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India has taken robust measures to regulate fintech industry: Finance ministry official

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Indore, Nov 27 (PTI) Concrete steps have been taken to regulate the fintech industry in India as per the Financial Action Task Force’s recommendations to tackle money laundering and terror financing, a central government official said on Wednesday.

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India is among the few countries that are working on FATF recommendations to regulate the fintech industry, said Vivek Agrawal, additional secretary (department of revenue), ministry of finance, during the ongoing 41st plenary meeting of the Eurasian Group in Indore.

FATF leads global action to tackle money laundering, terrorist and proliferation financing.

The Reserve Bank of India (RBI) has also issued separate guidelines to regulate payment aggregators and payment gateways, he said.

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Agrawal is attending the five-day EAG meeting as the head of the India delegation. He is also the director of the financial intelligence unit (FIU) in India.

He said it is now mandatory for virtual asset service providers (VASPs) in the country to register themselves with the FIU.

“The development of financial technology is crucial for the growth of digital payment systems, but especially in view of the threats of money laundering and terrorist financing, the development of this technology has its own challenges as misuse of technology can lead to criminals committing cybercrimes and financial frauds anonymously,” he said.

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The finance ministry official said India’s fintech industry is currently leading the world.

“We want regulation to be done in such a way that it does not hamper the growth of the industry, enhances ease of doing business and the country remains a global hub of digital technology,” he said.

Before briefing the media, Agrawal attended a workshop organised by EAG and Asia/Pacific Group on Money Laundering (APG). Chairman EAG at the workshop on ‘Innovation Finance’, Yury Chikhanchin, and APG co-chair Mitsutoshi Kajikawa also attended.

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According to officials, about 200 foreign and 60 Indian delegates are participating in the EAG meeting, which will go on till November 29. These include representatives from the International Monetary Fund and the Asian Development Bank, he said. PTI HWP MAS NR

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