In this post, the author addresses the exponential growth of India’s fintech sector, particularly highlighting the rise of Buy Now Pay Later (BNPL) services driven by a lack of specific regulatory frameworks. They elucidate how while some companies offering BNPL are under NBFC regulations, there’s a need for tailored guidelines to oversee and protect consumers engaging in BNPL transactions. The article further discusses the burgeoning concerns in India’s BNPL market, advocating for a more encompassing regulatory approach to mitigate issues like transparency, fraud, and data protection, aiming to bolster consumer confidence and legitimacy in these services.
In this post, the author seeks to highlight the need for a shift in regulatory approach for the e-wallet market and analyses the shortcomings of the current data protection network. In doing so the author proposes a change by adopting an entity-based regulatory model instead of an activity-based regulatory model and showcases how that will benefit the fintech sector.