The Reserve Bank of India (RBI) is assuring the fintech sector, especially after recent events involving Paytm Payments Bank. P. Vasudevan, an executive director at the RBI, clarified to Bloomberg that the central bank is more concerned about data privacy than imposing tough rules.
Despite worries about regulatory actions against payment firms, Vasudevan emphasized that the RBI’s goal is not to be overly strict with the broader fintech sector. Instead, they aim to encourage growth while ensuring companies follow the rules.
Governor Shaktikanta Das and other RBI officials have previously expressed support for the fintech industry, affirming the regulator’s desire to see companies thrive within compliant environments. Vasudevan echoed this sentiment, highlighting the RBI’s preference for self-regulation within the sector and emphasizing the significance of firms complying with data privacy rules.
The RBI has previously expressed support for the fintech industry, with a focus on companies thriving within the rules. Vasudevan highlighted the RBI’s preference for self-regulation within the sector, stressing the importance of firms following data privacy rules.
He suggested a hands-off approach to fintech regulation, indicating that the RBI wants a balanced environment that encourages innovation and compliance. This reassures stakeholders that the RBI is committed to supporting fintech growth responsibly, especially regarding data privacy.