Mumbai: Prime Minister Narendra Modi on Tuesday said the fintech sector needs to work relentlessly on safety and reliability to uphold trust of the people. In his message at the Global Fintech Fest, Modi said the sector has been an example of the wonders that can be worked when a government that encourages innovation comes together with the energy of young and inventive minds.
"Innovation for inclusion has been our mantra, leading to the revolution in public delivery ensured by the JAM Trinity, success of UPI in making digital payments a way of life, and India's global rise in the fintech and startup space as a hub of innovation and investment," Modi said in the message which was read out by Kris Gopalakrishnan, Chairman, GFF 2022 Advisory Board.
JAM Trinity refers to Jan Dhan-Aadhaar-Mobile. Modi said from a largely unbanked population to a country that is not only surging towards saturation in banking access but also digitally equipped, it has been a phenomenal journey. "People involved in the fintech domain know well that constant innovation is the name of the game. Rapid, relentless and proactive work in ensuring security, safety and reliability is important to uphold the enormous trust that the people have placed," he said.
The Prime Minister said the fintech domain in India has earned goodwill by being an enabler of inclusion, and there is a need for continued focus to empower the poorest of the poor by taking quality financial services to them. He exuded confidence that the deliberations in the event will focus on how the fintech sector can play a crucial role in the 'Amrit Kaal', leading to the creation of a strong, prosperous and inclusive India.
Meanwhile, Finance Minister Nirmala Sitharaman nudged the fintech industry to break the distance barrier and have more engagements with the government and its agencies to enhance trust. Sitharaman was replying to a question by Kris Gopalakrishnan, Chairman, Global Fintech Fest (GFF) 2022 Advisory Board, who wanted to know how to ensure trust among industry, regulators, and the government.
"I don't want to sound cliche, but distance brings distrust. So, cut the distance down, have greater engagement with the government," the minister said. Sitharaman further said everyone in the government, whether the prime minister, ministers or think-tank Niti Aayog, is constantly available for engagement, discussions, and exchange of ideas.
"So greater the engagement, greater the trust, which gets built up. So I think one sure shot way of retaining and building on trust is to keep the constant engagement going," she said. To a question related to the role of the central bank and the finance ministry on the proposed digital currency, Sitharaman said the Reserve Bank will come out with the RBI-driven digital currency.
On February 1, she had announced in her Budget speech that Digital Rupee or Central Bank Digital Currency (CBDC) would be issued by the RBI in a current financial year. In her address at GFF 2022, the minister said the RBI's regulatory sandbox mechanism has provided a structured and institutionalised framework through which fintech companies are able to test their new products, new innovations before scaling them.
"So this has actually helped in testing it in a controlled environment and post that you're able to scale up rapidly so that markets can get the benefit and you can accelerate your product innovations," she said. The minister further said there are opportunities for fintech players to play the role in a sustainable financial environment, and take advantage of the specific opportunities in green finance a financial arrangement for the specific use of funds for environmentally sustainable development products. (PTI)
