The Reserve Bank of India (RBI) has released its Annual Report for 2023-24, which, among other things, unveils the central bank’s agenda for the FinTech Department for the coming year. Central to this plan is a significant expansion of the Central Bank Digital Currency (CBDC) pilots. The RBI aims to explore new use cases for the digital rupee, including offline functionality, programmability, cross-border transactions, and the tokenization of assets. These pilots will incorporate new designs and technological considerations, involving a wider array of participants to ensure comprehensive testing and development.
India, being the world’s largest recipient of remittances, stands to benefit greatly from the RBI’s initiative to commence CBDC pilots for cross-border payments. These pilots will be conducted both bilaterally and multilaterally to address key challenges such as turnaround time (TAT), efficiency, and transparency in international transactions.
The RBI also plans to launch a full-scale public tech platform that will integrate more financial institutions, data service providers, and a broader range of product offerings. This platform aims to enhance the accessibility and functionality of digital financial services across the country.
The RBI will set up a repository to capture essential information about FinTech companies and technology-related activities. This repository will help the RBI monitor and understand developments within the FinTech ecosystem more effectively.
In a move to foster innovation, the RBI will conduct the next global hackathon, HARBINGER 2024. This event is expected to attract global talent and stimulate the creation of cutting-edge financial technologies. Furthermore, under the sixth cohort of the Regulatory Sandbox (RS), the RBI will test new and innovative products, services, and technologies to ensure they are safe, reliable, and beneficial for consumers.
The RBI will also focus on identifying and developing Supervisory Technology (SupTech) and Regulatory Technology (RegTech) tools. Proofs of concept and working prototypes will be developed to enhance the efficiency and effectiveness of supervisory activities and regulatory compliance in the financial services sector.
