Steering Committee on Fintech-related issues submits final report to FM

Steering Committee on Fintech-related issues submits final report to FM

Agency News

New Delhi, Sep 2 : The Steering Committee on Fintech-related issues, constituted by the Ministry of Finance, submitted its final report on Monday.

Union Finance and Corporate Affairs Minister Nirmala Sitharaman received the findings of the Committee, which was constituted, in pursuance to the announcement made by then Union Minister of Finance and Corporate Affairs Arun Jaitley, in his 2018-19 Budget speech.

The report outlined the current landscape in the Fintech space globally, while in India, it studied the various issues relating to its development and made recommendations, focusing on how fintech can be leveraged to enhance the financial inclusion of MSMEs, with a view to making fintech-related regulations more flexible and generate enhanced entrepreneurship.

It also identified application areas and used cases in Governance and financial services and suggested regulatory upgrades enabling fintech innovations. The panel recommended that Reserve Bank of India may consider development of a cash-flow based financing for MSMEs, development of an open-API MSME stack based on TReDS data validated by GSTN and a standardised and trusted e-invoice infrastructure, designed around TREDS-GSTN integration.

It also recommended that insurance companies and lending agencies be encouraged, to use drone and remote sensing technology for crop area, damage and location assessments to support risk reduction in insurance/lending business.