InvestorQ : Can you elaborate on the new fintech department set up by the RBI?
Shreya Mashelkar made post

Can you elaborate on the new fintech department set up by the RBI?

riya Ranade answered.
4 months ago
The Reserve Bank of India released a circular on January 4th, 2022 announcing the setup of an internal department for Fintech to realize the growing opportunities in the sector. The new department has been set up by subsuming the Fintech division of DPSS (Department of Payment and Settlement Systems), responsible for authorizing payment and settlement system operators in India. This comes after the RBI set up a financial technology unit in 2018 aiming to digitize the financial sector through smart technology.

The new Fintech department will further push RBI’s efforts to facilitate innovation in the Indian Fintech sector. As per the circular, the newly set up Fintech department will promote innovation in the sector and identify the challenges and opportunities associated with it and address them in a timely manner. The department will also provide a new framework for further research on the subject that can aid policy interventions by the Bank.

This internal department will deal with 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 fall under the bank’s purview. It will also address matters related to inter-regulatory coordination and internal coordination on Fintech.

The Fintech department is likely to be headed by Ajay Kumar Choudhary who was recently promoted to executive director of the RBI. It is a step ahead of India’s increasing inclination to digitize financial transactions and create a user-friendly and transparent process.