RBI to set up new fintech department to push innovation

Synopsis

In an internal circular, the Reserve Bank of India (RBI) said it decided to set up the fintech department to further focus and facilitate innovation in the Indian fintech sector.

Bengaluru: After setting up a financial technology unit back in 2018, the Reserve Bank of India (RBI) said it will now put together a separate fintech department in view of the sector’s rapidly changing landscape.

In an internal circular, the central bank said it decided to set up the department to further focus and facilitate innovation in the Indian fintech sector. “Accordingly, a new department has been created with effect from January 4, 2022, by subsuming the fintech division of DPSS, CO. The 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,” RBI said in the circular.

DPSS is the department of payment and settlement systems, which works on policy formation and authorization of payment and settlement system operators in the country, among other things.

Along with identifying challenges and opportunities, the new fintech department will also provide a framework for further research on the subject that could aid policy interventions by the central bank, RBI said in the circular, which ET has reviewed.

“Accordingly, if 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 purview of the Bank, will be dealt with by the fintech department,” it said.

According to the central bank, the fintech department will be administratively attached to the centralised administrative division (CAD) of the central office.

Source: The Economics Times