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Month: June 2025

Technology

Thales Launches Advanced Inflight Entertainment Services Lab in Bengaluru

Observenow Desk June 11, 2025

Thales has inaugurated a cutting-edge Inflight Entertainment and Services lab at its Engineering Competence Centre in Bengaluru, marking a significant milestone in the company’s innovation ecosystem in India. The facility is designed to accelerate the design, development, and rigorous testing of next-generation Inflight Entertainment systems that cater to both domestic and global airlines.

The inauguration was attended by Karnataka’s Minister of Industries, Shri M.B. Patil; Marc Lamy, Consul General of France in Bengaluru; senior executives from Air India; and representatives of the Indo-French Chamber of Commerce, alongside key Thales leadership including Olivier Flous, Senior Vice President of Engineering and Digital Transformation, and François Colonna, Director of the Bengaluru Engineering Competence Centre.

This new lab replicates a full-scale aircraft cabin equipped with IFE systems, offering engineers the ability to simulate real-world passenger experiences through immersive testing of hardware and software under realistic operational conditions. This enables secure data deployment, performance validation, and user experience assessment before roll-out to airlines. The initiative aligns with India’s “Aatmanirbhar Bharat” philosophy, aimed at strengthening local R&D capabilities and scaling engineering talent. Thales emphasizes the lab’s role in increasingly positioning Bengaluru as a key global aviation and aerospace innovation hub.

Shri M.B. Patil noted that the new facility reinforces Karnataka’s prominence in aerospace and defence innovation, leveraging the state’s substantial contribution to national industry growth and positioning the region as a dynamic R&D centre. French Consul General Marc Lamy highlighted the collaboration between France and India, reinforcing the countries’ joint commitment to innovation in aerospace through initiatives such as the Indo‑French Year of Innovation in 2026.

Olivier Flous commented that the new lab supports Thales’s strategic roadmap for IFE systems and enhances operational efficiency for airlines. He emphasized that the Bengaluru centre draws on global expertise and the local engineering talent pool to develop aviation technologies for both India and the world.

Thales’s Engineering Competence Centre in Bengaluru has been instrumental since its 2019 launch, contributing to high-value software and hardware engineering in aerospace and defence. It supports systems including air traffic management, avionics, flight management, radar software, and video connectivity systems, with more than 1,600 engineers across India’s two ECCs in Bengaluru and Noida.

The new IFE lab deepens Thales’s commitment to localisation of R&D, job creation, technology transfers, and collaboration with Indian academia and industry. The facility is expected to accelerate the introduction of innovative aviation technologies, support local aviation services, and serve as a model for responsible, high-quality engineering in the region.

The launch signals Thales’s long-term commitment to India’s aerospace ambitions, with plans to expand engineering staff and elevate the country’s standing as a global centre for research-driven aviation and defence solutions.

Tags: Aatmanirbhar BharatThales

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Technology

Sonata Software Partners with IISc’s FSID to Advance Responsible AI Research

Observenow Desk

Sonata Software, a global leader in modernization engineering, has entered a three-year strategic partnership with the Indian Institute of Science’s Foundation for Science Innovation and Development. The collaboration aims to promote AI-driven scientific research, educational outreach, and the adoption of responsible-first AI practices.

Central to the collaboration is Sonata’s reaffirmation of its “Responsible-first” AI philosophy, which underscores ethical, secure, and privacy-conscious AI deployment. By joining forces with FSID, Sonata intends to support the development of advanced computer science programmes, research infrastructure, and research-to-market startup incubation, with a focus on benefitting both industry and academia.

The initiative centers on four core objectives include, educational & Outreach Programmes: Engaging students via workshops, expert lectures, and community awareness platforms, Scientific Research Support: Funding cutting-edge work in software engineering and responsible AI, Infrastructure Enhancement: Upgrading labs and equipment within the Department of Computer Science and Automation (CSA) at IISc, and AI Startup Incubation: Building a launchpad for entrepreneurial ventures emerging from campus-based innovation.

