MUMBAI: The rising digitalisation of investments And credit score is creating new challenges for financial authorities, RBI deputy governor Michael Patra mentioned.
“The shift from traditional modes of savings can affect the transmission of monetary policy impulses to the real economy. Second, central banks need to be vigilant about the possibilities of debt escalation and risk build-up at the household level,” he mentioned, whereas addressing a Maldives Monetary Authority convention. “The proliferation of digital consumption has been accompanied by a shift in saving. and investment decisions such as online brokerage accounts, robo-advisers, investment apps and the like, as they are easier, faster and more informed,” the deputy governor mentioned.
He added that digitalisation has additionally influenced borrowing patterns of households, with larger and simpler entry to fintech corporations for digital loansand by lowering info asymmetries by a variety of sources, together with tax returns, digital toll assortment, and invoice funds. “The rapid progress in information and communication technology is contributing significantly to shortening the ‘space-time flow’ of circulation of capital – allowing it to move faster and grow larger,” Patra mentioned.
