Indonesia's financial watchdog is set to outline by the middle of this year how digital banks should operate in the country, one of its top officials told The Straits Times.
"We won't regulate details, nor will it be rules-based," said Mr Anung Herlianto, executive director of banking research and regulation at the country's Financial Services Authority (OJK).
"It will instead be a set of guiding principles for banks to operate digitally, and banks have to mitigate their own risk, any risk, that may arise."
Digital banking is expected to provide a boost to South-east Asia's largest economy as it will cater to the unbanked who comprise up to one-third of the population of 270 million.