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Alankar Mishra

November 10, 2025

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Centre considering new classification code to improve tracking of India's growing fintech space

The Indian Government is looking into creating a distinct National Industrial Classification (NIC) code for fintech firms. The plan would create a valid, standardised database of fintech firms and aid in providing broader visibility in the sector to assist with regulations, policy settings, and growth. The effort is under active consideration with the wider effort of NIC-2025 that is being pursued by the Ministry of Statistics & Programme Implementation (MoSPI).

What’s an NIC Code — and Why Do Fintechs Need Their Own?

NIC codes are India’s formal classification of industries, used for registrations, surveys, compliance forms (for example, Udyam/MSME), and economic statistics.

As of now, fintech firms are categorised under various adjacent codes such as IT services, data processing, financial services, NBFCs, and payment services. The lack of a singular category makes it challenging to track, benchmark and analyse the fintech sector as there are inconsistencies with business models that overlap, payments, lending, wealth, insuretech, and multiple regulators - RBI, SEBI, IRDAI, IFSCA.

Creating a specific NIC code for fintech would correctly code entities during registration or incorporation and formally create a searchable database of all fintech companies in India.

Why Now?

Sector Size & Speed

The fintech landscape in India, featuring UPI, Account Aggregator, OCEN, and CBDC pilots, is evolving more quickly than existing classification systems can handle. However, policymakers require a deeper level of granularity and data because of all the rapid innovations.

Regulatory Clarity

The Reserve Bank of India has already established the FinTech Department to oversee and advance innovation. The formalised classification, in such cases, will enhance transparency and risk mapping across the entire sector.

Standards & Self-Regulation

Fintech associations and self-regulatory organisations are launching codes of conduct in lending, regtech, and payments. A concrete fintech registry will ease the process of knowing and tracing legitimate actors.

MoSPI’s NIC Refresh

MoSPI is already interceding with stakeholders on the NIC-2025 revision project to develop a new classification scheme for new tech-driven industries, and fintech is at the top of the list.

What Could a Fintech NIC Code Enable?

A Single Source of Truth

A code specific to fintech will assist departments such as MoSPI, DPIIT, and RBI in consolidating data on incorporations, employment, investments, and credit penetration to eliminate fragmented proxy datasets in favour of a single definitive database that can inform better policy development, incentive programs, and financial inclusion objectives.

Sharper Policy and Targeted Schemes

With improved tagging, the Centre can create customised support programs, export policy initiatives, and innovation hubs (including extensions to GIFT City) not only for the fintech sector but also for the particular fintech sub-metrics of payments, lending, insuretech, or regtech.

Cleaner Compliance Mapping

Given that fintech startups tend to operate across multiple sectors, a unique code will ease the regulatory mapping and early identification of gaps in compliance, such as where there are payment aggregator nexus red flags, account aggregator participation, or lending guidelines.

Investor Confidence and Benchmarking

A unified definition for the industry will ease investors' undertakings to define market size, compare results, and determine risk, which consequently increases confidence in investors and the accuracy of valuations.

International Comparability

A unified classification will also align India's fintech sector measures with global benchmarks – improving foreign investment transparency and cross-border regulatory cooperation.

What Are the Open Questions?

Scope and Boundaries

Identifying and defining “fintech” will be vital. Should it cover technology vendors that service financial institutions, or should we be limiting it to those firms that actually offer financial services to consumers? The definition must be operationally clear to avoid over- or under-inclusion.

Multi-Activity Firms

Many fintech firms operate across multiple sectors — payments, lending, wealth, and insuretech. The government may want to create sub-categories or allow for secondary codes so that this becomes operationally clear.

Transition Mechanics

Once notified, the fintech firms will likely need to change their business codes across MCA, Udyam, and GST portals. Timelines and guidance for migration will be critical to avoid disruption.

Tax and ITR Alignment

The government may also look to align the new NIC code with the updated Income Tax business codes to ensure coherence between regulatory and tax business codes.

What Changes for Stakeholders?

For Founders and CFOs

Evaluate your Existing Codes: Examine current categories under MCA, Startup India, and Udyam registrations.

Create Activity Mapping: Outline your product categories (i.e., UPI, BBPS, AEPS, digital lending, regtech, insuretech, wealth management...) to enable easier reclassification.

Check Data Hygiene: Verify that your corporate framework coincides with regulatory allowance and future NIC tagging implementation.

For Investors

Regulation Screening: A standardised fintech code will facilitate due diligence with uniform benchmarks and segregation of the market.

Portfolio Risk Analysis: A stable categorisation of fintech will allow for exposure identification in high-risk subsectors such as digital lending and cross-border payments.

For Regulators and Policymakers

Enhanced Risk Radar: A robust master database could also create foresight for early warning systems that could detect systemic risks, while offering enhanced data-driven consideration in policymaking within credit/lending/payments.

Timeline and What to Watch

NIC-2025 Consultation: The MoSPI is seeking input from the industry for the NIC Review and a new industry classification scheme that will be reflected in NIC-2025. The participation of the fintech industry will greatly aid the completion of the draft.

Official Notification: Once agreed, the NIC-2025 schedule will be published and used in government systems like MCA, Startup India, Udyam, GST, and state industrial registers.

Harmonisation Phase: Authorities will provide FAQs and circulars that will assist in the transition, align new NIC codes to the relevant RBI/SEBI/IRDAI frameworks, and provide a migration window to the fintech sector.

Practical 6-Step Readiness Checklist for Fintech Founders

Compile a comprehensive list of all revenue-generating activities and required licenses (RBI PA/PI, NBFC, SEBI IA/RIA, IRDAI, IFSCA, etc.).

Associate each product with the appropriate regulator and business function.

Align your internal language in board reports, policies, and disclosures.

Get ready to change master data across MCA, Udyam and GST systems when the new code is published.

Revise analytics dashboards that report on investors and lenders to align with the new classification.

Participate in MoSPI consultations and fintech association round table meetings to ensure proper reflection of your sub-sector.

Bottom Line

While creating a dedicated NIC code for fintech may sound technical, it could provide a basis for more effective policymaking, better data collection, and enhanced investor confidence. Now is the time for founders and CFOs to get their internal data organised, consider the current 13-digit codes, and get ready for a smoother transition once the NIC-2025 framework is released.

FAQs

1. What is the new fintech classification code?

This refers to the proposed dedicated National Industrial Classification (NIC) code for fintech firms to allow government agencies to track and regulate the booming fintech industry better.

2. Why does India need a separate code for fintech?

Right now, fintechs are dispersed across different classifications of IT or financial services. Having a dedicated code will help consolidate and unify data, improve regulation, and better align targeted policies.

3. Who is introducing this fintech NIC code?

The Ministry of Statistics and Programme Implementation (MoSPI) is working on this revision of the NIC as part of the NIC-2025 update.

4. How will this new code help fintech companies?

This move will make compliance simpler, allow founders to better navigate government schemes, attract investors by establishing clearer benchmarking, and facilitate policy support.

5. Will existing companies have to change their code?

Yes, it is possible that once notified, existing fintech startups will have to migrate from the general category to the dedicated code - you will see this in the MCA, Udyam, and Startup India portals.

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