Sitharaman backs regular fintech-regulator meetups

Finance minister Nirmala Sitharaman has asked regulators including the Reserve Bank of India (RBI) to hold monthly meetings virtually to discuss and assuage any concerns of startups and fintech companies.

Emphasizing the importance of fintech innovations for the financial sector, Sitharaman also stressed on the need for compliance with regulations during a meeting with startups and entities in the fintech ecosystem.

The interaction in New Delhi on Monday was organized to enable free exchange of ideas and bolster operations to facilitate global competitiveness by enabling growth in the fintech sector, the finance ministry said in a statement.

The meeting came days after RBI barred Paytm Payments Bank from taking deposits and credits from customers for persistent non-compliance and material supervisory concerns.

Paytm founder Vijay Shekhar Sharma on Monday resigned as part-time non-executive chairman of Paytm Payments Bank ahead of the 15 March deadline to wind up its business.

Sitharaman noted the rapid growth of the startup and fintech sector in India, especially in the past decade, while welcoming suggestions from stakeholders to make doing business easier and improve the lives of consumers.

The finance minister also directed the department of financial services to organize workshops for law enforcement authorities, allowing fintech stakeholders to discuss topics including cybersecurity concerns.

Currently, India hosts 10,244 fintech entities, the third largest in the world. The number of startups has grown from about 300 in 2016 to over 117,000 in 2023, generating more than 1.24 million jobs, according to data from the Department for Promotion of Industry and Internal Trade.