The Reserve Bank of India (RBI) Governor Shaktikanta Das today emphasized that the preferred approach to achieving a balance between innovation and prudent regulation in the fintech sector is through self-regulation.
While addressing the Global Fintech Fest 2024, the Governor discussed the RBI’s pilot on the Unified Lending Interface (ULI), previously known as the Public Tech Platform for Frictionless Credit (PTPFC). ULI aims to enable lending institutions to offer frictionless, end-to-end digital credit by leveraging consent-based data and related services. The Governor noted that the RBI is now focusing on including other lenders, such as cooperative credit institutions, through NABARD. He highlighted the new trinity of JAM (Jan Dhan-Aadhaar-Mobile), UPI (Unified Payments Interface), and ULI (Unified Logistics Interface) as revolutionary steps in India’s digital infrastructure journey.
The Governor also emphasized the central bank’s focus areas, which include financial inclusion, deepening digital public infrastructure, consumer protection, cybersecurity, sustainable finance, and the global integration of financial services. He stated that the RBI is working to make UPI and RuPay truly global.
Additionally, the Governor mentioned that new Digital Public Infrastructures (DPI) could address emerging challenges such as fraud, cyber threats, data privacy, and other concerns. These infrastructures could also support the integration of advanced technologies like blockchain and AI to enhance security and efficiency in financial services.
The Governor highlighted that fintech will play a crucial role in advancing transition finance, climate finance, and nature-based solutions over the next two decades.