DISADVANTAGES OF REVOLUT

Depositing money into your Revolut account through bank transfer can take up to three days, and depending on your bank, there might be fees involved. Money transferred internationally by bank transfer may take two to three business days to become available.

The free account has a withdrawal cap of 200 euros, the premium account a cap of 400 euros, and the metal account a cap of 600 euros. 2% of these values are charged as a fee (although this is less than what other banks charge)

Although it is not necessary to speak fluent English (the company already has a Portuguese version of the application), you still need to be ready to contact a customer care line in English if something goes wrong

ARE INDIAN RUPEES SUPPORTED FOR SPENDING?

You can use your Revolut card to make purchases in INR, but you are unable to store the money in your account. This means that before your travel, you cannot use the Revolut app to exchange currencies and top up your balance in the local currency. Instead, at the time of purchase, the Revolut card automatically converts your pounds to rupees Thus, every time you make a purchase, the currency is immediately changed from GBP to what Revolut refers to as a "settlement currency "

Conclusion

Revolut is a pretty solid product all around In conclusion, Revolut has created a banking app that is functionally rich, highly secure, and accurately satisfies the essential needs of its consumers The software has generally been successful in providing appropriate answers to the numerous challenging questions posed to it, while there are some possible areas for improvement Other banking and payment apps can turn to Revolut as a reference point for future development because of its qualified similarities

Ltcm Crisis

RiyaJain|MBA9|2022-2024

Abhigyan Verma| MBA 3 | 2022-2024

WHAT IS BLACK MONDAY?

“Black Monday” – as it is referenced today –took place on October 19 (a Monday) in 1987. When discussing the abrupt, unprecedented stock market meltdown that took place on Monday, October 19, 1987, it is frequently referred to as "Black Monday." The day is also known as Black Tuesday in Australia and New Zealand due to the time difference The U S stock market experienced its largest single-day percentage decline on this day. Almost 23 major stock markets throughout the world saw a decline in the value of their stocks, which resulted in a huge loss for investors everywhere.

One of the most well-known stock market indices is the Dow Jones Industrial Average (DJIA), which tracks the daily stock market activity of 30 publicly traded American businesses listed on the NASDAQ or the New York Stock Exchange (NYSE) The Dow Jones Industrial Average (DJIA) dropped a little more than 22%, similarly the S&P 500 Index experienced a 20 4% loss To put Black Monday's severity into perspective, the biggest one-day decrease in the DJIA during the 1929 stock market crash was just over 12%, or just over half of the decline that took place on Black Monday in 1987

Source: Saralgyan

WHAT CAUSED BLACK MONDAY IN 1987?

There are many assumptions that revolve around the theory of Black Monday and it’s causes. According to many market observers, the Black Monday crisis of 1987 was primarily caused by a robust bull market that was ready for a significant correction Since its inception in 1982, a significant bull market had been in place for five years, during that time there had been no significant price corrective pullback. Prior to the Black Monday crisis, the value of stocks had more than tripled over the previous four and a half years, jumping by 44% in 1987 alone.

Computerized trading has been identified as the other offender who contributed to the terrible crash. Midway through the 1980s, computer trading, or "programme trading," was still a relatively new concept Brokers were able to place larger orders and complete deals more quickly because to the usage of computers Additionally, stop-loss orders were programmed into the software created by banks, brokerages, and other companies to automatically sell out positions if stock prices dropped by a specific percentage

On Black Monday, automated trading systems precipitated a domino effect that accelerated the rate of selling as the market fell, further contributing to the market's decline. The initial losses caused an avalanche of selling that caused stock prices to fall even further, which in turn led to other rounds of computer-driven selling

"Portfolio insurance," which was also a relatively new occurrence at the time, was a third cause of the catastrophe Large institutional investors engaged in portfolio insurance by taking short positions in S&P 500 futures to partially protect their stock holdings. This triggered a similar domino effect as the stock market fell, which led to a rise in short selling in the futures market, which in turn led to additional investors selling stocks and shorting stock futures.

Impact Of Black Monday

Black Monday had severe impact on top players of the World This disaster had the greatest impact on Hong Kong, where the value of the stock market fell by 45.8%. On the first day, there was a 14.9% fall in the Tokyo market In addition to New York's $500 billion and Japan's $421 billion losses, the world suffered losses totalling $1 7 trillion

Black Monday served as a harsh reminder of how intertwined and dependent the world's financial systems had grown The Financial Times 100 Index in London fell by 25% between October 19 and October 23 and trading was compelled to halt at the Chicago Board Options Exchange and the Chicago Mercantile Exchange.

