The Reserve Bank of India (RBI) has set up an inter-regulatory Working Group to study the regulatory issues relating to Financial Technology (Fintech) and Digital Banking in India
The inter-regulatory Working Group will be headed by RBI’s Executive Director Sudarshan Sen and consist of 12 members. It will submit its report within six months from date of its first meeting.
It was constituted based on the recommendation of sub-committee of the Financial Stability and Development Council (FSDC) in view of the growing significance of Fintech innovations and their interactions with the financial sector as well as financial sector entities.
Terms of reference of Working Group
- Undertake a scoping exercise to gain a general understanding of the major innovations and developments, technology platforms involved in Fintech.
- Take into consideration how markets as well as the financial sector in particular are adopting new delivery channels, products and technologies.
- Assess opportunities and risks arising for the financial system from digitisation and use of financial technology.
- Suggest how these opportunities can be utilised for optimising financial product innovation and delivery for the benefit of customers, users and other stakeholders.
- Evaluate implications and challenges vis-à-vis various financial sector functions such as clearing, intermediation and payments being under taken up by non-financial entities.
- Chalk out an appropriate regulatory response with a view to re-aligning and re-orienting statutory provisions and regulatory guidelines for enhancing Fintech and digital banking.
- Also chalk out associated opportunities and simultaneously ways for managing the evolving challenges and risk dimensions.