Mumbai: RBI has established the Fintech department to facilitate innovation, and help identify and overcome challenges & opportunities in the new sector.
The central bank has appointed Ajay Kumar Choudhary, executive director, to lead the department.
All of the things related to inter-regulation and international coordination in Fintech will also be handled by the department, which will report to the Centrally RBI Administration Division.
It will also provide a framework for further research on subjects that can help policy interventions.
Most startups in Fintech have begun to operate as an unregulated entity.
The Senior RBI Management Committee meeting in June 2018 has resulted in the creation of Fintech units in the regulatory department.
In 2019, the RBI came out with a framework for sandboxes of regulation ‘to provide structured paths for regulators to engage with ecosystems and to develop innovation-enabling or responsive-responsive rules’.
The RBI has decided to encourage innovation especially with the aim of reducing financial service costs and increasing financial inclusion.
Like most Fintech activities are then in the field of payment, this unit is transferred to the payment department and settlement system in July 2020.
“To provide further focus to the area and facilitate innovation in the Fintech sector in dealing with dynamically the financial landscape, it was decided to establish the Fintech Department At the bank.
With the establishment of a new department starting January 4, 2022, the Fintech Division Istama under the payment department has been put into it, “RBI said in a circle.
“Therefore, all matters relating to facilitation of constructive innovation and incubation in the Fintech sector, which may have broader implications for financial sectors / markets and fall under PurView Bank, will be a circular sector / market,” The circular, “said.