At the Global Fintech Festival (GFF) 2024 in Mumbai, Reserve Bank of India (RBI) Governor Shaktikanta Das delivered a significant address that outlined his five-point agenda for shaping India’s financial future. Das highlighted the nation’s rapid economic growth, driven by technological advancements and a vibrant fintech ecosystem, and presented a roadmap aimed at enhancing the country’s financial landscape.
1. Financial Inclusion
Governor Das began his speech by celebrating the progress made in financial inclusion. He pointed out that the RBI’s Financial Inclusion Index had increased from 53.9 in March 2021 to 64.2 in March 2024. Central to this achievement is the Pradhan Mantri Jan Dhan Yojana (PMJDY), a flagship program that has been instrumental in expanding financial access. Over the past decade, PMJDY has facilitated the opening of over 530 million bank accounts, with 66% of these accounts located in rural and semi-urban areas and 55% benefiting women.
Das praised the scheme’s success, noting that Jan Dhan accounts have significantly accumulated savings despite initial skepticism. Looking ahead, he stressed the need to leverage technology to further address the financial needs of underserved regions. Das emphasized the role of fintech companies in bridging gaps and ensuring seamless financial service access, projecting that technology will continue to be a key driver in expanding financial inclusion.
2. Enhancing Digital Public Infrastructure
The second priority Das discussed was the enhancement of Digital Public Infrastructure (DPI). He spotlighted the RBI’s upcoming Unique Lending Interface (ULI) pilot project, which aims to streamline and integrate advanced technologies into the financial system. Das highlighted how the ULI, along with the existing JAM (Jan Dhan-Aadhaar-Mobile) trinity and the Unified Payments Interface (UPI), represents a new phase in India’s financial evolution.
“DPI has the potential to revolutionize financial services in India,” Das stated, underscoring its transformative impact on the financial sector. The focus on DPI aims to enhance access to financial products and services, thereby increasing efficiency and inclusion across the country.
3. Strengthening Cybersecurity
In today’s digital era, cybersecurity is crucial for safeguarding financial systems. Das emphasized the importance of real-time monitoring and adherence to regulatory standards, particularly in light of the recently enacted Digital Personal Data Protection Act. This legislation grants individuals greater control over their personal data, thereby bolstering trust in digital financial services.
“Banks and fintech firms, especially NBFCs, are expected to adopt a customer-centric approach, ensuring transparency and fairness,” Das noted. He called for ongoing vigilance against cyber threats and promoted cybersecurity awareness as essential components of building a secure digital economy.
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4. Promoting Long-Term Sustainable Finance
Das also addressed the need for promoting long-term sustainable finance. He highlighted the RBI’s initiatives, such as sovereign green bonds and green deposits, as significant steps towards fostering sustainability within the financial sector. However, he acknowledged the challenges associated with scaling up the green bond market.
“Technology, particularly artificial intelligence and big data, will play a transformative role in assessing environmental risks and advancing sustainable finance,” Das explained. He emphasized the critical role fintech companies will play in driving this transition, positioning India as a leader in sustainable finance.
5. Reinforcing Financial Infrastructure
Lastly, Das stressed the importance of reinforcing India’s financial infrastructure, with a focus on cross-border payments. He highlighted the RBI’s efforts to globalize UPI and RuPay, aiming to enhance their international reach.
“We must adopt artificial intelligence carefully, understanding both its potential and risks,” Das cautioned. He also pointed to the Internet of Things (IoT) as a new frontier of opportunity for the financial sector, emphasizing the need for innovation in strengthening India’s financial infrastructure.
The GFF 2024 served as a crucial platform for discussing the future of fintech in India, showcasing the country’s burgeoning fintech landscape, which includes over 11,000 startups and $6 billion in funding over the past three years. Governor Das’s address at the festival outlined a clear and ambitious vision for the future, focusing on innovation, inclusion, and resilience. His agenda reflects a commitment to leveraging technology, ensuring security, and fostering sustainable growth to propel India towards its goal of becoming a global economic powerhouse.
