PM Modi scraps angel tax, takes policy steps to promote fintech sector

Bombay: Prime Minister Narendra Modi On Friday he said the government is making necessary policy changes, such as eliminating Angel taxto promote the financial technology sector, while calling on regulators to take additional steps to control cyber frauds that can have a devastating impact on startups. Praising fintechs for democratising financial services, Modify He said the sector, which has attracted $31 billion in investment over the past 10 years, has played a key role in reducing the shadow economy.

The Prime Minister addressed the Global Fintech Fest (GFF) 2024, jointly organized by Payments Council of IndiaNational Payments Corporation of India and the Fintech Convergence Council.

He said the national economy and capital market are in a state of celebration at a time when the nation is also going through a festive period.

Modi stressed that the government is making all necessary changes at the policy level to help the fintech sector and gave examples of scrapping the Angel Tax, allocating Rs 1 lakh crore to encourage research and innovation in the country and implementing the Digital Personal Data Protection Act.

Broadly speaking, fintech refers to entities that use technologies to provide financial services.

Expressing the need to end cyber fraudHe urged regulators to take significant initiatives to boost digital literacy.

Modi said it is equally important to ensure that cyber fraud does not hamper the growth of technology and startups in the country. In his speech, the Prime Minister also warned about the dangers of a parallel economy for the world.

Financial technology, he said, has played a major role in weakening that system and credited the emergence of transparency for it.

He said digital technology has introduced transparency in India and gave the example of implementation of Direct Benefit Transfer used in hundreds of government schemes which has prevented leakages in the system.

“Today, people can see the benefits of aligning with the formal banking system,” he said.

Modi further said that the trinity of Jan DhanAadhaar and Mobile have broken the “Cash is King” mentality and have ushered in about half of the digital transactions in the world that takes place in India.

“India UPI “It has become an important example of financial technology in the world,” he said, adding that it has enabled 24/7 banking services in every town and city in all weather conditions.

Underlining the role of financial technologies in democratising financial services, the Prime Minister gave examples of readily available loans, credit cards, investments and insurance.

He said that fintech has made access to credit easy and inclusive, and gave the example of PM SVANidhi scheme that has enabled street vendors to get collateral-free loans and further expand their business with the help of digital transactions.

“Sustainable economic growth is India’s priority today,” he said, stressing that the government is creating robust, transparent and efficient systems to strengthen financial markets with advanced technologies and regulatory frameworks.

The festival features around 800 speakers, including policy makers, regulators, senior bankers, captains of industry and academics, from India and abroad.