Set up self regulatory organisation to manage sector better: RBI Guv Shaktikanta Das to fintechs
Reserve Bank of India wants the fledgling fintech sector to build its own self-regulatory organisation. The industry should form an SRO and the regulator is open to engaging with such an organisation, RBI Governor Shaktikanta Das said at the Global Fintech Festival 2023 today.
Addressing the same event on Tuesday, RBI Deputy Governor T Rabi Sankar had highlighted the need for self-regulation as well.
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Over the last one year, the RBI has clamped down on multiple aspects of the fintech industry, which had been resorting to coercive tactics to grow its business. Issues around data privacy, aggressive collection tactics and building products which are pushing regulatory boundaries have been called out by the RBI. Das touched upon all these concerns in his speech.
The governor pointed out that by laying out clear governance structures, fintechs can show their commitment towards accountability, transparency and responsible decision-making. He also highlighted the need for every segment of the sector to come in and play an important role in shaping it up.
“Regulators play a critical role in addressing arbitrage, ensuring compliance with existing laws, and adapting regulations
