Fintechs Need To Prioritise Social and Macro-economic Interest: T Rabi Sankar Of RBI It is only the SRO that can inculcate such a culture, said Rabi Sankar

Reserve Bank of India (RBI) Deputy Governor T. Rabi Sankar emphasized that fintech startups should prioritize social and macroeconomic interests over their business objectives. "It is only the SRO that can inculcate such a culture," said Rabi Sankar in his keynote address at the Global Fintech Fest 2024.

He further stressed that the fintech sector should grow in a manner that ensures social objectives are met. To achieve this, SROs will need to play a major role, working consistently in a way that fosters healthy competition. He noted that competition is essential for making markets effective and efficient, with price efficiency serving as an important indicator of market integrity.

Cost efficiency, he suggested, should be driven by technology. SROs can also help in removing inefficiencies through technological advancements, establishing codes, standards, and voluntary compliance mechanisms that ensure growth while minimizing potential risks and negative outcomes. "One major function that an SRO is intended to fulfill is to facilitate honest two-way communication between the regulator and the industry," he added.

While discussing the Indian model of digitization, he highlighted the crucial role the private sector plays in driving innovation. He noted that while public goods will continue to be developed in the public sector, the private sector will lead in innovation. "The Fintech industry in India is in the early stages of development. Fintechs and technology innovators are, and will continue to be, transformative forces within the financial ecosystem," Rabi Sankar highlighted.