Fintechs Need to be Alert to Social, Macro-economic Priorities: Deputy Governor, RBI at GFF 2024
FinTech BizNews Service
Mumbai, August 29, 2024: “Fintechs need to be alert to social and macro-economic interest and priorities and not subsume them to business interest. It is only the SRO that can inculcate such a culture,” said, Shri T Rabi Sankar, Deputy Governor, Reserve Bank of India, in his keynote address at the the Global Fintech Fest 2024.
Speaking about how the fintech sector could grow in a manner that was responsible ensuring that social objectives were met, Shri Rabi Sankar said, “The SROs will have to play a leading role and they should work constantly and consistently in a way that is favorable to competition. Competition is essential to make markets effective and efficient, and an important indicator of market integrity is price efficiency. Cost efficiency should be driven by technology. SROs can play a role in removing inefficiencies through the use of technology.”
“One major function that an SRO is intended to do is to facilitate honest two-way communication between the regulator and the industry,” he added.
Shri Rabi Sankar spoke on the role that SROs could play in the growth of the fintech sector by establishing codes, standards, voluntary compliance mechanisms, ensuring growth while minimizing potential risks and negative outcomes.
“Fintech industry in India is in the early stages of development. Fintechs or technology innovators are and will continue to transform the financial ecosystem,” he said.
Speaking about the India model of digitization, Shri Rabi Sankar said, “While public goods will continue to be created in the public sector, private sector will play a more important role in the area of innovation.”
