Finance Minister Nirmala Sitharaman visited the office of digital fintech company Pine Labs in Noida on Tuesday and interacted with employees, indicating that the government wants to understand the challenges that fintechs face and help them grow. The FM stated that the government wants all states to accelerate their digitisation efforts.
Key Highlights
- The visit underscores policy initiatives to foster innovation, digital payments, and financial inclusion in the fintech sector.
- Pine Labs visit showcases government’s dedication to empowering fintech startups and advancing the nation’s digital transformation.
According to government sources, the FM will likely visit more fintech companies and global capability centers (GCCs) in various cities, including Bengaluru, Mumbai, and Hyderabad. According to sources, the feedback gathered will be used to inform the next round of major reforms as well as the Union Budget for the coming fiscal year.
"We want every state to speed up digitisation. We're also assisting them in expediting it. While providing 50-year interest-free loans to states for capital expenditures, we emphasize that we will incentivize states to digitize their records as soon as possible. So, we want digitisation to begin sooner and in all sectors," Sitharaman stated.
She went on to say that there was momentum towards digitisation, but it needed to be pushed even further. According to sources in the finance ministry, the government intends to develop future supportive policies for the fintech sector.
The government also wants to help the fintech industry export India's innovative solutions to other economies.
In response to a question comparing the Indian economy to a woman, Sitharaman stated that there is no struggle unless she chooses to have one. "She undoubtedly requires a great deal of support. She is nearing the age of 30, which is a highly productive age with a certain level of maturity but can also be a threshold for insecurity. However, there is no need to worry. India has expanded the scope of education. There is no other country where women have the same level of freedom as they do here."
The FM used Operation Sindoor as an example, claiming that India acted like a determined woman who would not let her citizens suffer.
A post by Sitharaman's office on the social media platform X highlighted how the FM recognized fintech firms' contributions to expanding the country's digital public infrastructure and enabling seamless, secure, and inclusive financial services for merchants and MSMEs.
In one of the posts, the FM's office highlighted her interaction with Kuldeep Chauhan, a mobile retailer from Uttar Pradesh's Hapur district, and how he had seen remarkable growth in his business as a result of the countrywide adoption of digital payments.
Another post by Amrish Rau, CEO of Pine Labs, stated: "Today was an exciting and unbelievable day. We had the opportunity to host our Hon. Finance Minister, @nsitharaman, to explore and understand fintech ideas! It was a full house, and our FM was completely engrossed in her interactions and technical discussions!"
To accelerate financial inclusion, the government prioritizes the development of digital public infrastructure (DPI).
An earlier report on DPI by India's G20 task force stated that digital public infrastructure should be universally applicable, but nations should be able to use plug-and-play models to maintain sovereignty and data ownership.
The report, which was completed during India's G20 presidency, included examples such as API Setu and the open APIs (application programming interfaces) published by India's Goods and Services Tax Network (GSTN).
In February 2024, the finance minister invited the heads of fintech firms, including Pine Labs, to discuss ongoing regulatory issues in the fintech sector.
