Global Fintech Festival (GFF) 2024 in Mumbai, Reserve Bank of India (RBI) Governor Shaktikanta Das outlined five strategic priorities for India’s financial future, underscoring the country’s ambitious plans to establish itself as a leading global economy.
Five Priorities for India’s Financial Future
- Financial Inclusion: RBI Governor highlighted the significant progress in financial inclusion, with the RBI’s Financial Inclusion Index rising from 53.9 in March 2021 to 64.2 in March 2024.The Pradhan Mantri Jan Dhan Yojana (PMJDY), a flagship financial inclusion initiative, has been central to this progress, with over 530 million bank accounts opened, 66% in rural and semi-urban areas, and 55% benefiting women.Looking ahead, the RBI Governor stressed the importance of leveraging technology over the next two decades to address the financial needs of underserved regions, highlighting the crucial role of fintech companies in bridging gaps and ensuring seamless access to financial services.
- Enhancing Digital Public Infrastructure (DPI): The second priority outlined was the enhancement of DPI, which he identified as a key driver in integrating advanced technologies into India’s financial system.Highlighted the RBI’s pilot project on the Unique Lending Interface (ULI), which is set to be launched on a full scale soon. This initiative, combined with the existing JAM (Jan Dhan-Aadhaar-Mobile) trinity and Unified Payments Interface (UPI), represents a new era in India’s financial journey.DPI has the potential to revolutionise financial services in India, bringing greater financial inclusion and efficiency across the country.
- Strengthening Cybersecurity: In an increasingly digital world, cybersecurity is a critical pillar in safeguarding India’s financial ecosystem.Real-time monitoring and regulatory compliance are essential, especially with the recently enacted Digital Personal Data Protection Act 2023, which empowers individuals with greater control over their data, thereby enhancing trust in digital financial services.Banks and fintech firms, particularly Non-Banking Finance Companies (NBFCs), are expected to adopt a customer-centric approach, ensuring transparency in financial products and fair lending practices.There is a need for continuous vigilance against cyber threats and the importance of promoting cybersecurity awareness to build a secure digital economy.
- Promoting Sustainable Finance: The RBI Governor highlighted RBI’s initiatives like sovereign green bonds and green deposits as steps towards promoting sustainability in the financial sector, while noting the need for further expansion of the green bond market.Emphasised the transformative role of technology, particularly Artificial Intelligence(AI) and big data, in assessing environmental risks and accelerating the transition to sustainable finance.Fintech firms are expected to lead this transition, positioning India as a sustainable finance leader.
- Reinforcing Financial Infrastructure: RBI Governor underscored the need to strengthen India’s financial infrastructure, with a focus on cross-border payments, and highlighted the RBI’s efforts to make UPI and RuPay global.He cautioned about the careful adoption of AI, and emphasised the importance of innovation in reinforcing India’s financial infrastructure, including the potential of the Internet of Things.
Global Fintech Festival 2024
- The GFF 2024 stands as one of the largest and most influential fintech conferences globally. Organised annually by the Payments Council of India (PCI), the National Payments Corporation of India (NPCI), and the Fintech Convergence Council (FCC).
- Central to GFF is the Global Fintech Awards (GFA), which recognizes exceptional fintech initiatives and contributions from around the world, celebrating innovation and excellence in the industry.
- Fifth Edition GFF 2024 Theme: “Blueprint for the Next Decade of Finance: Responsible AI | Inclusive | Resilient”.
- The GFF 2024 in Mumbai showcased India’s fintech growth, with over 11,000 startups and USD 6 billion in funding in the last three years.