MUMBAI: RBI Deputy Governor M Rajeshwar Rao on Friday said the central bank is examining whether deposit acceptance by Google and Amazon is within the prescribed laws and regulations, at a time when concerns about big tech firms' play in the financial space are at a heightened level.
Both Google Pay and Amazon have announced partnerships with lenders to accept deposits in the country through their mobile phone apps.
"We are examining the issue regarding the regulatory implications, having regard to the applicable laws and the regulations that are prescribed for the thing. So, we are examining it," Rao told reporters.
He added that the entry of big techs into the financial sector space is a global phenomenon that is engaging the attention of central banks around the world as well.
In its last financial stability report in June this year, the Reserve Bank of India (RBI) had warned against allowing big tech firms into financial services.
"While this holds the promise of supporting financial inclusion and generating lasting efficiency gains" concerns have intensified around a level-playing field with banks, operational risk, too-big-to-fail issues, challenges for antitrust rules, cybersecurity and data privacy," the RBI had said then.
Both the GPay and Amazon tie-ups for deposit collection happened after RBI went public with its concerns. Amazon Pay India has a tie-up with investment platform Kuvera.
in through which the former's customers will be able to invest in mutual funds and fixed deposits, while Google Pay has tied up with Equitas Small Finance Bank for booking deposits.