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Inter-ministerial panel on fintech

Topics Covered:

Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Inter-ministerial panel on fintech

 

What to study?

For Prelims and mains: Key recommendations, significance and challenges present.

 

Context: An inter-ministerial panel on fintech has submitted its report to Finance Minister.

 

Key recommendations:

  1. Put in place a comprehensive legal framework to protect consumers of digital services.
  2. Reserve Bank of India should examine issuance of ‘virtual banking licences’.
  3. Dematerialisation of fixed deposits, sovereign gold bonds and post office certificates to promote easy transactions and collateral.
  4. RBI should mandate banks to share crucial customer data after consent.
  5. Regulation technology (or RegTech) should be adopted by all financial sector regulators to develop standards and facilitate adoption by financial service providers.
  6. Fintech should be used to improve access of financial products for MSMEs, farmers and poorer sections of the society.
  7. Insurance companies and lending agencies should be encouraged to use drone and remote sensing technology for crop area, damage and location assessments to support risk reduction in insurance/lending business.
  8. Digitise land records across the country on a war footing.
  9. Set up of an Inter-Ministerial Steering Committee on fintech Applications in the Department of Economic Affairs (DEA) to monitor progress, including exploring and suggesting the potential applications in government financial processes and applications.

 

Sources: the Hindu.