Innovation-Led Inclusion Bedrock Of Indian Fintech Ecosystem: PM

Lauding the Indian fintech sector, Prime Minister Narendra Modi on Tuesday (September 20) said that innovation directed at inclusion has led to the country’s global rise in the fintech startup space as a hub of investment. 

This was part of PM Modi’s statement read by Infosys cofounder Kris Gopalakrishnan at the Global Fintech Fest 2022. 

The PM also called on the sector and startups to work tirelessly on safety and reliability of their platforms. 

“People involved in the fintech domain know well that constant innovation is the name of the game. Rapid, relentless and proactive work in ensuring security, safety and reliability is important to uphold the enormous trust that the people have placed,” Gopalakrishnan said reading Modi’s statement.  

Speaking at the same event, Finance Minister Nirmala Sitharaman called for building trust between authorities and fintech players. She urged the startups to engage more with government agencies, adding that various government arms and offices are constantly available for debates and exchange of ideas. 

“So greater the engagement, greater the trust, which gets built up. So I think one sure shot way of retaining and building on trust is to keep the constant engagement going,” added Sitharaman. 

She also urged fintech startups to play a defining role in developing a sustainable financial environment and to take advantage of various opportunities in the domain of green finance.

She also noted that the RBI’s sandbox initiative has provided a structured and institutionalised framework for fintech companies to test their new products and new innovations.

Meanwhile, Reserve Bank of India (RBI) Governor Shaktikanta Das at the event said that the central bank is committed to supporting innovation for fintech startups, albeit not at the cost of consumer interest.

He reiterated that innovations are ‘very much welcome’. However, fair practices and robust corporate governance would go a long way in sustaining such business models, he added.

This is the third edition of the event slated to continue till September 22 at the Jio World Convention Centre in Mumbai. The fest has been organised by the National Payments Corporation of India (NPCI), Payment Council of India (PCI), and Fintech Convergence Council (FCC).

The theme of this year’s event is ‘Creating a Sustainable Financial World – Global, Inclusive and Green’. It saw major political leaders, startups and industry players in attendance. 

Responding to a question about who will lead the rollout of the proposed digital currency, Sitharaman said that the RBI will come out with the CBDC. 

Of late, the RBI has stepped up its efforts to regulate the fintech space and has come out with a slew of regulations and notifications. Despite this, the fintech space continues to be the favourite choice of investors. 

On Monday, it emerged that the Indian Railway Catering and Tourism Corporation (IRCTC) is reportedly mulling approaching RBI for a payment aggregator licence. 

Earlier this month, fintech startup Tortoise raised funding from Swiggy CEO Sriharsha Majety and ZestMoney CEO Lizzie Chapman as part of its extended seed round. Post that, another fintech startup Ayekart raised $5.5 Mn in an equity and debt round from Caspian Debt and fintech platform Siply. 

As per an Inc42 report, India’s total addressable fintech market opportunity is expected to reach $1.3 Tn by 2025.