Interoperability of e-wallets

This year the Reserve Bank of India (RBI) allowed interoperability of mobile e-wallets. With this regulation, you can send money from one e-wallet to another. Though the guideline was issued in October, no changes have been made so far. One of the phases is to use unified payments interface (UPI) for interoperability. In standalone terms, UPI has picked up pace in 2018. It is yet to be seen how the interoperability will work in wallets. It is unlikely that the e-wallet companies will be interested in doing so now. The payments sector has been looking at lending and investment technology to expand.

Govt support for Fintech

In February the Maharashtra government approved the fintech policy to build a Global Fintech Hub in Mumbai. The policy aims to provide a venture capital fund of 200 crore for fintech startups. The state is also looking to rent out co-working spaces at subsidised rates. In December, it also announced an accelerator programme and launched a regulatory sandbox, which allows start-ups to test technology in controlled conditions. Last year, the Andhra Pradesh government set up a fintech hub in Visakhapatnam. The push from the government and the tie-ups with financial institutions is likely to bring more innovation.

Data localisation

The government wants all companies that work in the payments segment to have a data centre within India. Data is going to play a crucial role for the fintech industry. “Future richness of India will also depend on data. With 1.3 billion people, India has started to get digital information of each inhabitant. India has a competitive advantage based on big data. India offers opportunity," said Klaus Schwab, founder and executive chairman, the World Economic Forum. Remember that all the data you provide online will be used to give you loans, sell goods and services.

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