PM: Removed angel tax, taking policy measures to promote fintech sector

Mumbai, August 30

Prime Minister Narendra Modi on Friday said the government is making necessary policy changes, like removal of angel tax, to promote the fintech sector, even as he asked the regulators to take additional measures to check cyber frauds which can have a crippling impact on startups.

Lauding the fintechs for democratising financial services, Modi said the sector, which has attracted USD 31-billion investment in the last 10 years, has played a key role in denting the parallel economy. The Prime Minister was addressing the Global Fintech Fest (GFF) 2024, jointly organised by the Payments Council of India, the National Payments Corporation of India and the Fintech Convergence Council.

He said the domestic economy and the capital market are in a celebratory mood at a time when the nation is also going through a festive period.

Modi underlined that the government is making all necessary changes on the policy level to assist the fintech sector and gave examples of doing away with Angel Tax, allocating Rs 1 lakh crore to encourage research and innovation in the country and implementing the Digital Personal Data Protection Act.

Broadly, fintech refers to entities utilising technologies for providing financial services.

Expressing the need to put an end to cyber fraud, he urged the regulators to take major initiatives to boost digital literacy. It is equally important to ensure cyber fraud does not come in the way of the growth of fintech and startups in the country, Modi said.

In his speech, the Prime Minister also cautioned about the dangers of a parallel economy for the world.