Earlier last month, Prime Minister Narendra Modi emphasized the importance of transforming fintech initiatives into a fintech revolution to provide financial empowerment to all citizens. This notion led to the founding of the FinTech Department at the Reserve Bank of India. We believe it is a positive step to ensure that the authorities properly service the Fintech sector, and that the sector will gain more trust and thrive faster with the proper framework. It will assist in promptly recognizing and addressing the sector’s difficulties and developing opportunities in the right direction. The initiative will help FinTech companies find it easier to innovate and create new products to serve their clients better. Based on this excellent decision to make in the FinTech department, the sector anticipates more positive developments in the upcoming Budget FY 22-23.
Mr. Mandar Agashe, Vice-Chairman & MD, Sarvatra Technologies ltd.
We applaud the RBI’s foresight in creating a fintech division within its ambit. Thanks to digital banking, underserved populations now have improved access to banking services at the touch of a fingertip. Technology has been a significant facilitator in the rise of the digital economy, allowing it to reach out to far-flung locations. The RBI’s progressive move will aid in fostering innovation and accelerate digitization of technology and adoption of new delivery channels and product offerings across levels.
The new fintech department working closely with fintech providers representing the fintech ecosystem, will play a crucial role in re-aligning regulatory guidelines, chalking out industry responses while exploring new opportunities. Over the last two years, there has been a massive adoption of digital payment systems in India. This move by RBI will go a long way in strengthening the country’s fintech infrastructure to encourage the introduction of path-breaking services similar to Immediate Payments Service (IMPS), Unified Payments Interface (UPI). This will eventually improve and automate the delivery and usage of financial services across the eco-system.
Mr. Joginder Rana, Vice-Chairman & MD, CASHe
We wholeheartedly welcome this very progressive move by the RBI. Fintechs will continue to play an important role in the financial inclusion of the masses in the years to come and we will see path-breaking innovations in the lending and payments sector. As the fintech landscape is maturing, the industry is witnessing a rapid growth in financial entities and technology firms experimenting with a host of financial and technological solutions in a bid to address untapped segments and expand to newer markets. Therefore, setting up a separate FinTech department within RBI will aid in accelerating innovation and experimentation while driving transparency and the overall progress of the sector.
The new fintech department will play a significant role in representing industry members adequately and will provide a robust framework that will eventually empower the sector to stay on top of emerging trends. Besides addressing impending challenges in a timely manner, this will also help drive opportunities for both incumbent market participants and newcomers alike while empowering every citizen.
Anand Kumar Bajaj, Founder, MD & CEO, PayNearby
The Reserve Bank of India (RBI) has always nurtured innovation and created frameworks to support technological adoption in the financial community. After the Committee on Deepening of Digital Payments (CDDP), Reserve Bank Innovation Hub (RBIH), and Regulatory Sandbox (RS), the setting up of a ‘fintech department’ is yet another encouraging step in this direction.
India is all set to become Asia’s top fintech hub with an 87% adoption rate compared to the global average of 64%. We are on the cusp of a digital revolution and are thankful to have a regulator who is far-sighted and proactive. The fintech department by RBI, will not only focus and facilitate innovation in the sector but will also recognize the challenges and opportunities associated with it and address them promptly. The department comes at an opportune time to guide us better and provide a solid foundation for fintech companies to fall back on. This initiative will be key to empowering the fintech sector while propelling the growth of the Indian economy.
Over the years, India has seen quantum progress in the adoption of fintech services in terms of speed and scale. The defined department will make it easier to get policies developed and implemented on time, garnering consumer trust. Spearheaded by RBI, we are hopeful that the industry will expand and penetrate newer areas in financial developments, helping India leapfrog into the next orbit. Zidd Aage Badhne Ki!