01 Oct 2026
Fintech has too many moving pieces: Arbitrage window is closing fast
23 Aug 2026
23 Aug 2026
This is a link-enhanced version of an article that first appeared in Business Standard.
Article Overview:
The article examines how India’s evolving data-protection and regulatory framework is narrowing the regulatory-arbitrage advantage traditionally enjoyed by fintech companies. It discusses the impact of the DPDP Act, DPDP Rules, 2025 and RBI’s data-governance expectations on fintechs, banks and NBFCs, including the increasing importance of data governance, regulatory preparedness and risk-based obligations. The article also considers the implications for fintech funding, valuations and emerging opportunities across regtech, cyberrisk and governance.
Our Partner, Jishnu Sanyal, shared his perspective. Here’s what he had to say:
“Although banks, NBFCs and payment systems continue to operate within a more stringent regulatory framework overall, the compliance gap in data governance between regulated entities (REs) and fintechs has narrowed.”
“In parallel, the RBI’s outsourcing norms require REs to flow down appropriate risk-based obligations to fintech partners, calibrated to the functions outsourced and the risks involved.”
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