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Business News/ Industry / Infotech/  RBI Guv Das urges fintech firms to form self-regulatory body
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RBI Guv Das urges fintech firms to form self-regulatory body

While addressing the Global Fintech Festival, Das said that the current industry projections underscore the increasing significance of the country's rising fintech sector.

Shaktikanta Das, governor of the Reserve Bank of India (RBI), Photographer: Samyukta Lakshmi/Bloomberg (Bloomberg)Premium
Shaktikanta Das, governor of the Reserve Bank of India (RBI), Photographer: Samyukta Lakshmi/Bloomberg (Bloomberg)

Financial technology (fintech) companies should create a self-regulatory body to address their needs and challenges, said Reserve Bank of India (RBI) Governor Shaktikanta Das said on Wednesday, September 6, as the industry grows at a whirlwind speed on a surging demand for digital payments and borrowings.

"I would like to use this opportunity to urge and encourage the fintechs to establish a self-regulatory organisation or SRO themselves. From the Reserve Bank, we are willing to engage with you," Das said while delivering the keynote address at the Global FinTech Fest 2023 (GFF).

"It (SRO) will give you (fintechs) an opportunity to voice your requirements more frequently to the SRO. The other advantage is that all the aspects of regulation will not be burdened on the RBI."

Das said he was hopeful that the fintech industry would have either formed, or be close to launching a SRO by the time of the next GFF event in 2024.

The Indian fintech industry is projected to generate around $200 billion in revenue by the year 2030 and could potentially contribute to approximately 13 per cent of the global fintech industry's total revenue, said the RBI Governor while addressing the GFF.

Das said that the current industry projections underscore the increasing significance of the country's rising fintech sector. The global fintech sector, currently generates about 245 billion US dollars of annual revenue, which is merely two per cent of the global financial services revenue, according to the RBI Governor. 

‘’It is estimated to reach $1.5 trillion in annual revenue by 2030. The Indian fintech industry is projected to generate around $200 billion in revenue by the year 2030,'' said Das.

Das also highlighted that digital transactions in India increased from 1.2 billion in 2014 to 90 billion in 2022. Earlier this year, data from MyGovIndia showed that India has recorded with 89.5 million digital transactions in the year 2022. As per the data, India accounted for 46 per cent of the global real-time payments in 2022. Digital payment transactions in India is more than the other four leading countries combined.

In digital payments, India has been witnessing new milestones, in both value and volume terms, which indicate the robustness of India's payment ecosystem and acceptance, as per RBI experts.

Additionally, the central bank is planning to test some more use cases in the wholesale pilot of central bank digital currency (CBDC), according to Das.

"Now we are planning to test some more use cases in wholesale pilot of CBDCs,'' said the RBI Governor. He added that CBDCs need to be introduced in a non-disruptive manner.

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Published: 06 Sep 2023, 05:34 PM IST
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