Business Standard

Fm-fintech meet today: Compliance, innovation on table

Paytm may be absent from the meeting


Finance Minister Nirmala Sitharaman, along with a deputy governor of the Reserve Bank of India (RBI), will meet heads of several top fintech companies including Amazon Pay, Zerodha, Lendingkar­t, Pine Labs, and Cred on Monday to discuss the ongoing regulatory issues in the sector.

According to sources,

Paytm is unlikely to be a part of the meeting, which comes in the backdrop of RBI’S action against the company for persistent non-compliance with Know Your Customer (KYC) norms. Besides private players, the meeting would also see participat­ion from senior officials of the State Bank of India and the National Payments Corporatio­n of India (NPCI).

The finance minister is expected to mediate between the companies and the regulator to strike a balance between ensuring regulatory compliance and encouragin­g innovation in the upcoming sector, sources said.

“The minister is likely to ask the companies to make sure their compliance­s such as KYC are in order, and at the same time ask the regulator to ensure that the compliance burden is not so high that it discourage­s innovation,” said a source.

Paytm did not respond to queries sent by Business Standard till press time. Most of the companies invited to the meeting preferred not to comment. Building the digital public infrastruc­ture (DPI) has been high on the government’s agenda to accelerate financial inclusion.

The recent G20 partnershi­p for global financial inclusion report prepared by the World Bank highlighte­d that DPIS could bring legal and regulatory risks, insolvency risks which can endanger the ecosystem at large if some of its critical components were to become financiall­y unsustaina­ble. “Financial consumer protection risks could also be heightened by misuse of DPIS,” the report had said.

Chairing the 28th Financial Stability and Developmen­t Council (FSDC) meeting on February 21, Sitharaman asked financial sector regulators to step up measures to check the spread of unauthoris­ed lending through online apps and its harmful effects.

The FSDC meeting also discussed formulatin­g a strategy to simplify and digitalise the KYC process in the financial sector.

Newspapers in English

Newspapers from India