Plans by Big Tech to foray further into India’s Financial sector pose risks for traditional banks as the tech firms have the potential to become dominant players in financial services, the Reserve Bank of India said.
The RBI’s warning comes at a time of much tension between the Indian government and U.S tech giants over issues that range from e-commerce rules to data privacy and content posted on their platform.
Major technology firms “straddle many different lines of business with sometimes opaque overarching governance structures,” the central bank said.
The RBI said concerns included operational risks, too-big to fail issues, challenges for antitrust rules, cybersecurity and data privacy.
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