Karad confident PPP will provide financial services to all Indians
India’s Fintech market value is expected to grow to Rs.6,207 billion by 2025 from Rs.1,920 billion in 2019, given that the country is a leader in adopting financial technology amongst emerging markets, according to Dr Bhagwat Kishanrao Karad, Minister of State for Finance.
Addressing that ASSOCHAM’s 2nd edition of Annual FinTech & Digital Payments 2021 event, Dr. Karad pointed out that India has been ranked No.1 in terms of digital transactions owing to the introduction of various reforms.
“India is a leader in adopting financial technology amongst emerging markets. The country recorded an adoption rate of 87% in March 2020 as compared to 64% global average. Skilled workforce and technological environment in India make it a great destination to develop financial technology,” said Dr. Karad.
“Fintech sector has managed to grow even during the challenging times of pandemic. Financial Inclusion played an important role during the pandemic for the government. It was the prime means of distributing around 1.70 lakh crore direct benefit transfers to 800 million people under the PM Gareeb Kalyan Yojana.
“The Government is making tremendous efforts to build a strong and safe financial technology ecosystem. We are confident that the public private partnerships will increase financial inclusion and provide modern financial services to all the Indians,” he informed participants at the conclave.
ASSOCHAM President Vineet Agarwal said, “Covid-19 had an unprecedented impact on macro and micro economic environment and the financial systems at a global scale. Hence, it is critical for us to focus on how financial resources are best used to safeguard the growth cycle of the economy and individuals and businesses against disruptions.
“Technology is a key enabler of a digital economy and has the potential to play a central role in enhancing access to finance for small enterprises. Fintech is re-defining business models across different segments, improving service delivery and digital financial inclusion. In 2020, the retail digital payments are at 52% against just 6% in FY14 and issuance of physical cheques is down from 78% to 33%. Today the country has leapfrogged a generation to move directly to Aadhar and biometric based payment mechanism.
“The biggest impact of this technology is, however, on the creation of a digital framework for financial inclusion. Use of Aadhar based payment systems like UPI Bhim for DBT has greatly reduced inefficiencies, leakages and cost for government programs.
“In FY-21, about 100 crore beneficiaries received 3 lakh crores directly into their bank accounts, this is a milestone for the country as the money is reaching the right person at the right time. Government transfers are not only making lives easier for the underserved but also creating an eco-system for B2B transactions,” elaborated Agarwal.
The conclave also saw the release of a report titled “FinTech for the Underserved: Future of FinTech and Payments to drive Financial Inclusiveness”. The report is prepared in collaboration with PwC as knowledge partner. #technology #banking #investment #economy /fiinews.com
