Financial Services Secretary Vivek Joshi said on Tuesday that increased coordination between the government, regulators, the public, and the business sector is required to fully realize the potential of the start-up and fintech sectors.
Speaking at a half-day session here, Joshi stated that fintechs are increasingly focused on technology and innovation, and they gain the attention of regulators and law enforcement agencies (LEAs) as their firms grow over time.
While fintech groups highlighted operating modalities and critical obstacles for fintech companies, state LEAs discussed best practices for combating cybercrime and financial fraud, according to a finance ministry release.
During the event, the Indian Cyber Crime Coordination Centre (I4C) discussed topics such as mule accounts, ATM hotspots, hotspot branches, and fintech merchant misuse. The I4C also discussed its Citizen Financial Cyber Fraud Reporting and Management System.
The statement underlined that fintech companies may construct an indigenous transaction monitoring and anti-money laundering (AML) system tailored to the Indian fraud and crime landscape.
The workshop was organised jointly by the Department of Financial Services (DFS), Ministry of Finance, and I4C, Ministry of Home Affairs, in collaboration with LEAs, start-ups, and fintech ecosystem partners.
The session was held in continuation of Finance Minister Nirmala Sitharaman's recent interaction with start-up and fintech companies on February 26.
Some of the topics covered at the workshop included the role of technology in providing access to financial services, a strategy for controlling money mules, real-time monitoring of data infringement by both fintech companies and LEAs, and geotagging of digital transactions to track money trails.
Furthermore, regular audits of digital KYC for encouraging confidence and accountability, building a method for freezing and unfreezing accounts for faster recovery of cheated money, and developing a mechanism to secure data privacy and avoid data theft were all discussed.
The Gujarat, Haryana, and Uttarakhand police agencies, in collaboration with I4C, presented information on developing patterns in cybercrime and financial fraud, according to the release.
The workshop was attended by the heads of around 60 fintech companies, four fintech associations, 23 state police departments, CBI, ED, FIU-Ind and central government ministries and departments.
The session was also attended by regulators and other relevant authorities, including the Ministry of Electronics and Information Technology (MeitY), the Department for Promotion of Industry and Internal Trade (DPIIT), the Reserve Bank of India (RBI), and the National Payments Corporation of India (NPCI).
