Mumbai: India’s fintech revolution is boosting financial inclusion and accelerating innovation. Prime Minister Narendra Modi said on Friday that the industry had attracted a record investment of more than $31 billion over the last decade, with startup growth of 500 percent.
In a seemingly political overtone, the prime minister hinted he would return to office in five years because India’s “best is yet to come.”
At one point during his speech, the Prime Minister smiled and voiced his hope to “be present in the 10th edition of the GFF, five years later” (2029), to which he was greeted with a massive round of applause.
How Jan Dhan Yojana as an instrument of empowerment
Addressing the ‘Global Fintech Fest (GFF) 2024’ in the country’s financial capital, PM Modi emphasised the crucial role of affordable mobile phones, low-cost data, and Jan Dhan Bank accounts with zero balance(Jan Dhan) in bringing about a revolution.
“Today, the country’s total number of broadband users has increased from 60 million to 940 million. 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 said.
As part of the Jan Dhan Yojna, more than 29 crore bank accounts have been set up for women, opening up new opportunities for savings and investments. The PM said India’s fintech ecosystem has the potential to enhance the ease of living for the entire world.
As the 10th anniversary of Jan Dhan was recently celebrated, the PM said that it has also become a huge medium for women’s empowerment, with more than 29 crore women having a bank account, which has opened up new opportunities for savings and investments.
Based on the Jan Dhan accounts, which is the largest microfinance scheme, Mudra Yojana, has disbursed a credit of Rs 27 trillion so far, of which a staggering 70 percent are women beneficiaries.
Bharat’s fintech diversity
The PM highlighted how affordable mobiles, data, and zero-balance Jan Dhan bank accounts had contributed to the revolution brought about by fintech.
Hailing Bharat’s fintech innovation, the Prime Minister said that earlier, foreign guests visiting the country used to be amazed by its cultural diversity. However, they are now amazed by its fintech diversity.
The trinity of Jan Dhan, Aadhaar, and Mobile (JAM) has broken down the mentality of ‘Cash is King’ and allowed approximately half of the world’s digital transactions to take place in India.
The Prime Minister said the Unified Payments Interface (UPI) has become a significant example of fintech worldwide, enabling 24X7 banking services in every village and city in all weather conditions.
PM Modi stated 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.
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. 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,” he reiterated.
PM lauds the role of Digital Public Infrastructure
PM Modi also hailed the role of the Digital Public Infrastructure (DPI) in bringing in this transformation, adding that amazing innovations have been made in the country to create trust regarding this technology.
Noting the advantages of Open Network for Digital Commerce (ONDC), the Prime Minister said it makes online shopping inclusive and connects small businesses and enterprises to bigger opportunities.
“India has called for a global framework for AI,” the Prime Minister said, noting that using sound boxes along with QR codes is one such innovation.
Why cash is no longer the king
PM Modi also expressed confidence that India’s robust fintech ecosystem would play a huge role in providing the country’s people with a quality lifestyle.
In his keynote address, PM Modi said that the nation’s economy and markets are in a celebratory mood during the ongoing festival season as the GFF is taking place in the city of dreams, Mumbai.
Women with Endometriosis May be at 35% Risk of Heart Attack, 20% Ischemic Stroke
“Today, the country’s total number of broadband users has increased from 60 million to 940 million in the past 10 years… More than 530 million have a Jan Dhan bank account. There is hardly any 18-year-old in the country without an Aadhaar Card, a digital identification. In a way, we have connected the population equivalent of the entire European Union to banks,” said Modi.
He pointed out that the trinity of Jan Dhan, Aadhaar Card, and Mobile has broken down the mentality of ‘cash is king’ and paved the way for almost half of the digital transactions in the world to take place in India.
The country’s UPI has become a major Fintech example in the world. It has enabled 24×7 banking services to the remotest corners of the country in all weather conditions, and even during the COVID-19 pandemic, India’s banking system functioned uninterrupted.
The three-day GFF, which concludes on Friday, hosted around 800 speakers and 350-plus sessions, with more than 80,000 participants. The sessions covered areas like digital payments, lending, insurance, wealth management, etc., and were organised by the Payments Council of India, National Payments Corporation of India, and the Fintech Convergence Council.
The Payments Council of India, the National Payments Corporation of India (NPCI), and the Fintech Convergence Council jointly organised the ‘Global Fintech Fest’.
For more updates Subscribe to Media Eye News
–IANS
