The threat of data privacy and competition due to fintech companies.
Reserve Bank Governor Shaktikanta Das said that the risk has increased due to the entry of big companies of the technology world in the financial market. Companies like Google, Facebook, Amazon have launched their own mobile app payment service.
Reserve Bank of India Governor Shaktikanta Das (RBI Governor Shaktikanta Das) said on Friday that the entry of large IT companies into the financial business could lead to systemic concerns such as excessive borrowing and non-payment of debt at the borrower level. With big IT companies like Google, Amazon and Facebook (meta) entering the financial business, questions will be raised about competition and data privacy. Das said at the Modern BFSI Conference 2022 organized by The Financial Express, they (big IT companies) have risks associated with them, which need to be properly assessed and tackled.
He said such companies include e-commerce companies, search engines and social media platforms that have started offering financial services on a large scale, either on their own or through partnerships, and thus introduce new forms of debt assessment. methods are being used. The RBI governor said that such large-scale use of new methods in debt assessment could lead to systemic concerns of excessive debt, inadequate credit assessment and similar risks.
Frequent calls from agents cause trouble
Das said the use of coercive methods, including calling, calling in bad language, by the debt recovery agents, is not acceptable and RBI is taking serious note of such incidents so that necessary action is taken to check them. can be done.
There has been opposition to threatening the borrowers
He said that most such incidents are related to unregulated establishments, although the central bank has come to know that regular institutions also do the same by it. He asked all the institutions of the region to pay special attention to this issue. The RBI governor’s comments assume significance in the sense that there have been recent reports and allegations that several borrowers have committed suicide due to the harsh practices of agents. He said that the RBI will soon come out with a consultation paper on providing digital loans.
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Source: www.tv9hindi.com
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