Prime Minister Narendra Modi called for a “fintech revolution” to achieve financial empowerment for all citizens on Friday, claiming that the country has achieved considerable progress in this field due to people’s faith in the Indian digital ecosystem.
He said “Financial inclusion is the driver of the fintech revolution,” and further added that fintech rests on the four pillars of income, investments, insurance, and institutional credit.
He made the comments while addressing online at the InFinity Forum, a financial technology event hosted by the International Financial Services Centres Authority (IFSCA).
According to him, as money rises, so does one’s ability to invest, and insurance coverage allows for more risk-taking and investment. Modi also emphasised that institutional credit allows for expansion and that India has prioritised each of these pillars.
The Indian PM further stated “The large base becomes the perfect springboard for fintech innovations. The fintech industry in India is innovating to enhance access to finance and the formal credit system to every person in the country,”
“Now, it is time to convert these fintech initiatives into a fintech revolution. A revolution that helps to achieve financial empowerment of every single citizen of the country,” he said.
He mentioned various government efforts aimed at empowering people through fintech. Over the previous seven years, India has practically universalized banking, with 430 million Jan Dhan accounts. He claimed that 690 million RuPay cards have been issued, with 1.3 billion transactions conducted last year, and that the domestically created Unified Payments Interface (UPI) has processed roughly 4.2 billion transactions in the last month.
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Modi said that India is rapidly adopting digital governance for convenience of life, citing the fact that businesses upload about 300 million invoices to the Goods and Services Tax (GST) portal every month, totalling over $12 billion in payments.
“Despite the [Covid-19] pandemic, about 1.5 million railway tickets get booked online every day. Last year, FASTag processed 1.3 billion seamless transactions. PM Svanidhi is enabling access to credit for small vendors across the country. e-RUPI has enabled the targeted delivery of specified services without leakages. I can go on and on, these are just a few examples of the scale and scope of fintech in India,” he said.
“India has proved to the world that it is second to none when it comes to adopting technology or innovating around it. Transformational initiatives under Digital India have opened doors for fintech innovations to be applied in governance,” he added.
He stated that it is only because of people’s trust and acceptability that fintech has been able to grow so rapidly. “The common Indian has shown immense trust in our fintech ecosystem by embracing digital payments and such technologies. This trust is a responsibility. Trust means that you need to ensure the interests of people are secured. Fintech innovation will be incomplete without fintech security innovation,” he said.
PM Modi said that India is willing to share its experiences with the world and learn from them as well. “Our digital public infrastructure solutions can improve the lives of people around the world. Tools such as UPI and RuPay provide an unparalleled opportunity for every country – an opportunity to provide a low cost and reliable ‘real-time payment system’ as well as a domestic card scheme and fund remittance system,” he stated.
“Finance is the lifeblood of an economy and technology is its carrier. Both are equally important for achieving ‘antyodaya’ and ‘Sarvodaya. Our flagship Infinity Forum is part of our endeavour to bring together all key stakeholders of the global fintech industry to explore the limitless future of the industry,” PM Modi added.