P. Vasudevan, an executive director overseeing enforcement at the Reserve Bank of India (RBI), reassured on Friday that there are no stringent measures planned for the fintech sector. While the central bank encourages self-regulation within the industry, it emphasizes compliance with data privacy regulations. Vasudevan expressed the RBI’s preference for a hands-off approach to fintech regulation, aiming for a balanced regulatory environment.
Despite recent actions against Paytm Payments Bank, Vasudevan’s remarks provide reassurance to stakeholders. Paytm, a major player in India’s fintech landscape, has faced scrutiny from the RBI due to concerns over its banking arm’s practices. Reports suggest that the RBI may revoke Paytm Payments Bank Ltd.’s license in the near future. Additionally, recent directives from the RBI to halt specific operations of a card network have stirred concerns among payment service providers.
Governor Shaktikanta Das and other RBI officials have reiterated the regulator’s support for the fintech industry, emphasizing the importance of compliance and sustainable growth.