Prime Minister Narendra Modi has emphasized the need for financial regulators to take more decisive actions to prevent cyber fraud and enhance digital literacy in India. Speaking at the Global Fintech Fest (GFF) 2024, held in Mumbai, Modi highlighted the significant progress made in the country's fintech sector and urged stakeholders to ensure that the threat of cyber fraud does not hinder the growth of this ecosystem.
During his address at the event, Prime Minister Modi praised India’s fintech advancements, particularly in the areas of digital payments, financial inclusion, and mobile technology. He highlighted how innovations like the Unified Payments Interface (UPI), Jan Dhan accounts, and affordable broadband have made financial services more accessible and have improved the ease of living for millions of Indians.
Modi pointed out that India’s fintech revolution is now a global phenomenon, with visitors from abroad being increasingly impressed not only by India's cultural diversity but also by its technological advancements. He noted that the fintech industry in India has attracted over $31 billion in investments in the last decade and has seen a 500% growth in startups.
The Prime Minister also emphasized the importance of digital identification systems, like Aadhaar, and the widespread use of Jan Dhan accounts, which have significantly contributed to financial inclusion in the country. He remarked that India has connected a population equivalent to that of the entire European Union to the banking system in just ten years. Today, India has over 530 million Jan Dhan accounts and nearly a billion broadband users.
Modi also spoke about the transformative impact of the "Jan Dhan-Aadhaar-Mobile" trinity, which has revolutionized the way financial transactions are conducted in India. This trinity has helped shift the mindset from "Cash is King" to embracing digital transactions, with UPI becoming a leading example of fintech innovation worldwide. The Prime Minister recalled that during the COVID-19 pandemic, India was one of the few countries where the banking system remained fully operational, thanks to its robust digital infrastructure.
Celebrating the 10th anniversary of the Jan Dhan Yojana, Modi highlighted its role in empowering women, with more than 29 crore bank accounts opened for women, facilitating savings and investments. The Prime Minister also mentioned the Mudra Yojana, which has provided Rs 27 trillion in credit, with 70% of the beneficiaries being women. This program has further strengthened the financial empowerment of women across the country.
Modi cautioned against the dangers of a parallel economy and credited fintech with bringing transparency to financial transactions, citing the Direct Benefit Transfer (DBT) system as an example. The DBT system has been instrumental in reducing leakages in government schemes, ensuring that benefits reach the intended recipients.
The Prime Minister noted that fintech has not only modernized India’s financial services but has also bridged the gap between urban and rural areas. Services that once required a full day to complete are now accessible through mobile phones, benefiting farmers and middle-class families alike. He emphasized that fintech has democratized financial services, making loans, credit cards, investments, and insurance more accessible to everyone.
Modi also praised the role of fintech in transforming the lives of street vendors through the PM SVANidhi scheme, which offers collateral-free loans and facilitates digital transactions. He further highlighted the importance of fintech in areas like remote healthcare, digital education, and skill development, which are essential for improving the quality of life in India.
The Prime Minister acknowledged the role of India’s Digital Public Infrastructure (DPI) in supporting the fintech revolution and commended the country for adopting these innovations at scale. He mentioned emerging technologies such as Digital Only Banks, Neo-Banking, and Digital Twins, which are reshaping risk management, fraud detection, and customer experiences.
Finally, Modi urged the fintech sector to study and learn from the government's Bank Sakhi program, which empowers women to spread banking and digital awareness in rural areas. He also highlighted the potential of initiatives like the Open Network for Digital Commerce (ONDC) and digital vouchers like e-RUPI in creating inclusive opportunities for small businesses and other countries.
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