The central bank said it decided to set up the department to further focus and facilitate innovation in the Indian fintech sector. The new department has been created with effect from January 4, 2022, by subsuming the fintech division of DPSS, CO.
DPSS is the department of payment and settlement systems, which works on policy formation and authorisation of payment and settlement system operators in the country, among other things.
Along with identifying challenges and opportunities, the new fintech department will also provide a framework for further research on the subject that could aid policy interventions by the central bank.
According to the central bank, the fintech department will be administratively attached to the centralised administrative division (CAD) of the central office.
In 2020, the central bank released a framework for new umbrella entities (NUE) to increase competition in digital payments. The decision saw several industry heavyweights from Tatas to Reliance, and new-age companies such as Paytm and Ola, apply for the licence.
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