This fintech department will not only promote innovation in the sector but also identify the challenges and opportunities associated with it and address them in a timely manner.
The Reserve Bank of India has set up an internal department for fintech, ET reported citing a circular issued by RBI on January 4, 2022. According to the report, Ajay Kumar Choudhary, who was recently promoted as the Executive Director of RBI, will head the department.
The circular states, “This fintech department will not only promote innovation in the sector but also identify the challenges and opportunities associated with it and address them in a timely manner. The department will also provide a further framework for further research on the subject that can aid policy interventions by the Bank. Accordingly, all matters related to the facilitation of constructive innovations and incubations in the fintech sector, which may have wider implications for the financial sector/markets and falling under the purview of the Bank, will be dealt with the Fintech Department. All matters related to inter-regulatory coordination and internal coordination on fintech shall also be dealt with by the Department.”
The development comes at a time when the central bank has been encouraging transactions through digital mode and revising policies for the ease of fintech companies.
Last week, the Central Bank revised its guidelines for fintech companies for accessing credit data bureaus and registering as customers.
Moreover, RBI Governor Shantikanta Das has also been indicative of setting up a department for fintech, in the past few months.