Reserve Bank of India Governor Shaktikanta Das, on Wednesday, advised fintechs to pay close attention to governance, business conduct, data protection, customer-centricity, regulatory compliance and risk mitigation frameworks.
In an interaction with select fintech entities, including agritechs and some of their associations, the Governor reiterated that the RBI will continue to adopt a participative and consultative approach for facilitating innovations in the financial sector.
In his introductory remarks, Das stated that fintech initiatives and start-ups are important segments of aspirational India. They are playing a transformative role in the financial system through digital innovations and innovative means of delivery of financial services, he added.
It may be pertinent to note that Das, in a speech in October 2022, had emphasised that while innovations are very much welcome, they must be responsible and should enhance the efficiency and resiliency of the financial system while benefitting the consumers.
“Robust internal product and service assurance frameworks, together with fair and transparent governance, will go a long way to safeguard the interest of customers and ensure long-term sustainability of the fintech entities themselves.
”…I would also like to flag certain material concerns regarding the unbridled mushrooming of digital lending apps. The need of the hour is to ensure assurance of safety after following a process of green-lighting (whitelisting) and due-diligence by the regulated entities,” said the Governor in his address at the Global Fintech Festival, Mumbai.
The RBI, in association with other relevant agencies, is taking steps to address this issue and take further steps as may be necessary.
“The fintech road ahead will witness ever growing traffic in addition to the large number of existing players who are already there. It is, therefore, imperative that every player on this road follows the traffic rules for his/her own safety and the safety of others,” said Das in his address.