To make it easier to obtain thorough information about the Indian fintech industry, the Reserve Bank of India (RBI) has established a fintech repository. Data about different finance businesses, their business models, and technology use cases will be included in this repository.
In addition, RBI chairman Shaktikanta Das unveiled the Retail Direct Mobile App, the PRAVAAH platform, and the EmTech repository for regulated businesses including banks and NBFCs.
The Financial Repository’s launch :
On May 28, RBI chairman Shaktikanta Das announced the inauguration of the fintech repository. The goal of this repository is to offer comprehensive data about the fintech industry in India, including information on startups, their operations, and technology use cases. The aim is to augment the comprehension of the industry from a regulatory standpoint and facilitate the development of suitable regulations.
In order to support the development of suitable rules and raise regulatory awareness of the industry, the Economic Database will contain information about India’s financial technology sector.of view policies methods, an RBI stated in a statement. Policymakers and industry stakeholders will find the sector-level data, trends, and analytics provided by the repository to be advantageous.
The EmTech Repository’s introduction :
chairman Das also announced the establishment of the EmTech repository in addition to the fintech repository. This platform will monitor how RBI-regulated organisations, like as banks and non-banking financial firms (NBFCs), are implementing cutting-edge technology like blockchain, artificial intelligence (AI), and machine learning (ML). The EmTech collection intends to monitor technological innovations and their deployment within the financial sector.
A wholly-owned subsidiary of the Reserve Bank of India, the Reserve Bank Innovation Hub (RBIH) oversees the secure web-based applications that house the fintech and EmTech repositories.
To guarantee complete and current data, the central bank aggressively invites fintechs and regulated organisations to contribute to these repositories.
Two more launches: the Retail Direct mobile app and the PRAVAAH portal :
The RBI governor also introduced the Retail Direct Mobile App and the PRAVAAH platform during the ceremony. The PRAVAAH portal is made to make it easier for people and organisations to apply online for all kinds of regulatory approvals. Conversely, the Retail Direct Mobile App will improve users’ access to financial markets by enabling easy investment in government securities.
Context and Importance :
In December 2023, the RBI announced the fintech repository as part of their bi-monthly update. The repository is to give interested parties a one-stop shop to comprehend changes in the fintech ecosystem and acquire more in-depth knowledge about the companies involved.
This development coincides with the RBI’s heightened examination of the fintech industry in the wake of worries regarding corporate governance and the methods of evaluation that banks and fintech firms employ. The RBI recently ordered an unidentified card network to stop using cards for commercial payments to businesses that don’t take cards, with immediate effect.
The directive was sent through payment intermediaries. The RBI has also expressed concerns regarding the disbursement of gold loans through fintech businesses, highlighting the necessity of rigorous assessment procedures.
In conclusion :
The RBI has taken a big step towards encouraging openness, innovation, and regulatory compliance in the Indian financial sector with the opening of the fintech and EmTech repositories, the PRAVAAH portal, and the Retail Direct Mobile App. It is anticipated that these endeavours will yield significant insights and enable improved regulatory supervision, thereby cultivating a more robust and resilient fintech sector in India.