RBI Sets Up New Fintech Department

13 Jan,22 9:30 am
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FinTech: Reserve Bank of India (RBI) has set up a separate internal department for fintech (Financial technology).

Key Points:

  • The new department has been created with effect from January 4, 2022.
  • It has been created by subsuming the fintech division of DPSS (department of payment and settlement systems), Central Office (CO).
  • The department will be administratively attached to the centralised administrative division (CAD) of the central office.

Who has been appointed as the head of the department?

  • Ajay Kumar Choudhary, who was recently promoted as the Executive Director of RBI was appointed as head of the department.

Functions of the new Department:

  • The new department will facilitate innovation and help not only to identify but also address challenges and opportunities in the fintech sector.
  • It will provide a framework for further research on the subject that could aid policy interventions by the central bank.
  • The department will deal with all matters related to inter-regulatory and international coordination on fintech and report it to RBI's CAD.
  • It will deal with matters related to the facilitation of constructive innovations and incubations in the fintech sector, which may have wider implications for the financial sector/markets and fall under the purview of the Bank.

About DPSS:

  • DPSS is the department of payment and settlement systems, which works on policy formation and authorization of payment and settlement system operators in the country, among other things.

About RBI:

  • The Reserve Bank of India (RBI) is India's central bank, which controls the issue and supply of the Indian rupee.
  • It carries out India's monetary policy and exercises supervision and control over banks and non-banking finance companies in India.
  • RBI was set up in 1935 under the Reserve Bank of India Act, 1934.
  • It was nationalized in 1949.
  • It is headquartered in Mumbai.
  • Note: It was first headquartered in Kolkata, West Bengal
  • RBI plays an important part in the Development Strategy of the Government of India.
  • The current Governor of RBI is Shaktikanta Das.

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