State announces financial assistance for FinTech firms
The Hindu
The companies will be supported through multiple funding avenues, says government
The Tamil Nadu government in its FinTech Policy 2021 has announced that a structured package of incentives would be extended to firms which have invested more than ₹50 crore and provided direct employment for 300 people or more over a period of less than 3 years, on a case-to-case basis.
The first five large FinTech firms shall also be eligible for a relocation incentive of 50% up to ₹10 crore during the policy period. The policy that was released by Chief Minister M.K. Stalin will be valid until December 2025. Operational guidelines and clarification would be issued from time to time.
The government has said that it would support FinTech firms through multiple funding avenues. For instance, around ₹5 crore would be earmarked from the Tamil Nadu Startup Seed Grant Fund created under the Tamil Nadu Startup and Innovation Policy 2018. Another ₹20 crore has been earmarked from the Emerging Sector Seed Fund through TIDCO/Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC). This fund will be used to provide venture capital for supporting the early-stage financing requirements of eligible FinTech startups.