The Reserve Bank of India (RBI) has unveiled plans for a new FinTech repository and a dedicated cloud facility, part of its recent developmental and regulatory efforts.
The proposed repository is designed to gather essential information about fintech companies, offering valuable insights for regulators and stakeholders. While voluntary, fintechs in India are encouraged to submit details about their operations, technology, products, and financials. The RBI aims to operationalize the repository by April 2024, overseen by the RBI’s Innovation Hub, anticipating that the collective data will contribute to informed policy-making.
Alongside the repository, the RBI is establishing a dedicated cloud facility for Indian banks and financial institutions. This shift from reliance on various public and private cloud services is expected to enhance data security and scalability in the financial sector. The cloud facility, initially managed by the RBI’s subsidiary IFTAS before transitioning to a sector-owned entity, is set for a phased rollout in the medium term, with no specific launch date announced.
Complementing these technological advancements are regulatory changes, including new guidelines for recurring online payments, exempting certain transactions up to ₹1 lakh from additional authentication. The RBI is also considering raising the transaction limit for payments to hospitals and educational institutions via the Unified Payments Interface (UPI) from ₹1 lakh to ₹5 lakh. Additionally, the RBI is addressing lending practices, working towards a unified regulatory framework for connected lending and comprehensive regulation for online loan comparison platforms. These measures aim to enhance transparency, customer focus, and informed decision-making.
Finally, the RBI is proposing to streamline the regulatory framework for all types of transactions in the foreign exchange market under a single directive. This move aims to improve operational efficiency and risk management, particularly benefiting entities with smaller exposure to foreign exchange risks. Overall, the RBI’s recent initiatives underscore its commitment to promoting data sharing, transparency, and collaboration within India’s financial sector.