This edition of the FinTech Newsletter highlights a major shift in the Indian digital finance sector, driven by key regulatory developments and strong investment activity.
The Reserve Bank of India has introduced major updates to strengthen the payment ecosystem. These include enforcing a strict 2 (two)-factor authentication for digital payment transactions, consolidating recurring payments under the new E-mandate Framework 2026, and proposing a structural overhaul via the Draft Master Direction on Prepaid Payment Instruments. Additionally, the newly notified Foreign Exchange Management (Authorised Persons) Regulations 2026 introduce a dedicated 3 (three)-tier framework for forex services, while the recognition of Sahamati as a self-regulatory organisation provides formal governance for the account aggregator framework.
Despite these tighter compliance rules, investor confidence remains incredibly strong. The sector continues to see massive capital infusions, highlighted by major funding rounds for large market players.
To read further details, click here or refer to the below document.
For further details, please contact km@jsalaw.com
