RBI Wants Fintech Operators To Follow Rules Of Game: Shaktikanta Das

Mumbai:

Governor Shakti Kant Das on Tuesday said that while warning against the rise in prices of lending apps and their retail interest collection, the Reserve Bank said it was not interested in penalizing operators or stifling innovation but wanted They follow the rules of the game.

Addressing the third edition of the Global FinTech Summit here this evening, he said the central bank’s aim is not to penalize or strangle anyone but to ensure that everyone follows traffic rules.

The statement assumes significance in the wake of recent incidents where a few borrowers through these apps have been forced to commit suicide and last week’s killing of a young pregnant woman by Mahindra Finance’s recovery agents. Financially supported. Tractor in spring

Over the past two years, when negative incidents of loan apps started surfacing, the central bank made several changes in the rulebook, including requiring loan apps to specify to whom the money was being disbursed by an NBFC or a bank. Is.

Why did RBI not introduce first loss default guarantee in the recently introduced guidelines for lending apps, the governor said, adding that our aim is not to penalize anyone or stop anyone else’s activity. Mr. Das said, “All we are saying is please follow the traffic rules.”

“The Reserve Bank will continue to support and welcome this (digital lending). If you take just one step forward, we will actually take two steps forward to engage with you. But saying that Innovations must also be responsible and enhance the efficiency and resilience of the financial system while benefiting consumers.

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

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