[Exclusive] RBI sets up a fintech dept; ET NOW accesses the circular

RBI sets up a fintech dept; ET NOW accesses the circular   |  Photo Credit: BCCL

New Delhi: Acknowledging the dynamically changing financial landscape, India's banking regulator Reserve Bank of India (RBI) has set up an internal fintech department a few days ago. ET Now has accessed the internal RBI circular that set up the fintech department from January 4, 2022. 

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." 

Besides giving an impetus to fintech innovation, the new fintech department of the RBI will look into regulations.

The circular states:  

"This fintech 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. 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. All matters related to inter-regulatory coordination and internal coordination on fintech shall also be dealt with by the Department."  

This department is likely to be headed by Ajay Kumar Choudhary, who was recently promoted to becoming an executive director at the RBI. He has over a span of three decades served in supervision, regulation, currency management, payments and settlements as well as other areas at the RBI.