 "Fintechs can't bypass compliance irrespective of scale, says RBI ED")
The Reserve Bank of India (RBI) has urged fintechs not to compromise on compliance, irrespective of scale, P Vasudevan, RBI executive director, said.
“When we meet venture capitalists and co-founders, we tell them to imbibe the element of compliance in their investment entities and see that compliance is never compromised, irrespective of scale,” Vasudevan said at the Global Fintech Fest on Thursday.
He explained that the regulator is working towards easing regulations, and ushering in a level-playing field between traditional lenders and fintechs.
“Going forward, we can look at a single authorisation for any of the payment systems one is undertaking,” he said.
Vasudevan noted that there are several entities operating in the fintech sector, and over a period of time, it has turned into competition among themselves.
“We are looking at partnership, collaboration, and competition with the banks but here entities are partnering among themselves,” he said.
“As an industry, it is important to look at how many entities should be there in a particular space and discuss amongst yourself how much we can afford,” he said, adding that the SRO could be one more step in the direction where we can have discussions.
On the concerns raised by a member of the US Federal Reserve Board of Governors, on interlinking fast payment systems, Vasudevan said: “While the Federal Reserve Governor was apprehensive about some of the issues that need to be sorted before Fednow and UPI, we are trying to be positive that even though it takes some time it will be worthwhile because many things will be cheaper and faster.”
NEED FOR SPEED
> RBI may look at single authorisation for payment systems going ahead
> Several entities operating in fintech sector, and over time, it has turned into competition among themselves
> Says even though interlinking fast payment systems of different countries may take time, it will be worthwhile