Dr. V.

Darling Selvi
Assistant Professor of Commerce
Rani Anna Government College for
Women, Tirunelveli
 E-trading has led to skyrocketing of trade volumes with average trade size plummeting

Technological Economic
revolution Increasing environment
transaction
Multiplication volumes
of execution New
venues competitors
Electronic Industry associationsProfitability
trading Service providerspressure / cost
Market containment
Industry
Capital
particip
adoption of Market
ants
Markets Security
STP Infrastr
Players
ucture Firm-wide risk
Consolidation organiz focus
ations
Systemic risk
Internalization
management
Client demands
Globalization for improved Regulatory
services and
lower costs change
 Cost-efficiency: Electronic trading greatly lowers continuing
operation costs by bringing significant efficiencies to the trading
process. This leads to a dramatic increase in trading volumes.

 Removing physical constraints on markets: It removes physical

constraints such as geography and the number of market
participants.

 Disintermediation: By providing a means for natural buyers and

sellers to meet without a market intermediary, electronic trading has
a great potential to dis-intermediate markets.

 Blurring Regulatory Distinctions: It poses regulatory challenges for

market participants and regulators alike
 Convergence in markets

Understanding and adapting to the client’s needs,

through a broader distribution network,

supported by a wider array of service/product

offerings and capable talent,

and ‘state-of-the-art’ technology systems

Convergence of financial institutions is the blurring of conventional boundaries

separating the traditional providers of once-discrete financial services (i.e. life
assurance, short-term insurance, banking, health, general retail)
 Wealth Management

Education
provision Savings
Retirement &
Investment

Risk cover Home loan

Client Car &

Medical household
cover

Personal Lifestyle
Cover Banking /
Wills Trans-
& trusts actional
Medium
Financial
term
Education
credit
Financial
Education
 Next 2 years

 Real time market-data 2 to 5 years

distribution
 Algorithmic trading
tools  Complex event
 DMA trading tools processing for trading
 Credit and market risk 5 years and more
applications
calculation engines  Consumer on-boarding
tools
 Mobile solutions for  Enterprise reference
developing and data management
emerging markets solutions
 Operational risk engine  Financial social
 Private virtual worlds networks
 Component based buy
and sell side securities
processing
 Cheque, Demand Draft
 Online Transfer: RTGS or NEFT
 Credit Card or Debit Card
 E-Wallets:
 Mobile Wallets
 UPI Apps
 Gift Card

 Aadhaar Enabled Payment System

 Unstructured Supplementary Service Data
 Digital Locker System
 MyGov.in
 Swachh Bharat Mission (SBM) Mobile app
 eSign framework
 Online Registration System (ORS): eHospital
 National Scholarships Portal
 DeitY: Digitize India Platform (DIP)
 Bharat Net: world’s largest rural broadband
 Next Generation Network (NGN)
 Wi-Fi hotspots
 More than 12,000 rural post office branches
have been linked digitally
 The ‘digital village’ would be powered by LED

lighting, solar energy, skill development centres

and e-services like e-education and e-health
 According to government website electronic

transaction aggregation and analysis layer

(eTaal), 3.53 billion transactions took place in
2014, which almost doubled in 2015 to 6.95
billion.
 ‘Make in India’ have played a significant role in

the resurgence of the electronics manufacturing

sector
 Are 100% Indians Literate: Can our last man
understand, read & write passwords in
various cashless transactions
 Is our last man eligible to get a Credit Card or

Debit Card when only 4% of our fellow Indians

pay Income Tax
 Does our last man has access to electricity, if

we talk about mobile money wallet, has

electricity reached to 100% Indians, as to use
their cashless mobile wallet they also need to
charge battery of their smartphones
 Does our last man have ATM in his vicinity.
Have ATMs been installed in the farmost
corners of Nagaland
 Does our last man even have a bank branch

in his village. Do we have banking service

penetration in the tribal areas of Jharkhand
 Can our BPL card holder last man afford a

Smartphone
 Is our last man who is already to make his

ends meet, ready to spare another few % as

transaction fee on every cashless expenditure
he incurs
 Is out judiciary and police trained to attend
to Cyber and IT crimes when out last man will
be dubbed in any cashless transactions
 Do we even have an elaborate law governing

various cashless transactions via ever

changing technology.
 Do we even have grievance module to assist

our last man in case he suffers any adversity

 Does our last man sitting somewhere in

Himalayas has access to internet facility to

make cashless transactions
 Our APP driven futuristic policy makers are
too fascinated to put that Cherry on the icing
of the cake. But the million dollar question is
“where is the cake”