Paytm bank: ‘Disruption doesn’t mean banks becoming cowboys...'
- Mayur Shetty
- TNN Feb 2, 2024, 21:13 IST IST
As Reserve Bank of India executive director during 2011-15, G Padmanabhan was responsible for many tech initiatives at the central bank. He has extensive experience in regulation and supervision of various aspects of the banking system, including payments. He talked with TOI about RBI’s disciplinary action against Paytm Payments Bank
Do fintechs need to change their thinking and behaviour if they become banks?
Absolutely. Banks are much more tightly regulated. This is also a challenge for regulators when engaging with banks and fintechs. Even if we want to adopt a progressive approach and promote innovation, we need to balance customer convenience, which is the main focus of fintechs, and the compliance and security issues the banks must adhere to. One side is too aggressive and the other is too conservative. A good balance is somewhere in between.
Absolutely. Banks are much more tightly regulated. This is also a challenge for regulators when engaging with banks and fintechs. Even if we want to adopt a progressive approach and promote innovation, we need to balance customer convenience, which is the main focus of fintechs, and the compliance and security issues the banks must adhere to. One side is too aggressive and the other is too conservative. A good balance is somewhere in between.
