The petition filed by an economist, Ms.Resmi P Bhaskaran, techfin entities are technology, telecommunications or e-commerce companies which have entered the financial sector to provide financial services and need to be regulated. She has alleged 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.
Steps taken by the Court-
1.The Delhi High Court has issued notice to the ministries of finance and law.
- The same notice has been issued to Reserve Bank of India (RBI), NPCI, Insurance Regulatory and Development Authority of India (IRDAI), Securities and Exchange Board of India (SEBI) and the Pension Fund Regulatory and Development Authority (PFRDA)
- The notice seeks their stand on the plea by the petitioner.
- The Court has sought response of the Centre, RBI, SEBI, IRDAI and National Payments Corporation of India (NPCI) seeking a detailed legal framework for regulating operations of techfin companies such as Facebook, Google and Amazon in India’s financial sector space.
The matter was heard before a bench of Chief Justice D N Patel and Justice.