India's Digital Financial Revolution: A Surge in Account Aggregators and Fintech Innovation

Union Finance and Corporate Affairs Minister Nirmala Sitharaman announced a rapid surge in the adoption of the Account Aggregator (AA) platform, witnessing a rise to nearly 700 entities by the Financial Year 2025, up from a modest 24 in FY22. Speaking at the Digital Payments Awards 2025 in New Delhi, she emphasized the platform's role in enhancing access to financial services by sharing data consensually. Accounts linked through AA have soared to over 15 crore, marking a considerable increase from 1.5 lakh in FY22.

Sitharaman highlighted that this digital shift has facilitated loans amounting to over Rs 88,700 crore, empowering nearly 1 crore users in managing personal finances effectively, and reducing onboarding costs for financial intermediaries. She noted the vast expansion and its significant impact on the financial ecosystem in India.

Discussing the success of Direct Benefit Transfer (DBT), Sitharaman stated that since its 2014 inception, Rs 44 lakh crore has been transferred transparently, saving Rs 3.48 lakh crore by curtailing leakages through digital infrastructure and Aadhaar-enabled systems. She urged fintech firms to view rural India as a new market opportunity, beyond their social responsibilities, recognizing its potential for innovation and growth.

At the Fintech Payments Award 2025, major fintech firms PhonePe, PayTm, and Google Pay were acknowledged for their leadership in offline digital payments infrastructure, alongside Punjab National Bank and others in banking categories. Innovations from Equitas Small Finance Bank and India Post Payments Bank were also celebrated for enhancing financial access at the grassroots level. Additionally, Canara Bank and Yes Bank received accolades in fraud prevention, while WhatsApp Meta, Navi, and others gained recognition in the third-party app providers category for financial services.

(With inputs from agencies.)