RBI dy guv says big tech's
financial sector play in India under watch
Deputy Governor M Rajeshwar Rao on Friday said the central bank is examining
whether deposit acceptance by Google and Amazon is within the prescribed laws
and regulations, at a time when concerns about big tech firms' play in the
financial space are at a heightened level.
Google Pay and Amazon have announced partnerships with lenders to accept
deposits in the country through their mobile phone apps.
are examining the issue regarding the regulatory implications, having regard to
the applicable laws and the regulations that are prescribed for the thing. So,
we are examining it," Rao told reporters.
added that the entry of big techs into the financial sector space is a global
phenomenon which is engaging the attention of central banks around the world as
its last financial stability report in June this year, the Reserve Bank of
India (RBI) had warned against allowing big tech firms into financial services.
this holds the promise of supporting financial inclusion and generating lasting
efficiency gains concerns have intensified around a level-playing field with
banks, operational risk, too-big-to-fail issues, challenges for antitrust
rules, cybersecurity and data privacy," the RBI had said then.
the GPay and Amazon tie-ups for deposit collection happened after RBI went
public with its concerns.
Pay India has a tie-up with investment platform Kuvera.in through which the
former's customers will be able to invest in mutual funds and fixed deposits,
while Google Pay has tied up with Equitas Small Finance Bank for booking