The Department of Computer Science and Automation (CSA) at IISc is already recognized internationally for its R&D excellence. This partnership is expected to amplify its impact by blending academia’s technical experience with Sonata’s engineering and industry domain expertise. This partnership aligns with India’s broader push towards nurturing homegrown, trustworthy AI systems. As the nation scales up its AI capabilities through various state-backed initiatives, the Sonata–FSID collaboration adds strategic momentum—especially in applied research and the commercialization of AI technologies.

By blending Sonata’s modernization engineering approach with IISc’s academic strengths, the initiative is poised to yield robust research outcomes, opportunities for early-career researchers, and a new pipeline of AI-based startups deploying ethically sound technologies. Sonata Software’s alliance with IISc’s FSID marks a significant step towards responsible AI adoption in India’s research ecosystem. By enabling ethical AI research and supporting next-gen entrepreneurs, the partnership is well positioned to shape India’s AI-driven future.

Tags: AI technologiesSonata Software

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Technology

Persistent Systems Surges to ₹5,950 Amid Robust Annual Returns and Solid Earnings

Observenow Desk

Tech services firm Persistent Systems saw its stock rally to around ₹5,950 per share this week, buoyed by strong financial results, a generous dividend payout, and solid annual returns that have captured investor attention. According to market trackers, Persistent’s share price increased by over 10% in the past month, reaching near ₹5,950 levels—its highest in recent months—on the back of robust investor sentiment.

Persistent posted consolidated revenue of approximately ₹3,260 crore in the fiscal quarter ending March 2025, up 5% quarter-on-quarter and 24% year-on-year. For the full year, the company reported around ₹11,728 crore in total income, marking strong growth connecting back to its aggressive expansion strategy .

Profit after tax stood at ₹921 crore, a 33% increase over the prior year, reflecting healthy operating performance and margin discipline. Additionally, annualised return on equity (ROE) remained around 24–25%, with return on capital employed (ROCE) above 26%, underlining strong capital efficiency. The stock delivered an impressive +54% total return over the last year, including a 400% dividend payout—₹20 per share—declared in January, yielding around 0.6%. Over a three-year period, total returns exceed 200%, and a remarkable 1,900% gain over five years highlights Persistent’s long-term investor appeal.

This blend of dividend income and capital appreciation has energized retail and institutional investors, with foreign institutional ownership climbing to roughly 24%, and promoter holding stable near 30.7%. On valuation, Persistent trades at a forward price-to-earnings (P/E) ratio of about 60–63×, with price-to-book roughly 13–14×, levels that reflect high market expectations . While premium compared to peers could pose short-term headwinds, analysts point to Persistent’s expanding high-margin offerings—such as cloud engineering, generative AI services, and IoT capabilities—as justifying the valuation.

Brokerage and analyst platforms show a “Buy” leaning, with 53% of analysts recommending purchases, 20% as holds, and 27% recommending sell . The median 12-month target price is around ₹5,460, though the range extends as high as ₹7,730 per share. Potential challenges include macroeconomic headwinds, client budget constraints, and high valuation multiples. Technical charts also suggest immediate resistance around ₹6,000–₹6,050, with support near ₹5,800 — levels traders will watch closely.

Persistent Systems is enjoying a significant momentum streak, driven by solid earnings, investor-friendly capital returns, and leading-edge digital service offerings. While its premium valuation could cap upside, the company’s robust financial health and growth strategy maintain its appeal in the IT mid-cap space.

Tags: Persistent Systems

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Technology

Meta to Acquire 49% Stake in Scale AI for Nearly $15 Billion to Supercharge Generative AI Push

Observenow Desk

Meta Platforms is preparing its largest external investment ever, committing approximately $14.8 billion to acquire a 49% stake in data-labeling specialist Scale AI, in what Reuters reports as a strategic move to accelerate its generative AI ambitions .

