The India fintech space is still growing with funds being raised at around $6 billion in the past two years despite these new rules set down by the RBI. This was disclosed by the Governor of the RBI, Shaktikanta Das while speaking at the Global Fintech Fest on possibilities of fintech for future India.
As of now, the Indian fintech sector is home to around 11,000 players and the numbers are only scaling up. That growth has led the RBI to step up the oversight on ‘fintech firms’ – particularly as they partner banks and other financial players in different fields of operations such as retail, micro-credit, micro, small and, medium enterprises. These fintechs are involved in various processes such as lending, payment services and value added services.
Fintech has been an essential source that shaped India’s financial innovation, helping it become one of the world’s fastest-growing economic superpowers with increasing tech-savviness of the population. He focused on trying to maintain the middle-ground between innovation and cautious regulation, and he supported the idea of regulating fintech sector on the basis of self-regulation.
Therefore, the RBI had earlier envisaged the creation of a self-regulatory body for the industry in its intermediaries’ code. Out of the total three NGO’s who have applied for SRO recognition, only one has been recognized by the RBI. One of the application has been rejected with an option to resubmit it while on the other an it is still under consideration.
