Inside This Article
India’s fintech industry is growing very fast. There are now more than 12,000 fintech startups, and experts say the market could reach USD 180 billion by 2030 (EY India FinTech Report 2025).
As companies build new apps for digital payments, lending, and banking, the RBI, SEBI, and FIU-IND have made stricter rules in 2025. These rules help keep customer data safe and stop fraud.
If companies do not follow these rules, they can be fined up to and lose their license, or even be shut down.
To help fintechs stay safe and follow the law, we’ve made an easy Fintech Compliance Checklist for 2025. It includes all the main rules from RBI, SEBI, GST, FEMA, KYC/AML, data safety, and cybersecurity in one place.
Why Compliance is Critical for Fintech Companies?
Regulatory authorities have intensified scrutiny due to:
- Rising digital fraud and data breach incidents (as per CERT-In, over 13.9 lakh cybersecurity incidents were reported in 2024).
- Increasing misuse of customer data by unauthorized lending apps.
- Need for alignment with RBI’s Fair Practices Code and KYC/AML norms.
Failure to comply may lead to:
- Hefty monetary fines.
- Suspension of licenses.
- Reputational and investor trust damage.
Fintech Compliance Checklist for 2025
RBI & SEBI Regulatory Compliance
| Compliance Requirement | Description | Deadline/Frequency |
| NBFC License (If Applicable) | Mandatory for digital lenders & fintech lending platforms | Before operations begin |
| RBI Payment Aggregator (PA) License | Required for payment gateways & fintech service providers | One-time approval |
| Capital Adequacy Requirements | Maintain minimum net worth (₹25 crore for PA as per RBI 2025 circular) | Ongoing |
| SEBI Registration | For platforms offering investment, mutual funds, or stock-related services | Before operations begin |
| Digital Lending Guidelines (RBI Circular 2024-25) | Full disclosure of interest rates, charges, and data sharing | Ongoing |
| Periodic Regulatory Audits | Cyber, operational, and compliance audits mandated | Quarterly/Annual |
| Prudential Norms Reporting | Maintain NPA & provisioning per RBI rules | Quarterly |
Reference: RBI Circular on Digital Lending, April 2025
KYC & AML Compliance (FIU-IND Regulations)
| Compliance Requirement | Description | Deadline/Frequency |
| FIU-IND Registration | Mandatory for fintech involved in financial transactions | Before operations begin |
| KYC Verification | Implement CKYC/eKYC and PAN-based verification | Ongoing |
| Suspicious Transaction Reporting (STRs) | Report fraudulent or irregular transactions | Weekly/Monthly |
| AML Risk Assessment | Build internal AML policy & risk control systems | Ongoing |
| Enhanced Due Diligence | Verify high-risk or foreign customers | Ongoing |
Reference: FIU-IND Reporting Guidelines 2025
Data Privacy & Cybersecurity (IT Act & DPDP Act, 2023-2025 Updates)
| Compliance Requirement | Description | Deadline/Frequency |
| Data Protection Compliance | Follow the Digital Personal Data Protection (DPDP) Act 2023, enforced fully from March 2025 | Ongoing |
| Consent-Based Data Usage | Obtain explicit consent for storing or processing customer data | Ongoing |
| RBI Cybersecurity Framework | Implement security controls & recovery mechanisms | Ongoing |
| Regular Penetration Testing | Conduct cyber audits and threat simulations | Quarterly/Annual |
| Data Breach Reporting | Report incidents within 72 hours to CERT-In | Ongoing |
Penalty: Non-compliance under DPDP can lead to fines up to ₹250 crore per violation.
Reference: Digital Personal Data Protection Act 2023
GST, Tax & FEMA Compliance
| Compliance Requirement | Description | Deadline/Frequency |
| GST Registration & Filings | Applicable to all fintech service providers | Monthly/Annually |
| TDS & Income Tax | Timely deduction and filing for staff & vendors | Monthly/Annually |
| FEMA Compliance | Report foreign investment & cross-border transactions | Ongoing |
| Transfer Pricing Documentation | Required for entities with foreign subsidiaries | Annually |
Reference: GST Portal, FEMA Regulations
Customer Protection & Fair Lending Practices
| Compliance Requirement | Description | Deadline/Frequency |
| Fair Practices Code (FPC) | Transparent interest rates, no hidden charges | Ongoing |
| Customer Grievance Redressal | Establish 24×7 support or chatbot redressal system | Ongoing |
| Disclosure in Loan Agreements | Ensure full cost transparency | Ongoing |
Penalties for Non-Compliance
- Regulatory fines: Up to ₹10 lakh per day.
- License revocation: RBI or SEBI can cancel operating licenses.
- Legal actions: Violations under AML/KYC laws invite criminal penalties.
- Reputation damage: Non-compliance can erode customer and investor trust.
Example: In 2024, RBI restricted several fintech lenders for misusing user consent in digital loan disbursement apps.
How to Stay Compliant?
- Create a Regulatory Compliance Calendar – Track filings & renewal dates.
- Invest in RegTech tools to automate compliance checks.
- Appoint a Compliance Officer with fintech law expertise.
- Stay updated with RBI, SEBI, and FIU notifications.
- Conduct Quarterly Internal Audits to detect early risks.
Final Thoughts
The fintech compliance environment in India is becoming more data-driven and enforcement-focused. Startups and established firms alike must adopt a compliance-first culture to avoid regulatory setbacks.
By following this checklist, fintechs can:
- Stay legally compliant with RBI, SEBI, FIU-IND & DPDP laws.
- Avoid costly penalties and ensure investor confidence.
- Build long-term trust through transparency and governance.
Need expert guidance on fintech compliance? Let’s connect!
📞 +91 9328718979
🌐 www.nbfcadvisory.com
