The Reserve Bank of India (RBI) Governor Shaktikanta Das said that the central bank is committed to supporting innovation for fintech companies while keeping in mind consumer protection. He assured fintechs that the RBI is here to support innovation.
The governor said that because of fintechs’ innovation, the country, the economy, and the financial markets continued to operate as usual even during the pandemic. The government and the regulators have created an enabling ecosystem to promote the fintech sector, he added.
He said, “We (RBI) will come two steps ahead if you come one step ahead with innovation. While innovations are very much welcome, they should be responsible and benefit consumers. Fair practices, and robust governance will go a long way in sustaining fintechs’ business models.”
He also warned about the risks of BigTech in fintech. He elaborated that innovation has ushered in an era where enormous amounts of consumer data is being generated and leveraged in the form by a few entities or the so-called BigTech in fintechs. Such developments also raise concerns on concentration, risk and potential spill overs, as their level of engagement with the financial system strengthens.