Fintech revolution in India will enhance ease of living globally, says PM Modi
Addressing the Global Fintech Fest (GFF) 2024 at the Jio World Convention Centre in Bandra Kurla Complex, the prime minister said India’s adoption of fintech is unmatched worldwide in speed and scale, and the sector has helped bridge the gap between rural and urban regions
Mumbai: Prime Minister Narendra Modi on Friday said that India’s fintech revolution has improved the quality and dignity of life in the country, adding that the ecosystem will enhance ease of living globally.
Addressing the Global Fintech Fest (GFF) 2024 at the Jio World Convention Centre in Bandra Kurla Complex, the prime minister said India’s adoption of fintech is unmatched worldwide in speed and scale, and the sector has helped bridge the gap between rural and urban regions. In the last 10 years, the industry has attracted over $31 billion in investments, while the number of fintech startups has grown by 500%, he added.
“There was a time when foreigners who visited India used to be astonished looking at our cultural diversity. Today, when people visit India, they are also stunned by our fintech diversity,” Modi said. He also lauded the strength of India’s youth working in the fintech sector, saying “the best is yet to come”.
“India’s fintech ecosystem will enhance global ease of living. Sustainable economic growth is India’s priority today. It is playing a big role in improving the dignity of life and quality of life. The government is creating robust, transparent and efficient systems to strengthen financial markets with advanced technologies and regulatory frameworks,” he said.
Taking a dig at the Opposition, Modi said he used to be asked by “scholars in Parliament” how a fintech revolution would take place in India, where there aren’t enough bank branches, internet and electricity in rural areas. “But today, within a decade, the number of broadband users has grown from 60 million to 940 million. Today, there’s hardly any Indian above the age of 18 who doesn’t have a digital identity, Aadhaar. Today, 530 million people have Jan Dhan accounts, which is equal to the population of the entire European Union.”
The prime minister said that the trinity of Jan Dhan accounts, mobile phones, and Aadhaar has driven the country’s digital transformation. “There was a time when people said cash is king. Today, India accounts for around half of the world’s real-time digital transactions. India’s UPI has become a big example of fintech across the world.”
Highlighting the 10th anniversary of the central government’s financial inclusion programme, Modi said that the Pradhan Mantri Jan Dhan Yojana has become a medium of women empowerment, with more than 290 million women having bank accounts through it.
“On the basis of these accounts, we launched the biggest microfinance scheme, Mudra Yojana, through which around ₹27 trillion has been credited and 70% per cent of beneficiaries are women. Jan Dhan has also boosted women’s self-help groups, which is benefitting 10 crore rural women,” he said.
Modi said that fintech has also dented the parallel economy or unaccounted money. With the help of fintech, cyber frauds are detected in minutes, he added. The prime minister appealed to regulators to take steps to improve digital literacy and combat cyber fraud.
“To combat the misuse of artificial intelligence, we have proposed a global framework for the ethical use of AI. Our proposal for a global digital public infrastructure depository was widely appreciated at the G20 global summit,” he said.
The prime minister said his government is taking various measures at the policy level to assist and promote the fintech sector, like doing away with angel tax and allocating ₹1 lakh crore for research and innovations.
“Fintech has made access to credit easy and inclusive, enabling street vendors to avail collateral-free loans and further expand their business with the help of digital transactions,” he said. Services such as remote healthcare services, digital education and skill learning would not be possible without fintech, he added.