INDIA Trends and Developments Contributed by: Shilpa Mankar Ahluwalia, Himanshu Malhotra and Lidia K. Kharmih, Shardul Amarchand Mangaldas & Co
Shardul Amarchand Mangaldas & Co. Amarchand Towers, 216 Okhla Phase III Okhla Industrial Estate Phase III New Delhi Delhi 110020 India Tel: +9 11 4060 6060 Email: Connect@AMSShardul.com Web: www.amsshardul.com
Introduction Recent regulatory advancements in the Indian fintech sector have reshaped the landscape, addressing emerging challenges while foster - ing innovation. This article explores the pivotal areas that have come to dominate the fintech ecosystem, highlighting key regulatory updates and initiatives as well as industry shifts. These areas not only underscore the fintech sector’s evolution but also offer insights into the strategic direction of India’s financial technology domain. Digital Payments Increased adoption The digital payments ecosystem in India has seen tremendous growth in recent years, fuelled by continuous product innovation and consumer-centric financial solutions offered by fintech service providers. These advancements have not only improved convenience but also incentivised higher consumer adoption of digital payment systems. Recognising the transforma - tive role of digital payments in driving financial inclusion, the Reserve Bank of India (RBI) has introduced several regulatory measures over the past year. The key underlying themes fuelling regulatory intervention by the RBI over the past
year have been enhancing accessibility, inclusiv - ity and interoperability within the rapidly evolving fintech sector in India. A notable development is the integration of FASTag and the National Common Mobility Card (NCMC) into the RBI’s e-mandate framework. This integration allows automatic replenishment of funds when balances fall below a threshold set by the user, streamlining the process for commuters. Inclusivity has also been a focus, as seen in the Accessibility Standards and Guidelines for the Banking Sector issued by the Ministry of Finance in February 2024 (Accessibility Standards). The RBI observed that all sections of the popula - tion, including differently-abled individuals, are increasingly adopting digital payment systems. To ensure effective access to digital payments for differently-abled individuals, the RBI has urged banks and non-bank payment system providers to review and adapt their systems for increased accessibility and to incorporate appli - cable norms from the Accessibility Standards, while maintaining security standards.
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