Payments Banks: Cashless Banking for the Unbanked

Posted on

By: Sharanya Ranga and Laxmi Joshi

The government led demonetization drive in November 2016 led to a surge in the usage of digital payments in India with even mom and pop stores and hawkers embracing cash-free payment options. Mobile wallets suddenly became the buzzword and gained mainstream acceptance from being seen as a niche player. The other aspect that came into the spotlight was India’s low financial inclusion rate (only around 35% of adults in India had access to a formal bank account[1]) and how the benefits of going digital can be leveraged to increase financial inclusion for the teeming millions. Conceptually this is one of the key drivers of payment banks in India.

Cross-Border Mergers Permitted in India

Posted on

By: Sharanya Ranga and Riya Dutta

With protectionist winds holding sway in the developed economies, India seems to be bucking the trend with the notification of Section 234 of the Companies Act, 2013 (“Co Act”) on 13th April 2017 allowing outbound mergers subject to specific conditions. While the erstwhile Companies Act, 1956 provided only for inbound mergers, i.e. merger of a foreign company with an Indian company, this provision gives the green signal for cross-border mergers, both inbound and outbound.

Whether Contractual Obligation Precedes the Word of Law?

Posted on

By: Sharanya Ranga, Laxmi Joshi and Aditi Rani

The Delhi High Court in the case of Cruz City 1 Mauritius Holdings versus Unitech Limited recently ruled that contravention of India’s exchange control laws (“FEMA”) cannot be a ground to challenge enforcement of foreign arbitral awards. Significantly, this ruling comes in the wake of the Tata Sons – Docomo settlement in March 2017 where the parties mutually agreed to not proceed with the enforcement of a foreign arbitration award allegedly involving violation of FEMA. While the judgment in the Tata-Docomo matter is yet to be pronounced, the Delhi High Court appears to be all set to clear the air on the question of enforcements of such foreign arbitral awards in India and settling the on-going debate on the enforcement of the contractual obligations without flouting Indian laws.