Even as India’s fintech sector has garnered over $31 billion of investment in the last 10 years, more work needs to be done by the regulator on combating cyber frauds and promoting digital literacy, Prime Minister (PM) Narendra Modi said at the Global Fintech Festival held here today.
“I have a few expectations from the regulator. We must take more bigger steps to counter cyber frauds and promote digital literacy. We must ensure that cyber fraud must not become a barrier for growth of startups and fintechs,” Modi said while sharing the stage with Reserve Bank of India (RBI) Governor Shaktikanta Das.
“In the last 10 years, there has been investment of more than $31 billion in fintech sector and there has been an increase of 500 per cent in fintech startups,” Modi said. Cheap mobiles, data, and zero balance accounts under the (Pradhan Mantri) Jan-Dhan Yojana (PMJDY) have done wonders in the nation, he added.
Modi said earlier critics questioned the scope of digital transactions in the country, citing a lack of bank branches, no major presence of banks in villages, and a lack of access to interest and electricity. However, within 10 years, India’s broadband users have grown from 6 crore to 94 crore. Rarely does anyone above 18 years of age not have an Aadhar card, and 53 crore people have Jan Dhan accounts, he said.
The PM said trinity of the Jan-Dhan, Aadhar, and mobile have accelerated India’s digital payments landscape to such an extent that almost half of the global real-time digital transactions happen in India. In fact, India’s homegrown Unified Payments Interface (UPI) has become a big example of fintech innovation globally.
Modi said banks were restricted to one building at one point, but lenders have now moved to customers’ phones. Demat accounts are now being opened directly from home, while individuals are also getting investment advice, several health care services, and studying and learning materials remotely, and this would not have been possible without the help of fintech.
While the Centre has launched ₹1 lakh crore fund for research and innovation, Modi said the regulator must focus on tackling cyber frauds and promoting digital literacy.
Lastly, Modi said that over ₹27 lakh crore of credit has been delivered to date under the “biggest” microfinance scheme, Mudra, and 70 per cent of beneficiaries under the scheme are women borrowers.