Scholasticus (ISSN 0975-1157)

About Scholasticus

Being one of the earliest publication by National Law University, Jodhpur, has had the privilege of publishing the articles from some stalwarts of the legal arena including Justice K.G. Balakrishnan (Former Chief Justice of India), Fali S. Nariman (Senior Advocate at Supreme Court of India) and C. Scott Pryor (Professor at Regent University School of Law). Scholasticus is now published under the aegis of the Centre of Studies in Banking and Finance at National Law University, Jodhpur. The Journal takes immense pride in being the frontrunner to have a specific focus on Banking and Finance laws. The Journal is re-launching after a gap of a few years, and shall be published bi-annually.

By Abir Lal Dey & Satyadarshi Kunal & Ananya Ghosh

Digital Payment and Neo Banks (branch of fintechs) are emerging as the future of the banking system in India. These mediums can boost the financial inclusion tremendously resulting into an enormous growth potential for the banking sector. The Government is promoting digital payments and neo banks through various measures. However, the regulatory system is not completely developed in India, thus hindering financial inclusion in its entirety due to the lack of digital data protection. Since these entities rely on digitally collected data, there is a need for adequate data protection and cyber security compliance requirements; however, the Indian legal system in relation to data protection and cyber security is yet to match pace with the growth of technology in recent times.

The purpose of this paper is to analyse the impact of digital payments and neo banks on financial inclusion with a focus on concerns, laws and regulations regarding data protection and cyber security.

By Akash Amati & Namit Bafna

Ever since the economic liberalisation of India in the 1990s, management and regulation of foreign exchange became paramount for catering to the hedging needs of market participants and for maintaining the macroeconomic stability of the country. Derivatives as a financial instrument have played a vital role in increasing the efficiency of the Indian foreign exchange market. However, the regulatory framework governing foreign exchange and derivatives was largely undeveloped. This article traces the timeline of the development of this regulatory framework and provides an overview of the same. It examines the lacunae in the regulatory framework in light of prevailing market developments and market trends and further throws light on the efforts taken by the regulatory authorities to fill these lacunae.

Drawing on this analysis, this article offers suggestions on further bolstering India’s regulatory approach to foreign exchange derivatives in order to attain a balance between the needs of market participants and achieving increased regulatory oversight.

By Yamika Khanna

The gravity of Covid-19 pandemic and its debilitating effect on world economy and commercial supply chain are ubiquitous and unpredictable. The drastic measures in the form of imposition of lockdown to curb the impact and spread of COVID-19 has disrupted the supply chain and caused a global shortage of labour force leading to pernicious ramifications for business entities across the globe. Due to increase in breach of contract and non-performance of contractual obligations, involvement of bank guarantee and disputes regarding its invocation are inevitable.

In this article, the author evaluates the judicial approach adopted with regard to invocation and restraint on bank guarantees with special emphasis on recognition of ‘Special Equities’ as an independent exception for such restrain and its impact on commercial contracts. Moreover, we assess the impact of force majeure clause on invocation of bank guarantees. We argue that courts must be vigilant and cautious while granting injunctive reliefs with regard to invocation of bank guarantees and uphold the fidelity of commercial contracts, as unwarranted judicial interference may produce adverse economic impact in the long term. Furthermore, we analyse the emerging judicial trends concerned with bank guarantee and comparatively analyse them with the global developments.

By Ananya Singh & Mohammed Ahzam Mujtaba

The article aims to explore the impact of Financial Technology (FinTech) lending on the availability of unsecured consumer credit. Given the low penetration of credit in India, lending is an attractive business opportunity. Several non-financial services companies have entered the lending space over the last few years. The non-traditional companies that have a strong brand, large consumer base as well as a strong distribution network will attack the lending market through innovative digital models. These innovative models are not only being used by the FinTech companies but also by the banks and NBFCs by way of partnership. The complexities and inefficiencies built by the traditional channels of lending have left out the micro-borrowers and underserved population of the society.

The article also highlights how the financial data of a prospective or ‘New to Credit’ customer is evaluated by way of digital lending and explore the role of financial regulators like the RBI. The authors have discussed how the digital technology drives the micro-borrowers to make need based informed decisions and enable the generation of alternative credit scores based on nontraditional data thereby improving their financial inclusion in the money lending market

By Shubham Jain & Sadhvi Chhabra

The Indian real estate and infrastructure sector requires a push to achieve the growth it was expected to achieve for the coming years. To achieve the full potential of the said sectors, provision of REITs and InvITs were introduced; it was also expected to ease the problem of delays and financial constraints. In India these vehicles have received good response from the investors.

With this article, the authors aim to provide a holistic understanding of REITs and InvITs as implemented in India and the phases of development it has already undergone under the vigil of the careful regulators in the market. The authors have also encompassed the developments in these vehicles during Covid- 19 and the revival strategy post the dip in economic growth in 2020.

Meet the Team

Professor (Dr.) Poonam Saxena

Mr. Anand Kumar Singh
(Chief Coordinator)

Ms. Pooja Dhamor

Ms. Vaishnavi Bansal

Ms. Preeti Gurnani
(Managing Editor)

Senior Associate Editors

Associate Editors

Copy Editors