Fintech Companies Need a Self-Regulatory Approach, Says RBI Deputy Governor The Reserve Bank of India (RBI) has said that the financial technology, or fintech, sector should organize itself under a self-regulatory organization that can monitor the conduct of member fintech entities

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

RBI Twitter handle

RBI deputy governor MK Jain said that a self-regulatory approach could also help protect the customer's interest and promote a high level of governance standard in fintech entities. He was speaking at an international research conference on fintechs on Friday, co-organised by IIM-Ahmedabad, according to a TOI report.

"Role of such an SRO (self-regulatory organisation) can include setting the standards for conduct and acting as a bridge between the sector and regulators. RBI has endeavoured to find a middle ground, trying to balance between the innovation brought by fintech while addressing the unique risks they introduce, said Jain in a statement.

According to Jain, as per the report, consumers have benefited from better customer experience and convenience. "One of the key value propositions fintechs offered was providing the same financial services as regulated entities but at a lower cost. Fintech disruption in the Indian brokerage industry is a shining example of this," he said.

The report further stated that the Reserve Bank of India (RBI) has said that the financial technology, or fintech, sector should organise itself under a self-regulatory organisation that can monitor the conduct of member fintech entities.

Mentioning the big tech companies' expansion into financial services, Jain reportedly added that, "These companies leverage the data from their large existing user base coupled with network effects to provide contextualised or embedded financial products and nonfinancial products. In addition to payment systems in many jurisdictions, Big Techs have successfully expanded into credit scoring and lending."

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Living

The 3 Lifestyle Habits That Made Me Sharper, Stronger and More Successful

These three simple yet powerful lifestyle changes transformed my productivity, energy and mindset. Here's how you can do the same.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Marketing

5 Ways ChatGPT Will Impact Digital Marketing

ChatGPT is creating ripples across the digital landscape right now. Here are five ways it can benefit your ads, campaigns and marketing strategies.

Science & Technology

The Deepfake Threat is Real. Here Are 3 Ways to Protect Your Business

The rising use of deepfakes is a growing threat to businesses and society as technology advances. Here are three tips for companies to combat this threat.

Science & Technology

How Can Marketers Use ChatGPT? Here Are the Top 11 Uses.

With the recent developments in AI and the popularity of ChatGPT, you may want to integrate AI into your marketing practices. Find out how.

News and Trends

Kolkata-Based Lab-Grown Diamond Brand Jewelbox Secures USD 3.2 Mn

The startup will primarily use the funds to expand its retail footprint, growing from eight stores to 30 locations by the end of this year.