RBI signals greater scrutiny of fintech industry amid funding drought

Fintechs will need to devote their attention to governance, compliance, business conduct, and adopting risk mitigation practices for long-term business stability

Financial technology firms (fintechs) are among the fastest growing sector of the financial services sector. But their regulation has long been a source of uncertainty. In January 2022, the Reserve Bank of India (RBI) set up a fintech department, indicating the newbies are to be mainstreamed; they will have to fall in line like legacy regulated entities (REs) such as banks and non-bank financial companies.

Even so, it’s long been whispered that fintechs are yet to get the full import of what it’s like to live under the RBI’s watch. Last week, Reserve Bank of India (RBI) Deputy Governor, T