MUMBAI: Reserve Bank deputy governor T Rabi Sankar on Wednesday pitched for similar regulation for both banks and non-bank entities like fintechs if they are undertaking the same activity.
If fintechs are allowed to carry out similar services without the tighter regulations governing banks like capital adequacy, know your customer (KYC) requirements, leverage and liquidity norms, there is a risk of creating inefficiencies and risks associated with regulatory arbitrage, Sankar said at an event organised by Business Standard.
