The Institute of Development and Research in Banking Technology (IDBRT) is developing a blueprint of a technology that will help in better regulating the Blockchain and Fintech sectors. A team of specialists from IDRBT Hyderabad have developed such a blueprint that is in its alpha stage as of now. They are optimistic to make it ready to roll in the next 4-5 months.
According to A.S. Ramasastri, the director of IDRBT, the fintech sector is highly underregulated. Many other forums similar to fintech in India are also in a similar kind of situation. The current blueprint will work towards bringing the kind of discipline required for these forums to operate in a systematic manner, said Ramasastri.
As per the present situation, just because banks are routing the financial roadmaps of fintech companies well, they are able to operate with ease. However, a bank who is a party to a fintech company should do due diligence about that company, opined Ramasastri
RBI-led IDRBT has developed many technologies in India such as National Financial Switch (NFS), Structured Financial Messaging System (SFMS), Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). However, they just develop the technology and then hand it over to other parties for operationalizing it. For instance, they have handed over NFS to NPCI to manage. For