Representation image | Photo credit: IANS
New Delhi: Aware of our times, RBI is setting up a fintech department to give impetus to innovation. RBI’s fintech department will also be in charge of regulating this hot space.
Recognizing the dynamic evolution of the financial landscape, the Indian banking regulator Reserve Bank of India (RBI) set up an internal fintech department a few days ago. ET Now has accessed the RBI internal circular that set up the fintech department as of January 4, 2022.
The circular states: “In order to put more emphasis on the domain and innovation in the fintech sector by following the dynamic evolving landscape, it was decided to create a fintech department within the bank. ”
In addition to providing a boost to fintech innovation, RBI’s new fintech department will focus on regulation. The circular specifies:
“This FinTech department will not only drive innovation in the industry, but will also identify associated challenges and opportunities and address them in a timely manner. The department will also provide an additional framework for further research on the subject that can aid policy interventions. Therefore, all issues related to the facilitation of constructive innovations and incubations in the FinTech sector, which may have broader implications for the financial sector / markets and falling within the competence of the Bank, will be addressed. with the FinTech department. All questions related to inter-regulatory coordination and internal coordination on fintech will also be handled by the Department. “
This department is expected to be headed by Ajay Kumar Choudhary, who was recently promoted to executive director of the RBI. He has worked for more than three decades in the areas of supervision, regulation, currency management, payments and settlements as well as other areas at the RBI.