The Reserve Bank of India (RBI) has formed an inter-regulatory working group to study issues on financial technology and digital banking in the country.
"The Working Group has been set up in view of the growing significance of Fin Tech innovations and their interactions with the financial sector as well as the financial sector entities," the country’s central bank said.
The 13-member group, chaired by RBI executive director Sudarshan Sen, will scope the developments in the fintech industry, and how markets are adopting the new developments.
The group will also evaluate the opportunities and risks arising from fintech and how these can be used for supporting financial product innovation.
It will evaluate the implications and challenges for different financial sector functions including intermediation, clearing, payments being taken up by non-financial entities.
Moreover, the group will also examine cross country practices, and assess models of successful regulatory responses elsewhere.
The panel is expected to submit its report six months from the date of its first meeting.