RBI Governor Say that Fintechs Should Operate Under the Licenses Granted

Share Us

370
RBI Governor Say that Fintechs Should Operate Under the Licenses Granted
22 Jul 2022
6 min read

News Synopsis

Shaktikanta Das, governor of the Reserve Bank of India, said on Friday that companies engaged in financial technology and digital lending must operate in accordance with the licences issued to them. The governor said that the central bank could not permit an increase in economic risk brought on by unlicensed fintech operations.

“Our responsibility is to maintain financial stability,” Das said. “The firms should operate under the licenses granted to them. If they are doing anything beyond that then they should seek our permission. Without permission if they are engaging in activities for which they have no license then it is not acceptable. There will be risk build up and we cannot allow that.”

The RBI Governor further said that the much-awaited digital lending norms will be out in a few weeks.

“Within the next few weeks, the digital lending norms will come,” the governor said. “We want to support innovation and at the same time we want the entire ecosystem to grow in an orderly and regulated manner so that there is no compromise on financial stability.”

The risks that fintech and major tech companies pose to the financial system have been highlighted by the central bank. The RBI had urged the need to protect the financial system from the fintech industry's potential to cause instability in its recently released Financial Stability Report (FSR).


 

 

TWN Exclusive