The Reserve Bank of India (RBI) is in the process of setting up multi- disciplinary panel to explore the use of financial technology (fintech) in the country.
The committee will be headed by RBI executive director N.S.Vishwanathan, and will also include representatives from other regulators such as Securities and Exchange Commission of India, Insurance Regulatory Authority of India, banks and other stakeholders.
Vishwanathan said that the new panel would assess the kind of fintech currently evolving in India, what kind should be allowed to evolve, and how to create an ecosystem for the right kind of fintech. He cited that among the kinds of fintech currently being promoted by RBI include the Unified Payments Interface and the Bharat Bill Payments System.
Vishwanathan said that a key work of the committee would be to see that the development of fintech is consistent with the risks the country’s existing financial system could bear.
"There are some risks involved. What is clear is that it will result in financial dis-intermediation, and we have to see how the banking system should handle that," he said.
A recent report by KPMG India and Nasscom projects the Indian fintech market to double to $2.4bn from $1.2 billion in the next four years. The giant leap will be driven by increased penetration of digital banking services, smartphone use, and rising investor interest in fintech firms, the report said.