Unveil your financial potential with Government-Backed Fintech Policies

At present, India's FINTECH market is expanding rapidly. It is fascinating to observe that even though India’s fintech industry is not over a decade old in the country, the adoption rate is 87% against the global average of 64%. A robust and adaptable interface paved the way for a transparent banking ecosystem. As a result, RBI set up an internal Fintech department in 2022.

Today Indian Fintech is playing a key role in carving the Indian Economy and now the Indian FinTech market is the third-largest in the world. According to "The World fintech" report by BLinC Invest, it comprises US$31 billion in the US$ 500 billion Indian BFSI sector.

RBI has ensured tech-neutrality, digital lending, and principle-based regulations for the smooth flourishing of the fintech industry. For better integration and timely services, RBI has enhanced its robust cyber security measures under Niti Aayog and IRDA.

New Initiatives taken up by the government and RBI to support India's Fintech Revolution

• Jan Dhan Yojana aims to increase financial inclusion in India. This has made it possible for FinTech to develop technological goods that would appeal to India's broad customer base.
• India Stack is a collective project that aims to provide public digital infrastructure. This has supported public and commercial digital efforts, such as the quickening of technology adoption in the financial sector.
• Aadhar has made the Aadhar Payment Bridge System and Aadhar Enabled Payment System possible. This will ease the data collection of account holders.
• Digitalization has safeguarded Fintech startups and customers to utilize technology-enabled solutions. The development and rollout of authentication solutions have been a time saver for the onboarding process. Digital KYC, video-based customer identification processes, and digital signatures have been adopted efficiently.
• Unified Payments Interface is India's modular digital payment platform, famously known as UPI. This game-changer system is a boon for the fintech industry.
• License for payment banks is extending access to payments/remittance services. The RBI has announced an increase to the maximum end-of-day balance for payment banks to Rs. 2 lakhs in an effort to boost digital payments banks in the nation.
• Due to the National Automated Clearing House System, bulk transactions have been executed successfully. This has enabled smooth transactions for vendor payouts and payroll management.
• Bharat BillPay facilitates myriad payment modes enabling Bill payments. The payment modes options facilitated under the ecosystem are Cards (Credit, Debit, and Prepaid), NEFT Internet Banking, UPI, Wallets, Aadhar-based Payments, and Cash. Additionally, the RBI has created the Payments Infrastructure Development Fund (PIDF) program to subsidize the implementation of payment acceptance infrastructure in Tier 3 to Tier 6 centers.

Conclusion:

According to economic assessments for 2020 and 2021, India's FinTech would enable data-driven loan decisions, effective processing, and operating cost reduction to grow India's GDP to $5 trillion USD. India has to make significant use of knowledge and technology to achieve its goal of becoming a $5 trillion economy, particularly in the BFSI sector.