Government constitutes a Steering Committee on Fintech related issues

The Government constitutes a Steering Committee on Fintech related issues to consider various issues relating to development of Fintech space in India with a view to make Fintech related regulations more flexible and generate enhanced entrepreneurship in an area where India has distinctive comparative strengths vis-à-vis other emerging economies.

In pursuance to the announcement made by the Union Minister of Finance and Corporate Affairs, Shri ArunJaitleyin his Budget Speech 2018-19, a Steering Committee has been constituted under the Chairmanship of Subhash Chandra Garg Secretary, Department of Economic Affairs(DEA), Ministry of Finance.

Objective: - To consider various issues relating to development of Fintech space in India with a view to make Fintech related regulations more flexible and generate enhanced entrepreneurship in an area where India has distinctive comparative strengths vis-à-vis other emerging economies. The Steering Committee will also focus on how Fintech can be leveraged to enhance financial inclusion of MSMEs.

Terms of Reference: The Terms of Reference of the Steering Committee will be as follows:-

i. To take stock of the developments in the Fintech sector globally, and in India, and arrive at a common shared understanding of the current state of play;

ii. To analyse critically the regulatory regime spread over different entities that has impacted the growth of Fintech in India;

iii. To consider how Fintech can be leveraged in critical sectors of the economy, especially financing of MSMEs, affordable housing, delivery of e-services to vulnerable sections, provision of land record management and other government services, access and adoption of digital payments, and to study the developments in these areas;

iv. To develop regulatory interventions, e.g., regulatory sandbox model, that will enhance the role of Fintech in the sectors identified for focused interventions;

v. To promote ease of doing business in the Fintech sector;

vi. To consider means of using data with GSTN and data residing with information utilities such as Credit Information Companies (CICs),etc in open domain with a view to developing applications for financing of MSMEs.

vii. To work with Government agencies like UIDAI to explore creation and use of unique enterprise identification number;

viii. To consider international cooperation opportunities in Fintech with countries like Singapore, UK, China, etc. (Source:PIB)