Govt Discusses Cybersecurity And Digital Financial Fraud With Fintechs

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SUMMARY

The government initiated the workshop to strategise on fostering robust collaboration and mitigating challenges like cybersecurity and digital financial fraud

The workshop delved into topics, including the leveraging of technology to enhance access to financial services, real-time surveillance of data breaches, establishment of a suspicious registry for banking correspondents, among others

Approximately 60 fintech companies attended the half-day workshop

The government held discussions with fintechs and law enforcement agencies on ways to foster strong collaboration and mitigate critical challenges like cybersecurity and digital financial fraud.

Held by the finance ministry, the workshop included key issues, including leveraging of technology to enhance access to financial services, tactics for combating money mules, real-time surveillance of data breaches, geotagging digital transactions to trace money trails, establishment of a suspicious registry for banking correspondents, frequent audits of digital KYC procedures, safeguarding data privacy and the modernisation of digital infrastructure through advancements such as IPv6 and API integration.

During the workshop, DFS Secretary Vivek Joshi highlighted the contributions of startups and fintechs to India’s economic growth.

He also urged for greater collaboration among the government, regulator, public and private sectors to fully harness their potential.

The half-day workshop was attended by approximately 60 fintech companies, four fintech associations and representatives from other ministries and regulatory bodies, including the Reserve Bank of India.

The development comes days after Finance Minister Nirmala Sitharaman in February chaired a meeting with homegrown fintech startups to underscore the need for them to comply with norms and protect consumer interest.

Subsequently, it was decided that matters related to cybercrime would be appropriately addressed in the new Digital India Act.

Meanwhile, fintech continues to be one of the biggest sectors within the Indian startup ecosystem. Despite the ongoing funding winter, some of the fintech startups have raised big-ticket rounds over the past two years.

As per Inc42 data, more than 726 Indian fintech startups raised more than $28 Bn between 2014 and 2023. Last year alone, four fintechs – PhonePe, DMIFinance, Perfios and InsuranceDekho – raised capital in excess of $100 Mn each.