India's Evolving Regulatory Landscape and RegTech Solutions

RegTech helps businesses manage the regulatory complexity of the market in India, like that related to data privacy; digital lending; and, especially, AML compliance.

Like India's digital landscape, regulators have been busy crafting regulation for transparency and accountability, intending to ensure consumer protection. Increasingly, it concerns data privacy, digital lending, and anti-money laundering (AML), and almost all businesses-including small and medium enterprises (SMEs)-must now read between the lines of complex regulations.

Jaya Vaidhyanathan, CEO, BCT Digital, expounds on much of the existing regulatory technology solution addressing the woes of startups and small businesses by stating that "RegTech are critical in streamlining compliance processes and minimizing operational risks." This also goes well with the increasing complexity of regulations such as India's Digital Personal Data Protection Act (DPDPA), which, however, requires businesses to only stay somewhat compliant and not draw much resource cash on them.

Likewise, between 2025 and 2030, the global RegTech market would see a velocity surge throughout the forecast period and thus pushes market demand for more efficient compliance tools to rise. Indian businesses embracing RegTech, on the other hand, find themselves in a realm of compliance beyond regulatory needs and a competitive advantage which can be enjoyed through AI and machine learning features to automate processes and detect risks almost in real-time.

For those small and medium enterprises which do not have compliance teams, then RegTech is probably the best option. 'In fact, he added that "RegTech is about scalable solutions and can be adapted to the exact needs of the small business," Paritosh Desai-Chief Product Officer at IDfy.

This very progressive evolution of RegTech will actually end up changing compliance for Indian companies as we move into an increasingly digitalized future.