Prime Minister Narendra Modi on Friday announced that the Indian government is implementing various policy measures to boost the fintech sector, which has attracted over $31 billion in investments over the past decade.
Among these measures is the recent abolition of the Angel Tax, aimed at further fostering growth in the industry.
Speaking at the Global Fintech Fest 2024 in Mumbai, Modi urged regulators to introduce more safeguards against cyber fraud and to enhance digital literacy across the nation.
“Fintech has played a significant role in democratising financial services,” Modi said, expressing confidence that the sector will continue to improve the quality of life for Indians.
He highlighted that the adoption of fintech in India is "unmatched in speed and scale," a phenomenon he said is unparalleled globally.
PM Modi also noted that the transformation driven by fintech in India extends beyond technology, having a profound social impact.
The Prime Minister underscored fintech's role in curbing the parallel economy and bridging the gap between rural and urban areas in terms of financial services.
Modi also mentioned that the fintech sector has seen a 500 per cent increase in startups over the last 10 years, alongside the $31 billion in investments.
He referenced India's robust GDP growth and soaring capital markets, remarking that the current festive season is being mirrored by "festivity in the economy and markets."
Additionally, Modi highlighted the success of the Pradhan Mantri MUDRA Yojana, the world’s largest microfinance scheme, under which loans worth over ₹27 lakh crore have been disbursed.
Reserve Bank of India (RBI) Governor Shaktikanta Das, who also spoke at the event, noted that digital technologies have been pivotal in expanding financial inclusion, improving efficiency, and enabling real-time services across the country.
“Today, India stands as a global leader in digital payments, a feat achieved by combining proactive policymaking with innovation and technological advancements. Collaboration between policymakers, regulators, and innovators is the defining element of India's fintech journey,” Das said.
He added that the RBI's regulatory frameworks have supported the orderly growth of new and innovative businesses. “These regulatory initiatives reflect our commitment to support innovation with prudence. Our collaborative approach is evident in the numerous interactions we have had with fintech sector players over the last year,” he said.
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