April 2021 Monthly Newsletter Volume 2 Issue 4     Rs 1,500 Cr budget allocation for digital payments should be utilized for financial inclusion, building infrastructure: PCI The Payments Council of India (PCI) has suggested that Rs 1,500 crore earmarked in the Annual Budget (2021-2022) for the promotion of digital payments should be utilized for financial literacy, inclusion and building digital infrastructure. In its submission to various stakeholders, PCI, representing the digital payments industry, mentioned the budget allocation should be utilized for the growth of the sector. Specifically, in the areas of financial literacy and inclusion, creating new infrastructure, upgrading existing infrastructure, security and innovation. PCI also suggested to utilize these funds to reimburse the affected payment entities due to zero Merchant Discount Rate (MDR) on RuPay and UPI payment products. An important submission made was ‘to let the market forces play their role in fostering competition and come up with innovative and technological advanced solutions’. Submission on RBI’s circular on processing of e-mandates for recurring transactions Welcoming the Reserve Bank of India’s (RBI) move on processing of e-mandates for recurring transactions, the Payments Council of India (PCI) urged the regulator to provide an additional timeline for the non-bank entities to comply with the infrastructure requirements. Due to challenges of integrating foreign payment gateways to the new infrastructure, PCI also made a request to exclude cross border transactions from the move. RBI had issued a circular for the processing of e-mandates for recurring transactions. RBI had planned to increase the Additional Factor of Authentication limit to Rs 5,000 . Submission to the RBI’s expert committee on Primary Urban Co-operative Banks (UCBs) The Reserve Bank of India (RBI) had announced the setting up of an expert committee on Primary Urban Co-operative Banks (UCBs) to examine the issues and to provide a roadmap for strengthening the sector. The Payments Council of India (PCI) made a submission to the Expert Committee in which it thanked RBI for rolling out a scheme for voluntary transition of primary UCBs into small finance banks. The submission also provided suggestions to the regulator to provide an opportunity for the Urban Co-operative Banks to extend their products offerings through various financial services like credit offerings, digital payments solutions, etc. and support RBI in the creation of its vision document for a vibrant and resilient Urban Co-operative banking sector. Meeting with merchants on restrictions to store customers’ data The Payments Council of India (PCI) organized a meeting with merchants to discuss the road ahead on the restrictions imposed to store customers’ data in reference to RBI’s Guidelines on Regulation of Payment Aggregators (PA) and Payment Gateways (PG). The Reserve Bank of India (RBI) has rejected merchants’ demand to allow storage of customers’ credit card data under the payment aggregators and payment gateway rules to be enforced from July 2021. The industry decided to share a submission to the regulator, suggesting alternative solutions to the issue. PCI is in the process of stakeholder consultation and will make the representation to RBI on the subject shortly. Over-burdening regulation to stifle innovation in E-commerce The Department for Promotion of Industry & Internal Trade (DPIIT) had held a stakeholders’ Consultation meet on FDI policy in E-commerce on March 19, 2021. IAMAI, on behalf of its members participated in the meeting and made a submission. The industry body advocated for a light touch approach for the growth of the nascent E-commerce sector as any over-burdening regulation would stifle innovation and growth. The current FDI policy of the Government has provided an enabling environment for the investments and growth of the sector. Submission reiterated IAMAI members’ commitment to abide by the laws of the land and work together with the Government to implement the FDI policy in letter and spirit. It also highlighted the importance of a stable regulatory policy environment for ensuring continued growth of the sector and realizing its true potential. Submission on the Draft Guidelines for Influencer Advertising on Digital Media The Advertising Standards Council of India (“ASCI”) has released the draft Guidelines on Influencer Advertising on Digital Media (“Influencer Guidelines”) on 22 February, 2021. IAMAI submitted feedback on the draft version to ASCI. Submission highlighted that the ASCI has not provided sufficient time for deliberations on the Influencer Guidelines. It recommended that ASCI should also extend timelines for finalization and implementation of the Influencer Guidelines, so that all concerned stakeholders have ample of time and opportunity to review, assess and provide their feedback and inputs on the same. Submission also urged that certain concepts and definitions of the Influencer Guidelines be reconsidered and clarified by ASCI so that they are in consonance with global best practices. Industry demands clarity on Information Technology Guidelines for Intermediaries and Digital Media Ethics Code Rules, 2021 On February 25, 2021, the Government notified the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules) under the Information Technology Act, 2000 (IT Act).  