Rajan was speaking at the second SBI banking conclave.
Reserve Bank Governor Raghuram Rajan today said it is closely monitoring the crowdfunding space to check if it poses any concerns, while it also called for an active "market intelligence" mechanism on crypto currencies.
"We are also looking at some of the crowdfunding issues to see whether they pose any concern. One of my worries about crowdfunding is that it works while going is good.
"But when you have to recover (funds), who is going to recover and does it happen, especially in an environment where enforcement is difficult in the first place," Rajan said at the 2nd economic conclave of SBI here.
The Governor also said that although RBI has not intervened in the crypto currencies, it has been watching them carefully.
"I would like to say that our philosophy is if it is small then let it develop, let us see how it works and then take a view. That was our attitude towards crypto currencies. It was very very small," he said.
Rajan said the RBI had put out warnings about the pitfalls of the crypto currency.
"... new models will come. We have to examine, and I would say we shouldn't intervene strongly until we understand it better. But we have to watch it, which means we have to be much more active in gathering market intelligence and in situation where it is clear that it is illegal, to bring it to the notice of law enforcement authorities," he added.
A large number of crypto currencies have come to the fore over the last few years, with most the popular of them being 'bitcoin'.
He said that RBI last year had strengthened the state level coordination committee significantly so that it can bring to their notice the fly by night operators.
The Governor also said that RBI depends on public for information and it is trying to develop sources to get information from public about miscreants.
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