The Digital Fifth Newsletter

The Digital Fifth Newsletter

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Open Banking in India has seen significant traction over the past two years. It received approximately USD 1.5 B across 2021 and 2022 till date (source: The Digital Fifth Analysis.) The Industry is driven by individuals who have contributed their knowledge and expertise to enrich the Open Banking and Digital Finance Ecosystem. They have analysed the gap between what consumers need and the products available today, and taken it as an opportunity to increase partnerships with other financial organizations and expand digital adoption amongst the population. Their vision is driving the ecosystem and thus influencing all the stakeholders.

The Digital Fifth has curated a list of India’s Top 30 Open Banking Influencers from across the Open Banking and BFSI sector to call out a few of these individuals and give them the honor they deserve. This list has been made based on their contribution to the ecosystem, the impact, and knowledgeability rather than their social media score.

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Non-banks can't load credit lines on prepaid payment instruments, says RBI

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The Reserve Bank of India (RBI) on Monday disallowed non-bank wallets and pre-paid cards from loading their credit lines into these platforms, a notification reviewed by ET showed. The regulator in a one-page circular addressed to non-bank pre-paid payment instruments (PPIs) directed them to stop such practice immediately.?

As per the prevalent RBI guidelines, pre-paid instruments are allowed to be loaded using cash, bank accounts, credit and debit cards. The guidelines do not allow use of credit lines to top up these instruments.

Source: Economic Times

Freo starts offering savings account with Equitas Small Finance Bank

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Bengaluru-based fintech startup Freo on June 21 launched a digital savings account offering Freo Save, in partnership with Equitas Small Finance Bank, in a move to become a full-stack neobanking platform providing lending, savings, and wealth-growth products to consumers.

In an address to the media, the startup which began as a lending fintech through its platform MoneyTap, announced that it aims to open a million accounts over the next 10 months within the new savings vertical.

Source: MoneyControl

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Reserve Bank of India?Issues Draft Master Guidelines on Material Outsourcing of IT Services

Relevant for Critical Outsourcing:

  • IT infra
  • Network and security solutions maintenance
  • Application Dev, Maintenance and Testing
  • Services and operations related to Data Centres
  • Cloud Computing Services
  • Managed Security Services
  • Application Service Providers (ASPs) including ATM Switch?
  • Management of IT infrastructure and technology services associated with payment system ecosystem.

What is the change?

- RBI has included all Regulated Entities (REs) banks, credit bureaus, NBFCs (medium layer and above). large cooperative banks, HFCs in the same circular. Normally, RBI issues stricter guidelines for Banks and subsequently issues slightly easier guidelines for other segments.

- While banks are used to these guidelines for the last 10 years, other segments would find it tougher to adhere.

- Banks have been adhering to Gopalakrishna Report of RBI, which has fair amount of controls already built in.

- REs have also been adhering Outsourcing Guidelines without specificity of IT.

- RBI has clearly called out a framework for Cloud Usage, which is a welcome move.?

- As Fintechs are also engaged in technology focused work, they will have get ready for adhering to the guidelines. This would increase the cost and implementation time for everyone. Applicability of these guidelines would be subject to use cases and deployment.

- Single vendor outsourcing has been a massive issue for the REs and has impacted few players adversely. This has also been addressed.

- There has been extra focus on Exit Strategy to ensure that the partner exit does not impact the customers.

Shortly RBI would be issuing Master Direction on Information Technology Governance, Risk, Controls and Assurance Practices 2022.


Sameer Singh Jaini,

Founder & CEO

The Digital Fifth

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