The proposed investment, though not yet finalised, would channel substantial capital into Scale AI’s existing shareholders—among them Accel, Index Ventures, Founders Fund, and Greenoaks, and benefit current and former staff. As part of the deal, Scale AI’s CEO, Alexandr Wang, will take a senior leadership role at Meta, helming a new “superintelligence” lab focused on next‑generation AI efforts.

Scale AI, founded in 2016, supplies labelled training data crucial for machine learning models—from autonomous navigation to chatbots. The company generated about $870 million in revenue in 2024, with estimates expecting it to exceed $2 billion this year. Its valuation, previously set at $13.8 billion, may rise further amid anticipated over $2 billion in revenues and a potential $25 billion tender offer to shareholders.

For Meta, the investment signals an urgent bid to catch up in the fast‑evolving generative AI race. Despite launching its Llama 4 model in April, Meta’s AI performance lagged expectations, and its much-hyped “Behemoth” model faced delays. Now, the Scale AI partnership aims to embed cutting-edge data pipelines and AI expertise directly into Meta’s operations—enabling deeper capabilities in model training and alignment.

The structure of this minority-stake acquisition is reportedly being designed to minimize antitrust scrutiny, mirroring past concerns around Meta’s other major acquisitions, including WhatsApp and Instagram. Since Meta isn’t fully acquiring Scale, it avoids many regulatory pitfalls while securing access to its core capabilities.

This move also fits a wider trend: big tech players engaging in multibillion-dollar minority investments in specialised AI firms. Alphabet, Amazon, and Microsoft have made similar high-profile deals—such as Anthropic and OpenAI—highlighting the industry’s urgency to secure AI expertise and infrastructure amid competition.

Bringing Scale AI’s 28‑year‑old CEO Alexandr Wang to lead its superintelligence initiative indicates Meta’s desire to bolster internal vision and talent. Wang, who co-founded Scale in 2016 and has since scaled it through its public-sector and commercial footholds including a Department of Defense contract—will play a central role in Meta’s AI roadmap.

This deal would represent Meta’s single-largest external investment, following a $15 billion-plus capital expenditure plan for AI infrastructure in 2025 including GPU buildup and cloud capacities . It signals Meta’s shift from internal R&D towards strategic global partnerships to enhance its generative AI edge.

Competitors are reacting in kind: Microsoft already holds a significant stake in OpenAI; Amazon and Google have backed Anthropic; and Meta sees Scale AI as the essential data-labelling backbone it previously lacked.

Meta’s near‑$15 billion investment in Scale AI is a bold strategic bid to reset its generative AI roadmap. By securing data infrastructure and superintelligence leadership, Walmart aims to rejuvenate product development and better compete in the race to build powerful, foundational AI models.

Tags: Generative AIMetaOpenAI

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Digital Native

Meesho Converts to Public Entity as It Gears Up for Blockbuster IPO

Observenow Desk

E-commerce platform Meesho has officially converted into a public limited company, marking a key milestone in its journey toward launching an initial public offering later this year. This strategic move signals the Bengaluru-based firm’s intent to strengthen its legal and financial groundwork ahead of a highly anticipated public listing.

According to filings with the Ministry of Corporate Affairs, the company has changed its legal identity from Fashnear Technologies Private Limited to Meesho Limited, aligning its corporate name with its consumer-facing brand. This transformation into a public company is a standard and necessary requirement for any firm looking to list its shares on Indian stock exchanges. The restructuring comes amid reports that Meesho is aiming to raise around $1 billion through its IPO, potentially placing its valuation between $7–10 billion. The startup has already appointed global investment banks such as Kotak Mahindra Capital, Morgan Stanley, JP Morgan, and Citi to lead the offering process.

In preparation for the listing, Meesho has also issued bonus shares worth ₹411 crore, significantly increasing its paid-up capital. Sources suggest this move aims to ensure compliance with regulatory norms for public companies and improve equity distribution before the IPO filing. The company is expected to file its Draft Red Herring Prospectus in the coming months. The decision to go public comes at a time when investor interest in Indian tech startups is witnessing a revival. Meesho’s move also aligns with the broader trend of Indian startups “reverse-flipping” their domiciles from overseas back to India to benefit from local listing advantages and increased market visibility.

