FinTech
Regulatory Framework
Prelims:
Indian Economy
Mains:
GS
Paper II-E-Governance, GS Paper III-Science and Technology,
Indian
Economy
Current relevance:
The Government and the Reserve Bank of
India (RBI) have strengthened India's FinTech ecosystem through
enhanced regulatory frameworks, cybersecurity measures, consumer protection
initiatives, and AI-based fraud detection mechanisms.
Highlights:
1.
To curb the operations of fake or illegal loan apps,
following steps were taken,
i.
RBI has operationalized a directory on ‘Digital
Lending Apps (DLAs)’ on its website, to help customers verify whether a
lending app is associated with an RBI-regulated entity.
ii.
RBI issued the Digital Lending Directions, 2025,
providing a comprehensive regulatory framework for digital lending.
iii.
MeitY blocked 87 illegal loan apps under Section 69A of the Information
Technology Act, 2000.
iv.
Sectoral regulators have been empowered under the Information
Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2025
to direct the blocking of unlawful online content.
2.
Government Initiatives
i.
Continuous
engagement with internet intermediaries and messaging platforms to curb
unauthorised lending apps.
ii.
Indian
Cyber Crime Coordination Centre (I4C) proactively analyses digital lending
apps to detect fraudulent platforms.
iii.
Citizens
can report cyber fraud through:
·
National
Cyber Crime Reporting Portal.
·
National
Cybercrime Helpline – 1930.
iv.
SACHET
Portal and State
Level Coordination Committees (SLCCs) facilitate complaints against illegal
deposit-taking and unauthorised financial entities.
v.
Consumer
Awareness by RBI and Bank
·
SMS-based
awareness campaigns.
·
Radio
campaigns on cyber fraud prevention.
·
e-BAAT (Electronic Banking
Awareness and Training) programmes to educate customers about digital
banking risks and fraud prevention.
Source: PIB - https://www.pib.gov.in/PressReleasePage.aspx?PRID=2286607®=48&lang=1