Prime Ministers highlighted India’s fintech prowess at Global Fintech Fest (GFF), 2024 In Mumbai | Current Affairs | Vision IAS
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Prime Ministers highlighted India’s fintech prowess at Global Fintech Fest (GFF), 2024 In Mumbai

Posted 31 Aug 2024

2 min read

GEF was jointly organized by the Payments Council of India, National Payments Corporation of India, and Fintech Convergence Council. 

  • Fintech (Financial Technology) rely primarily on technology and cloud services to provide financial services to customers (like Paytm, PhonePe)

Fintech in India

  • Adoption rate of Fintech in India is 87% (global average is 67%). 
    • Due to JAM trinity (Jan Dhan, Aadhaar and Mobile), India accounts for approximately 50% of the world’s digital transactions. 
  • Industry received over $31 billion in investments and saw startup growth of 500% in the last 10 years. 

Key Roles of India’s Fintech Sector 

  • Democratizing financial services: 
    • UPI has enabled 24 X 7 banking services closing the rural-urban divide in banking services.
    • Fintech have facilitated easy loan for street vendors under PM SVANIDHI Scheme.
  • Women Empowerment: 
    • Over 29 crore Jan Dhan accounts have been opened for women, which facilitates connecting self-help groups to banks and benefiting. 
    • 70% of Mudra Yojana beneficiaries are women. 
  • Tackling Parallel Economy: 
    • Digital financial transactions have improved transparency tackling black money. 
    •  Direct Benefit Transfer has prevented leakages in the government welfare schemes. 
  • Business opportunities for small entrepreneurs:  
    • Open Network for Digital Commerce is connecting small businesses to bigger opportunities. 
    •  Liquid and cash flow of small institutions are improving due to trade platforms and a digital voucher like e-RUPI. 
  • Dignity and Quality of Life: 
    • Fintech have played a key role in Digital India by facilitating remote healthcare services, digital education and skill learning. 

Some key initiatives for facilitating Fintech growth in India

  • Bank Sakhi Programme was launched under PM Jan Dhan Yojana to help first-time women customers navigate banking through female Banking Correspondents.
  • Doing away with Angel Tax
  • Allocating Rs 1 lakh crores to encourage research and innovation in the country. 
  • Implementing the Digital Personal Data Protection Act 2023.

 

  • Tags :
  • FinTech
  • Financial Inclusion
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