“Sinceunbundles services across a wide number of domains, it is necessary to clearly demarcate responsibilities of various regulators over relevant aspects of the business entity and to ensure the existence of adequate avenues for regulatory collaboration,” the report stated. “This may be done with the overarching goal of facilitating innovation through competitiveness, while ensuring a level playing field.”
The report also highlights that with increasing dominance of
The report on currency and finance also red-flagged the need to restrain the unchecked growth of digital financing.
“Sincemainly originates from debt and equity rather than from deposits, digital lenders’ supply of funds could be more procyclical and volatile due to lack of standard credit guidelines,” it stated. “Further, credit activity outside the prudential regulation space could render credit-related countercyclical policies less effective.”
Over the past few decades, India has witnessed a remarkable growth in its digital ecosystem, supported by a robust policy foundation, expansion of smartphones, internet coverage, digital literacy, as well as proactive participation by the private sector. With the proliferation of digital payments concerns over data privacy have risen especially due to absence of adequate legislation and demarcation of statutory rights and obligations of service providers and other stakeholders.
“As the Indian population becomes data-rich with increasing internet and mobile coverage, the next challenge might be empowering consumers through adequate legal and regulatory support,” it stated.