A Parliamentary panel report has flagged the massive market share of foreign-owned fintech apps within the Indian market. The Parliamentary standing committee on communications and knowledge know-how has flagged dominant presence of apps comparable to Walmart-owned PhonePe and Google-owned Google Pay within the Unified Funds Interface (UPI) section. The standing committee has really helpful the federal government to advertise native apps.
“The committee notes that fintech firms, apps and platforms comparable to PhonePe and Google Pay owned by international entities dominate the Indian fintech sector,” the home panel mentioned in a report tabled in Parliament.The UPI market share was 36.39% for Google Pay and 46.91 for PhonePe when it comes to transaction quantity in October-November 2023, it mentioned.
The problem of focus of the UPI market share has been taken up by the Nationwide Funds Company of India (NPCI), which has proposed imposing a 30% ceiling on UPI quantity share for apps from subsequent yr.
Why report batting for made in India apps
The Parliamentary committee famous that “regulation of Indian fintech apps can be extra possible” for the Reserve Financial institution of India and NPCI in comparison with international entities which might be current in a number of nations and therefore could also be ruled by a number of jurisdictions. It mentioned that a number of fintech firms had been additionally getting used for cash laundering.
“On this context, the committee recommends that there needs to be deal with promotion of native Indian gamers within the fintech universe. Indigenously developed BHIM UPI is an efficient instance of it, nevertheless its share within the UPI market could be very low,” mentioned the report.
As India is specializing in ‘Make in India’, the committee’s view is that native entities needs to be promoted within the fintech sector as effectively, the report added.
“The committee notes that fintech firms, apps and platforms comparable to PhonePe and Google Pay owned by international entities dominate the Indian fintech sector,” the home panel mentioned in a report tabled in Parliament.The UPI market share was 36.39% for Google Pay and 46.91 for PhonePe when it comes to transaction quantity in October-November 2023, it mentioned.
The problem of focus of the UPI market share has been taken up by the Nationwide Funds Company of India (NPCI), which has proposed imposing a 30% ceiling on UPI quantity share for apps from subsequent yr.
Why report batting for made in India apps
The Parliamentary committee famous that “regulation of Indian fintech apps can be extra possible” for the Reserve Financial institution of India and NPCI in comparison with international entities which might be current in a number of nations and therefore could also be ruled by a number of jurisdictions. It mentioned that a number of fintech firms had been additionally getting used for cash laundering.
“On this context, the committee recommends that there needs to be deal with promotion of native Indian gamers within the fintech universe. Indigenously developed BHIM UPI is an efficient instance of it, nevertheless its share within the UPI market could be very low,” mentioned the report.
As India is specializing in ‘Make in India’, the committee’s view is that native entities needs to be promoted within the fintech sector as effectively, the report added.
