Inclusive FinTech: Bridging the Gap

Posted on May 24, 2021May 24, 2021 by Tech Law Forum NALSAR

[The following post has been authored by Harshita Lilani, a third year student of NALSAR University of Law. This essay is part of an ongoing collaboration between r – TLP and the NALSAR Tech Law Forum Blog and is the fourth post in the series. The first entry can be found here, and the rest of series is available here.]

Financial inclusion and inclusive growth have emerged as one of the main agendas in the past decade as several nations have become aware that sustainable and inclusive growth of all the sections of the society is important for a nation to prosper. By working parallelly with traditional financial institutions like banks, credit unions and insurance companies, Financial Technology or ‘FinTech’, claims to enhance financial inclusion by offering novel products that are better tailored to consumers’ needs at a lower cost. However, a wide ‘FinTech gender gap’ shows that women are significantly less likely to use fintech products or services offered by the fintech entrants than men. This article discusses this gender gap in the FinTech industry and analyses the existing government policies and initiatives that claim to regulate fintech with an aim to bridge this gap. Finally, it highlights the key regulatory and policy changes that are required to create an enabling environment for financial inclusion in India.

Metadata by TLF: Issue 20

Posted on March 14, 2021March 13, 2021 by Tech Law Forum NALSAR

Welcome to our fortnightly newsletter, where our reporters Harsh Jain and Harshita Lilani put together handpicked stories from the world of tech law! You can find other issues here, and you can sign up for future editions of the the newsletter here.

Facebook-Australia standoff ends as both parties agree to truce

Facebook has reached an agreement with the Australian Government and will restore news pages in the country days after restricting them. The decision follows negotiations between the tech giant and the Australian Government, which is set to pass a new media law that will require digital platforms to pay for news. The law, if passed, will make digital platforms pay local media outlets and publishers to link their content in news feeds or search results. Under the amendments, the Australian Government will give digital platforms and news publishers two months to mediate and broker commercial deals before subjecting them to mandatory arbitration under the proposed media law. Both Google and Facebook have fought against the media law since last year. Google previously threatened to remove its search service from Australia in response to the proposed law. But the company has since struck commercial deals with local publishers including the Murdoch family-owned media conglomerate News Corp. Facebook, for its part, followed through with a threat to remove news features from Australia.

Examining the Pros and Cons of Cross Border Data Flows

Posted on July 31, 2020November 1, 2020 by Tech Law Forum @ NALSAR

[This post has been authored by Jalaj Jain of the Gujarat National Law University (GNLU), Gandhinagar.]

In the past decade, ‘consumer personal data’ has transformed from a mere tool of service to a ‘social currency’. Creation of regulatory barriers to determine the legal right of ownership and storage of data impacts consumer behaviour, stock markets and national elections. Indian authorities are struggling to introduce robust regulations, as they have failed to settle the debate regarding advantages and disadvantages of ‘cross border data flows’. On June 29th, 2020, Ministry of Electronics and Information Technology stated that under section 69A of the Information Technology Act, it had imposed a ban on 59 Chinese applications. Data security and privacy of millions of Indian citizens were cited as the main reasons for the questionable ban; contributing to the rising tensions between India and China. While such ban has both economic and security implications, the larger concern is to determine India’s stance on cross border data flows.

Post-Crypto-Writ Judgement: How(ey) to regulate the ICOs?

Posted on May 26, 2020November 1, 2020 by Tech Law Forum @ NALSAR

[This post has been authored by Harshit Goyal, currently in his 3rd year at National Law School of India University, Bangalore.]

Imagine that you get to know about a cryptocurrency that had been launched recently and has been selling like hotcakes. The price of this token has been on a steep rise, and thus, you also decide to invest a dear amount in it. How will you feel if the value of this cryptocurrency plummets the very next day to rock bottom? Worse, how will you feel if you get to know that the law had done absolutely nothing to prevent such a situation?

