RBI Governor Advocates Self-Regulation for Thriving Fintech Sector

RBI Governor Shaktikanta Das suggests self-regulation as a prudent method for the fintech sector's growth, emphasizing balance between innovation and regulation. At the Global Fintech Fest, he highlighted key initiatives like UPI, underscoring India's potential to become a global fintech hub.

Reserve Bank of India (RBI) Governor Shaktikanta Das advocated for self-regulation as a prudent approach to governing the fintech sector's growth on Wednesday. Speaking at the Global Fintech Fest in Mumbai, Das emphasized the need for a balanced approach between innovation and regulation for the sector's sustainable development.

The RBI Governor elaborated that Self-Regulatory Organisations (SROs), composed of industry insiders, could offer practical and effective regulation suggestions due to their deep understanding of the sector's unique challenges and opportunities. He announced that the Fintech Association for Consumer Empowerment (FACE) has been recognized as an SRO-FT, with one application pending resubmission and another under review.

Das also highlighted Unified Payment Interface (UPI) as a key innovation propelling India's fintech sector to new heights in digital transactions. He outlined five policy priorities for the fintech sector: Digital Financial Inclusion, Digital Public Infrastructure, Consumer Protection and Cyber Security, Sustainable Finance, and Global Integration and Cooperation. Das stressed that India aims to make UPI and RuPay globally accessible and emphasized collaboration on Central Bank Digital Currency (CBDC) initiatives.

(With inputs from agencies.)