The Reserve Bank of India (RBI) announces a new FinTech department. The central bank of India has created this new department to handle all issues concerning Financial Technology in the country. The department is also responsible for promoting innovation in India's financial sector. A major goal is to create India's sovereign digital currency.
The Central Bank of India believes this move is pivotal due to the speed of progress in the Financial Technology ecosystem and the necessity to keep up with developments in the FinTech industry. As cryptocurrency enjoys growing global acceptance, the Reserve Bank seeks to tackle tax evasion issues through the department. The department aims to resolve this by setting up regulations on various financial services. Its other target is to build an App-based for lending to help elevate the economic burden on Indians by the COVID-19 pandemic. The department will also strictly supervise its activities, ensuring users adhere to guidelines in lending.
The opening of the new FinTech department will aid companies like Paytm, Mobikwik and BharatPe in their future service by requiring licensing before operation. Hence, creating regulatory rules that ensures all parties involved in the lending business and FinTech keep to their contract agreements. In turn, they are securing the data and funds of millions of Indians from fake loan companies.
India in focus
Population: 1.38 billion in 2020 as compared to 1.36 billion in 2019
GDP: $2.623 trillion compared to $2.871 trillion in 2019
GDP per capita: $1,900 in 2020 compared to $2,100 in 2019