Gramps is pretty concerned by the looks of it.
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“The regulator added that the emergence of fintech has exposed the banking system to new risks that extend beyond prudential issues and intersects with subjects such as data privacy, cybersecurity, consumer protection, competition and compliance with anti-money laundering policies”
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Are the old school banks lobbying for this because this doesn’t seem like an “inclusive for all” vision.
The RBI itself seems on a rampage to disrupt the sector.
I don’t know how they came on conclusion that Fintech banks can disrupt financial stability, for me it’s opposite of what I believe in.
The Fintechs are still regulated by RBI rules and regulations at their core.
Disruption by Fintechs are good for people and economy as more people have reasons to believe in banks due to better services at low costs.
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Well RBI always acts from a point of view of masses.
It always plays safe game.
But I think the fintech department at the RBI is a good move. They will create some regulated playgrounds of banks and fintech.
I am sure the above move is by banks to buy time to bridge the gap but they are giants and any amount of time will not suffice for them .
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They are playing it way too safe though. If they keep at it, we’ll lose the progress that we’ve had for the past half a decade.
Change is necessary, and these big banks need to up their game or die by the wayside. From my POV, I see the banking cartel egging the RBI to stifle neobanks and their promise of innovation.
Scoring over a million users in a matter of months isn’t easy. But Jupiter did it. I’m sure the biggies see us as a credible threat.
Hopefully we’ll get a clearer picture in the near future. Maybe sensible laws n regulations.
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