Ashneer Grover weighs in on RBI action against banks and the fintechs.
As the RBI cracked down on erring lenders and digital payment providers, BharatPe co-founder Ashneer Grover weighed in on challenges faced by both sectors. Taking an indirect jibe after Kotak Mahindra Bank’s restrictions over tech outages, Grover noted ironically how “banks are struggling with technology implementation while fintech is finding it tough to perform core banking.”
His remarks came after the central bank barred the private lender from onboarding new customers digitally or issuing fresh credit cards, citing repeated service disruption issues over the past two years.
While not naming Paytm Payments Bank specifically, Grover’s reference to fintech’s inability to conduct banking operations comes in the wake of curbs imposed by the RBI on the digital payment major as well.
Paytm has since obtained NPCI’s nod to shift users from its banking identity to a new handle after corrective steps.
Experts say the recent regulatory actions aim to strengthen customer confidence in financial services. However, they also point to the evolving challenges before traditional and new-age entities in effectively leveraging technology for user-friendliness.
Investors reacted sharply to Kotak Mahindra’s restriction news, with its shares plunging over 10% in stock market trade on Thursday.
