The Reserve Bank of India ha set up a fintech department to focus on the rapidly changing landscape of the fast-emerging sector. According to an internal circular accessed by The Economic Times,” the central bank created the new department on January 04 by subsuming the fintech division of Department of Payment and Settlement Systems, Central Office (DPSS, CO)
The circular states, “With a view to give further focus to the area and innovation in fintech sector in keeping pace with the dynamically changing landscape, it was decided to set up a fintech department in the bank.”
As per the circular, apart from promoting innovation in the fintech sector, the new department will also identify the challenges and opportunities associated with it and address them in a timely manner.
The new department will report to the RBI’s centralised administration division and deal with all matters related to inter-regulatory and international co-ordination on fintech.
“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…”
Besides, it will also layout a “framework for further research on the subject that can aid policy interventions by the Bank.” RBI executive director Ajay Kumar Choudhary is likely to head the new division.