Role of Fintech in Democratizing Financial Services is Important – Prime Minister Narendra Modi

Mumbai : Over the past decade, the fintech sector has seen record investments exceeding $31 billion, with startups growing by 500 percent. The Unified Payments Interface (UPI) stands as a prime example of India’s fintech success on a global scale. UPI has made 24-hour banking services accessible to every village and city, demonstrating fintech’s crucial role in democratizing financial services, asserted Prime Minister Narendra Modi.

Addressing the Global Fintech Fest (GFF) 2024, organized jointly by the Payments Council of India, the National Payments Corporation of India, and the Fintech Convergence Council at the Jio World Convention Center in Mumbai, Prime Minister Modi highlighted the festive mood in the economy and markets. Reserve Bank of India Governor Shaktikanta Das and GFF President Kris Gopalakrishnan were also present.

Prime Minister Modi noted that the number of broadband users in the country has surged from 60 million to 940 million. More than 530 million people now have Jan Dhan accounts. Through the Mudra Yojana, which is based on Jan Dhan accounts, ₹27 trillion has been disbursed, with 70 percent of the beneficiaries being women. Jan Dhan accounts have enabled the integration of women self-help groups into the banking system, benefiting 100 million rural women. Modi emphasized that the Jan Dhan initiative has laid a solid foundation for the economic empowerment of women.

The use of Direct Benefit Transfers (DBT) in government schemes has successfully prevented system leakages. Fintech has facilitated easier and more inclusive access to credit. The Pradhan Mantri Swanidhi Yojana is supporting street vendors with interest-free loans due to digital transactions. Access to stock markets, mutual funds, investment reports, and demat accounts has become more straightforward. Additionally, fintech has enabled healthcare in remote areas, digital education, and skill development. India’s fintech revolution is significantly enhancing the quality of life.

Necessary measures are being taken to support the fintech sector, including the abolition of angel tax, the allocation of ₹1 lakh crore to encourage research and innovation, and the implementation of the Digital Personal Data Protection Act. Regulators are urged to promote digital literacy to prevent cyber fraud from hindering fintech and startup growth. Prime Minister Modi also mentioned that the government is building a strong, transparent, and efficient financial system supported by advanced technology and a robust regulatory framework.