Red Envelope: India's Regulatory Landscape, a deep dive
Can regulatory policies make or break an innovation ecosystem? And how equipped are the research capabilities of regulators in large economies, to make some of those policies? Fintech has been a field where regulators have had a major effect on growth and maturity of innovative business models.
In this episode of Red envelope, Nidhi Prabhu from Mumbai, joins Arun Krishnakumar and Theodora Lau. Nidhi started her career in the academia, moved into India's Central Bank (RBI), and then into Medici's research. In a career that spans across academia, policy making, research and Fintech innovation, she has seen policies make or break business models in India.
Fintech startups have matured from novelty to niche and moved toward becoming considerable contenders by entering the mainstream in every major market around the world. Emerging markets, like China and India, have led the way as companies such as Alibaba, Tencent, and Paytm are flourishing.
Various initiatives have been undertaken by the government and regulators to create a favorable environment for fintech innovation as the country continues to push for progress. According to Nidhi Prabhu, however, more proactive regulatory policies will still be needed by the RBI, for example, to provide guidance and enforce the true spirit behind open banking.
Unlike Singapore with a single regulator, the MAS (Monetary Authority of Singapore), there are several regulatory bodies at play in India, including the Reserve Bank of India (RBI), Securities and Exchanges Board of India (SEBI), Insurance Regulatory and Development Agency (IRDA) and Provident Fund Regulatory and Development Agency (PFRDA). Challenges of this multi-regulator environment notwithstanding, India is fast becoming an essential hub for international banks.
Listen in for first hand insights from Nidhi on regulatory policies and innovation.