Fintech—India—Q&A guide
Fintech—India—Q&A guide

The following TMT practice note provides comprehensive and up to date legal information covering:

  • Fintech—India—Q&A guide
  • 1. What is the general state of fintech innovation in your jurisdiction?
  • 2. Do government bodies or regulators provide any support specific to financial innovation? If so, what are the key benefits of such support?
  • 3. Which bodies regulate the provision of fintech products and services?
  • 4. Which activities trigger a licensing requirement in your jurisdiction?
  • 5. Is consumer lending regulated in your jurisdiction?
  • 6. Are there restrictions on trading loans in the secondary market in your jurisdiction?
  • 7. Describe the regulatory regime for collective investment schemes and whether fintech companies providing alternative finance products or services would fall within its scope.
  • 8. Are managers of alternative investment funds regulated?
  • 9. Describe any specific regulation of peer-to-peer or marketplace lending in your jurisdiction.
  • More...

Fintech—India—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to fintech in India published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2020).

Authors: Kochhar & Co—Anuj Kaila; Stephen Mathias

1. What is the general state of fintech innovation in your jurisdiction?

India has been the hub of fintech innovation over the past few years, and reports suggest there are over 2,000 fintech start-ups at present in the country.

India is the world’s second most populous country, but a large percentage of the population has yet to take the benefit of true financial inclusiveness. Fintech companies have a unique opportunity to combine finance and technology to offer more effective financial solutions than traditional institutions.

Fintech innovation is taking place across various industry verticals, which include banking, payments, insurance, asset management, brokerage, etc. Fintech companies also focus on machine learning that analyses customer expectations and matches them with appropriate services.

With the advent of Aadhaar, a biometric-based identification project, the government can directly transfer subsidy-based payments to the bank accounts of holders without any third-party intervention. Aadhaar is also being used to meet know-your-customer (KYC) requirements in a cost-effective manner. However, a Supreme Court ruling in recent years over fears of privacy breaches of data with Aadhaar has derailed many fintech companies relying on the Aadhaar database for their businesses, and the law

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