In an interview with Rahul Joshi, Editor-in-Chief of Network18, on February 2, Finance Minister Nirmala Sitharaman expressed optimism about the fintech sector, even though she refrained from commenting on the ongoing Paytm crisis. She said that the government is still excited about fintech and would like to interact with more stakeholders in the field.
"I don't want to discuss any specific company in my comments. But we're all really excited about fintech as a field. India has made significant contributions to this field," the minister of finance stated.
The fintech industry's poster child, Paytm, was dealt a blow earlier this week by the Reserve Bank of India (RBI), which on January 31 placed stringent limitations on the business's banking partner, Paytm Payments Bank, after observing major inconsistencies and non-compliance issues.
The "abrupt" decision, however, has made many industry participants - particularly fintech startups - question the regulator's attitude towards the industry. On the other hand, the minister of finance praised the young people's contribution to the industry and gave an assurance that the government is excited about working in this field and pushing more modern businesses to keep expanding. She goes on to say that India's fintech innovation has gained international prominence, and many people are looking to the nation for financial technology solutions.
"India's contribution to the industry is acknowledged on a worldwide scale. When individuals search for fintech solutions these days, India comes up. Our young people have made significant contributions to their own self-improvement. Sitharaman stated, "We would definitely like to work with and encourage this area."
