- The Reserve Bank of India (RBI) recently published its Financial Stability Report for June 2022.
- This edition of the RBI report includes a survey of international regulatory and supervisory practices, which are applied to BigTech entities.
- In its survey, RBI listed Google, Facebook, Apple, Amazon and Alibaba among service providers.
- As per RBI, regulators worldwide are aiming to create a balance between risks and benefits from entry of BigTechs in financial domain.
- It is being guided by principle of ‘flexibility’ and ‘proportionality’ depending on complexity of services offered by BigTechs.
- In the report, RBI maintained that, large technology companies (‘BigTech’) are scaling up and turning into “too-critical to fail” institutions. Thus, its regulators must be aware of their interlinkages with the financial system.
- As per report, BigTechs can scale up rapidly and become risky for financial stability.
Tags:
Economics
