Daily Dash: Tata Reportedly Set For Faster Payments Takeover In UK

February 5, 2024
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Indian conglomerate Tata has been tipped to unseat Vocalink as the operator of the UK’s instant payment system, and the Reserve Bank of India has warned against a rise in KYC updation fraud.

Tata Reportedly Set For Faster Payments Takeover In UK

Tata, India’s largest conglomerate, could be set to take over the operation of the UK's Faster Payments Service (FPS), according to a report from Sky News

If successful, Tata would take over from Mastercard-owned Vocalink. In the Sky News report, Tata is said to be the “leading contender” to succeed Vocalink.

However, the appointment of a new operator of the FPS will be put on hold until the government publishes a revised sector strategy.

Known as the "Vision for Payments", the strategy was informed by last year's review of the payment sector by the Treasury and former Nationwide CEO Joe Garner.

A Tata takeover of the FPS could provoke a backlash, following mass redundancies at the Tata-owned Port Talbot steelworks. Last month, Tata Steel confirmed that 2,800 roles in the UK would be cut.

India Warns Against Rising Fraud Under The Guise Of KYC Updation

The Reserve Bank of India (RBI) has issued a warning to members of the public to be alert for fraud attempts under guise of updating know your customer (KYC) requirements.

Due to “continuing incidents” of customers falling prey to these attempts, the RBI has urged the public to contact their financial service provider directly in the event of receiving any request for KYC updation.

According to RBI rules, last updated in January 2024, regulated entities must adopt a “risk-based” approach to periodic updation of KYC.

For high-risk customers, updation should be carried out at least once in every two years; for medium risk customers, once every eight years; and for low-risk customers, once every ten years.

Members of the public should use the National Cyber Crime Reporting Portal or through cybercrime helpline if they have been targeted by KYC updation fraud.

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