§1How big it is

§2Ways to get started

  • Mutual fund / insurance distribution (ARN or POSP)
  • Bank business correspondent or CSP point
  • Loan DSA (direct selling agent) for banks and NBFCs
  • SaaS for MSME accounting, GST and payments
  • Microfinance or gold-loan NBFC (needs significant capital)

See the Business Encyclopedia

§3Hubs and clusters

  • Mumbai, Bengaluru, NCR (Gurugram), GIFT City (Gandhinagar) - well-known; Global Fintech Fest held in Mumbai

§4Licences and registration

  1. RBI Certificate of Registration for NBFC (minimum net owned fund applies)
  2. RBI authorisation as Payment Aggregator / PPI issuer
  3. AMFI registration (ARN) for mutual fund distribution; SEBI RIA licence for advisory
  4. IRDAI licence as insurance broker, corporate agent or POSP
  5. Business correspondent agreement with a bank
  6. DPDP Act 2023 compliance for customer data
  7. Udyam Registration (MSME) - free, online, PAN + Aadhaar based
  8. GST registration (mandatory above turnover threshold or for inter-state supply / e-commerce sale)
  9. Shops & Establishment registration or Factory Licence (Factories Act / state rules) depending on size and power use
  10. Consent to Establish and Consent to Operate from the State Pollution Control Board - category (Red/Orange/Green/White) as per CPCB 2025 harmonised list; White category is exempt from consent
  11. IEC (Importer Exporter Code) from DGFT if you import or export

§5Regulators

  • RBI (banks, NBFCs, payment systems, payment aggregators)
  • SEBI (securities, mutual fund distributors, investment advisers)
  • IRDAI (insurance intermediaries)
  • PFRDA (pension); IFSCA (GIFT City)
  • NPCI (UPI, RuPay operating rules)

§6Government help

  • Digital Public Infrastructure: UPI, Aadhaar e-KYC, DigiLocker, Account Aggregator [PIB Sep 2026]
  • RBI regulatory sandbox and IFSCA fintech incentives - current terms not checked
  • Cross-sector schemes that also apply (detailed in the programmes file): Udyam benefits, PMEGP, PM Mudra Yojana, CGTMSE credit guarantee, Stand-Up India, MSE-CDP (cluster development), RAMP, MSME ZED and Lean certification, MSME Champions, TReDS, Startup India (SISFS seed fund, Fund of Funds, CGSS), RoDTEP, EPCG, Advance Authorisation, Districts as Export Hubs, ODOP (One District One Product)

All schemes

§7Pros and cons

Merits

  • Huge DPI rails (UPI, Aadhaar, Jan Dhan) lower cost of reaching customers [PIB Sep 2026]
  • Distribution models need little capital

Demerits

  • Heavy and changing RBI/SEBI/IRDAI regulation
  • Credit risk and fraud risk
  • Capital requirements for lending licences

Sources

  1. PIB backgrounder: 7th Global Fintech Fest 2026 - Potential to Impact (8 Sep 2026)
  2. PIB feature: UPI - India's Digital Revolution Goes Global (17 Sep 2025)