- The committee includes officials from the Reserve Bank of India (RBI), finance ministry, the Securities Exchange Board of India (SEBI) and the Insurance and Regulatory Authority of India (IRDAI).
Status of Fintech Industry:
i.In the last few years India has seen significant growth in the fintech sector owing to the rapidly digitizing consumer economy.
ii.According to a BCG-FICCI (Boston Consulting Group – Federation of Indian Chambers of Commerce & Industry) report, India’s fintech sector in 2020 is valued to be at $50-60 billion and it is expected to grow by 5 times to nearly $200 billion by 2025, making it one of the largest in the world. Click here to know more
Challenges under Fintech Industry:
i.The current committee is formed to regulate the upcoming fintech industries as they dont have full management details of the fintech entity.
ii.Fintech companies are step by step changing the conventional distributors and blurring the strains between totally different lessons of choices within the broader banking, insurance coverage and funding companies.
Recent Related News:
In April 2021, Aceware FinTech Services, a Kerala-based fintech services company, launched Kerala’s first neobank called Ace Money Neobank, in partnership with YES Bank and ICICI Bank.
About Financial Stability and Development Council (FSDC):
It was constituted under the Ministry of Finance in 2010. The Raghuram Rajan committee (2008) first proposed the creation of FSDC.
Chairman: Union Finance Minister (Current – Nirmala Sitharaman)