Meesho has demonstrated strong financial performance in recent quarters. For the financial year ending March 2024, the company reported revenue of ₹7,615 crore, with a sharp reduction in adjusted losses—down by 97% to ₹53 crore. The platform has also seen a rise in user engagement, serving over 187 million unique transacting users annually and achieving 34% year-on-year growth in order volumes.

Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho operates as a zero-commission marketplace, empowering millions of small sellers across India—especially in Tier II and Tier III cities—to reach customers directly. It has become a go-to platform for affordable fashion, home goods, and beauty products, among others. The company recently completed a ₹200 crore ESOP buyback, rewarding nearly 1,700 current and former employees, which is often seen as a prelude to a public listing and a show of confidence in future valuation growth.

Industry analysts view Meesho’s IPO as one of the most closely watched in India’s tech sector for 2025. The outcome of this offering could set the tone for several other startups looking to tap into public markets after a prolonged funding winter.

Meesho’s conversion into a public entity and its robust financial performance set the stage for a major IPO in the Indian startup ecosystem. As regulatory filings and investor roadshows begin, all eyes are now on how the public markets will respond to one of India’s fastest-growing e-commerce platforms.

Tags: Meesho

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Digital Native

Byju’s Sells Epic and Tynker for $97.2 Million Amid Bankruptcy Proceedings

Observenow Desk

Edtech major Byju’s has sold off two of its key U.S.-based subsidiaries—Epic! and Tynker—for a combined amount of $97.2 million, in a strategic effort to reduce debt and restructure operations following ongoing bankruptcy proceedings in the United States.

The sale was approved by a Delaware bankruptcy court, as the company’s U.S. arm, Byju’s Alpha, undergoes Chapter 11 bankruptcy. The court-mandated sale was initiated by a trustee acting on behalf of lenders, including major investors in Byju’s $1.2 billion term loan, who are seeking to recover dues through the liquidation of assets.

In a notable development, Epic!, a digital reading platform for children, was acquired by TAL Education Group, a China-based education company, for $95 million. Meanwhile, Tynker, a coding education platform popular among K-12 students, was bought by U.S.-based CodeHS for $2.2 million following a highly competitive bidding process that spanned 48 rounds. The combined sale value is significantly lower than the estimated $700 million that Byju’s had paid to acquire both companies in 2021. At the time, the purchases were part of Byju’s aggressive expansion strategy into international markets, particularly the U.S., as it sought to diversify beyond its core operations in India.

The sale of Epic! drew scrutiny from U.S. authorities, including the Department of Justice, which raised national security concerns due to the Chinese ownership of TAL. However, the bankruptcy court overruled the objections, citing the late timing of the intervention and the lack of substantial legal grounds to halt the sale.

Epic!, once a cornerstone of Byju’s content-driven strategy in North America, was home to a digital library of over 40,000 books and served more than 50 million users. Tynker, similarly, had built a strong presence in schools, offering coding education to millions of students and thousands of educators worldwide. Industry experts note that the sharp discount at which these assets were sold reflects both the distressed financial state of Byju’s and the reduced valuation of edtech assets in the post-pandemic market environment. The court proceedings revealed that the primary intent behind the sale was to recover as much capital as possible for creditors, rather than to extract strategic value for the company.

Byju’s has been under intense financial and regulatory pressure over the past year. Once hailed as India’s most valuable startup with a valuation peaking at $22 billion, the company has since struggled with delayed financial disclosures, legal disputes with lenders, and declining investor confidence. The bankruptcy of its U.S. unit marks one of the most significant fallouts from its expansionist approach.

The proceeds from the Epic! and Tynker sale are expected to be used to partially repay the term loan and settle some of the outstanding liabilities owed to lenders. Meanwhile, Byju’s continues to face litigation and creditor negotiations both in the U.S. and in India.

The divestment of Epic! and Tynker signals a turning point for Byju’s as it scales back its international ambitions and focuses on core markets in the face of financial distress. The sale underscores the company’s urgent need to restructure and regain financial stability amid growing scrutiny.

