FINTECH LAWS IN INDIA UNDERSTANDING THE REGULATORY REGIME

AUTHOR – SURBHI, STUDENT AT AMITY INSTITUTE OF ADVANCED LEGAL STUDIES, AMITY UNIVERSITY , NOIDA, UTTAR PRADESH

BEST CITATION – SURBHI, FINTECH LAWS IN INDIA UNDERSTANDING THE REGULATORY REGIME, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (1) OF 2024, PG. 818-827, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

Fintech has revolutionized financial services globally, with an estimated transaction value of $24 trillion in FY21-22. India has emerged as a leading fintech hub, home to over 7,000 start-ups and enjoying an 87% fintech adoption rate in 2021, higher than the global average. The market is projected to reach a $1 trillion valuation by 2030, on the back of key sectors like digital payments, lending, wealth management and insurance technology. However, regulation remains fragmented across agencies like the RBI, IRDAI, SEBI, MCA and MEITY, posing hurdles for start-ups navigating compliance. This complex regulatory landscape, coupled with the lack of overarching fintech legislation, creates effectiveness challenges in balancing innovation aspirations with consumer protection priorities. This paper analyzes India’s fintech regulations across domains, regulators and instruments. It assesses regulatory approaches towards key subsets like digital payments and lending models. The analysis also highlights pressure points illustrated by case studies like the Paytm controversy. Ultimately, the paper offers recommendations on optimizing policies – promoting fintech advancement whilst safeguarding user interests via prudent regulation calibrated to unique models and mindful of risks.