FM urges fintechs to tackle digital arrests, deepfakes, and cyber fraud
Speaking at the Digital Payments Awards 2025 ceremony, the minister credited fintechs with helping speed up financial inclusion and taking the payment system to even the far-flung areas of the country.
Finance Minister Nirmala Sitharaman on Wednesday asked fintech startups to come out with solutions to deal with the rising incidence of digital arrests, cheating by fly-by-night operators, and other kinds of cyber frauds.
Speaking at the Digital Payments Awards 2025 ceremony, the minister credited fintechs with helping speed up financial inclusion and taking the payment system to even the far-flung areas of the country.
She said it is important to ensure that startup companies come up with solutions so that people are not arrested at home digitally, or fly-by-night operators do not take their money.
Another major threat, Sitharaman pointed out, is deepfake technology, which is causing a lot of damage to the public in large.
"Today, we should take care in addressing them so we need a set of fintech companies which are constantly working to give solutions for the newer challenges which are arising," she said.
She also called upon the fintech sector to further expand the digital lending facilities to the key MSME sector.
Indian fintech innovations have the potential to become global public goods that can benefit other emerging and developed economies. This will open new markets for Indian firms, she added.
International merchant payments through UPI are now accepted at select merchant outlets in seven countries -- Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE.
"Our players must aim to export our successful models abroad and capture global markets. We have the talent, we have the market scale and we have the proven solutions," she said. This, she said, will open up new markets for domestic firms.
The Indian fintech market is projected to grow to over $400 billion by 2028-29.
"That's not too far away. Just three years. Reflecting on an anticipated annual growth of 30%, the scale of opportunity is immense. I firmly believe its best chapters are yet to be written.
"Together, 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," she said.
Noting that India now actually accounts for almost half of all real-time digital transactions in the world, she said, direct benefit transfer (DBT) has saved a lot of money by plugging leakages.
About Rs 44 lakh crore have been transferred through DBT since 2014 and Rs 3.48 lakh crore have been saved.
The minister said the speed at which innovation is happening in India is just a dream for many other countries.
"Several advanced countries are nowhere close to the kind of momentum our fintech companies have achieved, not just in terms of progress in their respective areas but also in creating entirely new paradigms.
"This is something which is very unique of the Indian fintech sector," she added.
A World Bank study found that India achieved a financial inclusion rate of 80% in just six years through Digital Public Infrastructure (DPI), Sitharaman said.
Some observers who have gone through this report have said that this feat would have otherwise taken nearly 50 years, she said.
On customer service, she said the future of finance will be 'Phygital' -- physical and digital -- so it is important to leverage the reach of technology as well as have physical presence, to serve customers better and build trust over time.
Speaking on the occasion, Minister of State for Finance Pankaj Chaudhary highlighted the foundational role of the banking sector and fintechs in powering India's digital financial transformation.
He underlined that banks have built infrastructure and trust while fintechs have driven innovation and user-centric design together, making digital payments an everyday reality.
Financial Services Secretary M Nagaraju said in his address that India's digital payments sector has grown exponentially in the past few years.
In FY 2024-25, UPI achieved a landmark 18,587 crore transactions amounting to 261 lakh crore. This growth is a result of innovation and user-centric approach.