India Fintech Foundation launched as new self-regulatory body for fintech sector
New Delhi India Fintech Foundation, a newly proposed self-regulatory organisation (SRO) for the fintech sector, was unveiled at the Startup Mahakumbh event in Delhi, media reports said.
Sai Sudha Chandrasekaran, formerly the head of foreign direct investment (FDI) for the Asia-Pacific region at Invest India under the Ministry of Commerce, has been appointed as the chief executive officer of the India Fintech Foundation (IFF), Business Standard reported.
“If innovation is not responsible, it could result in accidents. Therefore, it's important that whatever innovation is taking place becomes responsible, and SROs play a very important role in that,” said NS Viswanathan, chairman of the India Fintech Foundation was quoted as saying by Business Standard.
The IFF board includes key fintech entrepreneurs from firms such as Lendingkart, Jupiter, Fi Money, and OneCard, alongside representatives from regulatory bodies and banks. The foundation currently has 100 members.
“Innovation is the lifeblood of fintech, and as we innovate, we must do so responsibly. The pivotal mechanism to foster ethical and responsible growth in fintech is the establishment of self-regulatory organisations,” said Amitabh Kant, India’s G20 Sherpa, according to the report.
As a self-regulatory body, the IFF will act as a bridge between fintech companies and regulators, ensuring compliance and ethical business practices.
The launch of the foundation follows the Reserve Bank of India’s (RBI) recent recognition of the Fintech Association for Consumer Empowerment (FACE) as an SRO-FT.
Meanwhile, the Digital Lenders Association of India (DLAI) is undergoing a rebranding as the Unified Fintech Forum, according to Business Standard.
India is home to approximately 10,244 fintech firms, data from the Ministry of Finance shows.
However, the sector has been grappling with a funding slowdown, with total investments dropping for the third straight year.
Fintech companies raised $1.9 billion in 2024, marking a 32 percent decline from the $2.8 billion secured in 2023.
The number of funding rounds also hit an eight-year low, falling to 228 in 2024 from 324 in 2023.
The sector had peaked in 2021 with $8.3 billion raised across 665 rounds, according to market intelligence platform Tracxn.
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