RBI committed to support innovation in fintech: Shaktikanta Das

MUMBAI: Reserve Bank of India (RBI) Governor Shaktikanta Das said on Tuesday the central bank is committed to support innovation in fintech sector while keeping in mind consumer protection.

"I wish to assure the FinTech community that the RBI will continue to encourage and support innovation. At the same time, we would expect the ecosystem to pay attention to governance, business conduct, regulatory compliance and risk mitigation frameworks," Das said while addressing the Global Fintech Festival (GFF).

"The fintech road ahead will witness ever-growing traffic in addition to the large number of existing players who are already there. It is, therefore, imperative that every player on this road follows the traffic rules for his/her own safety and the safety of others," he said.

The National Payments Corporation of India (NPCI), the Fintech Convergence Council (FCC) and the Payment Council of India (PCI) organised the event.

Referring to the importance given to the fintech sector, Das said, "We have also created a new FinTech Department in the RBI from January 2022 to give focused attention to this evolving and dynamic sector. The objective of this department is not only to promote innovation, but also identify the associated challenges and opportunities and address them in a timely manner."

All matters relating to facilitation of constructive innovations and incubations in the FinTech space, with wider implications for the financial sector and markets, are being dealt with by this department, in addition to inter-regulatory issues and international cooperation.

The financial services industry in India has seen enormous transformation. Products like internet and mobile banking, electronic funds transfer, UPI, Aadhaar e-KYC, Bharat Bill Payment System (BBPS), QR Scan & Pay, digital pre-paid instruments and similar other initiatives have transformed the traditional banking operations, the RBI Governor said.

Banking hours have been transcended. We now have digital-mobile-anywhere-anytime banking. While several initiatives originated from the industry, the government and the regulators have created an enabling ecosystem to promote the FinTech sector. Initiatives like Startup India, Digital India, India Stack, Account Aggregators, Peer to Peer (P2P) lending platforms and 24x7 digital payment systems have proved to be key enablers. The Fintech ecosystem in India has indeed evolved and is poised for a giant leap, he added.

Das emphasised on the need for giving proper attention to governance issues. "As we continue to support technological advancement and innovation, it is equally important that adequate attention is also placed on governance and conduct issues. At the end of the day, sustainability of any FinTech activity or business is about enhanced customer protection, better cyber security and resilience, managing financial integrity and strong data protection," he said.