One quick thing: Tata group companies to invest Rs 2,300 crore in Karnataka, create 1,650 jobs  

In today’s newsletter: 

• Paytm, Axis team up for UPI 
• Now, RBI goes after P2P
• How AI can help save Telangana’s forests

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Last week, Axis Bank stepped in to take over Paytm Payments Bank Ltd's (PPBL) nodal accounts, providing much-needed support after sanctions imposed by the Reserve Bank of India (RBI). 

• Now, news emerges of a new partnership for Paytm's UPI business, marking a significant shift in its landscape

Paytm's association with PPBL, acting as a Payment Service Provider (PSP) bank, is undergoing a paradigm shift. 

Axis Bank is said to be partnering with Paytm for its UPI business, since the latter needs to transition from a banking app of PPBL to a third-party application provider (TPAP) after the RBI action.

Previously, PPBL acted as a PSP bank for Paytm.

• With the application to the NPCI to become a TPAP, Paytm is embarking on a new phase in its journey

• This move aligns Paytm with competitors like PhonePe and Google Pay in the UPI landscape

Transitioning from an end-to-end payment provider to a TPAP necessitates a smooth handover. 

• While PPBL's low transaction failure rates worked well for Paytm compared to its rivals, questions remain about the potential impact on Paytm's user experience during the transition.

More from our Paytm coverage:

• What the RBI FAQs mean for Paytm and its users: Said and Unsaid
  
  
• Paytm FASTag FAQs: How to deactivate it, get a new tag, and all that you need to know
  
  
• ED has not found forex breaches at Paytm unit yet, source says
  
  
• Jefferies discontinues rating on Paytm amid regulatory challenges, revenue concerns

Picture credit: Microsoft Copilot

The Reserve Bank of India (RBI) is tightening its grip on Peer-to-Peer (P2P) lending platforms, sending a clear message: play by the rules or face the consequences.

Following scrutiny of digital lending and prepaid wallets, the RBI has set its sights on P2P platforms, a rapidly growing segment. 

• Platforms have been asked to submit financial data, details on lender agreements, onboarding processes, loan structures, and app partnerships

Since September, the RBI has engaged with P2P apps, suggesting corrective measures after individual reviews. However, some platforms failed to comply, prompting stricter action.

P2P platforms, bound by guidelines established in 2017, have strayed from the path. 

The RBI found numerous discrepancies, including:

• Guaranteeing fixed and high returns to lenders, using deceptive advertising
  
  
• Offering unrealistic promises of immediate access to invested funds

Platforms have submitted documents to the RBI, anxiously awaiting their next move. 

• A 12-member association is lobbying the regulator to avoid harsh measures

Find out more

The applications of artificial intelligence (AI) are extensive, and it is now set to take centre stage as a crucial ally in safeguarding our country's forests.

The Telangana government is looking to harness the power of AI to address the ongoing challenges of illegal logging and poaching. 

• The government is in search of an AI solution capable of conducting real-time monitoring of forest reserves, including the Amarabad and Kawal Tiger Reserves in the state

The government aims to use AI for real-time monitoring to detect snares and other hunting equipment. 

• It also wants to identify "suspicious" people who may gain unauthorised entries in such places

Currently, camera traps are used, but their limited storage capacity requires frequent SD card replacements, hindering continuous monitoring. 

• The AI solution aims to overcome this hurdle by processing data efficiently, allowing for uninterrupted vigilance

Go deeper 

Picture credit: Microsoft Copilot

• Sanjay Gupta, head of Google India, believes AI will be India's FASTag to growth and information access by removing barriers like illiteracy and language.
  
  
• Chinese EV maker Xpeng is bulking up its workforce by 4,000 and pouring millions into AI to stay afloat in the cutthroat competition of China's auto market.

Christopher Nolan's Oppenheimer just obliterated the BAFTAs, snagging a whopping seven awards, including Best Film, Best Director, and Best Actor for Cillian Murphy. 

• Robert Downey Jr. bagged the Best Supporting Actor

This BAFTAs sweep is a clear signal: Oppenheimer is a serious contender for the upcoming Oscars.

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