wordpress blog stats
Connect with us

Hi, what are you looking for?

RBI concerned with big tech’s involvement in financial services

The RBI raised three primary concerns about big tech companies including the latter's potential to become dominant players in the financial services sector.  In its biannual Financial Stability Report released yesterday, the Reserve Bank of India (RBI) has raised concerns around the involvement of big tech companies in financial services. While acknowledging that Big Tech offers a range of digital services with a substantial footprint in payments, banking, asset management crowdfunding, and insurance of advanced and emerging market economies, and also "the promise of supporting financial inclusion and generating lasting efficiency gains", these companies also raise important policy issues like privacy, cybersecurity, maintaining a level playing field with banks, operational risks, the challenge to anti-trust rules, and too-big-to-fail issues, the RBI said in its report. The concerns Specifically, the report pointed out, there are at least three challenges from Big Tech: They straddle many different (non-financial) lines of business with sometimes opaque, overarching governance structures. They have the potential to become dominant players in financial services. Big tech companies are generally able to overcome limits to scale in financial services provision by exploiting network effects. Suggestions To tackle these concerns, the report further recommends that central banks and financial regulators use a blend of activity and entity-based prudential regulation. Along with this, it adds that international cooperation is also important with increasingly internationalised borders of the digital economy. Activity-based regulation means imposing a set of rules on all players offering a particular service while entity-based prudential regulations mean imposing a…

Please subscribe/login to read the full story.
Written By

I cover health technology for MediaNama but, really, love all things tech policy. Always willing to chat with a reader! Reach me at anushka@medianama.com

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

India's smartphone operating system BharOS has received much buzz in the media lately, but does it really merit this attention?

News

After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples

News

In the case of the ‘deemed consent' provision in the draft data protection law, brevity comes at the cost of clarity and user protection

News

The regulatory ambivalence around an instrument so essential to facilitate data exchange – the CM framework – is disconcerting for several reasons.

News

The provisions around grievance redressal in the Data Protection Bill "stands to be dangerously sparse and nugatory on various counts."

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