The Reserve Bank of India will be setting up a panel to see study financial tech companies and create an ecosystem for the same, executive director NS Vishwanathan said, as indicated by this PTI report. Vishwanathan added that the RBI needs to examine what kind of fintech should be developed, what developments should not be encouraged, and what the RBI should remain ambivalent on.
The RBI would be looking at a broad scope of areas including lending, insurance and transactions. The RBI panel will be likely be headed by Vishwanathan and will also include representatives from all financial regulators, stakeholders and banks.
Recently, the RBI said that it would be looking at capping customer’s liability in the event of online fraud. This was announced after minister of state for finance Jayant Sinha told Parliament that the RBI is working on a regulatory mechanism for customers to address customer grievance and liability issues arising out of frauds in electronic transactions.
Bharat bill payments operating units (BBPOUs): Last month, payment companies PayU, Oxigen and TechProcess Payments got an in-principle approval from the Reserve Bank of India (RBI) to setup a Bharat Bill Payments Operating Unit (BBPOU). The approval from the RBI will allow BBPOUs to connect with the central bill payments and settlement system called Bharat Bill Payment System (BBPS) of National Payments Corporation of India (NPCI). BBPOUs are units which can create an agent network and will be responsible for on-boarding billers and aggregators. In addition, they will be responsible for transaction handling, infrastructure development and application development, including APIs.
The BBPS intends to offer an interoperable and accessible bill payment services to customers through a network of agents, enabling multiple payment modes, and providing instant confirmation of payment.
Peer-to-peer lending to be regulated: Recently, the RBI issued a consultation paper where it would treat peer-to-peer (P2P) lending platforms as non-banking financial companies (NBFCs). The RBI is looking to regulate the sector with measures including requiring minimum capital of Rs 2 crore or prohibiting them from promising “extraordinary returns.” More on that here.