Regulators will have to adopt entity-based regulation rather than activity-based regulation:T Rabi Sankar, Dy. Governor, RBI
Regulators will have to adopt entity-based regulation rather than activity-based regulation:T Rabi Sankar, Dy. Governor, RBI
New Delhi/Mumbai, September 28, 2021: “Regulators will have to adopt an entity-based regulation rather than an activity-based regulation because it will be far more effective. Moreover, regulators will also have to look at cybersecurity, systemic and operational risks, data protection and data privacy issues that affect the financial markets, when dealing with FinTech companies which may range from big technology to large infrastructure companies. “So, regulation need to adapt to a world where the division between financial and non-financial firms are getting increasingly blurred and geographical boundaries are no longer a constraint” ,said Shri T Rabi Sankar, Deputy Governor, Reserve Bank of India at the Global Fintech Fest 2021. The event is organized by NPCI, IAMAI, PCI and FCC and is supported by the Ministry of Electronics and Information Technology and the Reserve Bank of India.
Since FinTech firms are transforming the entire financial landscape, the nature of the regulation has to change— widen its regulatory parameter-- to take care of sheer diversity of the functions performed by FinTech companies. , he said. He added that there were no pre-defined regulations for FinTech in the world and so banks will have to learn to adopt to changes. Moreover, non-financial firms will also need to adjust to the compliance issues of the regulators.
Shri Sankar underscored the need for all stakeholders to come together for the protection of the individual and collaborations between different agencies to take care of issues of cybersecurity, cybercrime, and cross-border payments.
Fintech firms, he added will play a role of a facilitator and supporting role to the banks and not provide competition to the banks or financial institutions, because banks are providers of financial liquidity to the economy and will continue to play a crucial role in the payment system. However, because of the FinTech’s speed in processing of information, and delivery, which reduces costs and time while enhancing connectivity and reach of the transaction, they will ensure which banks will survive or not. Those banks that partner with these FinTech will obviously turn out to be the winners.
Over eight thousand delegates attended the first day of the conference which is being held virtually.
About Internet and Mobile Association of India (IAMAI)
Internet and Mobile Association of India [IAMAI] is a young and vibrant association with ambitions of representing the entire gamut of digital businesses in India. It was established in 2004 by the leading online publishers, and in the last 16 years has come to effectively address the challenges facing the digital and online industry including mobile content and services, online publishing, mobile advertising, online advertising, ecommerce and mobile & digital payments among others. Sixteen years after its establishment, the association is still the only professional industry body representing the online industry in India. The association is registered under the Societies Act and is a recognized charity in Maharashtra. With a membership of nearly 300 Indian and overseas companies, and with offices in Delhi, Mumbai, and Bangalore, the association is well placed to work towards charting a growth path for the digital industry in India.
About Payments Council of India (PCI)
Payments Council of India was formed under the aegis of IAMAI in the year 2013 catering to the needs of the digital payment industry. The Council was formed inter-alia for the purposes of representing the various regulated non-banking payment industry players, to address and help resolve various industry level issues and barriers which require discussion and action. The council works with all its members to promote payments industry growth and to support our national goal of ‘Cash to Less Cash Society’ and ‘Growth of Financial Inclusion’ which is also the Vision Shared by the RBI and Government of India. PCI works closely with the regulators i.e. Reserve Bank of India (RBI), Finance Ministry and any similar government, departments, bodies or Institution to make ‘India a less cash society’.
About Fintech Convergence Council (FCC)
About Fintech Convergence Council (FCC) FCC is formed under Internet and Mobile Association of India (IAMAI) and represents the FinTech industry and traditional companies in the BFSI space. The purpose of the council is to encourage collaboration, seek complementarities and build synergy between leading BFSI companies and the emerging FinTech start-ups. The council has worked towards interpreting the regulatory and legal framework, aggregating the concerns and feedback of the various players within the larger FinTech community, communicating it to regulators and lawmakers, and organizing events and gatherings for the industry participants to meet, share ideas and work together in the interest of creating a safer, more open and more collaborative operating environment through a transparent forum
About National Payments Corporation of India (NPCI)
National Payments Corporation of India (NPCI) was incorporated in 2008 as an umbrella organization for operating retail payments and settlement systems in India. NPCI has created a robust payment and settlement infrastructure in the country. It has changed the way payments are made in India through a bouquet of retail payment products such as RuPay card, Immediate Payment Service (IMPS), Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), BHIM Aadhaar, National Electronic Toll Collection (NETC Fastag) and Bharat BillPay. NPCI also launched UPI 2.0 to offer more secure and comprehensive services to consumers and merchants. NPCI is focused on bringing innovations in the retail payment systems through use of technology and is relentlessly working to transform India into a digital economy. It is facilitating secure payments solutions with nationwide accessibility at minimal cost in furtherance of India's aspiration to be a fully digital society.
