(MENAFN- KNN India) New Delhi, Feb 27 (KNN) Finance Minister Nirmala Sitharaman has proposed a structured monthly dialogue between fintech firms, startups, and regulators, aiming to foster better communication and address industry concerns.
This proposal follows a meeting held in the wake of the recent Paytm controversy on Monday.
Despite the Paytm issue, there seems to be a general sense of stability within both the fintech sector and regulatory bodies.
India boasts a significant fintech presence, with approximately 10,244 entities, ranking third globally.
This underscores the importance of proactive regulatory measures to support the sector's growth.
During the meeting, it was suggested that the Financial Services Department should conduct day-long workshops with Law Enforcement Agencies (LEAs) to allow fintech ecosystem partners to voice their concerns.
Additionally, discussions included the rationalisation of lending costs for critical sectors and the facilitation of regulatory compliance for listed fintech companies.
The proposal for monthly meetings aims to provide a platform for startups and fintech firms to voice their concerns directly.
Sitharaman's suggestion entails regular virtual meetings between regulators and fintech stakeholders to discuss and resolve emerging issues.
Suggestions were made to streamline KYC processes and digitise operations across fintech segments.
Additionally, discussions included the rationalisation of lending costs for critical sectors and the facilitation of regulatory compliance for listed fintech companies.
Aadhar, UPI, and API Setu were acknowledged as pivotal enablers for startups, along with simplified incorporation processes and recognition of P2P lenders as NBFCs.
Despite concerns raised by some startup founders and fintech entities regarding recent RBI actions against Paytm, the meeting indicated overall confidence and stability in the sector.
Top executives from private sector fintech companies such as RazorPay, PhonePe, Google Pay, and Amazon Pay, along with officials from NPCI, attended the meeting.
Government representatives included Financial Services Secretary Vivek Joshi, MeitY Secretary S Krishnan, and RBI Deputy Governor T Rabi Sankar.
However, no representatives from Paytm were invited to attend the meeting, signalling a potential rift between the company and regulatory authorities.
(KNN Bureau)
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