The Indian government has constituted an inter-ministerial committee to address challenges faced by the country’s rapidly growing fintech sector. The panel, set up by the Department of Financial Services, includes representatives from key government bodies such as the Department of Economic Affairs, NITI Aayog, the Ministry of Electronics and IT, the Department for Promotion of Industry and Internal Trade (DPIIT), as well as regulatory authorities like the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).
In addition to government officials, the committee will also feature fintech industry leaders, including Lalit Keshre (Groww), Jitendra Gupta (Jupiter), Varun Dua (Acko General Insurance), and Ajay Kaushal (BillDesk). Their role will be to provide industry insights and help shape policies to support fintech innovation while ensuring compliance with regulatory frameworks.
The primary objective of this initiative is to assess the fintech sector’s growth, and its impact on banking, financial services, and insurance (BFSI), and identify hurdles faced by startups. The committee will also review regulatory developments and propose measures to create a more enabling environment for fintech innovation. A report is expected to be submitted within three months from its first meeting.
This move follows a series of regulatory actions by the government and RBI over the past few years. In 2023, the RBI increased risk weightage for consumer credit exposure of banks and non-banking financial companies (NBFCs). Furthermore, in a recent crackdown, the central bank penalized four peer-to-peer (P2P) lending platforms—Faircent, LEO1, Finzy, and Rang De—for non-compliance with regulatory norms.
The government has also been engaging with fintech firms and law enforcement agencies to strengthen cybersecurity and counter digital financial fraud. This committee aims to foster greater collaboration between policymakers and fintech innovators to ensure sustainable growth in the sector while maintaining financial stability and consumer protection.
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