Overview of Banking and Fintech laws in India
Banking and Fintech in India
Banking and Fintech- Financial sector is a segment of the market which comprise of various institutions and firms whose sole purpose is to provide financial services to the commercial and retail sector. This sector usually comprises of industries such as the banking industry, insurance companies, real estate industry and investment firms. Fintech on the other hand is nothing but a financial sector enterprise tool that uses technology to improve and automate the use of financial services. Fintech is, as the word suggests, financial technology that business owners and consumers can use to better the management of various financial processes, operations by the use of specific algorithms and software.
The financial sector has recently built up in terms of efficiency owing to the new found affinity and use of ‘fintech’ based services that is making companies and organizations chart their day to day operation and processes with relative ease.
One of the finest examples as well as a separate and unique development in ‘fintech’ is the use of online currency such as Bitcoins and Cryptocurrency. Although the RBI had put forth its reservations on the usage of online currency way back in 2013 when Bitcoins were introduced in India and even had put a ban on Cryptocurrency or any other Virtual Currency.[1] Although RBI and its entities (regulated by RBI) had disassociated itself from online currency (Bitcoins), they have decided to promote and propagate the use of blockchain technology, which is a platform on which online currency operate.
To understand this area better, a few examples of consumer centric fintech are online insurance, mobile payment gateways & apps, crowdfunding platforms, budgeting apps etc. The financial industry is governed by commercial, banking and security laws; and with the addition of financial technologies (fintech), the industry even invokes IT and Intermediary laws and regulations for its governance.
Finance & Fintech
Financial sector is a segment of the market which comprise of various institutions and firms whose sole purpose is to provide financial services to the commercial and retail sector. This sector usually comprise of industries such as the banking industry, insurance companies, real estate industry and investment firms. Fintech on the other hand is nothing but a financial sector enterprise tool that uses technology to improve and automate the use of financial services. Fintech is, as the word suggests, financial technology that business owners and consumers can use to better the management of various financial processes, operations by the use of specific algorithms and software.
The financial sector has recently built up in terms of efficiency owing to the new found affinity and use of ‘fintech’ based services that is making companies and organizations chart their day to day operation and processes with relative ease.
[1] Available at: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11243
Related Posts
RBI issues circular Limiting Liability of Customers in Unauthorized Electronic Banking Transactions