New Self-Regulatory Body Launched to Shape India's Fintech Future

The second day of Startup Mahakumbh marked a defining moment for India’s fintech landscape with the launch of the India Fintech Foundation, a self-regulatory organization (SRO) aimed at fostering innovation, compliance, and trust in the sector. The launch event featured prominent industry leaders, including Amitabh Kant, G20 Sherpa and former CEO of NITI Aayog, and NS Vishwanathan, former Deputy Governor of the Reserve Bank of India (RBI). 

India’s Fintech Boom and the Need for Regulation

India’s fintech industry has witnessed exponential growth, with revenues soaring to $25 billion in 2023, reflecting a 56% year-on-year increase. Projections indicate that the country could have 150 fintech unicorns by 2030, reaching a combined valuation of $500 billion, with total fintech revenues expected to touch $190 billion. Addressing the launch event, Amitabh Kant emphasized the importance of responsible innovation in the fintech space.

“This growth is a testament to the innovative spirit of our entrepreneurs, driven by our tech-savvy youth, access to capital, government initiatives, and advancements in internet and mobile technology,” said Kant. “As we innovate, we must do so responsibly, ensuring financial inclusion while mitigating risks such as cybersecurity threats,” he added.

Role of Self-Regulation in Fintech Growth

Kant underscored the necessity of self-regulation in India’s fintech ecosystem, stating that the RBI’s encouragement of multiple SROs would uphold compliance standards while fostering growth.

 “As we progress towards Viksit Bharat @ 2047, self-regulation will play a pivotal role in building a resilient financial ecosystem. The RBI’s support for multiple SROs will ensure fintechs operate within high compliance standards while driving expansion,” he said.

Exclusive Insight: Sai Sudha Chandrasekaran on India Fintech Foundation

Sai Sudha Chandrasekaran, CEO of SRO-Fintech Development Foundation, spoke exclusively with TICE News, the official startup media partner, about the India Fintech Foundation (IFF)—a proposed self-regulatory organization for the fintech sector.

Chandrasekaran highlighted how IFF aims to foster responsible innovation, enhance consumer protection, and streamline regulatory compliance, ensuring structured governance and sustainable growth in India’s booming fintech industry. As fintech continues to reshape the digital economy, she emphasized the critical role of self-regulation in building trust and stability.

The launch of IFF at Startup Mahakumbh marks a pivotal moment for India’s financial ecosystem, setting the stage for a more transparent, resilient, and innovation-driven fintech landscape.

Educating Fintechs: A Crucial Role for SROs

Echoing similar sentiments, NS Vishwanathan highlighted the educational role of SROs in guiding fintech companies. “Educating fintechs is a very crucial function of SROs,” he noted, emphasizing their potential to streamline regulatory compliance and enable businesses rather than burden them.

Panel Discussion on Fintech Regulations

Following the launch, a panel discussion titled Atmanirbhar Regulations – Creation of a Self-Regulatory Architecture for Financial Services in India brought together industry experts to discuss the road ahead for fintech regulation. Panelists included Sai Sudha, CEO of SRO-Fintech Development Foundation; Mohit Mehra, Vice President, Payments & Primary Markets, Zerodha Broking Limited; Srikanth Rajagopalan, CEO, Perfios Account Aggregation Services (P) Ltd; and Siddarth Pai, Founding Partner & CFO, 3one4 Capital. The discussion centered on standardizing compliance mechanisms to ensure regulatory frameworks become business enablers rather than obstacles.

A Vision for the Future

The India Fintech Foundation aims to establish a structured and transparent regulatory framework while ensuring diverse representation and mitigating conflicts of interest. By promoting self-regulation, the foundation seeks to balance innovation with accountability, laying the groundwork for a robust and inclusive digital financial ecosystem in India.