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Compliances are important, and so are the rules and regulations for fintech players, Abhay Anant Gupte, MD and CEO of Manipal Technologies Limited, said on Friday (July 1). He was speaking at the Inc42’s Fintech Summit 2022.

Gupte said that a positive way of looking at the regulations is that they help in building the trust and confidence of service receivers as well as service providers. 

“I don’t see a world where there won’t be regulations. I don’t see a world where there are no guidelines or compliances. So, it is all about ensuring that you are compliant and also about ensuring your services meet those expectations, those requirements, and are convenient for the users,” Gupte said.

This is more crucial when fintech service providers are working in rural areas, Gupte added, emphasising that people in rural areas would be willing to adopt services only when they can understand them. Hence, both security and convenience are important.

The comment comes at a time when India is tightening rules and regulations for fintech players. Earlier this month, the RBI barred non-bank prepaid payment instrument (PPIs) issuers from loading such PPIs with credit lines.

Reiterating his point further, Gupte said that the primary role of fintech companies is to help consumers with their financial aspirations, desires, or needs through technology solutions. Those solutions must be held by three strong pillars — speed of technology, convenience, and security.

Talking about banks, Gupte said that cybersecurity is one of the primary areas of investment from them. Driven by new regulations and technology obsolescence, banks are also investing in infrastructure expansion.

Gupte further praised the Indian government’s step to open 75 digital banking units (DBUs) across the country. 

He said that the availability of banking services should not be time-bound and they should be available round the clock so that people can avail them as per their needs and convenience. This is where the DBUs will play an important role.

“I look at this as a phenomenal progress or the right progress for the country,” he added. 

As per reports, Prime Minister Narendra Modi would roll out 75 DBUs across the country on August 15. Many banks have already started their preparations to launch their DBUs.