India Takes Concrete Steps to Regulate Fintech Industry in Line with FATF Recommendations

ENA Sectors 2024-11-28 17:02:04 New Delhi, Nov 28 (KNN) India is making significant strides in regulating its fintech industry, as part of efforts to align with global standards set by the Financial Action Task Force (FATF) to combat money laundering and terrorist financing. Vivek Agrawal, Additional Secretary in the Ministry of Finance, highlighted these efforts during the ongoing 41st plenary meeting of the Eurasian Group (EAG) in Indore on Wednesday. Agrawal, who is also the head of Indias delegation and Director of the Financial Intelligence Unit (FIU), emphasised that India is among the few nations actively working to implement FATFs recommendations, which aim to ensure robust oversight of financial technologies. The development of financial technology is crucial for the growth of digital payment systems, but the potential misuse of this technology can lead to cybercrimes and financial frauds, he said. As part of these measures, the Reserve Bank of India (RBI) has issued detailed guidelines to regulate payment aggregators and payment gateways, helping to ensure the integrity of digital transactions. Furthermore, virtual asset service providers (VASPs) are now required to register with the FIU, a move designed to enhance monitoring and traceability. Agrawal also underscored Indias commitment to fostering innovation within fintech, ensuring that regulations are designed to support the sector's growth while addressing security concerns. We want regulation to be done in such a way that it does not hamper the growth of the industry, enhances ease of doing business, and keeps India at the forefront of global digital technology, he added. The EAG meeting, which will run until November 29, brings together about 200 foreign and 60 Indian delegates, including representatives from the International Monetary Fund and the Asian Development Bank. During the event, Agrawal attended a workshop on Innovation Finance, underscoring the need for global cooperation to address financial crimes. (KNN Bureau) 40075 https://knnindia.co.in/news/newsdetails/sectors/india-takes-concrete-steps-to-regulate-fintech-industry-in-line-with-fatf-recommendations 2024-11-28 17:02:04 knnindia.co.in India Takes Concrete Steps to Regulate Fintech Industry in Line with FATF Recommendations