Big Tech’s push into India’s financial sector raises concerns, says RBI

MUMBAI: Plans by Big Tech to foray further into India’s financial sector pose risks for traditional banks as the tech firms have the potential to become dominant players in financial services, the Reserve Bank of India (RBI) said.

The plans will also create governance-related challenges for regulators, the central bank wrote in its bi-annual financial stability report on Thursday.

Major technology firms “straddle many different lines of business with sometimes opaque overarching governance structures,” it said.

The RBI said concerns included operational risks, too-big-to fail issues, challenges for antitrust rules, cybersecurity and data privacy.