“Fintechs need to be alert to social and macro-economic interest and priorities and not subsume them to business interest. It is only the self-regulatory culture (SRO) that can inculcate such a culture,” said T. Rabi Sankar, Deputy Governor, Reserve Bank of India, in his keynote address at the Global Fintech Fest (GFF) 2024.
Further He laid the framework for how fintech can grow so its social objectives are fulfilled. He said, “The SROs will have to play a leading role, and they should work constantly and consistently in a way that is favourable 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.”
He added, “One major function that an SRO is intended to do is to facilitate honest two-way communication between the regulator and the industry.” SRO could pave the way for fintech growth by making codes, standards, and voluntary compliance mechanisms, and it could also minimise potential risks and negative outcomes.
“The 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.
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