Tags: Byju’sEpic! and Tynker

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HR

Sumit Madan Appointed as Managing Director & CEO at Axis Max Life

Observenow Desk

Axis Max Life Insurance today announced the appointment of Sumit Madan as its new Managing Director and Chief Executive Officer, effective October 1, 2025. He will succeed Prashant Tripathy, who is taking early retirement at the end of his term on September 30, 2025.

The company’s board approved Madan’s elevation at a recent meeting, with the appointment subject to both shareholder endorsement and the approval of the Insurance Regulatory and Development Authority of India (IRDAI). Madan, currently serving as Chief Distribution Officer, will assume a five-year term through September 2030. Joining Axis Max Life in 2013, Madan has overseen key elements of the company’s distribution strategy. In his current role, he manages the agency, bancassurance, and proprietary sales networks. His leadership helped bolster the company’s reach across urban and rural markets.

Before Max Life, Madan held senior roles at IDFC First Bank—leading retail liabilities, digital, and product teams—and at AU Small Finance Bank as President and Chief of Branch Banking, overseeing a team of over 4,000. Tripathy has steered the firm since January 2019, guiding its growth from a need-based strategy to achieving an estimated 9.4% market share and over ₹1.5 lakh crore in assets under management for FY2024. His early retirement signals a transition shaped through planning, giving Madan time to engage stakeholders and craft a seamless succession.

Madan’s deep roots in distribution place him well to lead Axis Max Life through its next growth phase. The company, jointly owned by Max Financial Services and Axis Bank, has focused on modernizing digital capabilities, expanding rural reach, and deepening bancassurance linkages. Industry analysts view Madan’s advancement as a continuity move, preserving the company’s emphasis on strong, multi-channel distribution—a cornerstone of its strategy. Under his leadership, the ‘Aarohan’ initiative extended presence in 75 new Tier-3 and Tier-4 locations, blending digital infrastructure with community-centric expansion efforts.

As CEO, Madan is expected to further cement Axis Max Life’s distribution edge while intensifying digital transformation—integrating analytics, personalized products, and scalable bancassurance solutions. His distribution expertise, allied with the board’s digital agenda, could drive efficiency and deepen customer engagement. He inherits a mission left by Tripathy—to make Axis Max Life one of the top three private life insurers in India post amendments to the Insurance Act and potential listing driven by regulators.

The appointment has been welcomed as strategic and timely. Market investors are watching how Madan balances expansion and profitability while sustaining high claim settlement ratios. The new leadership is expected to continue momentum in asset creation, customer trust, and regulatory alignment.

Sumit Madan’s elevation from Chief Distribution Officer to MD & CEO underscores Axis Max Life’s strategy to leverage its distribution strength while embracing digital innovation. His leadership marks a seamless transition for the insurer as it readies for its next phase of growth.

Tags: Axis Max LifeSumit Madan

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HR

Dwijadas Basak Takes Helm as CEO of Tata Power-DDL

Observenow Desk

Tata Power Delhi Distribution Limited has announced the appointment of Dwijadas Basak as its new Chief Executive Officer, effective June 9, 2025. Basak takes over a 9‑million‑consumer strong distribution utility serving North Delhi, succeeding the previous leadership team. The move aligns with the company’s ambition to drive innovation, operational excellence, and consumer-first service.

Basak brings over three decades of diverse experience in power distribution, both within India and abroad. Most recently, he served as CEO of TP Northern Odisha Distribution Limited, a Tata Power–Odisha government joint venture—where he managed power delivery to more than 2 million consumers and led transformative initiatives including network modernisation and solar microgrid deployment. Under his leadership, TPNODL also received recognition for outstanding performance; Basak was honored as “CEO of the Year” earlier this year.

Before Odisha, Basak served at Tata Power‑DDL in Delhi as Chief of the Commercial & Social Impact Group. He also played an instrumental role as COO of TP Central Odisha Distribution Limited. His early career includes stints with private distribution companies and a two‑year assignment (2000–2002) with AES Electro Paulo in São Paulo, Brazil.

