Prime Minister Narendra Modi on Friday highlighted the development posted by the Indian banking sector and said there was a time when in rural areas it used to take more than a day to access a banking service. “In the past decade, we’ve connected a population the size of the European Union to the banking system,” he said.
FinTechs have been detrimental in propelling the growth as today the country is not just lauded for cultural diversity but for its FinTech diversity, he said.
Jan Dhan Accounts
In his speech, PM Modi also mentioned the growth reported by his government’s ambitious PMJDY.
“Over the past ten years, broadband users have surged from 60 million to 940 million. Today, 530 million people hold Jan Dhan accounts, and everyone has a digital identity through Aadhaar.
He highlighted the success of the Jan Dhan Yojana, which recently celebrated its 10th anniversary.
Also Read: 10 years of PMJDY: How many accounts opened, avg deposit & RuPay cards issued?
“The Jan Dhan programme has empowered women, with 290 million women opening bank accounts. These accounts provide not just savings but also investment opportunities and access to microfinance. Already, INR 27 trillion in credit has been distributed, benefiting 100 million rural women through self-help groups,” PM Modi emphasised.
FinTechs democratising Financial Services
“FinTechs have democratized financial services, making them more accessible and inclusive. The Open Network for Digital Commerce (ONDC) and Account Aggregators (AAs) are simplifying processes and increasing liquidity. Our digital innovations, like UPI, have made India a global leader, with half of the world’s digital transactions happening here,” he said.
He also addressed the resilience of India’s banking system, which operates 24/7, 365 days a year.
“Even during the pandemic, our banking services continued uninterrupted, proving the strength of our digital infrastructure,” the Prime Minister added.
Focus on Policy Changes
PM Modi pointed out several recent policy changes. “We’ve scrapped the angel tax, established an INR 1 lakh crore fund for research and innovation, and enacted the Digital Personal Data Protection (DPDP) Act. These steps are crucial for fostering innovation while ensuring that regulations don’t hinder the growth of FinTechs,” he explained.
He also addressed global concerns about AI misuse, stating, “India will lead in creating a global framework for the ethical use of AI. At the same time, we’re focused on building a sustainable economy, with green finance playing a key role in supporting sustainable growth.”
