India’s Prime Minister Narendra Modi said that technology is bringing a big shift in the world of finance and last year mobile based payments exceeded ATM transactions.
Addressing delegates at the InFinity Forum, a thought leadership forum on fintech, PM Modi said that technology has catalysed financial inclusion. “From less than 50 per cent Indians having bank accounts in 2014, we have almost universalised 430 million Jan dhan accounts in the last seven years. Pradhan Mantri Jan Dhan Yojana is a financial inclusion program of the Government of India open to Indian citizens that aims to expand affordable access to financial services such as bank accounts, remittances, credit, insurance and pensions,” he said.
So far, 690 million RuPay cards have been issued. 1.3 billion Transactions were processed via RuPay cards in the previous year. 4.2 billion transactions were processed via UPI in just last month. Almost 300 million invoices are uploaded on the GST portal every month, the PM explained.
PM Modi further added that it was now time to convert fintech initiatives into a fintech revolution to provide a low-cost and reliable payment system to the masses.
Fully digital banks without any physical branch offices are already a reality and may become commonplace in less than a decade, said Modi.
“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 innovative fintech solutions to be applied in governance,” the prime minister said.
Fintech is racing on four pillars income, investment, insurance and institutional credit. When income grows, investment becomes possible. Fintech industry in India is innovating to enhance access to finance
“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,” the prime minister said.
He further pointed out that the fintech industry has customers from all walks of life. Indians have shown trust in the fintech ecosystem by embracing digital payments and other technologies.
Digital infrastructure solutions are capable of changing the life of people. Tools like UPI and RuPay provide an unparalleled opportunity for every country to provide a low cost, real time payment system, Modi concluded.
Rajeev Chandrasekhar, Minister of State in the Ministry of Skill Development and Entrepreneurship and Ministry of Electronics and Information Technology, Government of India, said that Prime Minister Narendra Modi’s Digital India vision had four pillars namely to transform lives of the citizen, provide ease of living, expanding the economy, and create an opportunity of entrepreneurship and employment.
India is amongst the fastest growing fintech markets in the world. Of the 2,100+ FinTechs existing in India today, over 67 per cent have been setup in the last 5 years, an Invest India report added.
Indian FinTech industry valued at $ 50-60 billion in FY20 and is estimated at ~$ 150 billion by 2025.
The report further explained that the fintech transaction value size is set to grow from US$ 66 billion in 2019 to US$ 138 billion in 2023, at a CAGR of 20 per cent.
The Indian Fintech industry ecosystem sees a wide range of subsegments, including Payments, Lending, Wealth Technology (WealthTech), Personal Finance Management, Insurance Technology (InsurTech), Regulation Technology (RegTech), etc.
The Fintech sector in India has seen cumulative funding of ~$27.6 billion.
As of October 2021, India’s Unified Payments Interface (UPI) has seen participation of 261 banks and has recorded 4.21 billion monthly transactions worth over $100 billion in October 2021.