Reserve Bank of India (RBI) will set up a fintech repository that will contain information about fintech entities, their activities, products, technology stack, financial information etc.
A repository will offer a consolidated platform for diverse data, negating the necessity for lenders to source information from multiple channels.
This information will be helpful to banks and non-banking financial companies (NBFCs) that are increasingly partnering with fintechs and will also aid in designing appropriate policy approaches, RBI said.
However, providing information to this repository will be voluntary, the central bank noted.
Reserve Bank of India (RBI) has proposed the establishment of a fintech repository. “This will be operationalised by the Reserve Bank Innovation Hub in April 2024 or earlier. FinTechs would be encouraged to provide relevant information voluntarily to this Repository.
The fintech repository holds the potential for various improvements in the . Firstly, it promises enhanced access to fintech information, offering a consolidated platform for diverse data, negating the necessity for lenders to source information from multiple channels. This streamlining of processes not only reduces operational costs but also significantly augments efficiency within the fintech ecosystem.
Additionally, the repository’s comprehensive compilation of an individual’s fintech profile facilitates better credit risk assessment for lenders. By providing a holistic view of a borrower’s financial health, it empowers lenders to make more informed credit decisions.
To ensure a resilient FinTech sector and promote best practices, regulators and stakeholders need to have relevant and timely information on FinTech entities, including the nature of their activities.
Today, FinTechs are using emerging technologies like Distributed Ledger Technology (DLT), Artificial Intelligence/Machine Learning (AI/ML), and so on. For a better understanding of the developments in the FinTech ecosystem with an objective to appropriately support the sector, it is proposed to set up a Repository for capturing essential information about FinTechs,” the central bank stated.
The repository will be operationalised by the Reserve Bank Innovation Hub by April 2024, RBI said.