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RBI Governor Das: Fintech firms must work under the licence granted to them

RBI Governor Das: Fintech firms must work under the licence granted to them

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By CNBCTV18.com  IST (Updated)

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Reserve Bank of India (RBI) Governor Shaktikanta Das said that fintech companies must stick to what they have been licensed to do. Talking about the digital lending norms, Das pointed out that the much-awaited norms will be out in a few weeks.

Fintech companies must stick to what they have been licensed to do, Reserve Bank of India (RBI) Governor Shaktikanta Das reportedly said while speaking at the Bank of Baroda annual banking conclave.
The RBI chief added the central bank, in the interest of financial stability, would act on any entity that violates licence conditions.
“Our responsibility is to maintain financial stability. The firms should operate under the licences granted to them," he said.
"If they are doing anything beyond that, then they should seek our permission. Without permission, if they are engaging in activities for which they have no licence, it is not acceptable,” Das added.
Talking about the digital lending norms, Das pointed out that the much-awaited norms will be out in a few weeks.
The RBI governor, at the conclave, noted that the situation with digital lending took more time than expected and is more complex than previously assumed, which has prompted the central bank to exercise caution.
These norms are in light of concerns that arose over business conduct and customer protection considering the spurt in digital lending.
In an interview with Financial Express, Suhail Sameer, Chief Executive Officer of Bharatpe, said that “There is nothing drastic in the regulatory guidelines that could slow us down. We have planned for digital lending guidelines. For instance, we let the bank pull out the CIBIL score of the borrower and we don’t pull the e-nach (Electronic National Automated Clearing House). Therefore, we don’t see too much of a problem”.
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