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The Reserve Bank of India (RBI) has proposed setting up a fintech repository to capture essential information about fintechs, encompassing their activities, products, technology stack and financial information.
“Financial entities like banks and NBFCs in India are increasingly partnering with fintechs. For a better understanding of developments in the fintech ecosystem and to support this sector, it is proposed to set-up a Fintech Repository,” Governor Shaktikanta Das announced as part of the Statement on Developmental and Regulatory Policies.
FinTechs would be encouraged to provide relevant information voluntarily to the Repository, which will aid in designing appropriate policy approaches, the central bank said.
The Repository will be operationalised by the Reserve Bank Innovation Hub by April 2024, and necessary guidelines will be issued separately.
“A Fintech ‘Yellow pages’ can be a game changer for emerging fintechs to put themselves out there and increase their discoverability and visibility within the ecosystem and with the regulator. Such a repository will also help in designing policy approaches that will help a larger cross section of the ecosystem and impact more customers positively,” said Yashwant Lodha, Co-Founder, PayNearby.
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RBI said the initiative is being undertaken to ensure a resilient fintech sector and promote best practices, for which regulators and stakeholders need to have relevant and timely information on FinTech entities, including the nature of their activities and the use of emerging technologies such as Distributed Ledger Technology (DLT), and Artificial Intelligence / Machine Learning (AI / ML), among others.
“The proposed FinTech repository will serve as a critical piece of the regtech infrastructure and promote a culture of transparency among fintech firms in India, especially the digital lending sector. It will be an effective step in controlling financial risks, curtailing cyber frauds, and bringing predictability in the industry thus building a healthy lending ecosystem that benefits both borrowers and lenders. Overall, the close cooperation with the regulator will ensure better compliance and spur innovation,” said Ankit Ratan, CEO and Co-founder, Signzy.
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