While refraining from commenting on the ongoing crisis at Paytm, Finance Minister Nirmala Sitharaman expressed optimism about the fintech sector in an interview with Rahul Joshi, Editor-in-Chief, Network18 on February 2, saying that the government continues to be enthusiastic about fintech and would like to engage with more stakeholders in the space.
"I wouldn’t want to comment on a particular company. But fintech is an area in which all of us are very enthusiastic. India has contributed a lot to this sector," the finance minister said.
Earlier this week, the Reserve Bank of India (RBI) dealt a blow to Paytm, the poster child of India's fintech ecosystem, on January 31, imposing severe restrictions on the company's banking associate, Paytm Payments Bank, after noting material discrepancies and non-compliance issues.
However, the "abrupt" decision has led many stakeholders in the sector, especially fintech startups, to question the regulator's stance towards the sector.
The finance minister, however, hailed the youths' contribution to the sector and assured that the government is enthusiastic about working in the space and encouraging more new-age firms to continue to build.
She further mentions the global recognition of India's fintech innovation, with many looking towards the country for financial technology solutions.
"India’s contribution in the sector has been globally recognised. Today, if people are looking at fintech solutions, they are looking at India. Our youth have contributed a lot in building capacities for themselves. This is an area we would certainly like to work with and encourage," said Sitharaman.
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