New Delhi: In order to increase collaboration between the government and the business, Nirmala Sitharaman, the minister of finance, suggested on September 20 that financial technology providers should focus on areas like green financing as well as underrepresented demographic groups.
“There are opportunities for fintech players to play the role in a sustainable financial environment,” Sitharaman said in her address at the Global Fintech Fest. “Fintech may locate promising growth opportunities in India’s demographic growth transformation and with some players who can opt for full service offering to boost access for specific underserved demographic.”
The rapidly expanding fintech sector in India is being subjected to more regulation.
All digital lenders, including fintechs, banks, and non-banking financing businesses, have been ordered by the Reserve Bank of India to adhere to its standards by the end of November.
According to RBI Deputy Governor M Rajeshwar Rao, the digital lending framework is created to achieve a compromise between innovation and the protection of consumer interests.
The Reserve Bank of India has been instructed to create a “whitelist” of all legitimate lending applications as part of the finance ministry’s efforts to stop fraudulent lending apps. Others will face app store bans.
V Anantha Nageswaran, India’s senior economic adviser, remarked at the Global Fintech Fest that the next big thing in fintech would be cash flow-based loans to micro, small, and medium firms, based on GST invoicing, and leveraging account aggregators and united payments interface.
In the meanwhile, it’s important to make sure that cash-flow based lending apps don’t take advantage of borrowers. According to the advice, such apps must provide information to borrowers in their native tongues.
At the Global Fintech Fest, Finance Minister Sitharaman urged the industry to maintain ongoing communication with all levels of government.
“Distance brings distrust. So, cut the distance down. Have greater engagement with government. The greater the engagement, the greater the trust which gets built up,” she said.
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