MUMBAI: RBI promotes digital applied sciences for inclusion, value effectivity, innovation, and improved buyer expertise, whereas it intervenes when digital lending raises dangers, creates complicated constructions, or allows aggressive practices corresponding to intrusive knowledge assortment, the central financial institution’s deputy governor Swaminathan J mentioned.
“It’s disheartening to see progressive misinterpretation of rules.A latest working example is that of peer-to-peer lending rules. The rules, as initially conceived, envisaged the platforms to perform like on-line marketplaces connecting lenders with debtors, with no credit score threat borne by the platform and no co-mingling or retention of funds,” mentioned Swaminathan. “Nonetheless, the supervisory findings over the past one yr revealed that a few of these platforms adopted practices which have been violative of each the letter and spirit of the rules,” he added.
Swaminathan mentioned that RBI has been supporting digital innovation by launching regulatory sandboxes, organising world hackathons, and establishing the Reserve Financial institution Innovation Hub to advance digital monetary options. He was talking at a banking summit organised by CNBC TV18 in Mumbai.
“Fairly than viewing regulators as disruptors, I might urge the business to see the regulator as a accomplice in direction of a steady and affluent monetary ecosystem. It’s due to this fact important to understand the intent behind rules, that are designed to guard prospects, guarantee equity, and keep stability,” Swaminathan mentioned.
“It’s disheartening to see progressive misinterpretation of rules.A latest working example is that of peer-to-peer lending rules. The rules, as initially conceived, envisaged the platforms to perform like on-line marketplaces connecting lenders with debtors, with no credit score threat borne by the platform and no co-mingling or retention of funds,” mentioned Swaminathan. “Nonetheless, the supervisory findings over the past one yr revealed that a few of these platforms adopted practices which have been violative of each the letter and spirit of the rules,” he added.
Swaminathan mentioned that RBI has been supporting digital innovation by launching regulatory sandboxes, organising world hackathons, and establishing the Reserve Financial institution Innovation Hub to advance digital monetary options. He was talking at a banking summit organised by CNBC TV18 in Mumbai.
“Fairly than viewing regulators as disruptors, I might urge the business to see the regulator as a accomplice in direction of a steady and affluent monetary ecosystem. It’s due to this fact important to understand the intent behind rules, that are designed to guard prospects, guarantee equity, and keep stability,” Swaminathan mentioned.
