by Mr. Rishi Agrawal CEO and Co-Founder of Teamlease Regtech
India’s regulatory landscape is intricately complex. A total of 1,536 acts and rules, 69,233 compliances, and 6,618 filings govern the business ecosystem in India. Of the 69,000+ obligations, 26,134 compliance requirements carry imprisonment as a penalty for contraventions. Labour has 463 Acts (30.1% of the total), 32,542 compliances (47% of the total), and 3,048 filings (46% of the total) associated with it. 2,233 union, state, and municipal government websites published over 9,000 updates in FY25. These updates sometimes come with little time for implementation. Businesses relying on outdated information risk non-compliance without even realising it. Manual tracking of these compliances isn’t just inefficient; it is risky.
Traditional, paper-based compliance management also demands significant resources, making it costly and unsustainable. Without real-time tracking and automation, businesses struggle to stay updated, often detecting risks only after violations occur. To overcome these challenges, companies should resort to regulatory technologies and AI-powered compliance solutions that streamline processes, reduce errors, and provide proactive risk management.
Below mentioned are some ways in which Tech-powered compliance such as Regulatory Technologies can safeguard businesses from regulatory risks:
- Real-time monitoring and alerts: Compliance violations can happen instantly, making it difficult for businesses to identify and address them in time. Tech-powered compliance systems can offer continuous monitoring of transactions, communications, and other activities, triggering real-time for potential breaches. This can allow businesses to respond swiftly, minimising the risk of costly penalties and regulatory sanctions.
- Automation: Technology-driven compliance automation can transform regulatory management by streamlining data collection, documentation, reporting and decision-making. Automated systems can efficiently gather, organise and store compliance-related data from multiple sources, ensuring accuracy and consistency while reducing human errors. Additionally, automation minimises manual tasks like data entry and monitoring. Beyond these efficiencies, technology enhances decision-making by providing real-time insights and predictive analytics, enabling organizations to proactively manage risks, refine policies, and align compliance strategies with long-term business goals. These solutions can equip organisations and employers with intelligent, productive, and efficient approaches to meet their specific compliance requirements. These solutions can offer end-to-end automation, which includes tracking and management, data processing, preparation of statutory filings, digital record maintenance, and automatic flagging of potential non-compliance issues.
- Accuracy Enhancement: Traditional compliance processes rely heavily on manual data review and interpretation, making them prone to errors. Technology-driven compliance solutions, powered by machine learning algorithms, can automate repetitive tasks like data analysis, risk assessment, and regulatory monitoring. These solutions can improve accuracy and efficiency by processing large volumes of data and detecting patterns that might go undetected manually, helping businesses stay proactive and compliant with evolving regulations.
- Cyber Security and Data Protection: With growing data privacy concerns, businesses must comply with stringent regulations like the Digital Personal Data Protection Act (DPDPA), IT Act, and GDPR (for global operations). Tech-based compliance tools and solutions can integrate automated encryption, real-time threat detection, and secure access control to protect sensitive data. This can prevent unauthorised access, data breaches and regulatory fines, ensuring compliance with evolving cybersecurity laws.
- Organisation-Specific Compliance Mapping- Different industries face unique regulatory challenges. Regtech solutions, along with tech prowess, have regulatory expertise that is robust enough to adapt to any industry. Different sectors like BFSI, manufacturing, healthcare, and e-commerce have to comply with different requirements, therefore, the finalisation of the compliances checklist should be unique to each organisation.
Additionally, RegTech platforms are rigorously implementing AI into their systems to enable chatbot-like interfaces for compliance officers to get instant solutions to their compliance-based problems. Advanced regulatory technology (RegTech) solutions, powered by AI and machine learning, can enable organisations to efficiently track and interpret these updates across platforms. Technology-driven regulatory compliance solutions can empower organisations to efficiently manage their compliance obligations while optimising costs. By leveraging cutting-edge tools, these can help businesses stay ahead of regulatory changes and focus on their core objectives.
