UBER Drivers & US Labor Agency: What’s in it for India?

The United States (U.S.) Government, National Labour Relations Board (NLRB), Office of the General Counsel recently released an advice memorandum (dated April 16—released on May 14) that can potentially have repercussions not only for Uber Technologies Inc. drivers in the U.S. but also those operating in India for the ride-hailing giant. The general counsel stated in its (opinion) advice memorandum that since Uber drivers themselves decide their working hours, log-in locations, whilst also being the owners of the cars driven by them, and, since Uber also supports drivers’ entrepreneurship—in a way granting them enough freedom to be able to also choose to work for Uber’s rivals, the Uber drivers should be classified as “independent contractors” (not as employees—under the U.S. federal law) of Uber. This compels drivers and their legal representatives to face a herculean task of (legally) persuading Uber to reframe its labor policy so as to classify drivers as employees.

Continue reading “UBER Drivers & US Labor Agency: What’s in it for India?”

The Maya Declaration, India & the RBI

The Maya Declaration

On the occasion of the 3rd Alliance for Financial Inclusion (AFI) Global Policy Forum—the annual flagship event of the AFI (touted to be the most vital forum for financial inclusion policymakers in the world)—held at Riviera Maya, Mexico, in September 2011, the AFI fraternity pledged to the establishment of and adherence to the commitments of the “Maya Declaration.”

The Maya Declaration, as the AFI member initiative geared towards promoting and inspiring national commitments to financial inclusion, is the testament to the global dedication towards the initiation of determined domestic and global actions to ensure concrete financial inclusion. It is the flagship commitment platform that facilitates for the AFI-members to situate tangible financial inclusion aims, implement country-specific policy alterations, and present improvement feedbacks periodically. Subscribing to the Maya Declaration essentially means committing fully to the endeavour of championing financial inclusion.

Continue reading “The Maya Declaration, India & the RBI”

Financial Inclusion & ADB: A South-East Asian Analysis – The Special Case of Cambodia

A Brief Address to Financial Inclusion in South-East Asia

Financial Inclusion (FI) denotes the delivery of formal financial products and services uniformly to all segments of a population without any special consideration of their economic circumstances. The momentous advancement experienced by South-East (SE) Asian economies in financial inclusion is noteworthy. The promising SE Asian economy the stride of which in the financial inclusion arena will be explored in this article is Cambodia. Inequalities still persist at the country levels in the emerging SE Asian economies—fundamentally owing to limited income potential and inadequate levels of financial inclusion of the underserved and marginalised segments of the society. While the ecosystem looks promising with the presence of a couple of FinTech leaders in the Asian region, the region in its entirety suffers on crucial parameter namely online (internet) transactions, e-payments, mobile money, and G2P transfers. While the bank account ownership worldwide rose to 62% in 2014 from 51% in 2011—according to the Global Findex Database—, the percentage of the adult population falling under the lower and middle-income Asia-Pacific economies’ category having an account in a standard financial institution stood to be less than mere 27%. Furthermore, the percentage of the population having borrowed from formal financial institutions is below 10%.

Continue reading “Financial Inclusion & ADB: A South-East Asian Analysis – The Special Case of Cambodia”

FATF: AML—CFT & Financial Inclusion

AML / CFT & Financial Inclusion

The Financial Action Task Force (FATF—an international institution committed to financial inclusion) opines that financial inclusion and financial integrity are “mutually reinforcing” or “synergetic.” Applying enabling measures that facilitate individuals and businesses (particularly the ones having lower level income, belonging to unserved and or underserved groups) to subscribe to and utilise regulated financial services augments the reach and the efficacy of anti-money laundering / countering the financing of terrorism (AML / CFT) regimens.

Continue reading “FATF: AML—CFT & Financial Inclusion”

The Origins of Financial Inclusion in India

Financial inclusion is as vital as water or primary education, and for that reason, it qualifies to be termed as a ‘quasi-public good.’ This acknowledgment has made financial inclusion a strategic policy objective for policymakers and development stakeholders. The Reserve Bank of India (RBI) has been acting in an intimately mainstream role in regards to spreading financial inclusion in India. Following a long tradition of emphasising on access to finance, India witnessed access to credit by the poor elevating from 7% in 2004 to 20.5% in 2009, owing to the microfinance sector adding 9.9 million (subscriber) clients. There is also the tradition of the poor getting served by non-banking entities such as post offices in India, leading to a subscription of over 60.8 million savings accounts as of March 2007.

Continue reading “The Origins of Financial Inclusion in India”

The Next in Digital Payments Market of India

The transformational phase of the Indian payment industry owes mainly to progressive regulatory policies and a boost in the use of mobile internet. According to a research conducted by Credit Suisse Group AG, the Digital Payments Market of India is poised to augment 5-fold from its current level of $200 billion to $1 trillion by 2023, as reported by The New Indian Express.

The primary augmentation received in India by the digital transactions sphere was the demonetisation wave of November 2016, following which people were compelled to resort to making digital payments. As a result, the technically savvy generation took the lead to participate in and furthering the trend of digital and app-wallet payments. Cashbacks and digital transaction discounts have already made this virtual medium of payment a lucrative alternative for the people of India.

Continue reading “The Next in Digital Payments Market of India”