Meeting with FM 'consultative' and 'positive': fintech, startup executives

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Industry executives and startup founders expressed their satisfaction with the recently concluded meeting held by Finance Minister Nirmala Sitharaman, calling it ‘consultative’ and a ‘positive development’ towards finding solutions to challenges.

The meeting, which was called in the backdrop of the recent Reserve Bank of India (RBI) action on Paytm Payments Bank for violations of rules, called for the simplification and digitisation of Know Your Customer (KYC) norms for all fintech segments, day-long workshops with law enforcement agencies, and an assurance to address issues pertaining to cybercrime, among others.

“We explained lots of challenges which included funding, fintech models and partnership structures, issues related to foreign ownership, and so on. The spirit of the meeting was very consultative and focused on solutions,” a fintech executive said on the condition of anonymity.
 

Sitharaman, while chairing the meeting, stressed that ‘innovative solutions’ by fintech companies are essential to the financial services sector, Business Standard reported on Monday.

“Overall, suggestions and concerns were noted at the meeting. You had a chance to say your concerns and your views. Actions related to addressing concerns will come over a sustained period in a few views,” a person who attended the meeting said.

The finance minister added that companies must ensure strict compliance and adherence with regulations.

She has sought suggestions from fintech leaders to achieve greater ease of doing business and ease of living for consumers.

“The interaction with the Start-up and Fintech ecosystem partners was organised to enable free exchange of ideas to bolster and scale up operations to facilitate global competitiveness by enabling growth in the Fintech sector. India has approximately 10,244 Fintech entities, which is 3rd largest in the world,” the Ministry of Finance said in a press release.