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Red signals for fintech industry: The valuations game of the past is over

RBI Governor Shaktikanta Das' traffic light imagery for the fintech industry has several implications

Fintech
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Finetchs have to realise that being privately held is widely different from being publicly listed; issues such as related-party transactions will soon be taken up by financial sector regulators.

Raghu Mohan Mumbai
Last week, Reserve Bank of India (RBI) Governor Shaktikanta Das did some plain-speaking, telling fintechs that it is imperative that they follow “traffic rules” for their own safety and that of others.
 
It was a wake-up call for an industry in which self-styled fintech evangelists believed that legacy RBI-regulated entities will soon be history because they are not nimble enough to rework their business models with the changes foisted by technology. The tone of the commentary at times even appeared to suggest that the management of some of these old-world players was dense.

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First Published: Sep 27 2022 | 5:04 PM IST

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