The wrong regulator for fintech

There has to be accountability for the central bank's errors in the past

The Reserve Bank of India (RBI) is determined to maintain control of the emerging digital lending ecosystem. But has it demonstrated the ability to understand how technological innovation has upended and can continue to transform consumer finance?

Last month there were two major relevant publications on the subject of digital banking. First, the RBI released the report of its working group on digital lending “including lending through online platforms and mobile apps”. The central bank states its concern about “digital innovations along with possible entry of BigTech companies [altering] the institutional role played by existing financial service providers and regulated entities”.