India's FinTech revolution is improving financial inclusion as well as driving innovation, says Narendra Modi

Modi made the comment while addressing the Global Fintech Fest (GFF) 2024 at the Jio World Convention Centre in Mumbai.

The Prime Minister also took a walkthrough of the exhibition showcased on the occasion. GFF is jointly organized by the Payments Council of India, the National Payments Corporation of India and the Fintech Convergence Council and it aims to showcase India's strides in Fintech and bring together key stakeholders of the sector.

Addressing the gathering, the Prime Minister said that the economy and the markets of the nation are in a celebratory mood at a time when the nation is also going through a festive period, and the organization of Global Fintech Fest is happening in the city of dreams, Mumbai. The Prime Minister extended a warm welcome to all the dignitaries and guests. Speaking about his experiences and interactions at the exhibition before the commencement of the program, Shri Modi said that one can witness a whole new world of innovations of the youth and possibilities of the future. He congratulated all those involved in the successful organization of the Global Fintech Fest (GFF) 2024.

Hailing Bharat’s fintech innovation, the Prime Minister said, “Earlier foreign guests visiting India used to be amazed by its cultural diversity, now they are amazed by its fintech diversity as well.”

Modi held that Bharat’s fintech revolution is widespread for one to witness right from the moment of their arrival at the airport to street food and shopping experience.

“In the last 10 years, the industry has received a record investment of more than 31 billion USD along with witnessing a startup growth of 500 percent,” he underlined, highlighting affordable mobile phones, inexpensive data and Jan Dhan Bank accounts starting with zero balance for bringing in a revolution.

“Today, the total number of broadband users in the country has increased from 60 million to 940 million,” Modi said, further highlighting that there is hardly any 18-year-old in the country without an Aadhaar, a digital identification.

“Today, more than 530 million people in the country have Jhan Dhan accounts. In a way we have connected a population equivalent to that of the entire European Union to banks in just 10 years,” he added.

“India’s UPI has become a major example of Fintech in the world” the Prime Minister said adding that it has enabled 27 X 7 banking services in every village and city in all weather conditions. Recalling the Covid pandemic, the Prime Minister said that India was one of the handful of nations in the world where the banking system remained uninterrupted.

The Prime Minister highlighted the 10th anniversary of Jan Dhan Yojna a few days ago and said that it has become a huge medium for women empowerment. He informed that more than 29 crore bank accounts have been set up for women so far opening up new opportunities for savings and investments. He further added that the largest microfinance scheme, Mudra Yojna, was launched on the philosophy of Jan Dhan accounts and has disbursed a credit of Rs 27 trillion so far. “70 percent of the beneficiaries of this scheme are women”, Shri Modi informed. He further explained that Jan Dhan accounts are also used in connecting self-help groups with the banking system and have benefited 10 crore rural women. “Jan Dhan Program has laid strong foundations of financial empowerment of women”, PM Modi remarked.

Cautioning about the dangers of a parallel economy for the world, the Prime Minister remarked that Fintech has played an impactful role in denting such a system and credited the emergence of transparency. He said that digital technology has introduced transparency in India and gave the example of the implementation of Direct Benefit Transfer used in hundreds of government schemes that has prevented leakages in the system. “Today, people can see the benefits of aligning with the formal banking system”, the Prime Minister reiterated.

Noting the changes brought in by the fintech industry in the country, the Prime Minister said that it has not only transformed the technological front of Bharat but also made a widespread social impact by closing the gap between urban and rural India together.

Modi further highlighted that the same banking services which earlier used to take a whole day, creating hindrances for the farmers, fishermen and middle-class families, are now easily accessible on mobile phones with the help of fintech.

Underlining the role of Fintech in democratizing financial services, the Prime Minister gave examples of readily available loans, credit cards, investments and insurance.

He said that Fintech has made access to credit easy and inclusive, and gave the example of PM SVANidhi scheme that has enabled street vendors to avail collateral-free loans and further expand their business with the help of digital transactions.

He also mentioned easy access to the share markets and mutual funds, investment reports and opening demat accounts.

Referring to the rise of Digital India, the Prime Minister highlighted that services such as remote healthcare services, digital education and skill learning would not be possible without fintech.

“India's Fintech revolution is playing a big role in improving the Dignity of Life and Quality of Life”, Shri Modi added.

The Prime Minister held that the feats achieved by India’s fintech revolution are not just about innovations, but also about adoption.

Applauding the people of India for adopting the speed and scale of this revolution, Modi also hailed the role of the Digital Public Infrastructure (DPI) for bringing in this transformation, adding that amazing innovations have been made in the country to create trust regarding this technology.

Referring to the modern-day concepts of Digital Only Banks and Neo-Banking, the Prime Minister said, “The 21st-century world is changing at a fast pace and while the journey from currency to QR (quick response) codes took us a while, we have been witnessing innovations daily.”

Hailing the Digital Twins technology, Modi said it is going to change the way the world has been assessing risk management, evaluating fraud detection and providing customer experience.

Noting the advantages of Open Network for Digital Commerce (ONDC), the Prime Minister said it is making online shopping inclusive and connecting small businesses and enterprises to bigger opportunities.

“India has called for a global framework for AI”, the Prime Minister said, noting that the use of sound boxes along with QR codes is one such innovation.

He also urged India’s fintech sector to study the government's Bank Sakhi program and highlighted the efforts of the daughters in spreading banking and digital awareness in every village thereby giving a new market to fintech.

The Prime Minister underlined that the government is making all necessary changes on the policy level to assist the Fintech sector and gave examples of doing away with Angel Tax, allocating Rs 1 lakh crores to encourage research and innovation in the country and implementing the Digital Personal Data Protection Act.

Expressing the need to put an end to cyber fraud, the Prime Minister urged the regulators to initiate huge steps to boost digital literacy.

He said that it is equally important to ensure cyber fraud does not come in the way of the growth of fintech and startups in the country.

“Sustainable economic growth is India’s priority today”, the Prime Minister said.

He emphasized that the government is creating robust, transparent and efficient systems to strengthen financial markets with advanced technologies and regulatory frameworks.

He mentioned supporting sustainable growth with green finance and saturation of financial inclusion.