RBI wants fintech operators to follow the rules of the game: Shaktikanta Das

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Shaktikanta Das

Bombay:

The Reserve Bank warned of the explosive growth of credit apps and their extortionate prices, saying it is not interested in penalizing operators or stifling innovation, but wants them to follow the rules of the game, Governor Shaktikanta Das said on Tuesday. .

Speaking at the third edition of the global fintech summit here tonight, he said the central bank’s intent is not to punish or stifle anyone, but to make sure everyone obeys the traffic rules.

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The statement becomes more important in the wake of the recent incidents in which a few people borrowing through these apps were forced to commit suicide and last week’s incidence of a young pregnant woman being mowed by Mahindra Finance’s recovery agents who used her father’s money. financed. tractor in Bihar.

Since the past two years, when the negative incidents involving loan apps surfaced, the central bank had made many changes to the rulebook, including mandating the loan apps to pre-disclose on whose behalf NBFC or bank it is. money was paid.

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Why the RBI hasn’t introduced the standard first loss guarantee in its recently introduced guidelines for the lending apps, the governor said, our intention is not to punish anyone or suppress anyone else’s activity. We just want to say that you have to obey the traffic rules, said Mr Das.

“The Reserve Bank will continue to support it (digital lending) and welcome it. We will actually go two steps forward to discuss with you, if you only take one step forward. But that said, these innovations must also be responsible and increase the efficiency and resilience of the financial system while benefiting consumers.

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“A robust internal framework for product and service assurance, along with fair and transparent governance, will go a long way in protecting the interests of customers and ensuring the long-term sustainability of fintech entities themselves,” said Das.

(This story was not edited by The New Zealand Times staff and was generated automatically Platforms.)

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