21. The NBFC – Account Aggregator framework of 2016, NBFC -Peer to Peer lending guidelines of 2017 and recent Digital Lending Guidelines are examples of adaptive regulation intended to address emerging risks. 22. P2P regulations were introduced in the early stages allowing India to avoid failures witnessed in other jurisdiction, while at the same time enabling an innovative mode of credit intermediation.
Similarly, guidelines on Account Aggregator (AA) facilitate innovations related to open banking while building a robust data privacy regime. Last year's digital lending guidelines was a reiteration of two well established principles, namely, (i) lending business is regulated activity and (ii) onus of ensuring compliance in an outsourcing arrangement lies on the regulated entity. 23.