RBI Governor Shaktikanta Das Talks About Fintech Self-Regulation and UPI at Global Fintech Fest
RBI Governor Shaktikanta Das emphasized the importance of self-regulation for the fintech sector at the Global Fintech Fest in Mumbai. He highlighted the role of Self-Regulatory Organisations (SROs) and announced the recognition of the Fintech Association for Consumer Empowerment (FACE) as an SRO-FT. Das also discussed the success of UPI in India and its potential for global adoption, along with the future focus on digital financial inclusion, consumer protection, and cross-border payment systems.
Key Points from the Speech
Self-Regulation in Fintech
Das believes that self-regulation is the best approach for the fintech sector. He mentioned that SROs, which include industry participants, can provide practical and effective regulatory suggestions.
Recognition of FACE
Out of three applications for recognition as SRO-FT, the RBI has recognized the Fintech Association for Consumer Empowerment (FACE). One application was returned for resubmission, and the third is still under review.
Unified Payment Interface (UPI)
Das highlighted UPI as a key innovation driving India’s fintech sector. He mentioned that the government aims to extend the benefits of UPI globally, including deploying UPI-like infrastructure in other countries and facilitating QR code-based payments at international locations.
Future Focus Areas
Das outlined five key policy priorities: Digital Financial Inclusion, Digital Public Infrastructure, Consumer Protection and Cyber Security, Sustainable Finance, and Global Integration and Cooperation. Strengthening financial infrastructure, including cross-border payment systems, will be a key focus area.
Central Bank Digital Currency (CBDC)
India’s CBDC is currently in the pilot stage. Das mentioned the successful demonstration of its interoperability with retail fast payment systems like UPI and expressed willingness to cooperate with other nations in their CBDC efforts.
Doubts Revealed
RBI -: RBI stands for Reserve Bank of India. It is the central bank of India, which means it controls the money supply and interest rates in the country.
Shaktikanta Das -: Shaktikanta Das is the current Governor of the Reserve Bank of India. He is responsible for overseeing the country’s monetary policy and financial regulations.
Fintech -: Fintech is short for Financial Technology. It refers to new technology that aims to improve and automate the delivery and use of financial services.
Self-Regulation -: Self-regulation means that an industry or sector creates and follows its own rules and guidelines, rather than being controlled by the government.
Global Fintech Fest -: Global Fintech Fest is an event where people from around the world come together to discuss new technologies and trends in the financial sector.
Mumbai -: Mumbai is a big city in India, known as the financial capital of the country. Many important financial events and institutions are based there.
Self-Regulatory Organisations (SROs) -: SROs are groups that create and enforce rules for their own members. They help ensure that everyone in the industry follows good practices.
Fintech Association for Consumer Empowerment (FACE) -: FACE is a group that helps protect and empower consumers in the fintech industry. It has been recognized as an SRO-FT, meaning it will help regulate the fintech sector.
UPI -: UPI stands for Unified Payments Interface. It is a system in India that allows people to transfer money between bank accounts instantly using their mobile phones.
Digital Financial Inclusion -: Digital financial inclusion means making sure everyone has access to digital financial services, like online banking and mobile payments, especially those who are usually left out.
Consumer Protection -: Consumer protection involves making sure that people who use financial services are treated fairly and are safe from fraud and other risks.
Cross-Border Payment Systems -: Cross-border payment systems allow people to send and receive money between different countries easily and quickly.
