Ankur D Shah Date:28/Oct/2023
Assignment - 1
1. FSRLC, including diagram
The Financial Sector Legislative Reforms Commission (FSLRC), in its recently submitted report,
recognises systemic risk oversight as a key pillar of financial regulation i.e. systemic risk is a broad-
based breakdown in the functioning of the financial system, which is normally realised, by a large
number of failures of financial institutions or of a few highly integrated financial institutions, with
potentially serious consequences for the real economy. The FSLRC recommendation for developing
a well-articulated framework for systemic risk oversight is a major step towards modernisation of
regulatory architecture of the Indian financial sector and bringing it in line with the ever-evolving
global environment.
Below is basic workflow role by FSRLC:
2. List of Regulators and Functions according to FSRLC:
Functions Current Regulators Proposed Regulators
Monetary policy, Regulate RBI (Reserve Bank of India) RBI (Reserve Bank of India)
and Supervision of banks,
Regulate and Supervision of
Payment System
Regulation and Supervision SEBI (Securities & Exchange UFA (Unified Financial
of All Non-Bank and Board of India), Agency)
payments related markets, FMC (Forward market
Insurance, Pension, Commission),
Financing Rural IRDA (Insurance Regulatory
Development, Financing & Development Authority),
Micro, Small, and Medium- PFRDA (Pension Fund
Ankur D Shah Date:28/Oct/2023
Assignment - 1
scale Enterprises, Financing Regulatory & Development
Housing, Mutual Funds Authority),
NABARD (National Bank for
Agriculture and Rural
Development),
SIDBI (Small Industries
Development Bank of India),
NHB (National Housing
Bank),
AMFI (Association of Mutual
Funds)
Hear Appeals against RBI, SAT (Securities Appellate FSAT (Financial Securities
the UFA and FRA Tribunal) Appellate Tribunal)
Resolution work across the DICGC (Deposit Insurance Resolution Corporation
entire financial system and Credit Guarantee
Corporation)
Statutory agency for FSDC (Financial Stability FSDC (Financial Stability
systematic risk and Development Council) Development Council)
development
An independent debt New Entity Debt Management Agency
management agency
Consumer Complaints New Entity Financial Redressal Agency
3. Role of Fintech
Fintech is a term that combines “financial” and “technology,” referring to the use of
technology to deliver innovative financial products, services, and solutions. It encompasses a
wide range of technological advancements and applications that aim to improve and
transform traditional financial services. Fintech has disrupted traditional financial systems by
providing innovative alternatives to traditional banking, insurance, lending, payments,
trading and investment services.
Some of the key developments in technology underpinning in fintech are:
A: Data Focused technologies: - Analytics, AI and ML, Sensor based technologies, Biometrics
B: Front End Interface: - Intuitive User Interface, Gamification, Augmented and Virtual reality
C: Operational Excellence: - Robotic Process Automation, Chatbots
D: Infrastructural Enablers: - Cloud, Open APIs
It has enabled individuals and businesses to access financial services conveniently, often
through digital platforms, bypassing the need for physical branches or intermediaries also by
focusing on enhancing customer experience, simplifying complex financial processes, and
reducing costs. These technological advancements have not only transformed the way
financial transactions are conducted but have also improved financial inclusion, enabling
Ankur D Shah Date:28/Oct/2023
Assignment - 1
individuals who were previously underserved by traditional financial institutions to access
and benefit from financial services.
Examples of fintech innovations are:
1. Mobile payment apps,
2. Peer-to-peer lending platforms,
3. Robo-advisors for investment management,
4. Crowdfunding platforms,
5. Digital wallets,
6. Blockchain-based cryptocurrencies etc...
Fintech has gained significant traction globally and has attracted substantial investment and
attention from both traditional financial institutions and venture capitalists. The industry
continues to evolve rapidly, with new players and technologies emerging constantly,
reshaping the financial landscape and challenging established norms.