An electrical engineer by training, Basak holds a range of leadership credentials. He completed the Advanced Management Program at IIM Ahmedabad, an Advanced Leadership Course from IIM Bangalore, and a General Management certificate from the University of Michigan’s Ross School, via Tata Management Training Centre. Basak is also an alumnus of IIEST Shibpur and a fellow of the Institution of Engineers (India).

Praveer Sinha, CEO & MD of Tata Power, welcomed Basak’s appointment, stating: “His proven track record in network transformation, customer‑centric operations and leadership in multi‑state utility environments will be instrumental as Tata Power‑DDL continues to scale its services in Delhi.”

In his first statement as CEO, Basak expressed enthusiasm: “I am honored to lead Tata Power‑DDL—a utility that serves millions. Together, we will focus on enhancing reliability, optimising processes, and delivering world‑class customer experience.”

Tata Power‑DDL, a joint venture between Tata Power and the Government of Delhi, manages power distribution across North and Northwest Delhi. Key priorities include reducing aggregate technical & commercial (AT&C) losses, deploying smart‑meter infrastructure, strengthening outage restoration capabilities, and expanding renewable integration.

Basak is expected to build on existing efforts in Customer Experience, Network Services, Operations & Safety, and Technical Services—all of which have undergone steady modernisation. He will collaborate with key leaders such as CFO Suranjit Mishra, Chief – Operations & Safety Rajesh Bahl, Chief – Network Services Surender Singh, and Chief – Customer Experience Kiran Gupta.

Analysts say this leadership change comes at a pivotal moment: Delhi’s electricity demands are rising, regulatory expectations—especially in loss reduction and service quality—are intensifying, and consumers expect rapid digital services. Basak’s cross‑regional experience and strategic mindset position him well to steer Tata Power‑DDL through this next growth phase.

Dwijadas Basak’s induction as CEO marks a decisive step for Tata Power‑DDL. His deep distribution credentials and customer-driven ethos align with the utility’s mission to solidify its position as a resilient, user-focused, and innovation-led organisation in India’s capital city.

Tags: Dwijadas BasakTata Power Delhi Distribution LimitedTata Power-DDL

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BFSI

Protectt.ai and i-exceed Partner to Strengthen Mobile Banking Security

Observenow Desk

In a strategic move aimed at enhancing the security landscape of mobile banking, cybersecurity company Protectt.ai has announced a collaboration with digital banking platform provider i-exceed. The partnership seeks to integrate advanced mobile threat defense capabilities into i-exceed’s low-code platform, Appzillon, ensuring that mobile banking applications are secure by design.

With the increasing shift towards mobile-first banking, financial institutions are under growing pressure to safeguard customer data and digital infrastructure from threats such as SIM swap fraud, malware, device tampering, and phishing attacks. This collaboration comes at a crucial time, as the frequency and complexity of mobile threats continue to evolve at an alarming pace.

Protectt.ai, a leader in real-time mobile threat detection and fraud prevention, currently secures over 300 million mobile devices and processes over two billion app sessions monthly. The firm’s security suite offers a comprehensive range of features, including runtime application self-protection (RASP), device and SIM binding, behavioral analytics, and fraud detection. These features will now be embedded into i-exceed’s Appzillon development framework, enabling financial institutions to build and launch secure applications from day one.

i-exceed, founded in 2011 and headquartered in Bengaluru, is a global player in the fintech space. Its Appzillon platform is used by over 110 banks across more than 90 countries. Known for its robust low-code capabilities, the platform helps institutions roll out digital services rapidly without compromising on user experience or regulatory compliance.

By integrating Protectt.ai’s mobile security stack directly into the Appzillon platform, the two companies aim to provide banks with a one-stop solution that simplifies the development process while adhering to regulatory standards set by bodies such as the Reserve Bank of India (RBI), the Monetary Authority of Singapore (MAS), and the National Institute of Standards and Technology (NIST).

