India’s fintech industry received record $31 bn investment in last 10 years: PM Modi

MUMBAI: India's fintech revolution is improving financial inclusion as well as driving innovation and in the last 10 years, the industry has received a record investment of more than $31 billion, along with witnessing a startup growth of 500 per cent, Prime Minister Narendra Modi said on Friday.

Addressing the 'Global Fintech Fest (GFF) 2024' in the country's financial capital, PM Modi highlighted affordable mobile phones, inexpensive data, and Jan Dhan Bank accounts, starting with zero balance, for bringing in a revolution.

"Today, the total number of broadband users in the country 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 so far, opening up new opportunities for savings and investments. India's fintech ecosystem has the potential to enhance ease of living for the entire world and “our best is yet to come,” PM Modi added.

Hailing Bharat’s fintech innovation, the Prime Minister said that earlier, foreign guests visiting the country used to be amazed by its cultural diversity but now, they are amazed by its fintech diversity as well.

The trinity of Jan Dhan, Aadhaar, and Mobile (JAM) have broken down the mentality of ‘Cash is King’ and made way for approximately half of the digital transactions in the world taking place in India.

The Unified Payments Interface (UPI) has become a major example of fintech in the world, the Prime Minister said, adding that it has enabled 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 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 is making online shopping inclusive and connecting small businesses and enterprises to bigger opportunities.

"India has called for a global framework for AI," the Prime Minister said, noting that the use of sound boxes along with QR codes is one such innovation.

The Payments Council of India, the National Payments Corporation of India (NPCI), and the Fintech Convergence Council jointly organised the 'Global Fintech Fest'.