Technology to deliver financial services: Maharashtra becomes 1st state to unveil ‘Fintech’ policy
Mumbai, February 11: Maharashtra became the 1st state in India to chalk out its own financial policymaking Mumbai one of the top five ‘Fintech’ centres in the world in coming years. With an aim to set up Global Fintech Hub in the Mumbai, Maharashtra unveils financial policy.
Around 300 start-ups will be set up in coming three years at the corpus of Rs 250 Crores.
Under the new policy, Maharashtra government would make available at least 10,000 sq. ft of ‘co-working space’ at a central business location in Mumbai for fintech companies at subsidised rates.
Earlier Chief Minister Devendra Fadnavis said that a core group of experts was working out a plan to develop an International Financial Services Centre in Mumbai that would house fintech, the blockchain, and distributed ledger technologies and attract investment into this sector.
“Given the importance of fintech in the banking, financial services, and insurance sectors, Maharashtra needed a policy to establish a global fintech hub in Mumbai to leverage Mumbai’s natural advantage of being the financial capital,” a press release said.
Major incentives that the policy offers include facilitating a venture capital fund of Rs200 crore for start-ups, providing extra floor space index (FSI which determines permissible construction on a plot of land) for establishment of smart fintech centres, and putting in place a fintech corpus of Rs250 crore to help government achieve the objectives listed out in this policy.
“The policy talks about hand-holding of as many as 300 start-ups in this space and building an ecosystem that fosters innovation. We are looking at elite educational institutes, fintech accelerators, banks, financial services, and IT industry as potential partners under this policy,” said the official cited above.
A fintech start-up with a turnover of at least Rs 25 Crores will be entitled to an annual assistance of Rs10 lakh for three years as reimbursement of internet and electricity expenses, goods and services tax, and expenses for participating in global exhibitions or similar events. The government would also provide assistance to establish fintech accelerators and incubators. To help develop the global fintech hub in Mumbai, the policy enables the government to create an industrial sandbox.
Also, the three-day Magnetic Maharashtra conclave is being organised to project its “achievements” in core sectors and further tap global investors. The key areas identified include industries, infrastructure, textile and food processing, defence manufacturing and electronics, among others. Several industrialists and companies participated in the curtain raiser for Magnetic Maharashtra.