“This collaboration enables us to offer a secure development environment right from the start,” said Manish Mimani, Founder and CEO of Protectt.ai. “We are helping banks move from reactive security practices to proactive threat prevention.” S. Sundararajan, Co-founder and CEO of i-exceed, added, “With Protectt.ai’s real-time protection, we are raising the bar for security in digital banking. Together, we’re empowering banks to roll out secure, scalable, and customer-centric apps more efficiently than ever before.”

The new solution will allow developers to build applications with embedded security features, reducing the need for additional integrations and third-party security add-ons. It also promises faster time-to-market for banks, along with enhanced protection against real-time attacks. The integrated platform is expected to roll out first with selected banks in India before expanding to global markets, including the Middle East, Africa, Southeast Asia, and the United States. Future developments will likely include AI-driven fraud intelligence and adaptive risk scoring mechanisms to further strengthen digital trust.

As the financial services industry continues its digital transformation, this partnership sets a new benchmark for mobile app security—offering both speed and safety in an increasingly connected world.

Tags: i-exceedMobile Banking SecurityProtectt.ai

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Trending

FM Sitharaman Orders Fast‑Track Refund of Unclaimed Deposits, Pushes for Unified KYC

Observenow Desk

Finance Minister Nirmala Sitharaman has urged key financial regulators—including the RBI, SEBI, IRDAI, and PFRDA—to accelerate the refund process for unclaimed deposits and enforce a unified, simplified KYC framework across all financial services.

In her address at the 29th meeting of the Financial Stability and Development Council (FSDC) held yesterday, Sitharaman emphasized the need to safeguard the interests of ordinary citizens by ensuring they can quickly reclaim forgotten funds tied up in banks, insurance schemes, mutual funds, pension accounts, and other financial products.

Unclaimed deposits—ranging from idle bank accounts and matured fixed deposits to unpaid dividends and lapsed insurance policies—have ballooned to substantial sums. Banks reported roughly ₹78,213 crore in such deposits by March 2024, a 26% increase over the previous year. The Depositor Education and Awareness Fund (DEAF) alone held ₹62,225 crore as of March 2023. Sitharaman warned that while some claims may involve complex inheritance legalities, the system must still be expedited and made more customer‑friendly.

To tackle the backlog, the FSDC proposed district-level camps where regulators and banks proactively reach out to claimants—especially those with verified nominee information. The Finance Ministry confirmed a combined effort involving RBI, SEBI, MCA, PFRDA, and IRDAI, working with pensions, insurance, mutual funds, and banking entities.

The Finance Minister also framed the establishment of standardized, digital-first KYC procedures as a national priority. Presently, banks, insurers, pension funds, and mutual fund houses maintain varied KYC protocols, often creating bottlenecks during claims and onboarding. Sitharaman urged regulators to converge on a “single, seamless” KYC system, benefitting not just domestic users but also NRIs, PIOs, and OCIs. Beyond claims and KYC, the FSDC delved into broader themes of macrofinancial stability: streamlining compliance burdens, strengthening cyber resilience, boosting account aggregator networks, expanding factoring services, and ensuring robust regulatory oversight.

Among the initiatives: roll out of a centralized KYC module; fast-track refunds through on‑site district camps; more efficient coordination among regulators; and enhanced cybersecurity protocols in finance. By setting time-bound targets and mandating regular progress reviews, Sitharaman signaled a commitment to operationalizing these reforms. The FSDC meeting concluded with instructions to report back in June–July on outcomes and pending actions. Citizens stand to benefit from more timely reclaiming of dormant assets and smoother digital onboarding. The unified KYC system also supports broader financial inclusion goals and a more resilient, user‑centric financial ecosystem.

Finance Minister Nirmala Sitharaman’s clarion call to fast-track unclaimed deposit refunds and unify KYC processes could unlock tens of thousands of crores in dormant assets, streamline customer experience, and solidify India’s digital and regulatory infrastructure.

Tags: KYCNirmala Sitharaman

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