Fintech regulations must be based on entity, not activity: RBI Dy Governor

The Reserve Bank of India’s (RBI’s) regulation around financial technology (fintech) should be more entity-based than activity-based, Deputy Governor T Rabi Sankar said on Tuesday.

This is the first time a senior RBI official spoke on regulations around Big Tech after Google and Amazon announced their association in facilitating deposit products – a key focus of the banking regulator.

During his speech, he mentioned why fintechs are not allowed in deposit products, but only as payment service providers. If a fintech firm provides liquidity services, such as credit and deposit products, they should be regulated as strictly as other liquidity service providers, such as banks, he said.