Time for fintech revolution with low-cost, reliable payment system, says PM Modi

Prime Minister Narendra Modi on Friday underlined the need for converting Fintech initiatives into Fintech revolution to provide a low-cost and reliable payment system to the masses.

Speaking at the InFinity Forum, he said technology is bringing a big shift in finance, and mobile payment last year exceeded ATM withdrawals.

Fully digital banks without any physical branch offices are already a reality and may become commonplace in less than a decade, he said.

"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.

Citing another example, he said, fully digital banks without any physical branch offices are already a reality and may become commonplace in less than a decade.

As humans evolved, so did the form of our transactions. From barter system to metals, from coins to notes, from cheques to cards, today we have reached here , he said.

Observing that India has proved to the world that it is second to none when it comes to adopting technology, he said transformational initiatives under Digital India have opened doors for innovative Fintech solutions to be applied in governance.

Sharing India's financial inclusion drive led by technology, Modi said from less than 50 per cent of Indians having bank accounts in 2014, India has almost universalised it with 430 million Jan Dhan accounts in the last seven years.

He also listed initiatives like 690 million RuPay cards, clocking 1.3 billion transactions last year; UPI processing around 4.2 billion transactions last month, and almost 300 million invoices being uploaded on the GST portal every month.

Emphasising that financial inclusion is the driver of the Fintech revolution, he said Fintech is resting on four pillars -- income, investments, insurance and institutional credit.

When income grows, investment becomes possible. Insurance coverage enables greater risk-taking ability and investments. Institutional credit gives wings for expansion. And we have worked on each of these pillars. When all these factors come together, you suddenly find so many more people participating in the financial sector, Modi said.

Highlighting the importance of trust in Fintech in the light of the wide acceptance of these innovations among the masses, the Prime Minister said the common Indian has shown immense trust in the ecosystem by embracing digital payments and such technologies.

This trust is a responsibility. Trust means that you need to ensure that the interests of the people are secured. Fintech innovation will be incomplete without Fintech security innovation, he noted.

Modi said India believes in sharing its experiences and expertise with the world and learning from them as well.

"Our Digital Public Infrastructure solutions can improve the lives of people around the world. Tools like UPI and RuPay provide an unparalleled opportunity for every country. An opportunity to provide a low-cost and reliable 'real-time payment system' as well as a domestic card scheme and fund remittance system," he said.

Observing that finance is the lifeblood of an economy and technology is its carrier, Modi said both are equally important for achieving ''Antyodaya and Sarvodaya''.

"Our flagship Infinity Forum is part of our endeavour to bring together all key stakeholders of the global Fintech Industry to explore the limitless future of the industry," he added.

With inputs from PTI

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