Govt. to Focus on Developing FinTech Among MSMEs

The Government has formed a Steering Committee to study issues relating to the development of Fintech space in India and its use to enhance financial inclusion of Mirco, Small and Medium Enterprises (MSMEs).

Under PM Modi’s leadership and Finance Minister Arun Jaitley’s vision the role of digital economy have already been highlighted. In his previous interactions with media, Mr. Jaitley had made it very clear that his ministry is aggressively working on ensuring the practice of digital transactions. There are are many policies and actions have taken in this direction. Demonetization and implementation of GST at such scale are among top such actions.

To consider various issues relating to the 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 compared to other emerging economies, an official release.

The Financial Technologies (FinTech) as an area is the most sought after area for bringing transparency and efficiency.

The Steering Committee will also focus on how Fintech can be leveraged to enhance financial inclusion of MSMEs, it added.

Union Minister of Finance and Corporate Affairs Arun Jaitley in his Budget Speech 2018-19 announced formation of a Steering Committee.

The steering committee is expected to be led by Economic Affairs Secretary Subhash Chandra Garg to look into issues relating to the financial technology sector. The move comes following an announcement by Finance Minister Arun Jaitley in the Union Budget 2018-19.

The committee will 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.