Continuous review needed to pick regulatory gaps in fintech sector

A continuous review process is required to identify regulatory gaps in the fintech sector and align it with the best global practices, said the Economic Survey. The focus should be on the transition from judgement-based lending to data-driven lending, it said.

“In the medium term, efforts should be made to move towards data-based lending instead of judgement-based lending, especially for small businesses. In this regard, there is a need for continuous review to identify regulatory gaps/overlaps and benchmark them with the best global practices,” the survey said.