MUMBAI: RBI governor Sanjay Malhotra met fintech firms, payment system operators, their associations, and self-regulatory organizations, stressing the need for responsible innovation and compliance among entities new to the regulatory space. “The interaction was part of RBI’s series of engagements with the payments and fintech ecosystem,” the central bank said in a statement.
Malhotra acknowledged the role of fintech players in India’s financial sector and economy, including payment system firms, account aggregators, and digital lending service providers. He said RBI values engagement with industry participants and will continue its consultative approach.
Participants shared feedback on the evolving payments and fintech landscape, industry initiatives, and expectations from RBI. Central bank officials conveyed RBI’s plan to strengthen digital public infrastructure and promote a unified lending interface, similar to UPI.
RBI has launched the Finquery portal to facilitate direct engagement with fintech firms, aiming to improve communication, address regulatory concerns, and promote transparency and innovation. The central bank is also focused on expanding use cases for the central bank digital currency. Bank of Baroda recently introduced a model using CBDC for small merchant loyalty programs.
Officials sought to dispel concerns that RBI is against innovation, clarifying that recent actions addressed non-compliance in critical areas. A key focus is detecting fraudulent transactions and mule accounts used for illicit activities. Deputy governors M. Rajeshwar Rao, T Rabi Sankar, and Swaminathan J., along with some executive directors, attended the meeting.