The Reserve Bank is looking at coming out with a regulation for fintech players, Deputy Governor T Rabi Sankar said on Friday.
“RBI is closely watching the evolving space of fintech…there are no fintech regulations right now. We are talking to the industry and understanding whether there is a need to regulate them,” Sankar said, speaking at the Moneycontrol startup conclave.
Sankar added that the regulations on fintech will come only after consultations with the industry, and declined to share timelines on the same, as per a statement issued by the event organisers.
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The RBI will time its regulations in such a way that the industry is allowed to grow, Sankar said, adding that the young innovators’ focus is on innovations and not so much on regulations at present.
Sankar also said that trading in cryptocurrencies carried out by people is not a concern for the RBI, but private cryptocurrencies themselves are a problem area.
He also highlighted that “stable coins” pegged to other currencies in emerging market economies pose several threats, as per the statement.
“Stable coins pegged to currencies, for example USD, are not a risk to the USA. But stable currencies pegged to other currencies in emerging market economies (EMEs) pose very serious financial stability, capital management, and monetary policy risks,” he said.
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