Ann: Preliminary Final Report, page-74

Hi Tony,

Would be very interested in your thoughts on interoperablility, hope I got that word right.

Tenx brought it up about a month or so ago and I researched the link he posted. My understanding of it is that its basically about fintech and the companies that provide banking services. Perhaps it's just another name for fintech? But what had me interested is the legal and political side of it and how, in this moment of updating and streamlining the Indian banking systems, the regulators are in a process of what seems like constant change.

For example, and I hope I have this right, if a company wanted to provide a wallet service, then that company must have sufficient funds to cover the amount of monies that are in the wallet until those monies are certified by the wallet users bank. I think the same goes for credit lines and for electronic money transfers. It seems that the RBI and the government are still assessing whose legal responsibility it is for monies that are in transit. The last time I checked this, the RBI still seemed uncertain as to how much money a service provider needed behind them to provide a guarantee for their service.

It seems to me like the Indian government and the RBI are putting a lot more responsibility onto banking service providers and I'm sure these discussions would be causing a fair amount of uncertainty in the banking system right at this moment. I think it would be hard for a service provider, say TSN/NOV, to sign any contracts with any banks right now, until there is certainty around the rules that regulate the banking system. I'm also fairly confident that these types of issues should be resolved soon.

Would like to know anyone's thoughts,

Cheers

Rhama