RBI Governor Engages Fintech Leaders, Unveils Plans For Unified Lending Interface

New Delhi, Mar 6 (KNN) Reserve Bank of India (RBI) Governor Sanjay Malhotra met with representatives from fintech firms, payment system operators, industry associations, and self-regulatory organisations, emphasising the importance of responsible innovation and regulatory compliance, particularly for entities new to the regulatory framework. 

The central bank described this interaction as part of its ongoing series of engagements with the payments and fintech ecosystem.

During the meeting, Governor Malhotra acknowledged the significant contributions of fintech players to India's financial sector and broader economy, specifically recognising the role of payment system firms, account aggregators, and digital lending service providers. 

He reaffirmed the RBI's commitment to maintaining a consultative approach with industry participants, stating that the central bank values such engagement.

Industry representatives provided feedback on the evolving payments and fintech landscape, ongoing industry initiatives, and their expectations from the regulatory authority. 

In response, RBI officials outlined the central bank's strategic plan to strengthen digital public infrastructure and promote the development of a unified lending interface, conceptually similar to the Unified Payments Interface (UPI).

To facilitate more direct engagement with fintech firms, the RBI has launched the Finquery portal. This initiative aims to enhance communication channels, address regulatory concerns more efficiently, and promote both transparency and innovation within the sector. 

Concurrently, the central bank is focused on expanding use cases for the central bank digital currency (CBDC). In a notable development, Bank of Baroda recently introduced a model leveraging CBDC for small merchant loyalty programs.

During the discussions, RBI officials sought to address concerns that the central bank might be opposed to innovation, clarifying that recent regulatory actions were specifically targeted at addressing non-compliance in critical areas rather than impeding innovation. 

A key priority for the RBI is the detection of fraudulent transactions and the identification of mule accounts used for illicit activities. 

The meeting was attended by Deputy Governors M. Rajeshwar Rao, T Rabi Sankar, and Swaminathan J., along with several executive directors from the central bank.

(KNN Bureau)