RBI chief Shaktikanta Das says fintechs should stick to companies they are licensed to do

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Reserve Bank of India Shaktikanta Das.

New Delhi: Reserve Bank of India (RBI) Shaktikanta Das said fintech companies should not exceed the limit and operate in areas where they have been allowed to operate.
Speaking at the Bank of Baroda’s annual banking conclave, he said the central bank, in the interests of financial stability, would act against any entity that violates license terms.

“Our responsibility is to maintain financial stability. Companies must operate under the licenses granted to them. If they do anything beyond that, then they should ask our permission. Without authorization, if they engage in activities for which they do not have a license, it is not acceptable. There will be an accumulation of risk and we cannot allow that,” the RBI chief said.

He added that the banking industry is going through a turbulent time and the future of banking would see a major shift in customer choices and preferences with heightened expectations from the banking industry. Each of the developments would present unique opportunities and challenges for existing and new players.

Das said the long-awaited digital loan rules would be released within weeks. “We want to support innovation and at the same time we want the whole ecosystem to develop in an orderly and regulated way so that there is no compromise on financial stability,” he said. added.

Meanwhile, the RBI governor said the central bank would continue to intervene in the foreign exchange markets whenever the rupee got choppy, adding that the rupee’s movement had been relatively smooth and orderly only because the RBI had adapted a strategy to provide dollars and encourage entries. .

The RBI provided dollars to the market to provide stability and fill the demand gap.

Expressing that the central bank built the forex buffer for exactly such an occasion, he said, “After all, that is the very purpose for which we had accumulated reserves when capital inflows were strong. And, may I add, you buy an umbrella to use when it rains!’

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