Fintech: Government sets up panel to make regulations more flexible

The committee will also focus on how Fintech can be leveraged to enhance financial inclusion of micro, small and medium enterprises, the ministry said.

Arun jaitley, Subhash Chandra Garg, Fintech., MSME industry, Customs duty, CBEC, Unique Identification Authority of India, Reserve Bank of India, RBI, Indian economy, UIDAI

The committee will also focus on how Fintech can be leveraged to enhance financial inclusion of micro, small and medium enterprises, the ministry said.

The finance ministry on Monday set up an 8-member Steering Committee chaired by the Department of Economic Affairs Secretary, Subhash Chandra Garg, to consider various issues related to Fintech for making regulations more flexible and promoting financial inclusion. The committee will also focus on how Fintech can be leveraged to enhance financial inclusion of micro, small and medium enterprises, the ministry said.

THE PANEL’S CONSTITUTION
The other members of the committee would include, the Ministry of Electronics and Information Technology Secretary, the Financial Services Secretary, the Ministry of Micro, Small and Medium Enterprises (MSME) Secretary, the Chairperson of the Central Board of Excise and Customs (CBEC), the CEO of the Unique Identification Authority of India and the Deputy Governor of the Reserve Bank of India.

FOCUS AREAS
The panel 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

It will 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

The government has also tasked the committee to analyse critically the regulatory regime spread over different entities that has impacted the growth of Fintech in India

The panel will develop regulatory interventions, promote ease of doing business in the Fintech sector, and consider means of using data with GSTN and data residing with information utilities such as Credit Information Companies (CICs), in open domain with a view to develop applications for financing of MSMEs.

UNIQUE ENTERPRISE ID NUMBER
The committee will further with government agencies like UIDAI to explore creation and use of unique enterprise identification number. It will consider international cooperation opportunities in Fintech with countries such as Singapore, UK and China.