Fin-tech

We have advised businesses on a spectrum of issues, including drafting commercial agreements, applying for and obtaining licenses, structuring complex commercial platforms, and providing advice on navigating legislative frameworks, payment services and related compliance requirements, data protection law, and liabilities of intermediaries, and intellectual property.

As one of the fastest growing fin-tech markets globally, India is home to over 2000 financial technology start-ups recognised by the Department for Promotion of Industry and Internal Trade. According to Invest India, the size of India’s fin-tech market will be approximately USD 150 billion by 2023, a steep rise from USD 50 billion in 2021. In terms of funding, the Indian fin-tech market aggregated USD 29 billion (January 2017-July 2022), acquiring nearly 14% share of the global funding. The sector is ranked second in terms of deal volume. The government has sought to boost the growth of the fin-tech industry through a slate of measures, including establishing joint working groups on fin-tech with the UK and Singapore to enhance regulatory connect, knowledge sharing, and to promote joint development of fin-tech solutions and payment linkages.

Typically, fin-tech companies are required to comply with know-your-customer and anti-money laundering (KYC and AML) regulations, licensing requirements, secure payment mechanisms and more. Fin-tech companies must be agile and sensitive to the rapidly evolving regulatory landscape that is augmented by the proactive attitude of regulators such as the Reserve Bank of India and the Directorate of Enforcement. The observable trend in a spate of recent regulations is the tightening of norms in the sector, concerning aspects such as the participation of unregulated entities in digital lending and KYC by entities engaged in the facilitation or trade of crypto assets. Additionally, a recent circular issued by the quasi-regulator, National Payments Corporation of India (NPCI), recommended a 1.1 per cent interchange fee on UPI transactions above INR 2000 done using wallets, cards or other prepaid payment instruments (PPIs).

Trilegal’s representative experience spans financial institutions, regulatory bodies, MNCs, start-ups, credit rating agencies, payment gateways and aggregators, whom we advise on complex legal issues that arise with the blend of technology and financial services. Our team’s expertise in the current regulation with an eye for its future applications has culminated in strategic advice on a host of disruptive technologies and innovative business models. We have handheld businesses on a spectrum of issues, including drafting commercial agreements, applying for and obtaining licenses, structuring complex commercial platforms, and providing regulatory advice on developing a legislative framework, payment services and related compliance requirements, data protection law, and liabilities of intermediaries, and intellectual property. We have worked closely with the Indian govt on pioneering efforts to launch Singapore’s first real-time overseas payment link in collaboration with NPCI. Our team also routinely advises clients operating in the cryptocurrency and digital assets sphere. We have advised government departments on various legal and policy-related issues in this sector.

Some of our clients in this space include –