Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
With the rapid change in technology and customer expectations, the regulatory authorities are constantly taking steps to recognize the changes that are taking place. To look into the matters on the important aspects of Fintech and its implications, RBI has set up an inter-regulatory Working group to review the regulatory framework and to look into the dynamics of the increasing growth of the Fintech scenario.
Further, for live testing of innovative products in the areas of retail payment and wealth management, RBI has permitted the institutions and banks to set up Regulatory Sandbox. i.e. reviewing the new products or services in a regulatory environment for which regulatory authority may /or may not permit certain relaxations. To collect evidence on the benefits and risks of new financial innovations, the Regulatory Sandbox permits the regulatory authorities, financial service providers and customers to conduct field tests, while carefully monitoring and considering their risks.
For developing the Fintech in the Indian Market, RBI has introduced the “Unified Payment Interface” in collaboration with NPCL (National Payments Corporation of India). NPCL was structured with guidance from RBI and IBA (Indian Banking Association). The introduction of UPI played an impulse role in the Fintech penetration and financial inclusion in the country.
The Unified Payment Interface facilitates the user to access their bank account through an application on their smartphone or any other smart device. The UPI enables the seamless transaction of digital payments in India using a single channel of authorization for both banks and consumers.
Also, Read: Fintech is shaping the future of Banks READ RBI’s Directions are Statutorily Binding over Financial Institutions like SIDBI: SC.
An initiative is taken by Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) for operating retail payments and settlement systems in India, under the provisions of the Payment and Settlement Systems Act, 2007 termed as National Payments Corporation of India (NPCI)with the main motive of creating a robust Payment & Settlement Infrastructure in India.
NPCI has been incorporated as a not-for-profit company under the provisions of Section 8 of Companies Act 2013, NPCI has been set up with the intention-
For enhancing the payment structure in India, the Reserve Bank of India has introduced the Bharat Bill Payment System. RBI has 33 entities for Bharat pay operating unit under the BharatPay Payment System to establish an integrated bill payment service platform in India. In India, Bharat Bill Payment System is a unified bill payment system which offers to the customers an accessible bill payment system through various modes-
In India, there was a need for a centralized bill payment system having a PAN India presence. This need led to the development of the Bharat Bill payment system by Reserve Bank of India. Bharat Bill payment system has provided various modes for making instant payment through-
Furthermore, few initiatives have been taken by the government to provide a strong infrastructure for fin-tech companies. To tackle the issues related to cybersecurity, the Government has also released a report of the working group for setting up a computer emergency response team in the financial sector.
By recognizing the need for new technologies and innovations, RBI and the regulatory authorities are very observant in creating the Fintech ecosystem. Taking into consideration various discussions with the government and various industry participants, Reserve Bank of India has released the peer to peer lending directions. The framework established by the RBI has enabled the innovations in the Financial technology which has provided a platform to the Fintech to test their applications in a flexible manner in front of their customers.
Read More: Impact of Financial Technology Companies on Indian Economy.
SEBI, the regulatory body for markets, has directed stockbrokers to establish an institutional...
If you have lost track of your shares in Muthoot Finance Limited, they may have been transferre...
Customer Acquisition is essential for any successful organization, placing customers ahead of p...
The role of AMFI in NRI SIP investments is continuously growing in the Indian mutual fund marke...
India’s Financial Intelligence Unit has introduced a groundbreaking upgrade to its informatio...
Are you human?: 1 + 3 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
The Reserve Bank of India recently issued the framework for geo-tagging of payment system touchpoints. The RBI had...
13 Sep, 2022
The Reserve Bank of India recently extended the deadline for the implementation of new rules for payment gateways a...
06 Apr, 2021