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In today’s newsletter:

• Coinbase makes India comeback
• Indian Govt mulls oversight board, AI training for babus 
• Fintechs push for MDR on UPI transactions 

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The Indian crypto landscape is heating up again! 

After Binance and KuCoin, Coinbase is making a fresh entry into the country—this time, with a clearer regulatory footing.

Coinbase had previously suspended services in India in 2023 due to challenges with the Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI). 

• Now, as part of its global expansion strategy, the company has registered with India’s Financial Intelligence Unit (FIU)
  
  
• It plans to relaunch services by the end of the year

Coinbase isn’t just restarting trading—it’s also eyeing new investments and product offerings in India

“Among emerging markets, India now boasts the highest concentration of talent in the onchain space,” John O'Loghlen, Regional Managing Director for APAC at Coinbase said.

India has been a tough market from a regulatory and taxation standpoint. Now, with so many global players entering the space, domestic crypto startups may be facing their next big challenge.

• However, exchanges remain bullish

CoinDCX co-founder Sumit Gupta recently said that global players would, in fact, help "create the market."

“Indian crypto exchanges will not only survive but win in this competition,” Gupta said last week at the Moneycontrol Global Wealth Summit.

Go deeper

The Indian government is embracing AI in governance—but not without oversight. 

• A new framework mandates AI training for bureaucrats and proposes a watchdog to keep government AI in check

The government has recommended establishing an AI Governance Board to evaluate, approve, and monitor AI applications.

• The board will also ensure compliance with legal and ethical standards throughout an AI project’s lifecycle

This is part of the recently-released AI Competency Framework for Public Officials, which is a part of the IndiaAI Mission.

• The framework does not explicitly state whether the governance board will review and authorise AI applications in the private sector, or if its mandate is strictly limited to government-led AI initiatives

The government’s recommendation to establish an AI governance board follows last year’s controversy when it briefly mandated pre-approval for AI products, a move heavily criticised by industry leaders before being rolled back.

The three-tiered framework is envisaged as a training manual in AI for bureaucrats. 

The framework states that officials must assess AI risks, biases, and unintended consequences before deploying AI-driven programmes.

• It also mandates rigorous audits of AI models to prevent biased decision-making

Dig deeper

Unified Payments Interface (UPI), the country’s most popular digital payment method, may not remain free for large merchants for long if ongoing discussions between fintech apps, banks, the Reserve Bank of India, and the finance ministry progress.

• While this has been a long-standing demand from the industry, there is growing consensus that, given the surge in UPI payments, it no longer makes sense for taxpayers to bear the burden of the increasing subsidy bill

In FY24, the government paid out close to Rs 3,500 crore in UPI subsidies to banks and payment companies. However, for the current fiscal year, it has yet to disburse subsidies for the first three quarters.

•  With UPI transactions growing at an annual rate of nearly 30%, the subsidy bill is escalating

• This is causing concern among fintech companies, especially as they focus more on profitability

Fintechs recently lobbied the Reserve Bank of India (RBI) to introduce a 0.25% Merchant Discount Rate (MDR) on transactions from large retailers.

• Similar appeals were made to the Finance Ministry during last year’s budget discussions

If implemented, the MDR could generate Rs 15,000 crore annually, giving banks and payment firms much-needed funds to expand digital payment infrastructure, particularly in underserved areas.

• UPI currently has 350 million unique users

• In the next five years, another 300 million users are expected to join

While the government sees UPI as a digital public good, consensus is building around charging large offline and online retailers a small fee to sustain its future growth.

Dig deeper

For years, borrowers faced relentless recovery agents—even for loans they never took—while banks struggled with rising defaults. 

• Now, AI-powered platforms are reshaping the game

Startups like Credgenics, Spocto X, CredResolve, and others are using behavioural insights, predictive analytics, and automated interventions to make collections smarter. 

But does AI truly make debt recovery more efficient and compliant? Read on to find out

• Meta is testing its first in-house AI training chip, marking a key step in its shift toward custom silicon and reducing reliance on suppliers like Nvidia.
  
  
• Baskar Sridharan, AWS VP of AI/ML and data services, is reportedly stepping down after a year, following a cloud business reorganisation.

“Do me a favour, let's play Holi” and many other Holi songs will echo on the beaches of Goa and Phuket as Indians pack their bags to celebrate the festival of colours. 

• Flight bookings are up 25% while hotel bookings have surged by 20%. 

Private pools, opulent palaces, serene retreats are the top choices for Holi celebrations among Indian travellers. 

Find out more

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