RBI Governor Shaktikanta Das expressed the urgent need to ensure that innovations are accompanied by prudential safeguards and responsible conduct. He was addressing the 4th edition of the Global FinTech Festival in Mumbai today. He expressed serious concerns about the illegal loan apps. He said, many of these apps had their origin in foreign jurisdictions and have led to serious concerns about breaches of data privacy, unethical business conduct, levying of exorbitant interest rates, and harsh recovery practices. Mr. Das said, regulated entities should operate within the perimeter set by the licensing conditions and only undertake activities that are permitted under the regulations.

The Governor also said FinTechs can demonstrate their commitment to transparency, accountability, and responsible decision-making by making a clear governance structure. He said that good governance must focus on ensuring effective oversight, ethical conduct, and risk management. Mr. Das also appeals to the fintech ecosystem to focus on Customers. He said that focusing on customers means embracing a customer-centric approach to innovation by understanding the needs of customers and making provisions that protect customer interests and earn their trust. He was addressing the 4th edition of the Global FinTech Festival in Mumbai. He appeals to financial technology companies to concentrate on simplified user interfaces and quick customer grievance redress mechanisms.