Regulations in the fintech industry have enabled India to become a global benchmark in fintech and unified payments interface (UPI)-based services are one such example, Harshil Mathur, CEO of full-stack financial services platform Razorpay, said on Monday.
Speaking to IANS, Mathur said that regulations have played a crucial role in driving innovation, financial inclusion and co-creating financial literacy.
“We firmly believe that regulations in the fintech industry have enabled India to become a global benchmark in the sector,” Mathur emphasised.
Transactions via the UPI platform surpassed the 100 billion-mark in 2023 to close at around 118 billion, representing 60 per cent growth as compared to 74 billion transactions recorded in 2022.
The total value of UPI transactions in 2023 stood at around Rs 182 lakh crore, up by 44 per cent as compared to Rs 126 lakh crore in 2022, according to latest data by the National Payments Corporation of India (NPCI).
Mathur said that the Digital India Stack is now a global benchmark for most countries, providing a competitive advantage for growing businesses.
“As the financial ecosystem and digital payment transactions grow, compliance and governance have to go hand in hand. Regulators have efficiently balanced innovation with risk management while they allow people to innovate,” Mathur stressed.
Currently, the key regulatory bodies that regulate fintechs in India are the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI) and the Securities and Exchange Board of India (SEBI).
The RBI last month released a 'draft framework for recognising Self-Regulatory Organisations (SRO) for FinTech Sector', laying down the characteristics of a fintech SRO, and includes the required functions and governance standards.
According to the Central Bank, “self-regulation within the fintech sector is a preferred approach for achieving the desired balance”.
The Razorpay CEO said that given the growing prominence of the fintech industry, “it becomes a must for companies to possess the right regulatory insights and uphold high responsibility to ensure compliance, creating a layer of trust, protection and shield for the entire financial ecosystem”.
When it comes to data, the digital P2M (person-to-merchant) payments market in the country is likely to reach $4 trillion by 2030.
Razorpay said it has achieved an annualised total payment volume (TPV) of $150 billion across its business verticals.
“Recognising the ever-expanding potential of startups, freelancers and enterprises, the company believes businesses today require an intelligent real-time financial infrastructure to scale with evolving payment and banking needs and diverse consumers and markets,” Mathur added.
India has the fourth-highest funded fintech startup ecosystem globally. The enterprise fintech industry in the country is poised to expand exponentially, with projections estimating a market size of nearly $20 billion by 2030.
According to a latest report by Chiratae Ventures, in collaboration with The Digital Fifth, investment in technology across financial segments is expected to witness high growth over the coming decade.
AdaniConneX establishes India's largest sustainability linked financing to raise up to $1.44 billion
In a bid to accelerate digital infrastructure growth in India, AdaniConneX, a JV between Adani Enterprises and EdgeConneX, on Sunday said it has established the country’s largest sustainability-linked financing to raise up to $1.44 billion.
Credit card data of 17K ICICI Bank users exposed; bank blocks cards, assures compensation
After credit card data of at least 17,000 new ICICI Bank customers was exposed and reached "wrong users", the bank said on Thursday that it has blocked these cards and is issuing new ones to the customers.
NDA rule has shown superior numbers on GDP growth, inflation, unemployment compared to UPA
The NDA rule of the last 10 years has shown superior numbers on GDP growth, inflation, CAD (Current Account Deficits), unemployment and FDI ex of pandemic year compared to the UPA regime, broking firm Prabhudas Lilladher said.
RBI crackdown triggers crash in Kotak Bank shares
The RBI had, on Wednesday evening, barred Kotak Mahindra Bank, with immediate effect, from taking on new customers and issuing fresh credit cards.
Kotak Bank promoter donated electoral bonds worth Rs 60 cr, but RBI cracks down on lender to protect customers
Infina Finance, one of the promoter group entities of Kotak Mahindra Bank which was barred by the RBI on Wednesday from onboarding new customers, had donated electoral bonds worth Rs 60 crore to the BJP.
RBI lists 6 factors powering India’s take-off to become world’s 3rd largest economy
While India’s recent growth performance has surprised many, triggering a flurry of upgrades from financial institutions such as the IMF, the RBI bulletin released on Tuesday cites six factors that will propel the country to become the world’s third-largest economy.
Sensex gains more than 300 points
BSE Sensex gained more than 300 points on Monday as geopolitical tensions eased and crude oil prices declined.
Direct tax collections shoot past budget target by Rs 1.35 lakh cr in 2023-24
The net direct tax collections, comprising corporate tax and personal income tax shot up to Rs 19.58 lakh crore in 2023-24, compared to Rs 16.64 lakh crore in the preceding financial year, representing a double-digit increase of 17.7 per cent.