MUMBAI: Big Tech’s plans to move forward in India’s financial sector pose risks for traditional banks as tech firms have the potential to become major players in financial services, the Reserve Bank of India (RBI) said.Reserve Bank of India) said.
The plans will also pose governance challenges for regulators, the central bank wrote in its bi-annual financial stability report on Thursday.
Major technology firms “spread into many different lines of business with sometimes opaque broad governance structures,” it said.
The RBI said the concerns include operational risks, very large-to-fail issues, challenges to antitrust regulations, cyber security and data privacy. But it added that positive outcomes could include efficiency gains and greater access to financial services.
Amazon.com Inc. and Google Currently provide basic payment services in India. both companies also Facebook and others have applied for licenses to operate comprehensive retail payment and settlement systems in partnership with Indian companies such as Reliance and lenders.
The central bank’s warning comes at a time of great tension between the Indian government and the US tech giant over issues ranging from e-commerce regulations to data privacy and the content posted on their platforms. Amazon, Facebook, Facebook-owned WhatsApp and Twitter All are embroiled in controversies with New Delhi.
India’s largest state-run bank and UNI Global Union, which represents about 20 million workers globally, last month also raised concerns about the entry of big tech companies into the country’s payments sector.
The plans will also pose governance challenges for regulators, the central bank wrote in its bi-annual financial stability report on Thursday.
Major technology firms “spread into many different lines of business with sometimes opaque broad governance structures,” it said.
The RBI said the concerns include operational risks, very large-to-fail issues, challenges to antitrust regulations, cyber security and data privacy. But it added that positive outcomes could include efficiency gains and greater access to financial services.
Amazon.com Inc. and Google Currently provide basic payment services in India. both companies also Facebook and others have applied for licenses to operate comprehensive retail payment and settlement systems in partnership with Indian companies such as Reliance and lenders.
The central bank’s warning comes at a time of great tension between the Indian government and the US tech giant over issues ranging from e-commerce regulations to data privacy and the content posted on their platforms. Amazon, Facebook, Facebook-owned WhatsApp and Twitter All are embroiled in controversies with New Delhi.
India’s largest state-run bank and UNI Global Union, which represents about 20 million workers globally, last month also raised concerns about the entry of big tech companies into the country’s payments sector.
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