a reputational scandal, https://www.businesstoday.in/
COVID-19 affects all firms, and, for the most part,
https://www.theweek.in/
regulators and clients already understand the basic facts
https://economictimes.indiatimes.com/
about what's happening.
https://www.bloombergquint.com/
Frequent and honest communication to clients to update PWC United States

Jio files petition against Paytm

Reliance Jio Infocomm has accused Paytm for dragging access providers to court over phishing attacks on its users
and alleged that the payments company is trying to shift the blame of its own lapses to evade legal liability of finan-
cial frauds occurring through its app.

In a counter-affidavit to a petition filed by Paytm in the Delhi High Court, India’s largest telco said mobile phone
companies cannot be held liable for “unlawful activity” occurring over calls and messages as per the telecom
regulator’s Telecom Commercial Communication Customer Preference Regulation (TCCCPR), 2018, aimed at check-
ing pesky calls and messages.

“Under Section 79 of the IT Act, intermediaries are exempt from liability under the Act in respect of any third-party
information, data, or communication link made available or hosted by them,” Jio added.

Paytm’s parent One97 Communications has moved the High Court against telecom operators Vodafone Idea, Jio,
Bharti Airtel, Mahanagar Telephone Nigam (MTNL) and Bharat Sanchar Nigam (BSNL) besides Telecom Regulatory
Authority of India (Trai) and the Communications ministry, blaming the telcos for not blocking those who are de-
frauding its customers by phishing activities over various mobile networks. It has also sought damages of Rs 100
crore for the failure of carriers which has "caused financial and reputational loss" to it.

24 | 2020 | MAY | BANKING FINANCE