IAMAI organized an interaction between the Online curated content provider (OCCP) industry and the Information and Broadcasting (I&B) Minister Shri Prakash Javadekar on March 4, 2021. In the meeting, industry stakeholders expressed the need for continued Government coordination for smooth implementation of the IT rules. The industry representatives expressed the need for clarity on whether the regulatory mechanism will take precedence over any FIRs that may be filed. Industry representatives also communicated to the ministry that the exercise of making hundreds of thousands of hours of content compliant to the new guidelines will require significant investment in terms of time and resources, and would require cooperation from the Government to allow a seamless transition to the new rules. IAMAI is working with the members toestablish a self-regulatory body as part of the level two of the grievance redressal mechanism, as laid out in the IT rules.  Decoding the Leadership Strategies for Customer Experience Design for the New Decade On March 04, 2021 a seminar was organized in partnership with Human Factors International to discuss the insights into the human-centered design field and an executive focused model of ROI, scope, application, and best practices. The focus was on the key parts of effective design practice and how to identify the organization’s maturity level as well as the next steps for moving ahead in this key competency area. Topics covered; Understanding the Many Names of CX, The ROI of User-Centered Design, Customer Journey Mapping, How to Institutionalize Customer Centricity, -Industrial Strength CX Practices, and many more. Few of the key speakers were Dr. Eric Schaffer, Founder, Human Factors International, Mr. Ajit Narasimhan, Chief Marketing Officer, Sundaram Mutual Fund, Mr. Anand Dubey, Head – Marketing, Mahindra & Mahindra Financial Services, Mr. Kinjal Shah, Marketing Head, Kotak Mutual Fund, Mr. Prasanna Lohar, Head Technology, DCB Bank, Mr. Sanjay Singh, SVP, Paytm, Mr. Sachin Vashishtha, Associate Director & Head - Digital Transformation & Marketing, Paisabazaar & Mr. Udit Jain, VP & Head of Marketing, Airtel Payments Bank. Blockchain Summit: Delving Deeper into Blockchain Adoption & Usage On March 10, 2021, the IAMAI Blockchain Summit, with the central theme – Delving Deeper into Blockchain Adoption & Usage, was organized. Blockchain is undeniably the technology of the future, slated to bring decentralization, trust and accountability into multiple areas of business. However, in order to be more effective and enter the mainstream, blockchain technology needs an inclusive approach towards adoption by the Government bodies, regulatory authorities and the corporates. IAMAI Blockchain Summit provided a platform to all stakeholders of the blockchain ecosystem and acted as a catalyst to trigger adoption of technology across various domains. The summit focused on key sectors like BFSI, agri & food tech, energy, telecom, e-Commerce, supply chain, manufacturing, cyber security, health & pharma etc. Key Speakers includedShri Jayesh Ranjan IAS, Principal Secretary, Information Technology, Electronics & Communications Department, Government of Telangana, Shri Santhosh K. Misra  IAS, Commissioner - e-Governance and CEO, Tamil Nadu e-Gov Agency, Mr. C P Gurnani, CEO and Managing Director, Tech Mahindra, Mr. Richard Brown, CTO, R3, Mr. Abhishek Lahiri, Public Policy Lead - (Payments and Commerce), Facebook, Mr. Jaspreet Bindra, Founder, Digital Matters, India & Tech Whisperer, UK, Mr. Sreenivas Rao, Global Head of Supply Chain, Sunpharma. Media Quality in the Age of Digital Advertising On March 18, 2021, IAMAI organized a roundtable in partnership with DoubleVerify on ‘Media Quality in the Age of Digital Advertising’. The roundtable highlighted the significance of ad verification. Although such verifications are still in its nascent stages in India, advertisers in the region understand the underlying challenges they face as the industry moves head. Ad-fraud, brand safety, etc, were some of the key issues discussed at the roundtable. Advertisers today are witnessing a change in consumer behaviors and demands, however, to serve the consumers better certain issues such as ad-frauds, brand safety should be addressed. The key speakers were Mr.Manish Mahajan, AVP - Digital Marketing & Ecommerce, Max Life Insurance, Mr. Pankaj Singh Parihar, VP & Head - Digital & Transformation, Godrej Consumer Products, Mr. Rajeev Malik, Vice President & Head of Marketing - Commercial Vehicles, Mahindra Group, Ms. Rubeena Singh, Chief Executive Officer, iProspect, Mr. Nachiket Deole, Head of Sales – India, DoubleVerify. Pixels 2021 IAMAI hosted the 4th edition of its dedicated event for the Digital Entertainment industry, ‘Pixels 2021’ on 25th March. The conference discussed the global trends on the entire OTT ecosystem to provide a thorough understanding of the opportunities and challenges that lie ahead. The event was held digitally to maximize outreach and coordination while prioritizing safety. Pixels 2021 provided a unique opportunity for delegates to interact with senior executives, thought leaders, policymakers, strategists and content creators to understand the landscape of digital entertainment in India. The event had leaders from across the various facets of digital entertainment such as OTT content providers, Digital Music Platforms, ShortForm Content Platforms, Podcasts, User Generated Content and Social Media Influencers.