A PIL has been moved in the Delhi High Court seeking a detailed legal framework for regulating operations of techfin companies such as Facebook, Google and Amazon in the financial sector in India. According to the petition filed by an applied economist, techfin institutions are technology, telecommunications or e-commerce companies which have now entered the financial sector to provide financial services. Petitioner Resmi P Bhaskaran, in her plea filed through advocate Deepak Prakash, alleges that the “lackadaisical approach” of Indian financial regulators permits unregulated operation of techfin firms and claims that this could adversely affect the financial stability of the country.
The petition also claims that unregulated operation of techfin entities in the financial sector can lead to financial crisis and leakage of personal data. It contends that regulations are required to be framed immediately to prevent techfin companies from entering into the financial sector or providing financial services through any mode without prior registration or approval from regulators.
It also seeks framing of regulations to ensure data collected while providing financial services are not monetized or used for any other purpose by such companies.
