The Reserve Bank of India (RBI) has set up an internal fintech department to focus on the dynamically changing financial landscape in the country. As per a recent internal RBI circular, the fintech department was created on January 4, 2022.
"With a view to give further focus to the area and innovation in the fintech sector in keeping pace with the dynamically changing landscape, it was decided to set up a fintech department in the bank," states the circular.
Apart from giving a thrust to fintech innovation, the new department of the central bank will look into regulations as well.
The circular further states that the new 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," the circular read further.
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