No funding winter for Indian fintechs, $6 bn poured into fintechs in last two year alone

Despite global headwinds and a slew of regulations from the Reserve Bank of India , the Indian Fintech continue to attract investments because of a huge potential in the financial services space from lending , payments to value added services.

Anand Adhikari

• Updated Aug 28, 2024, 8:16 PM IST

Despite the Reserve Bank of India ( RBI) introducing a slew of regulations that impacted the fast growing Fintech space, the sector has received investment of about $6 billion in the last two years alone.

There is no funding winter when it comes to fintechs in India. Despite the Reserve Bank of India ( RBI) introducing a slew of regulations that impacted the fast-growing Fintech space, the sector has received investment of about $ 6 billion in the last two years alone.

The investment figure was disclosed by none other than RBI Governor Shaktikanta Das at the Global Fintech Fest where he was speaking on the Fintech innovation for India @100.

The publicly available information places the number of Fintechs founded in India at approximately 11,000. These numbers are growing by the day. This is probably the reason why the RBI is keeping a close watch on Fintech as they work with the banks and other established institutions in retail, micro loans and MSME areas from lending , payments to value-added services.

“India is now a fast-growing economic powerhouse with an increasingly tech savvy population. India’s financial sector has witnessed a remarkable transformation, driven among other factors by the Fintech sector, “ said Governor.

Governor said that a preferred approach for achieving a balance between innovation and prudent regulation involves self-regulation within the Fintech sector. The RBI had earlier suggested self-regulatory organisation ( SRO) for the sector. “ Out of the three entities who have applied for recognition of SRO, the RBI has granted recognition to one entity,” the Governor said.

The RBI had returned one application with a provision for resubmission whereas the third application is under examination, disclosed Governor.