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If you intend to register a Fintech company in India, this material may be in handy to you, as it addresses new regulatory issues in this country.

In recent years, the merger of finance and technology called Fintech has been growing rapidly. This term describes new technologies that aim to optimize the provision and use of all sorts of financial services using automation. These innovations have affected all areas of the financial industry with special emphasis on crypto activities, open banking, and cybersecurity. Legislators of all countries are taking active steps to regulate this disruptive area, India as well. 

Legislation aimed at regulating Fintech in India

The Payment and Settlement Systems Act (PSS) regulates financial business in India. In accordance with it, the Reserve Bank of India has developed:

  • Regulation on the supervision of payment systems;
  • Requirements for establishing a payment system in India, which covers issues such as defining payment system standards, authorization, payment instructions, etc.

New developments in financial technology regulation in India

Recently, the report of the Fintech Committee has been published. It summarizes the developments in the fintech space, in the world and in India in particular. The report provides recommendations for the implementation of Fintech in critical sectors of the economy. If you intend to start a financial business in India, it is worth noting that the main areas include support for small and medium-sized businesses to facilitate financial integration and ensure the digitization of key processes.

The Committee's recommendations include, inter alia:

  1. Ensuring equal access and implementation of Open Banking in India;
  2. Regulation of intangible financial instruments;
  3. Interdepartmental supervision of the Fintech industry;
  4. Assistance in the implementation of innovative business models.

The FinTech Inter-Ministerial Committee is also taking steps towards startups and projects to allow them to identify their customers (KYC) in real-time. The government wants to review existing KYC regulations to make the identification process more cost-effective.


Fintech regulation in India is being updated as the sector itself develops. At the moment, the Indian government is actively working on an international agreement through a joint working group to ensure cross-border cooperation in regulating the fintech sector.

That is why, before you set up an Indian Fintech company, it is important to study the current legal requirements for the chosen type of activity. If you have any questions on this topic, please contact us directly to obtain updated information as part of a personal consultation. Please fill out the form below or use the data in the Contacts section.