NEW DELHI: An inter-ministerial panel on fintech has recommended a comprehensive legal framework to protect consumers of digital services.
In a report submitted to Finance Minister Nirmala Sitharaman on Monday, the Steering Committee headed by the Economic Affairs Secretary also suggested the adoption of regulation technology by financial sector regulators to develop standards and facilitate adoption by financial services providers.
“It has also suggested that financial sector regulators develop an institutional framework for specific use-cases of Supervisory technology (or SupTech), testing, deployment, monitoring and evaluation,” the finance ministry said in a statement.
“The Committee also recommends a comprehensive legal framework for consumer protection be put in place early keeping in mind the rise of fintech and digital services,” it added.
Following the deliberations of the committee, it was considered necessary to have a nodal agency to coordinate developments across ministries and regulators in the area of financial technology (fintech).
A dedicated team on digital economy and fintech is being set up in the Investment Division, Department of Economic Affairs for coordination on fintech with relevant ministries, it said. The committee was constituted following the announcement made by the then Finance Minister Arun Jaitley in Budget 2018-19.