Page 309 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

from reports and research paper publish by RBI and BIS.

Supplementary data: In addition to the reports mentioned, supplementary data was collected
from individual FinTech companies and traditional banks to provide a more comprehensive

and detailed picture of market share and consumer adoption rates in specific financial service
sectors. These supplementary data sources were used to supplement and validate the findings

from the sources.
Data Analysis: Market Share Analysis: Market share data for traditional banks (before and

after FinTech) and FinTech firms in different financial service sectors were analysed.

Interpretation of Results: The results of the data analysis and hypothesis testing were
interpreted to assess the impact of FinTech disruption on traditional banking institutions and

consumer behaviour.

Data Analysis and Discussion
1. Regulatory Updates:

i. RBI's Regulatory Sandbox: Retail and cross-border payments, first and second
cohorts: The first cohort, which began operations in November 2019, identified six

organizations by November 2020 to be tested for items pertaining to contactless
payments, phone-based payment services, offline payment solutions, etc.58.

September 2021 marked the conclusion of the first cohort's testing phase. The Rupee

Drawing Arrangement (RDA) mechanism is used to route inward remittances to the
beneficiary's Aadhar number as a virtual bank account. The second cohort, which

opened in December 2020, shortlisted eight entities by September 2021 to test
products around facilitating the purchase of assets listed on foreign exchanges,

providing a common platform for outward remittances to the leading cross-border
payments providers.

ii. CBDC: To further promote financial digitisation and meet the increasing demand for

digital currencies, the finance minister launched CBDC during the Union Budget
2022 announcement. It is scheduled to debut in the first part of 2019. This

advancement could reduce the need for costly currency management and create a

more effective payments system. The fact that this measure does not require citizens
to have bank accounts should increase financial inclusion. It exhibits India's

propensity to keep up with international advancements and indicates the nation's
readiness to comply with international FinTech legislation. The RBI Act of 1934's

definition of a bank note is proposed to be changed by the Finance Bill of 2022. It
seeks to incorporate digital notes issued by RBI.

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