Gandhinagar: Gujarat is drawing up its first dedicated fintech policy as it seeks a bigger share of India’s rapidly expanding financial technology sector. The proposed framework will offer sector-specific incentives beyond those available under the state’s IT/ITES policy. It will primarily target fintech firms operating outside the IFSCA regulatory framework.The govt is also considering a dedicated startup fund to encourage innovation.The proposed policy is being drafted by the state finance department, in consultation with various stakeholders. Dedicated fintech policies of other states are also being examined, top officials in the govt said.“The new policy is aimed at creating a focused ecosystem for fintech firms, a sector that is as big as the IT and IT-enabled services industry in scale. Until now, there was no dedicated policy for fintech companies. The proposed policy will offer additional benefits than those available under the IT/ITES policy,” a senior official said.The proposed policy assumes significance as Gujarat hosts Gujarat International Finance Tec-City (GIFT), India’s flagship international financial hub. However, officials clarified that entities regulated by the International Financial Services Centres Authority (will remain outside the ambit of the proposed policy since they are governed by the provisions of the International Financial Services Centres Authority Act, 2019.Instead, the policy will primarily target fintech companies operating outside the IFSCA regulatory framework, including firms located within GIFT City as well as those elsewhere in Gujarat. “Banks and other financial institutions are governed by the IFSCA Act, but there are several other companies within GIFT and even those outside GIFT which will benefit from the proposed policy,” an official in the finance department said.According to sources close to the development, eligibility under the new policy will be restricted to companies whose primary business activity is related to financial technology. The govt is also planning a separate package of incentives for fintech startups, with a dedicated fund likely to be created to support innovation in the sector, said an official.“Special focus will be on incentivising startups and companies engaged in innovative projects,” an official said, adding that companies offering digital payment solutions, including digital wallets, mobile wallets, UPI-based services, and similar financial technology products, are expected to qualify for additional incentives under the proposed policy.The govt is expected to finalise the policy after completing consultations with industry representatives. Officials said the broader objective is to position Gujarat as a preferred destination for fintech investment while strengthening its role as a leading financial services hub.
