RBI: base fintech rules on entities
The vice governor’s comment comes at a time when new tech giants, including WhatsApp and Apple, are considering becoming part of the payments system. Speaking online at Global FinTech Fest, Sankar said that, at most, basic fintech improves speed, and there is a need to understand the limits of fintech. “If a fintech provides liquidity services, it is indeed a bank and will need to be subject to the same supervision as a bank,” he said.
According to Sankar, RBI’s approach to regulation has been to create an environment where digital innovation can thrive. “This involved, as a first step, taking the initiative to set up the basic infrastructure entities that provided the rails on which innovative products can circulate. The regulations have actively sought to facilitate wider participation to include non-banks and to increase interoperability between different payment systems, ”he said.