RBI Governor Das advocates for fintech self-regulation to ensure balanced innovation with integrity
Aug 28, 2024
Synopsis
At the Global Fintech Fest 2024, RBI Governor Shaktikanta Das highlighted the importance of self-regulation in India's fintech sector, which has attracted $6 billion in investments over the past two years. He emphasized the central bank's focus on expanding UPI and RuPay globally, strengthening financial infrastructure, and fostering international cooperation. Das also introduced the upcoming Unified Lending Interface (ULI) to transform India's lending ecosystem, positioning the country as a global leader in digital finance and innovation.
The Reserve Bank of India Governor Shaktikanta Das on Wednesday said that the preferred approach to achieve balance between innovation and prudent regulation involves self-regulation in fintech sector. He said India's Fintech sector attracted about $6 billion in last two years.
He also went on to say that efforts are underway to make UPI and RuPay truly global. Speaking at the Global Fintech Fest 2024, he highlighted the central bank's focus areas which include financial inclusion, deepening digital public infrastructure, consumer protection, cyber security, sustainable finance, and global integration of financial services.
India is actively engaged in international forums and bilateral agreements to foster economic cooperation with multiple countries. Das emphasized that the Reserve Bank of India (RBI) will focus on strengthening financial infrastructure, including cross-border payment systems going forward.
"We are now focusing on making the UPI and the RuPay truly global," said Governor Das.
Significant progress has already been made with several countries, including Bhutan, Nepal, Sri Lanka, Singapore, the UAE, Mauritius, Namibia, Peru, and France, for the acceptance of RuPay cards and payments through the UPI network.
These efforts highlight collaborative initiatives for the adoption of India's financial innovations globally.
Das noted that the fintech sector has attracted about USD 6 billion in investments over the last two years.
Addressing the audience, Das underscored that India is becoming a fast-growing economic powerhouse. He stressed that financial institutions and fintech firms must adopt a robust framework to capitalize on emerging opportunities and mitigate risks.
"Digital financial inclusion has unique advantages of scalability and cost-effectiveness," added Das.
He mentioned the new trinity of JAM (Jan Dhan-Aadhaar-Mobile), UPI (Unified Payments Interface), and ULI (Unified Logistics Interface) as revolutionary steps in India's digital infrastructure journey.
Following the revolutionary success of the Unified Payments Interface (UPI) in the retail payments space, Das this week announced the upcoming launch of the Unified Lending Interface (ULI) in 'due course' to transform the lending ecosystem of the country.
"We are now focusing on making UPI, RuPay truly global," the RBI governor said. Expanding financial infrastructure, including cross-border payment system, will be RBI's focus going forward, he said.
Das emphasized that India, with its tech talent and developed fintech ecosystem, has the potential to become a global hub for digital innovation and fintech startups. The focus will be on building and strengthening strategic partnerships, reinforcing a commitment to international cooperation, and developing institutions of excellence.
[The Economic Times]
