“Our responsibility is to maintain financial stability,” Das said. “The firms should operate under the licenses granted to them. If they are doing anything beyond that then they should seek our permission. Without permission if they are engaging in activities for which they have no license then it is not acceptable. There will be risk build up and we cannot allow that.”
Das also said that the much awaited digital lending norms will be out in a few weeks.
“Within the next few weeks, the digital lending norms will come,” the governor said. “We want to support innovation and at the same time we want the entire ecosystem to grow in an orderly and regulated manner so that there is no compromise on financial stability.”
The central bank has been highlighting the risks posed to the financial system due to fintech and big tech firms. In its recently released Financial Stability Report (FSR) the RBI had called for the need to shield the financial system from the fintech industry’s potential to cause instability.
RBI governor Das also said while banks are facing challenges from new entities the banking regulator is mulling how best to regulate them.
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Meanwhile, the governor also said that the regulator will issue a consultation paper on climate change and climate change related risks in the coming week in order to equip banks and financial institutions to effectively deal with the issues arising out of climate change.
“In this area, whatever we want to do we would like to do in a collaborative manner,” Das said. “With this objective we are coming out with a discussion paper on climate change and climate change related risks. We are expecting suggestions, ideas from all stakeholders. After considering the suggestions we will go forward.”
