The Future of Finance Initiative seeks to identify and address new challenges for policy and regulation in India given the waves of digital innovation currently sweeping financial services. Our work in this initiative studies the impacts of digitisation and technological innovation in Indian finance, leading from the consumer perspective on these issues. Our research agenda is focussed on issues that impact particularly lower income individuals as a result of

  1. the disintermediation of financial services,
  2. the large scale investment in public infrastructure for digital finance and
  3. the increased use of consumer data and analytics in finance.
Papers

This paper attempts to answer the question, how is fintech regulated in India? The paper first analyses the types of consumer-facing fintech activities that are currently prevalent India. It identifies fourteen types of consumer-facing fintech activities in India. Together these fourteen types of activities constitute a typology of consumer-facing fintech activities in India. The paper further examines and compares the extent of financial regulation applicable to each fintech activity in the typology.

Financial Regulation of Consumer-facing Fintech in India: Status Quo and Emerging concerns, Chugh B, 2019

This paper presents ideas for a new approach to enforcement of a data protection regime, based on risk-based supervision and the use of a range of responsive enforcement tools that could be deployed in advance of a breach to prevent it, or after a breach to mitigate the effects.

Effective Enforcement of a Data Protection Regime, Chugh B, Raghavan M, Kumar N & Pani S, 2018

Technology promises to overcome traditional barriers to financial inclusion, in particular by harnessing insights from consumers’ personal data. However, use of personal data creates new risks for consumers. Service providers must build consumers’ trust, a necessary precondition to increased participation in formal finance. K Puttaswamy v Union of India frames the use of personal data within the rubric of informational privacy, and in doing so provides guidance about how data practices and regulation in finance can evolve to align with citizens’ rights and reasonable expectations of informational privacy.

The Privacy Judgment and Financial Inclusion in India, Raghavan, 2017

In this paper, we begin with an analysis of the theory of consumer protection and follow it up with a discussion on the special case of the financial consumer. We then take a step back and analyse the functions of finance and the role of finance in the life of households. We use real-life case studies to illustrate the capacity of the Indian financial marketplace to fulfil financial needs of households today and also discuss some critical national socio-economic trends in India that the financial system needs to be equipped to respond to effectively. Following from this, we assess the future of finance in India, to come to an understanding of the nature of the financial system that must be created in India to ensure financial inclusion as well as systemic stability. Finally, with the theoretical basis as well as the Indian context firmly in place, we develop the fundamental philosophies around which the framework for consumer protection in finance should be built.

A New Framework for Financial Consumer Protection in India, Sahasranaman A, George D, Rajendran D, Prasad V, 2013