RBI working on fintech regulations: deputy guv
MUMBAI : The Reserve Bank of India (RBI) is working on regulations that will be more “developmental" for fintech companies, according to Reserve Bank of India (RBI) deputy governor T. Rabi Sankar. “We are working on regulations (that) would be specific to fintech entities and the fintech ecosystem," he said at an event in Bengaluru.
The central bank has been monitoring the fintech space to ensure financial stability and mitigate risks related to cybersecurity and prevent fraud. 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. Sankar also observed that a fintech company providing characteristic banking services like loans or payments is doing banking activity.
He stressed that such entities need to be regulated similar to the way such activities are regulated in banks. Sankar also said fintech companies need to devote attention to governance, compliance, business conduct, and risk-mitigation framework for long-term sustainability. He also added that innovation should be responsible and beneficial.
Last year, RBI had issued digital lending guidelines to crack down on illegal activities by certain players and to protect the data of customers. The central bank also came down heavily on buy now pay later products by prohibiting all non bank prepaid instrument issuers from loading prepaid instrument with credit lines. With inputs from Reuters
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