"India is ahead of world in digital payments," says FM Sitharaman
New Delhi [India], June 18 (ANI): At the Digital Payment Award distribution ceremony held in the national capital, Union Minister for Finance & Corporate Affairs Nirmala Sitharaman hailed India's extraordinary achievements in digital payments and financial technology, noting that the country is now leading the world in real-time digital transactions.
'In terms of digital payments, India is not just catching up -- it is ahead of the world,' she declared, as the audience of innovators, policymakers, and industry leaders applauded. 'The pace of innovation we are witnessing in India is a dream for many developed nations.'
Minister Sitharaman emphasised that India's fintech sector is not only progressing rapidly within its own ecosystem but is also redefining global paradigms. 'Several advanced countries are nowhere close to the kind of momentum our fintech companies have achieved. What is happening in India is unique -- a bold reimagination of financial infrastructure,' she noted.
Quoting a World Bank study, the Minister highlighted that India's focus on Digital Public Infrastructure (DPI) has helped the nation reach 80 per cent financial inclusion in just six years -- a feat experts estimate would have otherwise taken five decades.
'With 48.5 per cent of all real-time digital payment transactions in the world now originating from India, the impact is global. The UPI ecosystem alone now connects over 35 crore users, becoming the backbone of digital payments in the country. 'During the COVID-19 pandemic, payment apps became lifelines, enabling contactless transactions and doorstep banking -- keeping the economy moving while mobility was restricted,' Sitharaman reflected.
According to the Reserve Bank of India, the Digital Payments Index, a benchmark for the adoption of digital transactions, has quadrupled from 100 in 2018 to 465 in 2024.
'Our Prime Minister Narendra Modi, has always emphasised that we must not only 'Make in India', but also 'Make for the world',' the Minister said. 'In this context, India's fintech innovations are now poised to become global public goods, bringing benefits to both emerging and developed economies.'
Already, international UPI merchant payments are being accepted in 7 countries Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE. Sitharaman called on Indian fintech firms to export their successful models, saying, 'We have the talent, the market scale, and the proven solutions to lead globally.'
Looking ahead, the Finance Minister shared a bold vision for the sector: India's fintech market is projected to grow to over $400 billion by 2028-29, with an annual growth rate of over 30 per cent. 'The best chapters of India's fintech story are yet to be written. The opportunity is immense.'
She urged the industry to rally behind a collective mission: 'Let us Innovate, Include, and Inspire. Innovate new solutions fearlessly, include every citizen in your vision, and inspire the world with what India can achieve.'
The event also spotlighted India's achievement in Direct Benefit Transfers (DBT). Since 2014, Rs 44 lakh crore have been transferred transparently through DBT, saving Rs 3.48 lakh crore by eliminating leakages. 'This is the power of technology that drives policy and banking,' Sitharaman said.
Another milestone has been the rise of the Account Aggregator (AA) framework. From just 24 entities in FY22, over 700 entities across banking, insurance, pensions, and securities have joined the AA ecosystem as of FY25. The number of accounts linked has surged from 1.5 lakh to over 15 crore, facilitating loans of over Rs 88,700 crore, while empowering nearly 1 crore individuals with better personal finance management.
Concluding her address, Sitharaman encouraged fintech firms to look beyond urban markets. 'Rural India is not just a social responsibility. It is a fertile ground for innovation, inclusion, and opportunity. The next big wave of growth lies in the Bharat beyond the metros.' (ANI)
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