Here’s what the government can do for the fintech sector

By Adhil Shetty

The government will present the Union budget for the financial year 2022-23 on February 1. In each annual budget, policy changes that impact the common man are rolled out. In addition, the budget also responds to the concerns of various sectors of the economy. Now that the ongoing Covid-19 pandemic has also led to higher inflation, people and industry expect the relief measures to prevail over the upcoming budget and ease the post-pandemic financial pressure.

One industry that has played a prominent role in your financial life and deserves special attention from the government this year is the fintech sector. From doing your hassle-free KYC online to availing instant loans, fintech has reduced your physical interactions, eliminating bureaucratic hurdles.

Here is what I expect from the government sector for the fintech sector:

Support for the Fintech sector

The Reserve Bank of India (RBI) has taken many steps including the recent establishment of a dedicated fintech department and the release of the Digital Lending Task Force Report to streamline and promote innovations in the fintech lending space .

Digital aggregators or online marketplaces such as BankBazaar that work with banks and NBFCs already fall under RBI’s outsourcing guidelines. In this regard, some recommendations and comments have already been submitted via the FICCI industry forum. The fintech industry now expects the generous central bank support to continue to grow at a rapid pace as in the past and weather the economic gloom due to the ongoing pandemic.

Regulatory concerns

Now that the task force recommendations have already been published and a dedicated fintech department is also created, it is a good time for discussions and dialogues with the fintech industry to address some concerns. regulations.

Since these are new developments, industry input needs to be incorporated and more clarity is required from the apex bank for the smooth functioning and strong growth of the fintech and digital lending markets. Once again, we thank the RBI for their continued support and initiatives to drive the growth of fintech in the country.

(Adhil Shetty is CEO of BankBazaar.com.

Adhil Shetty is a guest contributor. Opinions expressed are personal.)