HomeBusinessNirmala Sitharaman urges fintech companies to engage more with the government

Nirmala Sitharaman urges fintech companies to engage more with the government

Nirmala Sitharaman said that everyone in the government, whether prime minister, minister or think-tank NITI Aayog, is constantly available for engagement, discussion and exchange of views.

Nirmala Sitharaman said that everyone in the government, whether prime minister, minister or think-tank NITI Aayog, is constantly available for engagement, discussion and exchange of views.

Finance Minister Nirmala Sitharaman on September 20 asked the fintech industry to break the distance barrier and engage more with the government and its agencies to instil confidence.

Ms Sitharaman was responding to a question by Kris Gopalakrishnan, Chairman of the Global Fintech Fest (GFF) 2022 Advisory Board, who wanted to know how to ensure trust between industry, regulators and the government.

“I don’t want to speak clichés, but distance brings mistrust. So, shorten the distance, have more engagement with the government,” the minister said.

Ms Sitharaman further said that everyone in the government, whether prime minister, minister or think-tank NITI Aayog, is constantly available for engagement, discussion and exchange of views.

“Such bigger engagement, more and more trust, that’s built. So I think a sure-shot way to maintain and build trust is to continue to engage,” he said.

For a question related to the role of Central Bank and Ministry of Finance proposed digital currencyMs Sitharaman said the Reserve Bank will come out with a digital currency operated by the RBI.

On February 1, it had announced in its budget speech that the Digital Rupee or Central Bank Digital Currency (CBDC) would be issued by the RBI in the current financial year.

In his address at GFF 2022, the Minister said that RBI’s regulatory sandbox mechanism has provided a structured and institutional framework through which fintech companies are able to test their new products, new innovations before scaling them up.

“So it really helped to test it in a controlled environment and post that you’re able to scale rapidly so that markets benefit and you accelerate your product innovations,” she said.

The minister further said that there are opportunities for fintech players to play a role in a sustainable financial environment and take advantage of specific opportunities in green finance – a financial arrangement for specific use of funds for environmentally sustainable development products.

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