Building safe consumer data infrastructure in India: Account Aggregators in the financial sector (Part II)

Posted on December 30, 2019November 1, 2020 by Tech Law Forum @ NALSAR

TLF is proud to bring you a two-part guest post authored by Ms. Malavika Raghavan, Head, Future of Finance Initiative and Ms. Anubhutie Singh, Policy Analyst, Future of Finance Initiative at Dvara Research. This is the second part of a two-part series that undertakes an analysis of the technical standards and specifications present across publicly available documents on Account Aggregators. Previously, the authors looked at the motivations for building AAs and some consumer protection concerns that emerge in the Indian context.

Account Aggregators (AA) appear to be an exciting new infrastructure, for those who want to enable greater data sharing in the Indian financial sector. The key data being shared will extensive personal information about individuals like us – detailing our most intimate and sensitive financial transactions and potentially non-financial data too. This places individuals at the heart of these technical systems. Should the systems be breached, misused or otherwise exposed to unauthorised access the immediate casualty will be the privacy of the people whose information is compromised. Of course, this will also have an impact on data quality across the financial sector.

Building safe consumer data infrastructure in India: Account Aggregators in the financial sector (Part I)

Posted on December 30, 2019August 11, 2022 by Tech Law Forum @ NALSAR

The Reserve Bank of India (RBI) released Master Directions on Non-Banking Financial Companies – Account Aggregators (Master Directions) in September 2016, and licences for India’s first Account Aggregators (AAs) were issued last year. From these guidelines and related documents, we understand that the purpose of Account Aggregator (AA) is to collect and share:

Metadata by TLF: Issue 5

Posted on September 25, 2019December 20, 2020 by Tech Law Forum @ NALSAR

Welcome to our fortnightly newsletter, where our Editors put together handpicked stories from the world of tech law! You can find other issues here.

RBI Releases Discussion Paper on Guidelines for Payment Gateways and Payment Aggregators

The RBI on 17th September released a discussion paper on comprehensive guidelines for the activities of payment aggregators and payment gateway providers. It was acknowledged that payment aggregators and payment gateways form a crucial link in the flow of transactions and therefore need to be regulated. The RBI has suggested that these entities be governed by the Payment and Settlement Systems Act, 2007 which requires all ‘payment systems’ (as defined in the Act) to be authorised by the RBI. Additionally, different frameworks have been proposed for regulating payment aggregators and payment gateways, and full and direct regulation has been discussed in detail. This would entail payment aggregators and gateway services to fully comply with any guidelines issued by the RBI.

Further Reading:

Trisha Jalan, RBI proposes regulation, licensing of payment aggregators and gateways, Medianama (18 September 2019).
Full regulation by RBI will require payment gateways, aggregators to be incorporated in India, The Hindu (18 September 2019).
Shayan Ghosh, RBI could bring payment aggregators, gateways under direct supervision, livemint (18 September 2019).
RBI paper on payment gateways: Maintain Rs. 100 crore net worth or wind up operations, moneycontrol, (19 September 2019).

Twitter removes more than ten thousand accounts across six countries

Political turmoil and instability in countries is majorly aggravated by the internet and various portals online. In light of this crisis, Twitter has decided to remove more than ten thousand accounts across six countries. These accounts were found to be actively spreading unrest in countries which were already in the wrath of a political turmoil. Twitter removed more than four thousand accounts in United Arab Emirates and China, around thousand in Ecuador, and more than two hundred in Spain.

Twitter has been making an active effort since the past one year to identify and remove accounts which were agitating sensitive issues in countries facing crisis. Online portals even have the power to sway the election processes in Democratic countries. In order to curb these impending threats, Twitter has been removing certain accounts on its platform. Even though thousands of new accounts are created everyday and several people have termed this removal process as arduous and never ending, these measures have to be taken.

