Urging the Reserve Bank of India (RBI) for some stability in regulatory framework, the Payments Council of India (PCI) Tuesday claimed frequent changes in regulations have forced the companies to focus more on meeting the compliances than on innovation.
In a conference titled 'Digital Money 2.0' organised by the PCI Tuesday, the industry body, which represents companies in the payments and settlements system, urged the regulator to create an environment conducive for promoting the financial technology (fintech) sector in the country.
In the last 18 months, a lot of regulatory change have been imposed on the sector, which has affected the companies, including their profitability.
"Back to back regulatory changes have led the firms to deviate their focus from innovation to compliance. It has also had an adverse impact on the balance sheet of the companies owing to the cost spiral," a release issued by the PCI said.
The industry has urged the RBI to act as an enabler and facilitator of change that will empower the entire payments ecosystem, according to the release.
It also stressed that the government needs to fast track the long pending interoperability, poised to be a game changer, of the prepaid payment instruments.
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The industry has also been advocating for a different regulatory institution for the payments ecosystem, the release said, adding it also sought more clarity on data privacy and security.
"The stringent full KYC norms might be detrimental to the overall growth potential of the industry," the release said.
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