Fintech Market Overview

This article does not constitute legal advice.

Fintech in India


In India, there is no specific licence specifically for fintech companies - instead, the regulations governing offline banking and financial services are similarly applicable to them. This includes stipulations such as NBFC licensing guidelines and domestic laws on contracts, IT, data protection, intellectual property rights, consumer rights, anti-money laundering and counter-terrorism financing. With the growing presence of fintech in the finance sector, new regulations are being developed for niche activities such as payments systems and payment intermediaries; small-scale payment banks; peer lending platforms; and account aggregators.1

There are no particular tax incentives for fintech companies in India; however, the 'Startup India' scheme administered by the Indian government offers various benefits such as income tax exemptions, self-certification under labour and environment laws, intellectual property rights privileges and access to financial assistance from the state. Responding to the difficult situation that businesses have been facing due to covid-19, the Indian government has extended the length of time in which start-ups can avail themselves of tax exemptions under this policy.1

The RBI is responsible for overseeing fintech activities in the banking, payments, and lending segments. However, depending on the nature of services being offered, other regulatory authorities may come into play. These can include the Securities and Exchange Board of India if securities are involved, the Insurance Regulatory and Development Authority of India for insurance-related matters, MEITY, or even the Ministry of Corporate Affairs as required.1

A growing number of fintech entities in India offer technology and ancillary services to licensed entities, which provide the underlying regulated financial services.1

Advertising in India is generally governed by a number of laws and codes to ensure fair practices aligned with antitrust principles, prohibit misleading and inaccurate statements, and prohibit the publication of obscene, immoral, or objectionable material in advertisements and marketing materials.1

Crowdfunding in India

Fintech in other countries

Let's introduce you

Indian Fintech Lawyers

Kristina Berkes

Kristina Berkes

Participation as a lawyer at investment venture funds, leading venture M&A deals in IT, supporting iGaming and business assets

Denis Polyakov

Denis Polyakov

Comprehensive legal services for businesses on corporate, tax law, cryptocurrency legislation, investment activities

  1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/india
Offer for investors

Data Room

Free access to the Investor Data Room to get data on new fast-growing early-stage fintech startups

Investor Data Room