Further Reading:

Trisha Jalan, Twitter removes 10,000 accounts from six countries for political information operations, Medianama (23 September 2019).
Ingrid Lunder, Twitter discloses another 10,000 accounts suspended for fomenting political discord globally, Tech crunch (20 September, 2019).
Abrar-al-Hiti, Twitter reportedly removes over 10,000 accounts that discourage voting, Cnet (2 November 2018).
Christopher Bing, Twitter deletes over 10,000 accounts, that sought to discourage voting, Reuters (3 November 2018).

California passes AB 5 Bill requiring business to hire workers as employees

California legislators approved a landmark Bill on 11 September, 2019 that has the potential to disrupt the gig economy. The Bill known as “AB 5” requires companies like Uber and Lyft to treat contract workers as employees, which gives hundreds of thousands of California workers basic labour rights for the first time. Apart from its immediate impact, the move by the California legislature might set off a domino effect in New York, Washington State and Oregon, where stalled moves to reclassify drivers might witness renewed momentum. The move has been criticised by ride-hailing firms Uber and Lyft which built their businesses on inexpensive labour, and the companies have warned that recognizing drivers as employees could destroy their businesses.

Further Reading:

Kate Conger and Noam Scheiber, California Bill Makes App-Based Companies Treat Workers as Employees, New York Times (11 September 2019).
Manish Singh, California passes landmark bill that requires Uber and Lyft to treat their driver as employees, Tech Crunch (11 Septemer 2019).
Rosie Perper, California passes landmark bill to treat contract workers as employees, sending it to the governor for signature, Business Insider (11 September 2019).
Alexia Fernandez Campbell, California just passed a landmark law to regulate Uber and Lyft, Vox (18 September 2019).
Andrew J. Hawkins, California just dropped a bomb on the gig economy — what’s next?, The Verge (September 18, 2019).

Microsoft Announces Change in Policies

Microsoft has stated that most large tech law companies, will change the manner in which content is moderated on their social media platforms, irrespective of the US Congress implementing new laws. Their Chief Legal Officer and President, Brad Smith has indicated that most companies will take initiative, irrespective of U.S. Lawmakers. The statement has been made in light of the recent Christchurch shootings which were livestreamed on most social media platforms. Further, major tech companies are responding to the changes in laws around the world. S. 230 of the U.S. Communications Decency Act, 1996 presently protects these companies from being sued on the basis of the content that is uploaded by its users. Microsoft itself has claimed that it has refused the government’s requests for facial recognition software due to the fear that it may be misused. The President of Microsoft has called for other tech companies as well to stop following the “if it’s legal, its acceptable approach” since companies need to start refusing selling their products to certain clients, irrespective of the legality of the action. However, ACLU, senior legislative council has accused Microsoft of continuing to sell software that can track faces and fear in real-time, leading to violation of privacy.

Further Reading:

Sheila Dang, Microsoft’s Brad Smith: Tech companies won’t wait for U.S. to act on social media laws, Reuters (13 September 2019).
Alex Hern, Microsoft boss: tech firm.s must stop ‘if it’s legal, it’s acceptable’ approach, The Guardian (20 September 2019).
Tom Simonite, Microsoft’s Top Lawyer Becomes a Civil Rights Crusader, MIT Technology Review (8 September 2019).
Microsoft’s Brad Smith: Tech Companies Won’t Wait For U.S. To Act On Social Media Laws, Communications Today (15 September 2019).

Sahamati: Self Regulatory Organisation for Financial Data Sharing Ecosystem

Posted on September 6, 2019December 4, 2020 by Tech Law Forum @ NALSAR

This post, authored by Mr. Srikanth Lakshmanan, is part of TLF’s blog series on Account Aggregators. Other posts can be found here.

Mr. Srikanth Lakshmanan is the founder of CashlessConsumer, a consumer collective working on digital payments to increase awareness, understand technology, represent consumers in digital payments ecosystem to voice perspectives, concerns with a goal of moving towards a fair cashless society with equitable rights.