Indian Economy Growing Rapidly, Holds Immense Promise, Says RBI Chief

Reserve Bank of India Governor Shaktikanta Das on Wednesday said that the Unified Payments Interface (UPI) has played a phenomenal role in the FinTech revolution in India.

"More than 10 billion transactions for over Rs 15 trillion value were carried out in August 2023. This number is steadily rising," Mr Das informed.

Shaktikanta Das also said that the Indian economy is growing rapidly.

'The Indian economy is growing rapidly and with it, the demand for financial services. The coming years hold immense promise and innovators across the world should explore these opportunities. I firmly believe that the GFF will emerge as a key global platform to unlock the full potential of India's FinTech ecosystem," the RBI Governor said in his keynote address at the Global Fintech Festival (GFF) 2023 in Mumbai.

Mr Das highlighted four aspects with particular emphasis on digital public infrastructure of the themes India is advocating- during the G20 summit over the weekend in Delhi and the role of RBI in fostering innovation.

"Digital Public Infrastructure (DPI) is commonly recognized as a technology system that promotes interoperability, openness, and inclusion to deliver vital public and private services. The defining feature of the Indian 'model' of digitisation is the lead taken by the government and the Public Sector in building infrastructure, on top of which innovative products are created by private sector FinTech firms and startups," the RBI governor said.

Citing the World Bank's Global Findex Database 2021, Das said that 76 per cent of adults worldwide had access to an account in a bank or a regulated financial institution as compared to 51 per cent in 2011.

In comparison, the percentage of adults in India who have access to bank accounts increased from 35 per cent in 2011 to 78 per cent in 2021, he said.

He said that 500 million Jan Dhan bank accounts have been opened in India since the launch of the Jan Dhan scheme by the government in 2014.

During his address, Governor Das that the Unique Identification Authority of India had issued 1.35 billion Aadhaar identities as of November 30, 2022.

"This has also enabled FinTechs to offer paperless and contactless financial services. Aadhaar has enhanced customer convenience, strengthened the security of financial transactions and substantially mitigated the risk of identity fraud. It is a good example of how digital

Public infrastructure can be leveraged to achieve public policy objectives," he said.

Underscoring the role of mobile connectivity in the digitisation of financial services in India, Mr Das said the number of internet users in India has grown from about 70 million in 2014 to about 800 million in 2022.

"During the same period, the number of digital transactions in India grew from about 1.2 billion in 2014 to about 91 billion in 2022. The increasing affordability of mobile phones, cheap access to data and the expansion of mobile network coverage have spurred the growth in the adoption of mobile wallets, UPI, and other digital payment methods," he said.

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