Source: The Guardian

Aside from Sydney, stock exchanges in Hong Kong, Frankfurt, Amsterdam, Mexico City, and

Other Cities Also Suffered Significant Losses

The crash almost prevented Goldman Sachs from serving as the lead underwriter in the United States for the selling of the UK government's interest in British Petroleum

The Aftermath

"Circuit breakers" were created and put into use as a major result of the Black Monday catastrophe. The circuit breaker system is intended to try and prevent a market panic where investors just start hastily dumping away all of their holdings This would give investors some time to collect their thoughts and, ideally, take the time to make thoughtful trading decisions, preventing a panicked sell-off of stocks

JAM TRINITY: INDIA'S GAME CHANGER

How many of you are familiar with the 2021 launched RBI’s Financial Inclusion Index? Also, did you know that, as of August 2022, there has been an improvement in the Financial Inclusion (FI) Index to 56.4 from 53 9 in 2021? What does this depict?

As we progress towards becoming a $5 trillion economy, we should be aware as of how financial inclusion has helped, is helping, and will help us reach our target Needless to say, financial inclusion takes a major place in one of the 17 UN Sustainable Development Goals Confused?

Not to worry, you have picked the right article, which will help you get rid of all these jargons and understand the factors that have led to this improvement

It seemed to be a ray of hope for the Indian population when the revolutionary programme by the Government of India,

Pradhan Mantri Jan Dhan Yojana (PM-JDY), was implemented in 2014, with a motive to facilitate the smooth availability of institutional credit services like savings bank accounts, remittance facilities, insurance, and pensions to the vast sections of the disadvantaged and low-income groups, especially rural people, leveraging technology.

Some statistics from the Guinness Book of World Records say, that the number of bank accounts opened in the first week of this scheme was 18,096,130 By June 1st, 2016, over 22 crore (220 million) bank accounts had been opened and ₹384.11 billion (US$5.7 billion) had been deposited under the scheme

30 reached the population earlier. Even though the government’s spending on subsidies contributes to around 4 2% of the GDP, due to the presence of middlemen, intermediaries, fraud, and corrupt officials, these benefits never reached the intended beneficiaries, resulting in the rich becoming richer and the poor becoming poorer This was causing an increase in the wealth disparity.

This is where the JAM Trinity played an integral role in boosting financial inclusion in India. JAM, a model introduced by the Government of India in 2014 that depicts the confluence of J- Jan Dhan Yojana, A- Aadhar, and M- Mobile Number, aided in the integration and smooth facilitation of the Jan Dhan scheme to the population using the Aadhar Card and Mobile Number as modes of communication. And that’s the reason why there has been a buzz around linking the Aadhar card and mobile number for every other scheme announced by the government Earlier, it was only Jan Dhan, but with the implementation of the JAM Trinity, the facilitation of Direct Benefits

Transfers (DBTs) has been possible on a very large scale Needless to say, remember, how the COVID-19 pandemic brought everything to a halt, restricting movement and locking people in their four walls?

In an interview published last year, Finance Minister Nirmala Sitharaman mentioned how the linkage of Aadhar and mobile numbers has helped the government to have a list of the KYC-verified accounts, and not only that, but this has also built up a dynamic and robust structures through which every information relating to the deposits, benefits of various government schemes, and subsidies could be transferred to the population through their Jan Dhan accounts, and that too in regional languages

From the people’s perspective, at one click, sitting at their homes, they have been able to know their account status, LPG subsidies, scholarships and fellowships, farm income support, and many other benefits. According to a source, over Rs 4 3 lakh crore has been transferred, through 477 crores transactions under 319 schemes. The success of the direct benefit transfers is reflected in the huge, estimated savings of Rs 1 8 lakh crore

Through the Aadhaar biometric, it has helped identify the beneficiaries whose numbers are mapped to their bank accounts and understand their eligibility for various government schemes. Along with, the mobile numbers integrated with the Aadhar Card, i e , the Aadhaar seeding with a mobile number, this allowed ease of electronic welfare payments through the UPI interface available for all mobile phone networks The Center also introduced the JAM Preparedness Index, which ranks countries on their preparedness to implement the use of ID systems, mobile phones, and financial accounts to effectively make government payments.

The JAM preparedness index assesses the state's readiness to implement (i) DBT in urban and rural areas and (ii) biometrically authenticated physical uptake (BAPU) using indicators such as Aadhar card penetration, bank account penetration, and banking correspondents (BC). As per the current status, India and Kenya have topped the JAM index

All these parameters have proven the fact that JAM has been a game changer in the Indian economy, especially during COVID times Through JAM, the government has also been able to leverage the Digital India Campaign and Financial Inclusion Campaign simultaneously As per a report by the Business Standard, India overtook China in receiving the highest number of digital payments. The success of the government's financial inclusion and digitalization initiatives may be seen in the assistance that was provided to individuals under the PM Garib Kalyan package during the epidemic.

Although the figures depict a lot about how the JAM Trinity has proved to be a game changer in the Indian economy, challenges are still ahead of the government in creating systems to improve the digital Infrastructure, review inactive Jan Dhan accounts, increase financial inclusion across all parts of India, solve problems in biometric identification, and increase the acceptability and discipline of the usage of digital modes of communication among the rural population

Thus, the government with the collaboration of financial institutions and various other key stakeholders, can play an instrumental role in strengthening financial mechanisms and increasing financial inclusion in rural India, which will go a long way in speeding up the process of reaching the $5 trillion dollar economy

RBI'S ACCOUNT AGGREGATOR NETWORK

Mukul | K J Somaiya Institute of Management, Mumbai| 2022-24

The world is witnessing digitalization of the fastest-growing economy, i e , India Remember, we used to carry different ID cards for different purposes or exact changes for shopping. Significant milestones such as Aadhaar, RuPay, and BHIM UPI made it easy, and presently, every industry has been experiencing a significant digital transformation.

