Digital players will increasingly have a critical role across the banking sector in India, which is emerging as Asia’s financial technology (FinTech) hub, RBI Governor Shaktikanta Das said on March 25.
The governor’s comments signal increased focus on digital lending and fintech industry by the regulator. In January this year, the RBI set up a six-member working group to suggest regulations on digital lending.
Speaking at the at the Times Network India Economic Conclave 2021 in New Delhi, Das projected India’s FinTech market to grow to Rs 6.2 trillion in by 2025 from Rs1.9 trillion in 2019.
"FinTech is expected to challenge the financial sector with innovations and its exponential growth. Harnessing FinTech for customer services will effectively control costs and expand the banking and nonbanking businesses," Das said.