RBI looking to enhance fintech regulations: deputy governor Rabi Sankar

economictimes.indiatimes.com:

RBI) is working on regulations that will be more «developmental» for financial technology, or fintech, companies, a deputy governor of the central bank said on Friday. «We are working on regulations (that) would be specific to fintech entities and the fintech ecosystem,» T Rabi Sankar said at an event in Bengaluru.

The central bank has been monitoring the fintech space lately to ensure financial stability and mitigate risks related to cybersecurity and prevent fraud. The matter of whether regulatory intervention is required, and if so, how much intervention is necessary to provide adequate space for the industry to grow, are some of the things the RBI is working on, said Sankar.

The RBI is talking to fintech companies and any regulations in that regard will only be after «close consultation» with the industry, he added, without providing a timeline for the same. Fintechs need to devote their attention to governance, compliance, business conduct, and adopting risk mitigation practices for long-term business stability, Sankar said, adding that any innovation should be «responsible and beneficial.»