Facts for Prelims (FFP)
Source: Moneycontrol
Context: The Reserve Bank of India (RBI) is in the process of setting up a cloud facility for the financial sector in India, aiming to bolster the security, integrity, and privacy of financial sector data.
- The facility will be similar to an Aadhaar or NPCI-like setup for domestic financial data and reporting
- Initially operated by the RBI’s subsidiary, Indian Financial Technology & Allied Services (IFTAS), the cloud facility will later transition to a separate entity owned by financial sector participants.
Other measures taken by RBI:
| Measures | Details |
| Enhancing UPI Transaction Limit | Proposed increase in UPI limit for payments to hospitals and educational institutions from ₹1 lakh to ₹5 lakh per transaction. |
| The current UPI limit is capped at ₹1 lakh, except for specific categories like Capital Markets, Collections, Insurance, etc., where the limit is ₹2 lakh. | |
| Setting up of Fintech Repository | The repository will be operationalized by the Reserve Bank Innovation Hub in April 2024 or earlier. |
| Regulatory Framework for Web-Aggregation of Loan Products (WALP) | WALP aims to increase transparency in the operations of loan aggregators. It involves aggregating loan offers from multiple lenders on an electronic platform, allowing borrowers to compare and choose the best available option for obtaining a loan from one of the lenders. |
