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RBI flags regulatory concerns on big tech's role in financial services

The RBI, in its bi-annual Financial Stability Report, had flagged the entry of big tech in financial services in emerging markets such as India.

RBI, Reserve Bank of India
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Subrata Panda Mumbai
With big techs lending either directly or in partnership with regulated financial entities, enhancing the regulatory approach by blending activity-based and entity-based regulations may not be enough to ensure stability. They may not also provide a level-playing field and consumer protection, the Reserve Bank of India (RBI) said in a report ‘Trend and Progress of Banking in India 2020-21’ on Tuesday.

In the report, the RBI said, “Many large multinational corporations, whose primary business is technology, popularly known as big techs, have started lending either directly or in partnership with regulated financial entities.

Even enhancing the traditional entity-based regulatory approach

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