RBI to regulate bigtech and fintech
BENGALURU: With an aim to provide secure and affordable e-payments, the Reserve Bank of India (RBI) has come up with a document ‘Payments Vision 2025’. As part of its Vision 2025, the RBI will attempt regulation of big tech and fintech in the payments space, explore guidelines on payments that involve BNPL(buy now pay later) services, and work towards the introduction of CBDC (central bank digital currency) and seek inclusion of rupee in continuous linked settlement (CLS).
CLS provides protection for cross-currency settlement in 18 currencies. Releasing the document on Friday, the RBI said CBDC has been gaining much traction with 86% of the central banks globally reviewing its feasibility for cross-border transactions as well as for internal benefits.
“Various use cases shall be studied and explored to bring in further efficiencies in domestic and cross-border payment processing and settlement using CBDC,” the RBI said. It will also support global outreach initiatives to expand the footprint of domestic payment systems.
Since bigtech and fintech companies are onboarding new users, the central bank is also attempting to regulate these companies in the payments space. Earlier, addressing at an event, RBI Governor Shaktikanta Das said big-tech companies that have entered into the provision of financial services could potentially be another source of disruption to the financial system.
“The provision of financial services through digital channels, including lending via online platforms and mobile apps, have brought in issues relating to unfair practices, data privacy, documentation, transparency, conduct, breach of licensing conditions, etc,” he said.