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The dialogue between Rishi Agrawal, CEO and co-founder of TeamLease RegTech, and businessline’s Lokeshwarri SK, sheds mild on the sequence of occasions resulting in the RBI’s resolution to halt deposit-taking and sure operations of Paytm Funds Financial institution.
Agrawal explains that whereas the regulatory improvement might seem to be a sudden response, it’s truly the fruits of a sequence of points relationship again to 2018.
He highlights cases of non-compliance, together with the submission of false data and violations of Know Your Buyer (KYC) norms, which resulted in penalties imposed by the RBI.
Agrawal emphasises the significance of KYC compliance in sustaining belief and credibility within the monetary system. He discusses how lax compliance can result in vulnerabilities, doubtlessly enabling nefarious actions resembling cash laundering and terrorist financing.
Agrawal additionally refers to considerations about information privateness within the fintech ecosystem, mentioning the dearth of sturdy laws and enforcement mechanisms.
The dialog touches upon the position of fintech corporations in driving innovation and effectivity within the monetary sector. Nonetheless, Agrawal emphasises the necessity for these corporations to prioritise compliance and regulatory adherence alongside progress targets.
He warns in regards to the risks of overlooking compliance in favour of fast enlargement, citing examples of misconduct and information breaches. In conclusion, Agrawal underscores the significance of regulatory oversight in safeguarding the integrity of the monetary system and defending client pursuits.
He advocates stricter laws, enforcement measures, and penalties to discourage non-compliance and guarantee accountability throughout the fintech ecosystem. Pay attention in.
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