The new sector of FinTech has had the highest adoption rate in India compared to other countries. Currently, India has 20+ FinTech unicorns and the number continues to increase. It is anticipated that by 2030 there will be a 1$ trillion annual output and $200 billion income will be generated. NPCI which gives the necessary structure for several payment modes was formed by the Indian Banks Association and Reserve Bank of India. We have various payment methods in India now. There are UPI (google pay), Paytm, PhonePe, and debit and credit card systems. The entire banking industry has gone through major alterations over the years because of the new payment methods being introduced along with technology like blockchain, and digital currency.
“If the banking system is solid of any country, then the economy of the country will also be progressive and how FinTech is leading to a financial revolution,” said PM Modi. Further adding that the digital banking units (DBUs) will further financial inclusion enhancing the banking experience for customers. The DBU are outlets which provides services such as the opening of an account, balance checks, money transfers, investments, fixed deposits, credit, & debit card apps etc. The entire system has transformed so much that it sustains economic growth by replacing phone banking with digital banking now.
In today’s day and age, banking is not a financial transaction medium but much more then that, it is a sign of good governance and improved service delivery. The govt has now taken banks to people’s homes. With the comfort of being in your house, people can now access their accounts and transfer money with one click. The focus of the NDA government is transparency. To make the country’s economy secure from scams that happened during phone banking time. The government also took action against defaulters under the prevention of corruption act, lakhs, and crores of rupees have been brought back to the banks.
PM Modi said “a new self-driven mechanism has been created for the banking system through new initiatives such as DBUs and the innovative use of FinTech. There is much autonomy for consumers, there is also the same convenience and transparency for the banks.” Urging smaller businesses from all over including villages to move to digital transactions, asking the banks to connect 100 merchants each in order to go fully digital. He also asked banks to help connect 100 merchants each to go totally digital for the benefit of the country. With this shift from phone banking to digital banking, several schemes under the PM yojanas have been successful too. For ex: Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme where the money will directly be put into beneficiaries’ accounts which is 6000 a year in three instalments.