FM Sitharaman assures steadfast government support for startups.

The Finance Minister has presented practical solutions to address startup concerns, proposing monthly virtual conferences with regulators such as the Reserve Bank of India (RBI). Reiterating the government's unwavering support for the startup ecosystem, Finance Minister Nirmala Sitharaman responded to recent regulatory challenges faced by prominent startups nationwide. Speaking at a media event in Bengaluru, Sitharaman assured entrepreneurs of continued backing amid heightened regulatory scrutiny.

Acknowledging concerns raised by startups, particularly in the Fintech sector, Sitharaman emphasized the importance of ongoing support and clarifications from regulators to foster innovation without hindrances from governance and compliance issues. She disclosed her recent meeting with representatives from numerous startups, held in response to their letter expressing concerns, particularly in the Fintech realm. Sitharaman stressed the necessity for startups to have dedicated support teams for compliance matters, ensuring uninterrupted innovation efforts.

During the Bengaluru event, Sitharaman proposed practical steps to address startup apprehensions, including the idea of monthly virtual conferences with regulators like the RBI. She emphasized the importance of simplifying compliances and providing necessary assistance to create a conducive environment for startups to thrive.

The introduction of an extensive framework for a 'regulatory sandbox' by the Reserve Bank of India on the same day aimed at fostering innovation in emerging fintech startups. This initiative will enable regulatory authorities to collaborate with startups to formulate regulations that support innovation, facilitating the provision of cost-effective financial products. Oversight of this sandbox initiative will fall under the purview of the fintech division within the RBI.