Govt. committee to redress FinTech grievances

The Centre on Monday announced the formation of a steering committee to examine issues faced by the FinTech industry in India.

The decision follows an announcement made by Finance Minister Arun Jaitley on the setting up of a group under the Finance Ministry that will help devise institutional development measures to spur growth of FinTech firms.

The new committee will be chaired by Subhash Chandra Garg, Secretary, Department of Economic Affairs, and will examine various issues pertaining to the FinTech space.

On February 1, Jaitley in his budget speech highlighted the need for FinTech start-ups to be empowered to fulfil the working capital needs of the micro, small, and medium enterprises (MSMEs) segment.

Owing to the large credit deficit of the aforementioned segment, Jaitley had emphasised that FinTech firms and NBFCs could drive the growth of MSMEs in India, and hence must undertake necessary steps to increase lending activity.