- Fintechs Companies play a vital role in providing the financial services space in terms of products, customer servicing, back-end analytics, and delivery of services without any disruption.
- Although it comes up with some concerns like cyber security as there is greater use in technology it is prone to cyber security.
- It is believed that regulations will perhaps kill the innovations, the central bank said that regulations are needed for sustainable growth of a sector.
- When there is an involvement of big techs in banking, financial services, and the insurance sector it will also bring systemic risks that have implications for financial stability.
- Earlier also RBI has mentioned the risk associated with big tech companies entering financial service in their “Trend and Progress Report” released in December 2021.
- Now RBI is focusing on a regulatory approach for big tech companies so that it could have regulatory implications on concentration and competition risk.
Question:
Q.1 Consider whether the following statements is/are true regarding the Fintech Companies?A. specialize in technology growth to support the banking and financial industries
B.This FIntech companies are regulated under the Banking regulation act 1949
Select the correct option from the given below
a. Only B
b. Only A
c. All the of the Above
d. None of the Above
