RBI to set up new fintech department

Context

The Reserve Bank of India (RBI) has put together a separate fintech department in view of the sector’s rapidly changing landscape. 

What is this new fintec department?

• The fintech department of RBI will report to its central administrative division. 
• Going forward, more key tasks of this department would be to establish a framework for industry research, which in turn will help the central regulatory bank make policy interventions, as and when it deems fit.
• The new department has been created by subsuming the fintech division of DPSS, CO. 
• The department will not only promote innovation in the sector, but also identify the challenges and opportunities associated with it and address them in a timely manner.

DPSS

• DPSS is the department of payment and settlement systems.
• It works on policy formation and authorisation of payment and settlement system operators in the country, among other things.