Reserve Bank of India (RBI) has established a new FinTech department, which before was under the Department of Payment and Settlement Systems (DPSS). DPSS focuses on policy development, and control of payment and settlement system operators in India.
According to central bank’s circular, the new division, formed on January 4, 2022, will expand innovation in India’s financial technology (FinTech) sector, find out its challenges and opportunities and tackle them at the right time.
The fintech unit’s foundations was laid in the Department of Regulation in 2018 to be the focal point in the RBI.
In the circular, the RBI said the new fintech unit would provide a ground for developing research on subjects that help interventions from the central bank.
According to the RBI, the department will handle all the things associated with expedition of innovations in the sector, causing good effects on the financial sector as well.
The division, headed by Ajay Kumar Choudhary, has become active while the central bank anticipates to address coordination of India’s planned central bank digital currency (CBDC). The RBI aims to clear non-regulated cryptocurrency and be active in the blockchain network.