The Reserve Bank of India (RBI) set up an internal “FinTech department” for focusing on the dynamically changing financial landscape in India.

When was this department set up?

• As per RBI circular, the FinTech department was set up on January 4, 2022.
• Decision to set up the department was taken in a bid to further focus on the area and innovation in FinTech sector in keeping pace with dynamically changing landscape.

What is the purpose of this department?

FinTech department was created for following purposes:

1. To give a thrust to fintech innovation
2. To look into regulations.
3. To promote innovation in the sector
4. To identify the challenges and opportunities associated with the sector as well as to address such challenges.

Framework for research

The FinTech department will also provide a framework to conduct further research on subject that can aid the policy interventions by the Bank. Thus, the department will deal with all the matters related to facilitation of constructive innovations & incubations in fintech sector, which are having a wider implication for financial sector or markets and which falls under the purview of the Bank. It will also deal with matters related to inter-regulatory coordination and internal coordination on fintech.

Establishment of FinTech Unit

RBI had set up a FinTech Unit in the Department of Regulation after June 2018 to act as a central point of contact in bank for all activities associated to fintech.

Upgradation of FinTech Unit

Now, RBI had upgraded the “FinTech Unit” into a “FinTech department” with the aim of promoting innovation in the sector, identifying the challenges and opportunities related with it as well as addressing them in a time bound manner.