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TLDR: The Reserve Bank of India (RBI) has stopped Paytm Payments Bank Ltd (PPBL) from accepting deposits after February 29. This action follows a comprehensive system audit report and subsequent compliance validation report of external auditors. The Karnataka government has launched a Rs 20 crore venture capital fund to boost the animation, visual effects, gaming, and comics (AVGC) sector. The fund aims to invest in companies based in the state that contribute to these fields. Indus Appstore and Start-Up India have collaborated to launch the Indus Appstore Emerging Start-up Awards, which provide a level playing field for emerging startups in India. The Cisco 2024 Data Privacy Benchmark Study reveals that over 1 in 4 organizations ban the use of GenAI due to privacy and data security concerns. WeWork Labs has launched Jumpstart 2024, a program that backs early-stage start-ups. The program provides support, mentorship, and resources to help start-ups grow.
The Indian government’s budget for 2024 is expected to focus on digitization and digital infrastructure in the e-commerce sector. Stakeholders in the health-tech sector are also calling for digitization to bridge the urban-rural divide and make affordable healthcare accessible in remote areas. U GRO Capital has raised $30 million from the Asian Development Bank (ADB) to scale its operations and expand geographically. Aquaconnect has secured $4 million in funding round led by S2G Ventures to scale its operations and expand across India. Visa has launched the Accelerator Program 2024 and is inviting growth-stage fintech start-ups to apply.
In other news, the RBI has taken a bold stance with a self-regulatory organization (SRO) for the fintech sector, aiming to foster innovation while ensuring consumer protection. The Cisco 2024 Data Privacy Benchmark Study reveals that most organizations limit the use of GenAI due to privacy and security concerns. B Capital is betting big on cross-border SaaS, healthcare, and climate start-ups. CoinDCX has lost nearly 90% of its trading volume due to a 30% tax on cryptocurrency transactions. Amazon is facing labor rights issues in India, with allegations of unfair treatment and poor working conditions.
Overall, the Indian start-up ecosystem continues to grow and attract investment, with government support and increased focus on digitization. However, there are challenges regarding privacy and security concerns, as well as labor rights issues that need to be addressed.
