India launches generative AI tool for start-ups

Question: My son and his young friends want to go back to India and establish a start-up in IT-enabled services. Is there any platform where young people can secure information before embarking on a start-up?

ANSWER: The Indian Institute of Technology (IIT) Madras has created a Gen AI tool which provides accurate information to young entrepreneurs who wish to access India’s start-up ecosystem. The tool is called Start-up GPT which answers queries and gives information including details on various venture capital firms and their investment potential. Start-up GPT gives the freedom to ask for information without the need to tailor the query according to the platform’s features. This platform has been developed by a team of data scientists working for IIT-M and the Centre for Research on Start-ups and Risk Financing. This Government database covers around 200,000 start-ups, 4,700 VCs and 10,800 angel investors. The large dataset which forms the base of the chat tool was previously processed using ML tools and stored for efficient search retrieval. R&D effort was also involved in putting the different modules together while mitigating potential security issues which are likely to arise. Start-up GPT seeks to provide specific and precise responses as the model runs on its own database. It is now proposed to reach a larger audience by bringing in voice and multilingual features.

Question: In an earlier column you had mentioned that the digital currency of central banks, spearheaded by India, would be in use. Has any progress been made on this issue?

ANSWER: The Reserve Bank of India has initiated the central bank digital currency which will be used for cross border payments. Other countries like Malaysia, Indonesia, Singapore and Philippines are also collaborating in advancing their CBDC projects. This is being done using a shared platform developed by the Bank for International Settlements. Central banks of Thailand, South Korea, Sri Lanka, Cambodia and Vietnam are also involved in various stages of CBDC research aimed at exploring the interoperability of digital currencies within their respective financial ecosystems. The BIS-led project has developed two prototypes for a shared platform that would enable international settlements using digital currencies issued by these banks.

Question: Insurance agents are pushing customers to buy certain policies which may not be beneficial to them. I am wondering if there are any regulatory guidelines to protect persons who are not well versed in respect of such products.

ANSWER: The insurance regulatory authority, IRDAI, has extended the ‘free-look’ period for insurance policies from 15 days to a month. A ‘free-look’ period permits policy holders to evaluate their insurance policy after it is purchased and, if they so wish, cancel the same within the stipulated time frame without a penalty being levied. This provision helps to prevent mis-selling of insurance policies by providing the policyholder time upto 30 days to read the fine print and review the terms and conditions of the policy. Further, ‘free-look’ period encourages insurance companies to be transparent in their sales practices, thereby fostering trust among policy holders. The new guidelines of IRDAI make it mandatory for life and health insurance companies to gather nominations and bank details of policy holders at the time of selling the policy. IRDAI has also consolidated eight regulations pertaining to the issue of e-policies, outsourcing, ensuring policy holder protection and disclosures in advertising. Regulations have also been made in respect of insurance premia, registering policy changes and providing written acknowledgements. These changes have been specifically made to protect the interest of policy holders and increase their comfort level.

HP Ranina is a practising lawyer, specialising in corporate and tax laws of India.

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