Profile

Location

New York

Member since

2006

Writes about

Payments Regulation & Compliance

Advait's blog archive

2012 (3)

Advait Rege

Principal - Business Consulting at Infosys Limited

Message Posts: 3 Comments: 3

Bio I consult to Global Investment Banks and Wall Street Firms in Front, Mid and Back Office IT, Processes. Career History Finance Professional turned Business Consultant

Blogs

Regulatory Spending - Godsend ?

04 Dec 2012

It is widely expected that technology spending in 2013-14 is going to be centered on Regulatory mandates. It is also expected that this will lead to the backtracking of several change programs that Banks / FIs proposed to undertake to increase STP, reduce inefficiencies in process, enable resiliency and stability of systems and improving scalabili...

Real Time Regulatory Reporting - a goal too far?

23 Nov 2012

Is real time regulatory reporting a goal too farfetched? Aside of the theoretical premise that the earlier you know, the earlier you can prevent, is there a solid practical base to the argument. Would the function of the regulator be better served not by such focus on transaction level detail but by principles based governance? Below, I discuss th...

Payments - Or a Wink and a Nod!!

03 Apr 2012

Read this story.. "Pay by Face you fools" https://www.finextra.com/news/fullstory.aspx?newsitemid=23584 Very interesting because, it takes us towards the Utopia.. But more interesting because it reminds me of how the more things change the more they remain the same (or return to basics). For instance, a typical transaction at my local ven...

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Advait is Commenting on

Debate on shorter settlement cycles

It is well and good that the debate for shorter settlement cycles has moved from ‘whether it is good’ to ‘how do we do it’. One of the issues I see in Europe, as probably in other developed markets, is the issue of legacy systems and legacy people. Both can be gotten around with political will which is presumably what we have on deck now. There are other challenges (potentially larger) which however do not exist for Europe as they did for India. India made this move to t+2 a while back now and one of the larger issues faced at the time was on how to make this move without hampering, in any major way, retail participation in capital markets. Retail participants, meaning small or medium investors often invest or trade directly in stocks in India unlike in Europe or US. There were issues highlighted at the time about how they would, with Bank Cheques, be able to get their funds across to brokers / clearing members in time for settlement. This was worked around by getting brokers to get their clients to send in their funds either before trades or by brokers to offer some sort of overdrafts in the event of funds not reaching on time for settlement. Europe however would not have this problem to circumvent since more of its market participation is from institutional investors who are presumably more flush with funds and have better access to technology. Another plus for Europe is fairly developed Banking system that can channel funds in the t+2 cycle as well as it did in the t+3 cycle. Only, investors will have to get used to making funds available earlier than later – this is eminently possible. That leaves the brokers – small, middle or large – who definitely have the technology and people hurdle to overcome. They do not have to overcome the retail participation barrier which to me would have been a much higher cliff to climb.

10 Dec 2012 Reply Read article

CTS-2010: Cheque Truncation Or Contract Termination System?

Well articulated!! One more issue that I see is the possibility of outright fraud - if a person intentionally passes on the old cheques as PDCs. There is no process (there has never been reason to) to check for the validity of cheques as instruments in India before signing agreements / contracts. Perhaps RBI / Banks can, through advertisements - press, tv, make it abundantly clear that people should before entering into agreements have the cheques validated by their Bank. Ads need to me in local languages and must reach towns, villages since the non-english speaking population will be the most vulnerable section for this fraud (as they are for most others). Banks must offer this cheque validation service free of charge of course.

07 Dec 2012 Reply Read article

Payments - Or a Wink and a Nod!!

@ John D. POint well made about how payments technology tries to minimise risk or indeed appropriately assign it in the course of a transaction. @ KS - I liked your reply about the difference between risk awareness and risk mitigation. As with my local vendor, I am sure his credit lines are not uniform and are based on an astute understanding of the client and her creditworthiness.

11 Apr 2012 Reply Read article