Financial transformation will be fueled by fintech, says PM Modi

• ByStartupStory     |    October 18, 2022

According to Prime Minister Narendra Modi, a nation’s economy is only as advanced as its banking system, and technology will usher in a new era of finance. 

According to Modi, the banking industry has evolved into a platform for strong governance and improved service delivery, and he said that Digital Banking Units (DBUs) will promote financial inclusion and improve users’ banking experiences. 

He stated on Sunday, dedicating 75 DBUs in as many districts across the nation, “If Jan Dhan accounts had created the foundation of financial inclusion in the country, then fintech will form the cornerstone of financial revolution.” DBUs are physical locations that offer services including opening an account, checking your balance, transferring money, investing in fixed deposits, applying for loans, applying for credit and debit cards,and tax and bill payments,etc.

Modi credited the efforts of the current administration to replace “phone banking” prior to 2014 with “digital banking” for India’s continued economic growth. 

According to him, banking now facilitates more than just financial transactions; it also aids in better service delivery and good administration. 

Prior to 2014, he said, bank executives used to receive calls that controlled how they conducted themselves. In May 2014, the Narendra Modi-led NDA took office. 

“Phone banking politics had sown the seeds of millions of crores of scams, making the banks dangerous and making the country’s economy insecure,” he remarked, highlighting how the government had changed the system with transparency as the primary goal.He said that the Insolvency and Bankruptcy Code had helped the government speed up the resolution of bad bank debt (IBC). 

The banking system has received lakhs of crores of rupees back after identifying non-performing assets (NPAs). 

He claimed, “We recapitalized institutions, prosecuted willful defaulters, and changed the Prevention of Corruption Act. 

According to the prime minister, new programmes like DBUs and the creative application of fintech have given the banking industry a new self-driven mechanism. “Consumers have a great deal of autonomy, and banks have the same ease and transparency,” he said.

The Prime Minister claimed that in contrast to previous practises, when it was the other way around, his government had brought banks to the people. 

He declared, “We have made it our top mission to make sure that financial services reach the last mile. 

Small business owners in rural areas were pushed by the prime minister to completely switch to digital transactions. Additionally, he requested that banks assist 100 merchants each in going completely digital for the good of the nation. 

In his words, “I am confident that this initiative will take our banking system and economy to a stage that will be future ready and will have the capacity to lead the global economy.

He added that the government has sent Rs 25 lakh crore directly to beneficiaries under the Direct Benefit Transfer (DBT) system, which has assisted in closing the digital gap and combating corruption. 

He asserted that the “digital economy today is a huge strength of our economy, of our startup community, of Make in India, and of India’s self-reliance.” 

Additionally, he stated that a further payment will be made on Monday under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) programme. The programme offers qualifying farm households Rs 6,000 per year, payable in three equally spaced Rs 2,000 installments.

The Prime Minister remarked, in reference to the decision to introduce a digital currency based on blockchain, “Be it digital currency in future times or digital transactions in present times, many vital factors are related with them outside from the economy.” 

Nirmala Sitharaman, the finance minister, said DBUs will make it possible for individuals who don’t own a computer or even a smartphone to access banking services digitally without the need for any form of paper documentation. To mark 75 years of Indian independence, the finance minister has announced the creation of 75 DBUs as part of the FY23 budget in as many districts across the nation.

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