The Indian government has taken several regulatory and supervisory measures to address issues related to fintech ecosystem, including digital lending platforms and payment aggregators.
The Government has been actively engaging with financial sector regulators and stakeholders regarding the challenges in the fintech ecosystem. In response, various interventions have been implemented over time.
The Reserve Bank of India (RBI) issued a Self-Regulatory Organisation(s) in the FinTech Sector (SRO-FT) framework on 30.05.2024 to establish and enforce regulatory standards, promote ethical conduct, and ensure market integrity.
RBI also issued Master Directions on Digital Payment Security Controls in February 2021, mandating banks to implement a common minimum standard of security controls for various payment channels like internet, mobile banking, card payment, etc. Additionally, the National Payment Corporation of India (NPCI) provides a fraud monitoring solution to all banks using AI/Machine Learning based models for Unified Payments Interface (UPI) transactions.
The Ministry of Electronics and Information Technology (MeitY) has notified the Digital Personal Data Protection Act, 2023 (DPDP Act) and DPDP Rules 2025 to protect personal data of individuals.
Furthermore, RBI introduced an enabling framework for Regulatory Sandbox in August 2019 which allows testing of new innovative financial products/services in a controlled regulatory environment with or without regulatory relaxation.
Source:
Press Information Bureau
