Mumbai: Head of National Payments Corporation of India ,NPCI) said that fintech Regulatory compliance will require funding and management bandwidth to be set aside and these requirements will continue to emerge as they become part of the mainstream.
“Please reserve the appropriate funds that you are raising for the compliance aspect. The regulator always takes a long-term view on the policy. When you are already in such a mainstream, there will be compliance requirements,” said Dilip AsbeIn a fiery conversation with MD & CEO, NPCI Amrish Rau, CEO Pine Labs, in an Internet and Mobile Association of India (IAMAI) Competition.
Incidentally, reserve Bank of India Last week some fintechs wrote to them asking them to give details of the algorithms they use in their business. The question comes days after the central bank set up an independent fintech department. It was carved out of an earlier fintech unit from the Department of Payments and Settlements.
Asbe said NPCI is working towards the target of one billion transactions a day and this requires a high level of customer education and awareness and a strong law enforcement agency. In addition, it required what was described as three zeros – zero-touch, zero time and zero cost to the consumer. “From the customer’s point of view, the transaction should be instant and free. If all these three come together, a billion in a day is possible and should be achieved in three to five years,” Asbe said.
“Please reserve the appropriate funds that you are raising for the compliance aspect. The regulator always takes a long-term view on the policy. When you are already in such a mainstream, there will be compliance requirements,” said Dilip AsbeIn a fiery conversation with MD & CEO, NPCI Amrish Rau, CEO Pine Labs, in an Internet and Mobile Association of India (IAMAI) Competition.
Incidentally, reserve Bank of India Last week some fintechs wrote to them asking them to give details of the algorithms they use in their business. The question comes days after the central bank set up an independent fintech department. It was carved out of an earlier fintech unit from the Department of Payments and Settlements.
Asbe said NPCI is working towards the target of one billion transactions a day and this requires a high level of customer education and awareness and a strong law enforcement agency. In addition, it required what was described as three zeros – zero-touch, zero time and zero cost to the consumer. “From the customer’s point of view, the transaction should be instant and free. If all these three come together, a billion in a day is possible and should be achieved in three to five years,” Asbe said.
Responding to a question by Rau on what can be done so that the fintechs driving digital transactions in the country can have a voice in policy making, Asbe said that it is only the banks that are bearing the high cost of compliance. “Fintech will start to appreciate the life of a banker with compliance requirements,” he said.
Elaborating on the need for compliance, he said innovation has to come with responsibilities, as without trust in the system, customers will go back to cash. “The payments ecosystem has become so complex, it involves 10-12 participants completing a transaction in five seconds. Regulatory efforts are necessary in terms of tokenization and data storage,” Asbe said.
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