This entry references the Gopalkrishna Working Group report which provides guidelines for consumer privacy, and liability of service providers.
Report of the High Level Task Force on Public Credit Registry for India
Directions regarding Registration and Operations of NBFC - Account Aggregators under section 45-IA of the Reserve Bank of India Act, 1934
The RBI Working Group on a regulatory framework for the Fintech industry recommended the introduction of an appropriate framework for a Regulatory Sandbox (RS) under the guidance of a financial sector regulator to increase efficiency, manage risks and create new opportunities for consumers.
An RS refers to a framework that enables live testing of new products or services in a controlled/test environment where regulations may be relaxed for the purpose of testing. An RS allows regulators, innovators, service providers and customers to observe and collect evidence on the benefits and risks of new financial innovations.
The proposed objective of this RS framework is “to foster responsible innovation in financial services, promote efficiency and bring benefit to consumers.” Additionally, the RS framework will be used to test only those financial services that include new or emerging technology, or use of existing technology in an innovative way.
The Financial Stability and Development Council - Sub Committee (FSDC-SC) set up a working group in April 2016 with the goal of examining “the granular aspects of FinTech and its implications so as to review and reorient appropriately the regulatory framework and respond to the dynamics of the rapidly evolving FinTech scenario.”
The Group included representatives from RBI, SEBI, IRDA, and PFRDA, from select financial entities regulated by these agencies, rating agencies such as CRISIL and FinTech consultants / companies.
This report examines Fintech innovations and their impacts on financial services, both globally and domestically. It also examines Fintech regulatory regimes implemented across foreign jurisdictions, and regulatory sandboxes initiatives. The report addresses emerging regulatory issues in the Indian Fintech ecosystem, and recommends solutions to address them.
The Reserve Bank of India constituted a High Level Task Force (HTF) on Public Credit Registry (PCR) – “an extensive database of credit information for India that is accessible to all stakeholders – that would help in enhancing efficiency of the credit market, increase financial inclusion, improve ease of doing business, and help control delinquencies”. The HTF drew its representatives from all relevant stakeholders in the area of credit data. The report presents an overview of the current availability of information on credit information in India and examines international standards and best practices. It also lists out the information requirements of the lenders for effective credit decision making and the expectation of all stakeholders from the PCR. Finally, it discusses and proposes high level information architecture of PCR, and provides recommendations.
The Reserve Bank of India issues these directions for compliance by every non-banking financial company undertaking the business of Account Aggregator. This law created a uniform definition for account aggregators, specifying their duties and responsibilities, as well as a uniform registration process for all account aggregators.
The Report of the Working Group on Information Security, Electronic Banking, Technology Risk Management and Cyber Frauds established by Reserve Bank of India prescribes guidelines for customer data confidentiality and service providers' liability in case of breach of security and leakage of confidential customer related information, Choice and Consent, security, Default termination, Encryption, Fraud Risk Management, etc.