Reserve Bank of India outlines plans for new fintech repository and cloud facility for FS firms

Fintech Repository and Cloud Facility:
- RBI plans to establish a fintech repository and a new cloud facility.
- Fintech repository to capture essential information for regulators and stakeholders.
- Indian fintechs encouraged to deposit data voluntarily by April 2024.
- Cloud facility aims to enhance security, integrity, privacy, scalability, and business continuity.
- Operation initially assigned to RBI’s subsidiary IFTAS, later to transfer to a separate sector-owned entity.
Regulatory Adjustments:
- Recurring online payments up to ₹1 lakh exempt from additional factor authentication.
- UPI caps increased from ₹1 lakh to ₹5 lakh for payments to hospitals and educational institutions.
- Unified regulatory framework for connected lending to address pricing and credit management.
- Web-aggregators of loan products (WALPs) brought under a comprehensive regulatory framework.
- Proposals for frameworks governing the hedging of foreign exchange (FX) risks.
Data-Driven Decision Making:
- Aggregated fintech data to aid in designing appropriate policy approaches.
- Emphasis on transparency, data sharing, and collaboration for better-connected financial sectors.
- Overall measures indicate a drive towards operational efficiency and risk management.