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In today’s newsletter:

• How Navi reversed RBI ban in record time
• ONDC slashes incentive payout in Dec by 33%
• India challenges ICANN's internet governance proposal

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The Reserve Bank of India is not known to reverse its well-thought-out decisions unless there is a genuine reason to do so. 

• Sachin Bansal-led fintech firm Navi Finserv managed to do just that, and in record time: under 45 days

On October 18th, the RBI banned Navi from lending, citing usurious interest rates. 

• The RBI considers the Annual Percentage Rate (APR), rather than the advertised interest rates, when making such determinations

Within 10 days, the Navi board decided to slash peak interest rates from around 35% to 26%. 

• Often, the effective interest rate had climbed to 45%, leading to multiple customer complaints received by the regulator

On December 2, RBI lifted the restrictions, citing Navi's efforts to address the issues and implement improved processes. 

• RBI lifted similar restrictions on large banks such as HDFC Bank and Kotak Mahindra Bank after several months.

To be sure, Navi had started addressing some of the issuers almost six months ago.

• With lower interest rates, Navi’s growth might slow down a bit as it looks for quality customers

Find out more

Government-backed Open Network for Digital Commerce (ONDC) is tightening its purse strings.

ONDC has slashed its December incentive payouts by 33%—down to Rs 40 lakh from Rs 60 lakh in October’s festive season. 

• For top-performing participants (those hitting over 1 million orders monthly), the cap is even stricter at Rs 30 lakh

It’s a clear shift towards conserving cash. ONDC has been funding discounts and offers to accelerate adoption, but now it’s focusing on sustainability. 

• The network’s growth was steady in November, with 14.4 million transactions, a slight increase from 14 million in October
  
  
• Mobility services led the way with 6.2 million transactions, while retail and food delivery contributed 8.2 million

In another step in this direction, ONDC will introduce a transaction fee of Rs 1.5 on every transaction above Rs 250 starting January 1, 2024. 

• While the focus is on cost-cutting for long-term sustenance, it also raises a critical question among industry experts on whether this will impact smaller players who rely on these incentives to compete

Read More

India says “You can’t” to ICANN!

The IT ministry has challenged a proposed policy of the Internet Corporation for Assigned Names and Numbers (ICANN) that would give immense powers to regional internet registries when it comes to assigning and managing IP addresses. 

• MeitY in its submission to the October 2024 policy paper by ICANN instead proposed a more inclusive approach for the same and an independent evaluation process

The ICANN plays a critical role in the functioning of the internet and it oversees the global coordination of unique identifiers like domain names and IP addresses.

Regional Internet Registries or RIRs control the distribution of IP addresses, which is a finite resource for internet connectivity. 

The ICANN proposal grants significant powers to existing RIRs to decide on recognising or derecognising new RIRs.

• MeitY has raised concerns of impartiality, “as existing RIRs might have an interest in limiting new entrants”

RIR’s policies influence which countries and regions get access to internet resources, and it has often been criticised for being rigid.

On the other hand, India’s booming internet market has resulted in an increase in demand for IP addresses.

• MeitY’s opposition to the policy, and advocacy for a transparent, multi-stakeholder process can be seen as a way to ensure more equitable access to IP addresses

Go deeper

For working parents, juggling school drop-offs, pick-ups from coaching centers, and after-school activities can be a daunting task.

• India's first ride-hailing service for children aged 5-16 years, MetroRide Kids, aims to address this challenge

The service eliminates risks associated with overcrowded vehicles and drunk driving, which are common concerns for parents.

• After launching its services in Hyderabad, MetroRide Kids is now expanding its operations to Bengaluru

The company plans to hire only trained drivers, equip its vehicles with CCTV cameras and GPS tracking devices, and incorporate electric vehicles into its fleet.

Dig deeper

• Competition Commission of India chairperson Ravneet Kaur said the “poaching of AI staff” by large firms is a “global concern” and the anti-trust body will "look" into it if required.
  
  
• Microsoft's AI head, Mustafa Suleyman, is building a new London-based health team by hiring key members from his former DeepMind health unit, including Dominic King and Christopher Kelly.

Ever wondered about the inner workings of your favourite open-source tools or the latest trends in programming? 

• The Changelog is your go-to podcast for the tech-savvy.

Each episode dives deep into a specific software topic, featuring insightful interviews with the minds behind the code.

Check it out on Spotify or Apple Podcasts

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