1 / 20

e-Finance in India A Perspective

e-Finance in India A Perspective . Geneva October 24, 2001. Agenda. Traditional SME Banking in India e-Finance in ICICI Bank e-Finance and SME Legal Structure in India Going Forward . SME Banking in India. SME in India characterised by Low capitalisation and limited assets

amara
Download Presentation

e-Finance in India A Perspective

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. e-Finance in IndiaA Perspective GenevaOctober 24, 2001

  2. Agenda • Traditional SME Banking in India • e-Finance in ICICI Bank • e-Finance and SME • Legal Structure in India • Going Forward

  3. SME Banking in India • SME in India characterised by • Low capitalisation and limited assets • Geographical diversity and high mortality • Poor access to capital markets • Cash intensity in transactions • Lack of credit information • Poor financial disclosure on account of tax issues • Directed lending based on Central Bank guidelines • High risk perception has led to high borrowing costs

  4. Agenda • Traditional SME Banking in India • e-Finance in ICICI Bank • e-Finance and SME • Legal Structure in India • Going Forward

  5. ICICI Group - lending approach • Focussed product approach to SME sector • Lending to SME based on strong corporate linkage • Product and delivery technology dependent • Pooling of assets at central hubs enables optimum monitoring • Lending approach • Sectoral and liability led • Parameterised

  6. Relationship buildup …. Electronic delivery • Step 1 • SME relationship through “enhanced checking account” • Step 2 • Transaction oriented products the key drivers • Step 3 • Subject to satisfactory transaction record, SME elevated to quasi credit relationship • Step 4 • Offer takeout financing • Step 5 • Offer regular long term credit

  7. Key Products • Leverage corporate linkages through • Vendor financing • Dealer financing - with and without recourse • Standalone, 3-P and rent securitisation • Equipment financing • Transaction oriented products • Web based Cash Management Services • Online FX applications • Internet based payment system

  8. Electronic products Bill Junction Utility bill payments Pay Seal electronic payment system Corporate Infinity online transfer/ settlement system e-banking in ICICI ICICI Markets online FX, Debt, SME Portal ICICI Direct and ICICI Select Business Multiplier web interface

  9. Some innovative e-initiatives • Customer queries routed to “Call Centres” • Intermediate step to web enablement • Staff trained to handle complex transaction query • Incentivise clients to use web platforms • Introduction of pre-loaded smart cards for small value purchases • Smart card solutions for fleet and transport owners • Dedicated SME Portal for non financial solutions

  10. Agenda • Traditional SME Banking in India • e-Finance in ICICI Bank • e-Finance and SME • Legal Structure in India • Going Forward

  11. Advantage SME .... e-banking leads to: • Lower cost of delivery • Speed and wider reach • Credit information through transaction analysis • Risk mitigation • Through credit scoring model - statistical • Portfolio based approach • Corporate information

  12. Agenda • Traditional SME Banking in India • e-Finance in ICICI Bank • e-Finance and SME • Legal Structure in India • Going Forward

  13. e-banking related laws …. • e-banking governed by: • Information Technology (IT) Act, 2000 • Internet Banking guidelines of the Central Bank • India is the 2nd country in Asia to initiate technology related act • e-banking encouraged through: • Focussed legislation • Access to IT skills, computers and incentives to ISPs

  14. Salient features of IT Act …. • Drawn as per the UN Model Law for IT • Legal recognition to • Electronic records • Electronic contracts • Digital signature • Appointment of certifying authority and controller • Issuer of public and private key • Controller - repository of all the signatures • e-Governance- Filing of documents in e-form

  15. Central Bank guidelines …. • Bank to have security policy approved by Board of Directors • Introduction of logical access control systems • Security buffers between bank system and internet • Products to be compliant with domestic foreign exchange regulations • Setting of inter bank payment gateway • Mandatory disclosure of risks in internet based dealings

  16. Agenda • Traditional SME Banking in India • e-Finance in ICICI Bank • e-Finance and SME • Legal Structure in India • Going Forward

  17. Creating the “e” wave .... • Encourage internet/ “e” usage • Voice over Internet Protocol (IP) • Telecom infrastructure • Tax incentives for internet based transaction • Incentive for electronic settlement • Legal validity for e transaction • Consumer Protection Act • Negotiable Instrument Act • Acceptance of electronic based document

  18. Creating the “e” wave .… Cont. • Capital Account Convertibility • Exchange Control Laws • Strengthening the Intellectual Property Laws

  19. Thank You !!!

More Related