It is time for the financial sector to see this revolutionary wave. Imagine how much time and effort could be saved if an individual or small business could send their financial paperwork to a bank by just clicking rather than printing and delivering them. Well, an account aggregator network, a financial data-sharing network, is the key to this lock

It was created through an inter-regulatory decision by the Pension Fund Regulatory and Development Authority (PFRDA), Reserve Bank of India (RBI), Insurance

Regulatory and Development Authority (IRDAI), Securities and Exchange Board of India (SEBI) through the Financial Stability and Development Council (FSDC). An Account Aggregator (AA) is an RBI-regulated entity that shares data between Financial Information Provider (FIP) and Financial Information User (FIU) (Refer to fig.1).

Financial Information Providers are the organization that holds individual data, e g , banks/NBFCs, Mutual Funds house, and Financial Information Users are the organization that needs data to provide customer services, e g , lending agencies, insurance companies, and wealth management organizations. FIU knows that all data transferred through the AAs is legit and reliable AAs cannot share data without the consent of an individual

Electronic consent artefact developed by the Ministry of Electronics and Information Technology (MeitY) takes informed consent, which also provides information like purpose, data life, frequency of fetching data (one-time or recurring), data fields (bank balance, transaction details), and digital signature.

The architecture of AA is based on Data Empowerment and Protection Architecture (DEPA) framework. A set of open API-based technological standards developed by the Reserve Bank Information Technology Pvt Ltd (ReBIT) guarantees that consent managers, also known as account aggregators, would get information in encrypted form, rendering AAs data-blind and preventing them from leveraging the data. Individuals can share selective information with AAs and can also revoke the shared data at any time Account aggregator is a data-empowered architecture that empowers users.

In the current era, where user ’ s data is sold, it gives full access and authority over data It seeks permission to share minimal information, making it more secure and trustworthy

India is leapfrogging the data protection system, as some parts are in Revised Payment Services Directive (PSD2) in Europe, some are in Open Banking in the UK, and some are in Dodd-Frank Act in the US. Account aggregator network is the foundation stone for introducing open banking in India are rapidly shifting to digital lending organisations as it is timesaving (Refer to fig 2) However, there are still many manual processes like sharing physical signed copies of bank statements and running around to notarise

Account Aggregator network can replace all these with a simple mobile-based sharing process Most small businesses find it challenging to obtain credit since the application procedure requires much paperwork and time.

However, using AA network, businesses can share their financial data, like bank statements and GST invoices, with banks and ask for credit based on these This will also change the historical method of giving credit based on assets. Cash flow-based lending is the new future as India is moving towards a service economy, and it is also hassle-free for small businesses

So, AAs can make the credit-taking and giving process easy and efficient Registered users can get credits within a few hours It is a win-win situation for banks and customers. Account aggregator network provides real-time, tamper-free data, which eliminates the burden of verifying the data and compliance costs for the borrower

Consumers face many inconveniences in today’s financial system of India Consumers

This also reduces costs like cost of acquisition, Operating Expenditure to Assets, and credit cost Share of these benefits will be transferred to customers by reducing interest rates on loans. Small businesses will join the formal economy to access these credits at an affordable rate. Cash-flowbased lending also removes bottlenecks and challenges in the way of achieving financial inclusion in India The weaker section does not have collaterals, but they need money.

Therefore, AAs will play a significant role in ensuring that these people have access to financial services and timely financing based on prior cash flows Wealth is also one of the services deeply affected by this network. Nowadays, people have numerous accounts with various banks, making it challenging to gather data from all of these accounts With AA network, customers can give data of all or selective bank accounts to the recipient within a few minutes.

Account aggregator aims to empower the customer and reduce data asymmetry. This ecosystem democratizes the data and helps in transferring the data to its owner rather than holder of the data In transferring the data, several risks exist, such as theft and selling of data, which is a breach of privacy of the user

Account aggregation infrastructure requires constant monitoring and proactive risk management to ensure the security of consumer operations Ever wonder why Google offers mostly female nurse's photos when you search for "nurse"? Artificial intelligence and machine learning come with inherent biases, typically caused by either biased data being entered or biased algorithms.

Source: Statista

Eliminating biases from data and artificial intelligence or machine learning is also a snag in delivering bias free network.

All in all, AA is still at its nascent stage of development. Currently, 116 FIUs and 27 FIPs are registered on the account aggregator network

AAs can be extended to handle data in other domains like healthcare, where individuals can share their medical reports with different hospitals, and in education, degree or certifications can be shared with different colleges. AAs can make India a data-rich country and boost the digital economy With this technology, the country's marginalised groups will be able to access financial services of the same calibre as the wealthy.