RBI looking at coming out with fintech regulations: DG Rabi Sankar
The RBI will time its regulations in a way that allows the industry to grow, Sankar said, adding that the focus of young innovators is on innovations rather than regulations at the moment. (Image: Bloomberg)
Deputy Central Bank Governor T Rabih Sankar said on Friday that the Reserve Bank is looking into coming up with a regulation for financial technology operators.
Speaking at the startup MoneyControl meeting, Sankar said: “The Reserve Bank of India is closely watching the development of the fintech space… There are no regulations in the fintech space at the moment. We are talking to the industry and we understand if there is a need to regulate it.”
Sankar added that regulations on fintech would only come after consultation with the industry, and declined to share timelines on that, according to a statement from the event organizers.
The RBI will time its regulations in a way that allows the industry to grow, Sankar said, adding that the focus of young innovators is on innovations rather than regulations at the moment.
Sankar also said that trading in cryptocurrencies by people is not a concern for the RBI, but private cryptocurrencies themselves are an issue.
He noted that “stablecoins” that are pegged to other currencies in emerging market economies pose several threats, according to the statement.
“Stable currencies pegged to currencies, for example the US dollar, do not pose a risk to the US. But stable currencies pegged to other currencies in emerging market economies (EME) pose very serious risks to financial stability, capital management and monetary policy,” he said. .
(Only the title and image for this report may have been reworked by the Business Standard team; the rest of the content is generated automatically from a shared feed.)
First published: Jul 07 2023 | 9:24 p.m ist