In order to regulate fintechs, the Reserve Bank of India (RBI) has formed a committee, said RBI executive director Ajay Kumar Choudhary.
Regulating Fintechs In India
Choudhary said that regulating and introducing innovation in fintechs is always a challenge, while Speaking at Moneycontrol’s India Fintech Conclave on Mar 7, 2023.
Further adding, “Regulators need to keep a watchful eye on the risks by fintechs and big techs. The risk posed by fintech startups and big techs is different,”.
Choudhary highlighted the role of the regulator, saying that a framework for fintechs lending ecosystem is being worked upon by RBI.
He emphasized, “Customer protection is the most critical risk as far as fintech is concerned. Risk of loss to consumers is quite high. Data security and breaches is the second major risk for fintechs. Regulators need to keep a watchful eye on the risks by fintechs and big techs,”.
Growth With Fintechs in India
While going through strict scrutiny from the regulators the Fintech companies in India are witnessing next level growth.
When it comes to growth, the data with the Indian government indicated that the Indian Fintech industry’s market size is expected to grow to $150 billion by 2025 from $50 Bn in 2021.
Besides this, the sector is also expected to have $1 trillion in assets under management (AUM) and nearly $200 billion in revenue by 2023.
The AI intensity in fintech will certainly increase in the country, said the Union Minister of State for Skill Development and Entrepreneurship and Minister of State for Electronics and Information Technology, Rajeev Chandrasekhar while speaking at the Moneycontrol’s India Fintech Conclave.
Further adding, “We will launch the India AI programme by March. The India AI ecosystem will transform Fintech and other parts of the internet ecosystem.”
