- The Union Ministry of Finance in pursuance to the announcement made by the Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley in his Budget Speech 2018-19(Para 75), has constituted a Steering Committee on Financial Technology (Fintech) related issue under the Chairmanship of Secretary, Department of Economic Affairs (Shri Subhash Chandra Garg) on March 5, 2018.
- 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 are:
- 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;
- To analyse critically the regulatory regime spread over different entities that has impacted the growth of Fintech in India;
- 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;
- To develop regulatory interventions, e.g., regulatory sandbox model, that will enhance the role of Fintech in the sectors identified for focused interventions;
- To promote ease of doing business in the Fintech sector;
- 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.
- To work with Government agencies like UIDAI to explore creation and use of unique enterprise identification number;
- To consider international cooperation opportunities in Fintech with countries like Singapore, UK, China, etc.
