Focus on emerging risks in fintech space, says RBI annual report

While the Reserve Bank of India (RBI) is encouraging and facilitating innovation in the fintech space, it is also keeping a close eye on the emerging risks.

“The central bank, while encouraging innovation, is also factoring in emerging risks in the fintech segment. Greater use of technology accentuates the concerns related to cyber security,” the RBI said in its annual report for 2021-22.

Fintechs have disrupted the financial services space in terms of products, customer servicing, back-end analytics, and delivery of services. “…such innovation first disrupts the market and once it establishes its constructive role, the regulators and authorities step in to