Fintech has a huge approach in India as a big size of population of the country is dependent on this fintech for various financial sector based approaches. But do you know that there are few limitations and restrictions as well on fintech services and therefore both fintech service provider and user need to know about such restrictions. The restrictions on the sector of fintech have been imposed on them by the Reserve bank of India, NPCI, Securities board of exchange in india and government of India seeing the various issues and for the purpose of safeguard.
Do you even have interest in this category? If yes, then do write us a guest post sharing your opinion on the topic Write For Us Fintech and share the same with us by clicking on the link https://freeinvoicr.com/fintech-write-for-us.
Restrictions and limitations on the fintech in india:-
- If being a fintech service provider one needs to do engagement in RBI related to any services then the same can be only done after obtaining a proper license, registration and further need to take authorization from the apex body of the Reserve bank of india with respect to the same. So, for example if a fintech service provider wants to work for providing loans or payment systems then they need to have a proper banking or NBFC license for providing such services which should be authorized by the Reserve bank of india.
- If one become outsource service provider for RBI with respect to fintech services then the same shall not be entitled for obtaining a license from Reserve bank of India but further with respect to this one need to assure various sort of permissions and need to follow up with other provisions which are entitled and subjected with purpose of such services.
- Reserve Bank of India seeing the cruciality and privacy of the people have restricted few things for all the fintech service providers such as storing of any sort of information and data related to payment which includes data of lending and payments. Reserve bank of India has all entitled restrictions on digital lending data.
- Reserve bank of india have also put restrictions from june 2022 for PPI based credit lines.
- The Reserve bank of India has also put a proper ban on pass on accounts for fintech service holders.