RBI Sets Up Sudarshan Sen-Headed Working Group on Fin Tech and Digital Banking [ Current Affairs ]
The Reserve Bank of India (RBI) has constituted an inter-regulatory Working Group to study the entire regulatory issues relating to Fin Tech (Financial Technology) and Digital Banking in India.
- Inter-regulatory Working Group will be headed by RBI’s Executive Director Sudarshan Sen.
- It will consist of 12 member and 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)
- Growing importance of Fintech innovations and their interactions with the financial sector and financial sector entities.
Terms of reference of the Working Group:
- Fintech is to undertake a scoping exercise to gain a general understanding of the major innovations and developments and also involved technology platforms.
- It’s also focus on how markets and the financial sector in are adopting new delivery channels, products and technologies.
- To evaluate opportunities and risks arising for the financial system from digitisation and use of financial technology.
- To suggest how these opportunities can be utilised for optimising financial product innovation and delivery for the benefit of customers, users and other stakeholders.
- To evaluate implications and challenges in various financial sector functions.
- Various financial sectors include clearing, intermediation and payments being under taken by non-financial entities.
- To write out an appropriate regulatory response with a view to re-aligning and re-orienting statutory provisions and regulatory guidelines for improving Fintech and digital banking.
- Working Group may invite views from representatives from any area relevant to its terms of reference and its discretion, choose entities in the payment, telecom, software and start up ecosystem.
- To write out associated opportunities and concurrently ways for managing the developing challenges and risk dimensions.
- Financial Stability and Development Council – Sub Committee (FSDC – SC) at its meeting decided to set up such a Working Group to look into and report on the grainy aspects of Fin Tech and its implications.
- The decision was made to review and properly regulatory framework and respond to the dynamics of the rapidly evolving Fin Tech development.
- Published on: July 18, 2016