New Delhi, Aug 9 (KNN) India’s financial technology sector has  around 3,085 recognised startups operating as of April 30, 2023, Minister of state for corporate affairs (independent charge) Rao Inderjit Singh informed the parliament on Monday.

These startups are recognised under the Startup India initiative launched by the Department for Promotion of Industry and Internal trade (DPIIT).

The Minister informed that the government has launched several initiatives to bolster startups across a wide array of sectors, with a specific focus on fostering growth in the financial technology (fintech) domain.

As per reports, the DPIIT has recognised 98,119 entities as startups since the launch of Startup India in 2016.

“To promote our startup ecosystem, especially in the fintech sector, the International Financial Services Centres Authority (IFSCA) has taken various measures," Singh stated.

Among these measures is the introduction of a distinct ‘Fin-Tech Entity Framework’, designed to cater to the needs of fintechs and techfins.

Singh also highlighted that the IFSCA has introduced an incentive scheme tailored to fintechs and startups. This comprehensive scheme encompasses various grants, including startup grants, sandbox grants, proof-of-concept (PoC) grants, green fintech grants, listing grants, and accelerator grants.

To enhance investment inflows within the fintech sector, the government has taken several strategic steps, including the implementation of the Pradhan Mantri Jan Dhan Yojana (PMJDY).

“This initiative aims to amplify financial inclusion in India by streamlining the enrolment of beneficiaries in new bank accounts, facilitating direct benefit transfers, and granting access to a multitude of financial services applications. This, in turn, has enabled fintech startups to develop technological solutions that effectively cater to India's substantial consumer base,” Singh noted.

Furthermore, Singh emphasised the significance of the synergy between Jan Dhan Yojana, Aadhar, and Mobile (collectively known as the JAM trinity), along with the Unified Payments Interface. “This amalgamation has played a pivotal role in promoting technical inclusivity, transparency, integrity, and the timely delivery of financial benefits and services to the public,” he said.

The government of India also launched the Startup India initiative on January 16, 2016.  (KNN Bureau)