Maharashtra state cabinet gives nod to FinTech policy

Devendra Fadnavis

Maharashtra has become the first state in the country to adopt a comprehensive FinTech policy that aims to foster an environment for FinTech startups. The state government has provided Rs 200 crore in financial assistance for this. The Maharashtra FinTech Policy 2018 was approved in a cabinet meeting recently, which was chaired by Chief Minister Devendra Fadnavis. “The government is determined to provide the infrastructure and financial support to facilitate 300 startups in the next three years. Maharashtra will register itself among the five best global FinTech hubs in the coming years,” he said.

Besides Mumbai, the government also plans to turn cities like Nagpur and Pune into FinTech hubs. Adopting a hub-and-spoke model for operations with a central node as the hub to conduct all interactions among the stakeholders and a spoke, a smaller unit connecting individuals and communities, the state government has committed to providing financial assistance in the initial years. To begin with, the government has announced financial allocation of Rs 200 crore for capital and operating costs till it becomes self-sufficient. To adequately protect consumer interest and reassure investors, the government plans to put in place stringent guidelines to tackle cyber security.

The organizational structure for daily operations will be headed by the Chief Minister along with a dedicated FinTech team. Among the incentives provided are provision for cloud space in the state data center at a subsidized pay-per-use basis, tax incentives in the form of reimbursement of CGST (Central Goods and Service Tax) and SGST (State Goods and Service Tax).