The Editorial Board of RGNUL Financial and Mercantile Law Review (RFMLR) virtually organized the 3rd RGNUL-SAM Conclave on Emerging Trends in Banking & Finance in India, 2023, in collaboration with Shardul Amarchand Mangaldas & Co. (SAM & Co.). The Conclave consisted of two sessions: a Paper Presentation conducted on 15th April 2023 and an Expert Panel Discussion conducted on 20th April 2023.

 

About Shardul Amarchand Mangaldas & Co (SAM & Co):

 

Shardul Amarchand Mangaldas & Co (SAM & Co) is among the leading full-service law firms in India. With over 732 lawyers and 140 partners spread across offices in seven locations in India, it is one of India’s biggest and most reputed law firms. The firm offers solutions across diverse practice areas for industries, the central government and states, regulatory bodies, industry chambers, and non-profit organizations. It represents major transnational corporates on their India entry and business strategy. The firm is known globally for its exceptional dispute resolution & arbitration, mergers & acquisitions, tax, competition law, regulatory litigation, capital markets, and private equity practices.

 

A multitude of teams work closely with each other and provide advice to clients on every aspect of their business, from entry strategies and complex tax-efficient structuring to divestitures and exits. It also includes engagements regarding complicated mergers, acquisitions, private equity transactions, takeover codes, corporate governance, and employee-related matters. Over the years, SAM & Co has given effect to various complex and seminal deals and has consistently been awarded for the same. The firm has been ranked #1 in deal count, closing 142 deals worth over USD 34 billion, by Merger Market India League Tables 2022, and nine of its practice areas have been ranked as ‘Band 1’ by the Chambers and Partners Asia Pacific Guide 2023. The firm has also been recognized as one of the Best Overall Law Firms by the India Business Law Journal, 2022.

 

The Event:

 

Emerging Trends in Banking & Finance in India have been the focus of discussion for quite some time now. With the ever-evolving financial landscape, it is crucial to keep an eye on the emerging trends to stay ahead of the curve. Alleviating the Rise and Recovery of Non-Performing Assets (NPAs) has been a major concern for the Indian banking sector. The NPAs have been on the rise in recent years, and it has become imperative to find ways to tackle this issue. Regulatory Challenges surrounding Non-Banking Financial Companies (NBFCs) have been a cause of concern for the Indian financial sector. The NBFCs play a crucial role in providing credit to various sectors of the economy, and any regulatory challenges faced by them can have a significant impact. The Reserve Bank of India (RBI) has taken several steps to address these challenges, such as the introduction of the NBFC-D rating system and the implementation of liquidity coverage ratio norms. Analyzing the Menace of Letter of Credit Fraud in the Banking Sector is another important trend in the Indian banking industry. Letter of credit frauds have been on the rise, and it is crucial to find ways to prevent such incidents. The RBI has introduced several measures to address this issue, such as the implementation of a Trade Receivables Discounting System (TReDS) and the introduction of e-Kuber for government transactions. The expansion of green financing is another important trend in the Indian banking industry. With growing awareness about climate change and its impact, there is a need to promote sustainable financing practices. Scrutinizing Regulatory Concerns in the Digital Payments and Digital Lending Industries is another important trend in the Indian banking industry. With the increasing adoption of digital payments and lending platforms, it is crucial to ensure that these platforms are regulated effectively. The RBI has taken several steps to address these concerns, such as the introduction of guidelines for payment aggregators and the implementation of a regulatory sandbox for fintech companies.

 

These Emerging Trends in Banking and Finance in India are crucial for the growth and development of the financial sector. It is essential to stay updated with these trends to stay ahead of the curve and ensure sustainable growth. The 3rd RGNUL-SAM Conclave on Emerging Trends in Banking and Finance in India, 2023, was extremely successful in initiating a discussion on the critical and contemporary issues in the banking and finance sector, with a particular focus on understanding the challenges that are emerging in the sector. Various participants researched and presented novel and practical solutions to the challenges faced by all stakeholders through the Paper Presentation Session. Leading experts from SAM & Co and other professionals in the Banking and Finance sector participated in the Expert Panel Discussion, sharing practical insights into the industry’s ever-changing opportunities and lingering challenges.

