Mumbai: reserve Bank of India have installed one fintech The department helps to identify and address challenges and opportunities in the new era, to facilitate innovation Area, Central bank Ajay Kumar Choudhary, Executive Director, has been appointed as the head of the department.
All matters relating to inter-regulatory and international coordination on FinTech will also be dealt with by the Department, which will report to the Centralized Administration Department of RBI. It will also provide a framework for further research on this topic that can aid policy interventions.
Most of the startups in fintech started off as unregulated entities. A fintech unit was created in the Department of Regulation as a result of a meeting of the RBI’s Senior Management Committee in June 2018. In 2019, the RBI came up with a framework for a regulatory sandbox, ‘to provide a structured avenue for the regulator to engage with the ecosystem and develop innovation-enabled or innovation-responsive regulations’.
RBI had decided to pursue innovation primarily with the aim of reducing the cost of financial services and improving financial inclusion. Since then most of the fintech activities were in the area of payment, the unit was transferred to the Department of Payment and Settlement Systems in July 2020.
“To give further focus to this sector and to facilitate innovation in the FinTech sector with the dynamically changing financial landscape, it was decided to set up a FinTech Department in the Bank. With the formation of the new Department with effect from January 04, 2022 The erstwhile Fintech Division under the Department of Payments has been subsumed therein,” the RBI said in a circular.
“Accordingly, all matters relating to facilitation of creative innovations and incubation in the FinTech sector, which may have cascading implications for the financial sector/markets and come under the purview of the Bank, shall refer the sector/market to the Department of FinTech,” the circular said.
All matters relating to inter-regulatory and international coordination on FinTech will also be dealt with by the Department, which will report to the Centralized Administration Department of RBI. It will also provide a framework for further research on this topic that can aid policy interventions.
Most of the startups in fintech started off as unregulated entities. A fintech unit was created in the Department of Regulation as a result of a meeting of the RBI’s Senior Management Committee in June 2018. In 2019, the RBI came up with a framework for a regulatory sandbox, ‘to provide a structured avenue for the regulator to engage with the ecosystem and develop innovation-enabled or innovation-responsive regulations’.
RBI had decided to pursue innovation primarily with the aim of reducing the cost of financial services and improving financial inclusion. Since then most of the fintech activities were in the area of payment, the unit was transferred to the Department of Payment and Settlement Systems in July 2020.
“To give further focus to this sector and to facilitate innovation in the FinTech sector with the dynamically changing financial landscape, it was decided to set up a FinTech Department in the Bank. With the formation of the new Department with effect from January 04, 2022 The erstwhile Fintech Division under the Department of Payments has been subsumed therein,” the RBI said in a circular.
“Accordingly, all matters relating to facilitation of creative innovations and incubation in the FinTech sector, which may have cascading implications for the financial sector/markets and come under the purview of the Bank, shall refer the sector/market to the Department of FinTech,” the circular said.
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