Regulator is always open to fintech innovation: Perfios CEO

The Reserve Bank of India's (RBI) directive against Paytm Payments Bank Ltd (PPBL) may have unsettled the fintech startups in the country but Sabyasachi Goswami, CEO of B2B SaaS fintech company Perfios, believes the regulator has always been open to technology innovation.

At a fireside conversation on charting the course of fintech innovation, on Day 2 of Techsparks 2024, the flagship event of YourStory in Mumbai, Goswami said, “The regulator has always given a free hand but sometimes there is a need for course correction.”

The RBI's actions against PPBL have generated considerable heat among the fintech community with questions arising on whether the government and the regulator are supportive of this segment.

Goswami, who has been a banker himself before joining Perfios, remarked that it was a misconception that there were no regulations and financial services was always a regulated industry.

“Regulations were always there, which we misinterpreted or did not choose to interpret in the way they should have been,” he said.

There will be occasions when the regulator will take measures to rein in players who were straying away from the regulations, said Goswami, calling the action a "course correction".

Recently, Union Finance Minister, Nirmala Sitharaman met with some fintech companies to dispel any perception that the government was against them.

Goswami said such interactions were appreciated by the fintech community and the government had clearly stated that technology innovation must continue, leading to the emergence of newer players.

There are enough channels for fintech firms to voice their concerns with the regulator and the government, he added.