Page 310 - IMDR JOURNAL 2023-24

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

iii. Master Direction on PPIs: To reach a larger customer base and continue to improve

financial inclusion, the RBI released new PPI rules in the final quarter of 2021. The
new rules aim to further analyze this payments segment, from establishing the idea of

small and full-KYC PPIs (formerly classed as closed, semi-closed, and open-system
PPIs) to requiring interoperability for full-KYC PPIs.

iv. The Regulatory Sandbox of IRDAI The IRDAI established a Regulatory Sandbox in
accordance with the RBI's Regulatory Sandbox program to allow businesses,

including FinTech solutions, to test novel use cases in a welcoming and controlled

setting. This sandbox's two primary areas of concentration are policyholder protection
and flexibility in meeting insurance industry regulations.

v. Enabling Video KYC The IRDAI allowed life and general insurers to onboard

potential policyholders using the video-based identification process (VBIP) in order to
streamline the KYC procedure and make it more user-friendly.

vi. The National Digital Health Mission (NDHM)94 of the Health Ministry and NITI
Aayog This plan, which was unveiled in September 2021, is to build the nation's

digital healthcare infrastructure. By creating open standards that the healthcare sector
can use, the government hopes to solve the fragmented nature of the Indian healthcare

system with NDHM. NDHM's features include digital health IDs that are specific to

each patient, telemedicine, e-pharmacy, digital doctors, integrated patient health
records, the national electronic facilities registry, and a digital health analytics

platform.

2. Disruption caused by FinTech in traditional Banking

The data illustrate the evolution of FinTech, significant changes in market share and

disruption caused in traditional banking. Before FinTech was introduce traditional bank had a
dominance of 85% market share in lending sector, 90% in payments sector and 95% in

wealth management sector. However, FinTech crash has reduce their market share to 70% in
lending sector, 60% in payment sector and 80% in wealth management sector. While the

FinTech companies capture 30% in lending sector, 40% in payments sector and 20% in
wealth management sector. A convincing trend can be observed in the level of adoption of

FinTech services by consumers.

Table 1

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