RBI not planning strict rules to curb fintech sector after Paytm crackdown, official says

India’s banking regulator does not intend to impose tougher measures on the country. Fintech It suddenly suspended many operations weeks after it stunned investors, a senior sector official said. Paytm Payment Bankwhich was founded by high-flying billionaire Vijay Shekhar Sharma.

“There is no crackdown on fintech,” said P Vasudevan, an executive director in charge of enforcement. Reserve Bank of India, said Friday. Vasudevan said the central bank would be happy to see self-regulation for the sector, but expected firms to adhere to data privacy laws. He added that the supervisor wants to take a hands-off approach to fintech regulation.

Vasudevan, a key official closely involved in the development of the payments space in India over the last decade, has comments that are reassuring even as the regulator is cracking down on payments firms that flout consumer authentication and data protection norms. violates central bank.

Softbank Group Supported by a corporation PaytmA giant in India’s fintech space, has been under the regulator’s purview for some time, with several warnings over the past two years about questionable transactions between its popular payments app and its lesser-known banking arm. Bloomberg reported earlier this month that the RBI is considering terminating Paytm Payments Bank Ltd’s license early next month.

Besides that Imposing measures Against Paytm Bank, the regulator this week caused jitters among payments service providers when it asked a major card network to halt some operations. The central bank argued that the card network was not allowed to offer a payment system without authorization.

RBI officials, including Governor Shakti Kanta Das, said earlier this month that the regulator supports the fintech industry and wants companies to grow.

© 2024 Bloomberg LP

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