Union Finance Minister Nirmala Sitharaman nudges regulators, law enforcement agencies to allay fintechs’ concerns

Union Finance Minister Nirmala Sitharaman throughout an interplay with Start-Up and Fintech Entities, in New Delhi, on February 26, 2024.
| Photo Credit: PTI

Finance Minister Nirmala Sitharaman nudged India’s monetary sector regulators to maintain month-to-month conferences with fintechs to handle their concerns and mooted a day-long workshop with law enforcement agencies for such corporations to increase any points they might be dealing with.

Moreover, the Reserve Bank of India (RBI), and the Department for Promotion of Industry and Internal Trade (DPIIT) will work with the Ministry of Finance to look at points relating to change of possession holdings and management of listed fintech corporations to allow them to be in sync with regulatory compliance necessities.

These had been among the many key motion factors that emerged after an interplay with India’s prime fintech entities and the Payment Council of India chaired by the Minister on Monday, within the presence of prime officers from the ministries of Finance, DPIIT and Electronics and IT, in addition to the RBI.

Sources mentioned that fintech entities and start-up founders appeared unfazed by the challenges dealing with the Paytm Payments Bank Limited and its mother or father entity. “No Paytm-related anxiousness or concerns had been proven by business representatives on the assembly,” mentioned an official conscious of the deliberations.

While efforts to simplify and digitise Know Your Customer (KYC) norms throughout the fintech segments had been mooted, the necessity to rationalise price of funds for vital areas, together with precedence sector loans was additionally raised.  DPIIT Secretary Rajesh
 Kumar Singh knowledgeable that new patent examiners have been added to cut back the turn-around-time of patent functions. India has over 10,200 fintech entities.

“The Finance Minister famous the speedy progress of the Start-up and Fintech sector of India, particularly within the final decade, and welcomed strategies from the  FinTech leaders to obtain larger Ease of Doing Business and Ease of Living for customers,” an official assertion mentioned, noting that points relating to cybercrime will probably be suitably addressed within the new Digital India Act.