On the other hand, activity-based regulation focuses on the activity being undertaken attempting to apply uniform rules to the activity across all regulated entities. For instance, the recent review of the regulatory framework for microfinance loans attempts to provide a uniform regulation for such lending across banks and NBFCs, by having a common definition of microfinance, same business conduct and fair practice requirements, etc.
FinTech Sector – the way forward 26. India has the third largest FinTech eco-system in the world. While regulation can play a supporting role, FinTechs themselves have to ensure the balance between innovation and risks arising therefrom.