Posted on June 13, 2018 by Sumita Kale
A workshop was organised by the Indicus Centre for Financial Inclusion in New Delhi on Friday 18th May 2018. Vibrant deliberations took place under Chatham House rules amongst 21 discussants spanning government, service providers, research institutions, thinktanks and intermediaries. A summary of the discussion and the main takeaways are presented in this post. Please feel free to mail in comments to sumita@indicus.org
Agenda: Provision of financial services is enabled by easy sharing of data – including those on digital transactions and personal identity. This is even more the case for the financially excluded, who do not have a significant enough asset base. However, the sharing of such information has given rise to new concerns and Indian regulators and policy makers hav
e to look for a balance between innovation, convenience and customer protection.
There were four main themes set for discussion:
Part I: Open discussion - the main points that emerged were as follows:
A. Regulatory Framework
a) While there remain gaps and grey areas in the regulatory framework, there is also a need to remove many unnecessary hurdles. The resultant lack of clarity and unnecessary demands from stakeholders is delaying innovation and investment.
b) Regulation must be consistent and well-coordinated while avoiding confusion, ambiguity and contradiction.
c) KYC (Know Your Customer) norms are needed to mitigate risks from money laundering and terror finance and hence, but they must be proportionate to risk and apt in terms of context.
B. Customer Information and Consent
C. Security and Privacy
D. Miscellaneous
Part II: The discussion concluded with a list of suggested Dos and Donts for policy makers and industry
What to DO
What NOT to do
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