 

Paper Presentation:

 

For the Paper Presentation, the Editorial Board had invited submissions from law students, academicians, working professionals, and research scholars aimed at contributing to the discourse around the emerging trends and practical issues in banking and finance in India, through an exhaustive list of sub-themes. Research proposals were also allowed to be submitted by individuals interested in writing on issues beyond the given sub-themes but falling within the ambit of the larger debate. Entries were then shortlisted, and the authors were invited to present their research to our panel of experts who judged these entries.

 

Among all the papers presented during the Paper Presentation Session on 15th April, the first position was secured by Vinita Singh and Jeeri Sanjana Reddy, students of Damodaram Sanjivayya National Law University, Visakhapatnam. Their paper was titled, “India’s Transition Towards an Expected Loss Approach for Loan Loss Provisioning: A Step in the Right Direction?” The second position was secured by Hrishikesh Reddy, from National Law University and Judicial Academy, Assam. His paper was titled, “Regulate Now, Benefit Later: Scrutinizing the Regulatory Concerns in the Buy Now Pay Later Industry and Suggesting Reform.” The third position was secured by Sejal Gupta and Priyansh Sharma from Nirma University, Ahmedabad, Gujarat. Their paper was titled, “Confronting the NPA Crisis: Battling for Economic Stability with an Arsenal of Legal Jargon.” Among all the papers presented in the Conclave, the top three have been awarded Certificates of Merit. The authors of the top entry have been rewarded with an internship opportunity at SAM & Co, along with a cash prize. Additionally, after a comprehensive review of the papers shortlisted for presentation, the Editorial Board will be publishing a compilation of the best entries.

 

Expert Panel Discussion:

 

An Expert Panel Discussion was also organized by the Editorial Board virtually on the Cisco WebEx platform on 20th April, 2023. The panel of speakers discussed critical issues pertaining to the practical challenges of the banking and finance sector in India. The session was attended by students and professionals from across the country and provided an opportunity for attendees to interact with experts in the field. The experts on the panel discussed practical issues that are frequently overlooked. As a result of the Expert Panel Discussion, the conclave ended on a very informative note, with an esteemed panel of experts gathering to discuss the challenges and opportunities facing the banking sector in India.

 

The panel included Mr. Anoop Rawat, Ms. Shilpa Mankar Ahluwalia, Ms. Veena Sivaramakrishnan, Mr. Anurag Dwivedi, and Mr. Shantanu Tyagi, all Partners at SAM & Co. The Expert Panel Discussion was moderated by Mr. Saurav Panda, also a Partner at SAM & Co. The expert panel discussion covered a range of topics that are currently affecting the banking sector in India. One of the key areas of discussion was the rise and recovery of non-performing assets (NPAs). The panelists highlighted the challenges faced by banks in managing their NPAs, including the need for effective risk management strategies and the importance of timely resolution of NPAs. They also discussed the potential impact of emerging technologies, such as artificial intelligence and blockchain, on NPA management and recovery.

 

Another area of focus was regulatory challenges surrounding non-banking financial companies (NBFCs). The panelists discussed the need for effective regulation of NBFCs to ensure their financial stability and prevent systemic risks. They also highlighted the need for greater transparency and accountability in the NBFC sector. The panelists also examined the issue of letter of credit fraud in the banking sector. They discussed the various types of fraud that can occur, including identity theft and forgery, and highlighted the importance of effective fraud detection and prevention measures. The expansion of green financing was another topic that was discussed by the panel. The panelists examined the potential benefits of green financing, such as reducing carbon emissions and promoting sustainable development, and highlighted the need for effective regulation and incentives to encourage greater investment in this area.

 

Finally, the panelists scrutinized regulatory concerns in the digital payments and digital lending industries. They discussed the potential risks associated with these industries, such as data privacy and security concerns, and highlighted the need for effective regulation to mitigate these risks. Overall, the expert panel discussion provided valuable insights into the current state of the banking and finance sector in India and the potential impact of emerging technologies and regulatory developments. The panelists highlighted the need for effective regulation, innovative solutions, and greater transparency and accountability to address the challenges facing the banking sector in India.