Blitz Bureau
NEW DELHI: The Reserve Bank of India (RBI) wants fintech startups to strictly follow the customer verification guidelines while onboarding new clients. Central bank officials conveyed this message to industry representatives during multiple meetings over the last couple of months.RBI officials have made it clear that there will be no climb down from the stringent KYC (know your customer) requirements for companies operating in this space, said people who have been part of such meetings.
One of the latest meetings took place last week where top executives of digital lending startups sought some relaxations around KYC requirements, but the RBI remained steadfast in its position.“The regulator has been engaging positively with the industry over a bunch of issues, but KYC is something that seems to be non-negotiable,” said a top executive who was present at the meeting.
Meanwhile, Peer-to-peer lending was discussed in the meeting and the RBI was open to understanding the challenges faced by the industry. But it wanted the sector to strictly abide by regulatory restrictions, said another person who was also present at the meeting.
