Updated February 26th, 2024 at 18:45 IST

Finance Minister Nirmala Sitharaman to meet fintechs today: What to expect?

The meeting comes on the backdrop of RBI putting curbs on listed fintech Paytm’s banking, other operations

Reported by: Business Desk
Nirmala Sitharaman | Image:Republic
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Finance Minister Nirmala Sitharaman is likely to meet as many as 20 fintech startups today, along with a deputy governor of the Reserve Bank of India to address ongoing concerns around the sector.

Listed fintech Paytm, which faces curbs from the RBI over its banking arm Paytm Payments Bank and linked features like wallets and FASTag, has not been invited, as per sources.

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The meeting is expected to persuade the FinTechs to comply with regulatory norms amid dealing with public money, but also discuss the issues put forth by the invited fintechs.

The fintechs invited to the meeting include Amazon Pay, Zerodha, LendingKart, Pine Labs, and Cred, as per reports.

The Finance Minister will act as a mediator between RBI and the fintech companies, as per an official cited in one of the reports.

The meeting is being seen as a step by the government to ensure that more fintechs do not come under the scrutiny of the central bank for KYC non-compliances.

Additionally, the Finance Ministry is looking to reassure startups that they will not face punitive measures if they operate within the ambit of law, as part of the outreach strategy mapped.

It is expected that this meeting will provide the fintech startups with a forum to engage with policymakers and regulatory authorities, to initiate and continue discussions on regulatory frameworks and compliance standards. It is intended to promote responsible innovation and bolster confidence in the sector.

Officials from the Finance Ministry and other government departments are also expected to be present in the meeting.

On January 31, the RBI had mandated Paytm Payments Bank to halt onboarding of customers after ‘persistent’ supervisory concerns which were serious in nature. The deadline to halt its wallet, FASTag and banking operations, was extended from February 29 to March 15.

The RBI has issued a 30-pointer guideline on business restrictions imposed on Paytm Payments Bank, for savings and current accounts, deposits and recurring payments, among other concerns.
 

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Published February 26th, 2024 at 10:33 IST