Brief Overview:
The RBI through the Statement on Developmental and Regulatory Policies issued on 8th December 2023, has indicatedintroduction of regulatory measures/framework, inter alia relating to connected lending and web-aggregation. Further, RBI proposes to introduce cloud facility for the financial sector and fintech repository.
Technical Details:
1) Framework for connected lending: RBI to introduce a unified regulatory framework for connected lending across all regulated entities to address moral hazard concerns and ensure uniform application.
2) Web-Aggregation of loan products: Loan aggregation services offered by the Lending Service Providers (LSPs) to come under a comprehensive regulatory framework.
3) Cloud Facility for the Financial Sector: RBI to offer a cloud facility for financial sector data, enhancing security, privacy, and scalability, operated initially by ‘Indian Financial Technology & Allied Services’ and later transferred to a separate entity owned by financial participants.
4) Fintech Repository: Reserve Bank Innovation Hub to operationalise Fintech Repository in April 2024 to gather information about FinTechs, including their activities, products, technology, and financials.
For further details, please see:
Statement on Developmental and Regulatory Policies
https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR14394EFBF875D503441E86C3286954A446F7.PDF
For any queries/clarifications, please feel free to ping us and we will be happy to chat:
● Mr. Ankit Sinha (ankit.sinha@jclex.com)
● Ms. Rupul Jhanjee (rupul.jhanjee@jclex.com)
