The Indian Express | Aadhaar, PAN, Paytm, KYC — how fintech regulation is hurting the consumer

In the evolving landscape of fintech or financial technology, India stands at the crossroads of innovation and regulation. What began as a quest for stability and oversight has devolved into a dystopian odyssey, where good intentions pave the road to chaos, and unintended consequences lurk around every corner.

Our story today commences with a modest trigger — the cautious instructions of the RBI to Kotak Bank, halting new digital customer onboarding and suspending credit card issuances. The regulatory zeal, ostensibly aimed at preempting potential outages, lacks a tangible basis for outage events. It’s reminiscent of the regulatory crackdowns of the past, where rigid checks were imposed without a clear understanding of the underlying issues, like the one on HDFC a few years ago or on Paytm recently. This knee-jerk reaction to largely hypothetical scenarios reflects a systemic failure to distinguish between proactive risk management and reactive overreach.

Read the full article here.

Jack Ma story: China’s deep strategic ambition

Earlier this month, the Chinese tech tycoon, Jack Ma, made his first public appearance ever since the suspension of Ant Group’s $37 billion IPO in November. Ant is an affiliate company of Alibaba, the e-commerce giant that he co-founded. The crackdown on Ant followed Jack Ma’s comments in late October during a public event in Shanghai. He had then criticised Chinese regulators for harbouring a “pawnshop mentality,” focusing on pledges and collaterals when it came to finance.

According to the Wall Street Journal’s reportage, this was the last straw in the battle between the regulators and Jack Ma, with President Xi Jinping personally engaged in greenlighting regulations that would scuttle Ant’s plans. The politics of personalities, of course, is a key component of all of this. However, viewing the developments with regard to Ant simply through such a prism or as an issue of Jack Ma being tamed after he had become too big for his boots is missing the woods for the trees.Read the full article in Hindustan Times.