Balancing Innovation: The Regulatory Tightrope in Fintech

Niti Aayog CEO BVR Subrahmanyam cautioned against heavy-handed regulations that may stifle innovation during his speech at the Global Fintech Fest 2025. He urged a transition from institution-based to activity-based regulation to ensure that innovation thrives domestically rather than moving to friendlier shores.

Subrahmanyam argued for nimble, adaptable regulatory practices, including the creation of regulatory sandboxes, to foster Fintech's potential. He criticized the current regulatory approach, which often treats institutions monolithically rather than adapting to the specific activities they undertake.

Highlighting the influence of artificial intelligence, Subrahmanyam suggested AI will lead to job evolution rather than elimination. He pointed out that such technological advances will require ongoing dialogue between regulators and the Fintech sector to balance innovation and oversight.

(With inputs from agencies.)