Banking & Finance

India is the leading country in the world in terms of digital transactions with a 19 times jump in digital transactions in just 7 years.

Last updated: December 6, 2022

India has the highest FinTech adoption rate globally of 87% which is significantly higher than the global average rate of 64%

US$ 28.5 tn

Amount of banking assests to cross by 2025

24.57%

CAGR of Fintech market size in 2025

US$ 2,650.74

Total banking sector assets

US$ 1.9 tn

Total deposits in FY22

US$ 131 bn

Value of India's insurance market in FY22

37%

CAGR in growth in digital payments transactions from FY19-21

56%

of family-owned businesses in India open to PE funding, as opposed to 39% globally.

58

Insurance companies in India

74%

FDI permitted in private banking companies

$150 Bn

Estimated fintech market size by 2025

Fastest

growing FinTech markets in the world. India is ranked the highest globally in FinTech adoption along with China.

IFSCA Fintech Incentive Scheme 2022

The IFSCA (FinTech Incentive) is a Scheme for providing financial support to FinTech activities in the form of specific grant(s).
Insolvency and Bankruptcy Code (Amended)

India’s Insolvency and Bankruptcy Code (IBC) promises to efficiently resolve non-performing assets (NPAs) at Indian banks.
Pradhan Mantri Jan Dhan Yojana

Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
Framework for Resolution of Stressed Assets

The RBI’s ‘Revised Framework for the Resolution of Stressed Assets’ has supplanted previous directives put in place, to bring the regulator’s policy in conformity with the IBC.

The Finance Bill 2020

To give effect to the financial proposals of the Central Government for the financial year 2020-2021.

Guidelines for Stand Up India Scheme

The objective of the Stand Up India scheme is to facilitate bank loans worth between US$ 13,458 and US$ 134 thousand to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. 
Special Liquidity Scheme for NBFCs/HFCs

The Union Cabinet has given its approval to the proposal of the Ministry of Finance to launch a new Special Liquidity Scheme for Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) to improve liquidity position of the NBFCs/HFCs.
Goods and Services Tax

The new and improved tax structure is strengthening the national financial system through 'One Nation, One Tax, One Market'.
The International Financial Services Centres Authority Bill, 2019

An Act to provide for the establishment of an Authority to develop and regulate the financial services market in the International Financial Services Centres in India and for matters connected therewith or incidental thereto.
The Finance Bill 2019

A bill to give effect to the financial proposals of the Central Government for the financial year 2019 2020.
Partial Credit Guarantee Scheme (PCGS)

The Union Cabinet, has approved the Sovereign portfolio guarantee of up to 20% of first loss for purchase of Bonds or Commercial Papers (CPs) with a rating of AA and below (including unrated paper with original/ initial maturity of up to one year) issued by NBFCs/ MFCs/Micro Finance Institutions (MFIs) by Public Sector Banks (PSBs) through an extension of the Partial Credit Guarantee Scheme (PCGS).
Policy for Digital Economy

The Government has recently introduced National Policy on Electronics (NPE) and National Policy on Software Products (NPSP) in 2019 for the growing digital economy.

Amendments to the Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015

As per the circular released on July 9, 2020 , section 4 (1) of SEBI (IFSC) Guidelines, 2015 has been revised. to protect the interests of all stakeholders.
Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) (Second Amendment) Regulations, 2020

The Insolvency and Bankruptcy Code, 2016 enables a corporate person to initiate voluntary liquidation process if it has no debt or it will be able to pay its debts fully from the proceeds of the assets.
Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Fourth Amendment) Regulations, 2020

The Insolvency and Bankruptcy Code, 2016 (Code) envisages appointment of an authorised representative (AR) by the Adjudicating Authority to represent financial creditors in a class, like allottees under a real estate project, in the committee of creditors.

The Banking Regulation (Amendment) Bill, 2020

The Bill, when implemented, will include cooperative banks under the regulatory arm of the RBI.

The Insolvency and Bankruptcy Code (Second Amendment) Act, 2020

Given the impact of COVID-19 on businesses, the amendment disallows insolvency litigation against entities or creditors for a six month to one year period starting March 2020.

The Bilateral Netting of Qualified Financial Contracts Bill, 2020

The provisions of the bill allow for real-time risk assessment as opposed to notional assessment for bilateral contracts.

Resolution of the Monetary Policy Committee , October 2020

The Monetary Policy Committee resolved to maintain the repo rate at 4.0% through the liquidity adjustment facility. Efforts are to be directed towards the maintaining of inflation within a targeted range in order to facilitate economic recovery given the COVID-19 pandemic.
Guidelines on Regulation of Payment Aggregators and Payment Gateways

As per the November 17, 2020 update, the guidelines include regulatory frameworks and recommended technology for Payment Aggregators (PAs) and Payment Gateways (PGs).

Extension of the Emergency Credit Line Guarantee Scheme

The Emergency Credit Line Guarantee Scheme (ECLGS) has been extended till November 30, 2020, allowing entities including business enterprises and MUDRA borrowers to avail loans.

Guidelines on Regulation of Payment Aggregators and Payment Gateways

Effective from April 2020, the guidelines will be implemented under Section 18 and Section 10(2) of the Payment and Settlement Systems Act, 2007.

Reserve Bank of India

022-22610301

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The Reserve Bank of India is India's central banking institution, which controls the issuance and supply of the Indian rupee.

Securities and Exchange Board of India

+91-22-26449950 / 40459950

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The Securities and Exchange Board of India is the regulator for the securities market in India.

Directorate of Enforcement

24611989, 24692055

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Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance, Government of India.

Insurance Regulatory and Development Authority of India

(040) 20204000

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The Insurance Regulatory and Development Authority of India is an autonomous, statutory body tasked with regulating and promoting the insurance and re-insurance industries in India.

Pension Fund Regulatory and Development Authority

011-26517501,011-26517503,011-26517097

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The Pension Fund Regulatory and Development Authority, a statutory body, is the pension regulator of India.

Ministry of Finance

Investment Opportunities

  • PE and VC investments have been steadily growing in India, driven by local entrepreneurship.
  • Asset Reconstruction Companies are making the most from the resolution of stressed assets.
  • Banking and Insurance companies are seeing growing interest with rising financial inclusion.
  • Successes of startups and mutual funds have opened new avenues of investment opportunities.
  • Rapid infrastructure and real estate developments across India, have opened up scope for major investments.
Useful Links:

Key Investors

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive and capital establishments

Asian Development Bank's largest grantee in 2018 at around US$3bn was India.

Blackstone Group, a US-based private equity firm, has picked up assets in India.

Canada Pension Plan Investment Board has invested in a variety of assets in India.

US investment bank Goldman Sachs Group has invested in a variety of Indian assets.

GIC, the sovereign wealth fund of Singapore, has invested in several Indian assets.

ENABLING ENVIRONMENT

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive, and capital establishments

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