According to people familiar with the development, the Reserve Bank of India (RBI) is likely to announce new rules for fintech companies regarding several topics, including credit operations and knowing your customer (KYC) standards.
This is in contrast to complaints about some fintech charging usurious interest rates and other problems such as not complying with KYC, AML, and ownership disclosure requirements, they said.
Aspects of data sharing, privacy, the scope of outsourcing relationships, compliance with KYC and AML standards, and the formal legitimacy of products like buy now, pay later are likely to be covered by the new fintech regulations (BNPL).
“Discussions about the function of fintech and how to regulate them are currently taking place. That will be published soon as a notification or a rule. According to Vikram Babbar, partner, forensic and integrity services, EY, I believe you will see some RBI requirements on how fintech will be regulated this year, according to Moneycontrol.
“What are their responsibilities and how do you control them? The first step is to comprehend how exposed the sector is to this fintech. The RBI agrees that they (fintech) are essential. We are part of some of the broader conversations with the RBI,” he said.